Document:

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                             AMC ENTERTAINMENT INC.
                         106 W. 14th Street, Suite 2000
                           Kansas City, Missouri 64105

                                December 6, 2001
                  (Amended and restated as of January 28, 2002)

GC Companies, Inc.
1300 Boylston Street
Chestnut Hill, Massachusetts 02467

Attn:   G. Gail Edwards
        President and Chief Operating Officer

Dear Ms. Edwards:

      This amended and restated letter of intent ("Letter") supercedes and
replaces that certain letter of intent dated December 6, 2001, as amended as of
January 15, 2001. The purpose of this Letter is to set forth certain non-binding
understandings and certain binding agreements between AMC Entertainment Inc., a
Delaware corporation ("AMCE" or "we"), and GC Companies, Inc., a Delaware
corporation ("GCX" or "you"), and its affiliated debtors and debtors in
possession (collectively, the "GCX Debtors") in cases under chapter 11 of the
United States Bankruptcy Code that are currently pending the United States
Bankruptcy Court for the District of Delaware (the "Court") as case nos. 00-3897
(EIK) to 00-3927 (EIK) (the "Chapter 11 Cases"), with respect to AMCE's
acquisition of newly issued shares of GCX common stock ("New GCX Stock"),
representing 100% of the outstanding capital stock of GCX as reorganized
pursuant to a plan of reorganization in form and substance reasonably
satisfactory to AMCE in the good faith exercise of its discretion that (i) is in
all respects consistent with this Letter and the Term Sheet (as defined below),
(ii) does not impose on AMCE any liabilities or obligations in addition to or
other than those provided in this Letter, the Agreement (as defined below) and
the Term Sheet and (iii) contains such other provisions that AMCE reasonably
deems necessary to protect AMCE (the "Plan"), on the terms and conditions
described in this Letter (collectively, the "Proposed Transaction").

      Section 1 reflects our understanding with respect to the matters described
in them, but are not to constitute a complete statement of, or a legally binding
or enforceable agreement or commitment on the part of, AMCE or the GCX Debtors
with respect to the matters described therein.

      1.    PURCHASE OF GCX AND SUBSIDIARIES.

      (a)   On the terms and subject to the conditions (which will be
            substantially in accordance with this Letter and the Term Sheet) set
            forth in (A) that certain Stock Purchase Agreement dated January 15,
            2002 (as may be amended, the "Agreement") among GCX, AMCE, American
            Multi-
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            Cinema, Inc. ("AMC") and Centertainment Development, Inc. ("CDI"), a
            copy of which is attached hereto as Exhibit II, and (B) the Plan
            (collectively, the "Transaction Documents"), AMCE intends to acquire
            substantially all of the assets, properties and business (the "GCX
            Business and Assets") of GCX and its subsidiaries through (i) AMC's
            acquisition of the New GCX Stock on the effective date of the Plan
            (the "Effective Date"), (ii) CDI's acquisition of all of the stock
            of General Cinema International, Inc., and (iii) CDI's acquisition
            of all of the stock of reorganized GCC Investments, Inc.

      (b)   The Transaction Documents will or do provide that, at the Effective
            Date, the consideration specified in the Term Sheet for the
            acquisition of GCX by AMCE attached hereto as Exhibit I (the "Term
            Sheet") will be issued to or for the benefit of the claimants and
            equity holders in the Chapter 11 Cases as provided in the Plan.

      (c)   The Transaction Documents will or do provide that, at the Effective
            Date, the lessee of each of the domestic theatre leases that is
            assumed under the Plan shall be a single domestic operating
            corporation named "General Cinema Theatres, Inc." ("Reorganized
            GCT") that will be a wholly-owned subsidiary of Reorganized GCX,
            except (i) as otherwise determined by AMCE in its sole discretion or
            (ii) to the extent any such lease is assigned to Reorganized GCT, if
            the counterparty to such a contract or lease objects to such
            assignment and the Court does not approve such assignment (in which
            case the lessee will be the existing GCX Debtor that is lessee under
            such lease).

      (d)   The Transaction Documents will or do provide that, to the extent
            that on the Effective Date GCX has insufficient cash to repay GCX's
            debtor-in possession credit facility in full and to pay any unpaid
            "Deduction Claims" (as defined in the Term Sheet), AMCE will fund
            the shortfall. AMCE also will provide GCX, for presentation to the
            Court at the Plan confirmation hearing, evidence to support a
            finding by the Court that the working capital feasibility
            requirements for the Plan under Section 1129(a)(11) of the
            Bankruptcy Code are met.

      2.    [OMITTED]

      3. BINDING AGREEMENTS. Upon execution of counterparts of this Letter by
you, the following lettered paragraphs of this Section 3 will constitute the
legally binding and enforceable agreement of AMCE and GCX (in recognition of the
significant costs to be borne by AMCE and GCX in pursuing this transaction and
further in consideration of their mutual undertakings as to the matters
described herein).

            (a) Access. Subject to the terms set forth in paragraph (j) below
respecting confidentiality and certain other matters, GCX, on reasonable notice,
will

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afford AMCE's employees, auditors, legal counsel and other authorized
representatives all reasonable opportunity and access during normal business
hours to inspect, investigate and audit in a reasonable manner the GC Business
and Assets and to meet with GCX personnel before the Effective Date.

            (b) Consents. AMCE and GCX will cooperate with one another and
proceed, as promptly as is reasonably practicable, to seek to obtain all
necessary material consents and approvals from governmental bodies, lenders,
landlords and third parties necessary to consummate the Proposed Transaction,
and to endeavor to comply with all other legal or contractual requirements for
or preconditions to the execution and consummation of the Transaction Documents
and the Proposed Transaction. Without limiting the generality of the foregoing,
GCX and AMCE shall file premerger notification under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the "HSR Filing"), as soon as
reasonably practicable after execution of this Letter, but in any event prior to
the earlier to occur of (i) five (5) days following Court approval of this
Letter and the IOA, or (ii) January 28, 2002.

            (c) [Omitted].

            (d) Bankruptcy Process. AMCE, GCX and the Committee of Unsecured
Creditors in the Chapter 11 Cases (the "Committee") will cooperate in the
preparation of the Plan, the disclosure statement therefor (the "Disclosure
Statement"), the forms of ballots, solicitation procedures and Plan related
procedures (collectively, the "Plan Procedures") and will use commercially
reasonable efforts (which shall not be interpreted to require AMCE or GCX to pay
any amount other its own attorneys' fees) to obtain Court approval and
confirmation of the Agreement, Plan, Disclosure Statement and Plan Procedures
and to implement the Plan in accordance with the following schedule:

            (i)   [Omitted].

            (ii)  The Plan and Disclosure Statement were filed with the Court on
                  or before December 21, 2001 and the Plan Procedures were filed
                  on or before January 10, 2002.

            (iii) A Court order approving the adequacy of the Disclosure
                  Statement shall have been entered on or before February 25,
                  2002.

            (iv)  The applicable waiting period for the HSR Filing shall have
                  expired or been terminated early, without the initiation of
                  any enforcement action and without the imposition of any
                  conditions on the Proposed Transaction by the Federal Trade
                  Commission or the Antitrust Division of the Department of
                  Justice, not less than five (5) days prior to the confirmation
                  hearing for the Plan.

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            (v)   A Court order confirming the Plan (the "Confirmation Order")
                  shall have been entered on or before March 20, 2002.

            (vi)  The Confirmation Order shall have become a final,
                  nonappealable order on or before April 1, 2002.

            If AMCE is not in breach of its obligations under this Letter, AMCE
may extend any of the dates set forth in any or all of clauses (i) through (vi)
above, inclusive, for a period of up to thirty days, by giving written notice of
such election to GCX and the Principal Claimants (as defined below) on or before
the applicable date being extended. If GCX is not in breach of its obligations
under this Letter, GCX and the Committee may jointly extend any of the dates set
forth in any or all of clauses (i) through (vi) above, inclusive, for a period
of up to thirty days, by giving written notice of such election to AMCE and the
Principal Claimants (as defined below) on or before the applicable date being
extended.

            (e) Exclusivity. GCX acknowledges that AMCE has expended and will
continue to expend considerable time and money in developing the Proposed
Transaction, which it is not prepared to continue expending, however, except
upon the terms hereof, including the provisions of this paragraph (e).

            (i)   Nonsolicitation. Neither GCX nor any of its respective
                  directors, employees, accountants or other agents and
                  representatives (collectively, "Representatives") shall,
                  directly or indirectly, solicit a competitive bid or proposal
                  from a third party to purchase all or any portion of the GCX
                  Business and Assets or the New GCX Stock, whether in a
                  separate transaction or as part of a plan of reorganization
                  for GCX (a "Third Party Plan"), or engage in or continue any
                  discussions or negotiations with any party that has made or
                  who may make such a competitive bid for such New GCX Stock or
                  the Assets.

            (ii)  Unsolicited Proposals. Notwithstanding subparagraph (i), GCX
                  may consider an unsolicited Third Party Plan if and only if
                  the Court finds that (A) the Third Party Plan would provide
                  for a material increase in the aggregate value of the
                  consideration being paid for all of the GCX Business and
                  Assets compared to the Plan, (B) the Third Party Plan is
                  fully-financed and the third party is otherwise capable of
                  performing its obligations thereunder, and (C) GCX may
                  consider the Third Party Plan.

            (iii) Support Agreements. GCX acknowledges that certain claimants
                  and parties in interest in the Chapter 11 Cases, to wit:
                  General Electric Capital Corporation, Harcourt General, Inc.
                  and the Committee (collectively, the "Principal Claimants"),
                  have entered into support agreements with AMCE with respect to
                  the Plan (the

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                  "Support Agreements") that obligate the Principal Claimants to
                  support the Plan and prevent the Principal Claimants from
                  supporting a Third Party Plan, subject to the terms and
                  conditions of the Support Agreements.

            (f) Termination. This Letter may be terminated (A) by AMCE, at
AMCE's sole discretion, promptly following the passing of the applicable
deadline upon written notice to GCX and the Principal Claimants if, through no
material fault of AMCE, any event specified to occur as of a certain date in
paragraph (d) above has not occurred as of such date, including any extensions,
or (B) by the non-breaching party due to material breach of this Letter by the
other party if the breaching party does not cure such breach within thirty (30)
days after written notice from the non-breaching party. Without limiting the
foregoing, any breach by GCX of clause (i) or (ii) of paragraph (e) shall be a
material breach of this Letter. Upon any such termination, any obligations under
this Letter will terminate and no party shall have any liability whatsoever to
any other party; provided, however, that nothing in this Letter shall limit the
availability of any equitable remedies, including specific performance,
available to AMCE upon GCX's breach of this Letter, the IOA or the Agreement.

            (g) Costs. AMCE and GCX will each be solely responsible for and bear
all of its own respective expenses, including expenses of legal counsel,
accountants and other advisers, incurred at any time in connection with pursuing
or consummating the Proposed Transaction.

            (h) Miscellaneous. The terms set forth in this Letter are a part of
a comprehensive agreement, each element of which is an integral aspect of the
Proposed Transaction and, as such, are non-severable. Headings are for reference
only and do not constitute part of this Letter. The words "includes" and
"including" shall not be words of limitation and shall be read to also add
"without limitation." This Letter shall be governed by and construed in
accordance with the internal laws of the State of New York and any applicable
provision of the Bankruptcy Code, without regard to the principles of conflict
of laws that would provide for application of another law. Each of the parties
acknowledges and agrees that no failure or delay in exercising any right, power
or privilege hereunder will operate as a waiver thereof, nor will any single or
partial exercise thereof preclude any other right, power or privilege hereunder.
This Letter may be executed in counterparts, each of which when taken together
shall constitute an original of this Letter. It is understood that this Letter
does not contain all matters upon which agreement must be reached in order for
the Proposed Transaction to be consummated; however, the provisions of Section 3
of this Letter, are acknowledged and agreed to be fully binding on the parties
hereto.

            (i) Public Disclosure. AMCE and GCX may provide copies of this
Letter and attachments to parties in interest in the Chapter 11 Cases and as
otherwise necessary in connection with the Chapter 11 Cases. AMCE and GCX also
shall be entitled to file copies of this Letter with the Court, the Securities
and Exchange Commission, the HSR Filing and any exchange upon which AMCE's or
GCX's

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securities are traded, and as otherwise required by law. Subject to the
foregoing, neither AMCE nor GCX shall make any public release of information
regarding the matters contemplated herein except (i) that simultaneous press
releases in the form approved by AMCE and GCX in writing by fax or by E-mail
shall be issued by each of AMCE and GCX as promptly as is practicable after the
execution of this Letter and at such other times as may be set forth in the
Agreement, (ii) AMCE may issue one or more press releases to the effect that it
has entered into support agreements with other creditors of the GCX Debtors,
after consultation with GCX, and (iii) that AMCE and GCX may each continue such
communications with employees, customers, suppliers, franchisees, lenders,
lessors, shareholders, and other particular groups as may be legally required or
necessary or appropriate and not inconsistent with the best interests of the
other party or the prompt consummation of the transactions contemplated by this
Letter, and (iii) as required by law, the Court, with the Securities and
Exchange Commission, the HSR Filing and any exchange upon which AMCE's or GCX's
securities are traded.

            (j) Confidentiality. AMCE agrees that, except as provided in this
Letter, that certain letter agreement respecting confidentiality and
nondisclosure dated June 29, 2001 between GCX and AMCE shall remain in effect.
The provisions of this paragraph (j) shall survive the termination of this
Letter.

            (k) Other Plan Provisions. The Plan shall contain customary release
provisions with respect to directors, officers and employees of the GCX Debtors,
preserve any pre-petition claims of directors, officers and employees of the GCX
Debtors to the extent of coverage therefor under GCX's existing Directors and
Officers Insurance Policy ("D&O Policy") and preserve the rights of the current
GCX directors and officers consistent with the GCX bylaws against reorganized
GCX with respect to advancement of legal fees and expenses up to an aggregate
maximum of $250,000 for all individuals, claims and occurrences (subject to
replenishment by any reimbursement received by reorganized GCX from any source).
In addition, AMCE will fund the procurement of "tail" coverage under the D&O
Policy, up to a maximum premium cost of $350,000, which amount will not be an
Deduction Claim within the meaning of the Term Sheet.

                     [Remainder of page intentionally blank]

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      We look forward to working with you on the Proposed Transaction.

                                        Very truly yours,

                                        AMC ENTERTAINMENT INC.

                                        By:  /s/ Craig R. Ramsey
                                             Craig R. Ramsey
                                             Senior Vice President - Finance,
                                             Chief Financial Officer and
                                             Chief Accounting Officer

ACKNOWLEDGED AND AGREED TO:

GC COMPANIES, INC.

By:  /s/ G. Gail Edwards
     G. Gail Edwards
     President and Chief Operating Officer

                       SIGNATURE PAGE TO LETTER OF INTENT
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                                                  CONSENT OF PRINCIPAL CLAIMANTS

The undersigned Principal Claimants in the Chapter 11 Cases hereby consent to
this Letter of Intent and acknowledge that it constitutes a "Qualified Letter of
Intent" within the meaning of the Support Agreements.

THE COMMITTEE OF UNSECURED CREDITORS
IN THE CHAPTER 11 CASES OF THE GCX DEBTORS

By:  /s/ William S. Kaye
     -----------------------------------
     Name:  William S. Kaye
     Title: Chairman

GENERAL ELECTRIC CAPITAL CORPORATION

By:  /s/ Nicole Russo
     -----------------------------------
     Name:  Nicole Russo
     Title: Risk Manager

HARCOURT GENERAL, INC.

By:  /s/ Charles P. Fontaine
     -----------------------------------
     Name:  Charles P. Fontaine
     Title: Vice President

                       SIGNATURE PAGE TO LETTER OF INTENT

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                                                                       EXHIBIT I
                                                                      TERM SHEET

                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GC COMPANIES, INC. ("GCC") BY AMC
ENTERTAINMENT INC. ("AMCE")(1)

      A. CLASSIFICATION AND TREATMENT OF CLAIMS AND INTERESTS

           (a) Unclassified Claims (not entitled to vote)

           Administrative      On the Effective Date, or as soon thereafter as
           Claims:             practicable, each holder of an Allowed
                               Administrative Claim will receive payment in full
                               in cash of the unpaid portion of such Allowed
                               Administrative Claim.

           DIP Financing       On the Effective Date, or as soon thereafter as
           Claims:             practicable, the holders thereof will receive
                               payment in full in cash of the Allowed DIP
                               Financing Claims.

           Priority Tax        At the option of AMCE, each holder of an Allowed
           Claims:             Priority Tax Claim(2) will receive either (i)
                               payment in full in cash on the Effective Date or
                               as soon thereafter as practicable, or (ii)
                               payment over a six year period from the date of
                               assessment as provided in section 1129(a)(9)(C)
                               of the Bankruptcy Code with interest payable at
                               7% annually or at such other rate agreed to by
                               AMCE and the holder of such claim or determined
                               by the Bankruptcy Court; provided, however, that
                               any Allowed Priority Tax Claim for which any
                               member of the GECC Group is liable, the payment
                               of which is demanded from such member by the
                               applicable taxing authority, shall be payable
                               upon the later of the date of such demand or the
                               Effective Date.

----------

(1) This Term Sheet contemplates that AMCE will acquire the stock of Reorganized
GCC pursuant to a plan of reorganization for the GCC Debtors (the "Plan") and
operate it as a wholly-owned subsidiary. AMCE may designate that such stock will
be acquired by AMCE's subsidiary, American Multi-Cinema, Inc.

(2) Allowed Priority Tax Claims shall include sales taxes related to the GECC
Group's synthetic leases.
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TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

           (b) Unimpaired Claims (deemed to accept)

           Class 1--Other        On the Effective Date, or as soon thereafter as
           Priority Claims:      practicable, each holder of a Class 1 Claim
                                 will receive payment in full in cash of such
                                 Allowed Other Priority Claim.

           Class 2--Secured      As to each Class 2 Claim, at the option of
           Claims other than     AMCE, AMCE will either (i) reinstate such Class
           Banks, Heller and     2 Claim by curing all outstanding defaults with
           GECC Group:           all legal, equitable, and contractual rights
                                 remaining unaltered, except as permitted by 11
                                 U.S.C. Section 1124(2), (ii) pay in full the
                                 allowed amount of such Class 2 Claim in cash on
                                 the Effective Date or as soon thereafter as
                                 practicable or (iii) satisfy such Class 2 Claim
                                 by delivering to the claimant the collateral
                                 securing such claim.

           Class 3--Claims       As to each Class 3 Claim, AMCE will reinstate
           of Heller:            such Class 3 Claim by curing all outstanding
                                 defaults and leaving all legal, equitable, and
                                 contractual rights unaltered, except as
                                 permitted by 11 U.S.C. Section 1124(2);
                                 provided, that, AMCE shall have the right to
                                 pay such Allowed Class 3 Claim in full in cash
                                 on the Effective Date, or as soon thereafter as
                                 practicable, in full satisfaction of such
                                 Allowed Class 3 Claim. For purposes of the
                                 foregoing, Heller shall be deemed to have an
                                 allowed Class 3 Claim in the amount of
                                 $28,408,027 as of December 4, 2001, which
                                 amount shall be reduced by the principal
                                 portion of any payments made by GCC through the
                                 Effective Date.

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TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

           (c) Impaired Claims (entitled to vote)

Class 4--Claims of        For purposes of the Plan, Fleet National Bank, N.A.
Banks:                    ("Fleet") and The Bank of Nova Scotia (collectively,
                          the "Domestic Banks") shall be deemed to have Allowed
                          Class 4 Claims of $44.6 million. On the Effective
                          Date, or as soon thereafter as practicable, each
                          holder of an Allowed Class 4 Claim will receive New
                          AMCE Notes(3) with a face amount equal to 100% of its
                          Allowed Class 4 Claim(4); provided, however, that each
                          holder of a Class 4 Claim may elect to receive, in
                          lieu of its New AMCE Notes, cash in an amount equal to
                          87.5% of the New AMCE Notes to which it would
                          otherwise be entitled (such option being hereinafter
                          referred to as the "New AMCE Notes Exchange Option").
                          Whether or not the New AMCE Notes Exchange Option is
                          exercised, the consideration provided for herein shall
                          be in full satisfaction of the Allowed Class 4 Claims
                          for all purposes, and without limiting the foregoing,
                          will be deemed to fully satisfy all claims and rights
                          of the holders of such claims against Harcourt
                          General, Inc. ("Harcourt") under that certain
                          Intercreditor Agreement dated January 26, 1999 (the
                          "Intercreditor Agreement") between Harcourt and Bank
                          Boston, N.A. (n/k/a Fleet National Bank, N.A.), as
                          administrative agent for the Domestic Banks.

GCC's Guaranty of         As a condition of the treatment of the Class 4 Claims
Hoyts General             as described above (the "JV Loan Purchase Condition"),
Cinemas South             prior to the Effective Date, the lenders (the "SA
America's Credit          Lenders") to Hoyts General Cinemas South America (the
Facilities:               "JV") shall have sold, and GCC(5) shall have
                          purchased, one half of the SA Lenders' loans to the JV
                          (the "GCC JV Loan Portion") for no more than 87.5% of
                          the face amount of that portion of such JV loans (the
                          "JV Loan Purchase"), and the SA Lenders shall have
                          released GCC from any liability by reason of GCC's
                          several guaranties (collectively, the "GCC Guaranty")
                          of the JV's credit facilities. Notwithstanding the
                          foregoing, GCC may, at its option,

----------

(3) New AMCE Notes shall be newly issued notes added to AMCE's existing 9.5%
Senior Subordinated Notes due 2/1/11 or any other issue of AMCE Senior
Subordinated Notes with materially similar terms. See Term Sheet - New AMCE
Notes.

(4) AMCE shall have the right to pay cash to holders of Class 4 Claims in lieu
of part of the New AMCE Notes, at 100% of the principal amount thereof, to the
extent that AMCE's current bond indenture restricts AMCE's ability to issue New
AMCE Notes in excess of a certain aggregate amount.

(5) In any event, GCC shall be deemed to have secured its own release from the
GCC Guaranty. However, AMCE may designate an AMCE affiliate to be the purchaser
of the GCC JV Loan Portion, so long as the aggregate amount paid to the SA
Lenders in cash for the release of the GCC Guaranty and the purchase of the GCC
JV Loan Portion equals the agreed total for the JV Loan Purchase.

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TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                          purchase the GCC JV Loan Portion of less than all of
                          the SA Lenders; in such event, any claim against GCC
                          under the GCC Guaranty shall be released with respect
                          to such GCC JV Loan Portion, and in no event shall the
                          JV Loan Purchase Condition be satisfied for purposes
                          of this Term Sheet unless the entire JV Loan Purchase
                          with respect to the GCC JV Loan Portion has occurred.
                          Any JV Loan Purchase shall be financed by borrowings
                          under the DIP facility or a successor DIP facility.

Bank Support Agreement    As Fleet and Bank of America, N.A. ("BofA"), each on
Condition                 behalf of itself and its affiliates, foreign and
                          domestic, in their respective capacities as
                          administrative agent(s) and lender(s) to GCC and its
                          affiliates and joint ventures, foreign and domestic)
                          (collectively, the "Banks") have not entered into a
                          support agreement agreeing to the treatment of Class 4
                          Claims and the satisfaction of the JV Loan Purchase
                          Condition described above as of the date hereof (the
                          "Bank Support Agreement Condition"), the treatment of
                          Class 4 Claims under this Term Sheet (and, in the
                          event that AMCE selects Option B below, Class 8 Claims
                          {as defined in Option B} that would otherwise be
                          classified in Class 6) shall be modified, at AMCE's
                          option, to consist of the treatment described under
                          Option A, Option B or Option C below, and the terms of
                          the selected option shall become part of this Term
                          Sheet, unless otherwise agreed by AMCE and the Banks,
                          so long as such alternative agreed upon treatment of
                          Class 4 Claims and claims arising under or relating to
                          the GCC Guaranty under this Term Sheet does not have a
                          material adverse effect on the treatment of any other
                          class of claims under this Term Sheet:

                          Option A:

                          -   The JV Loan Purchase Condition shall be waived. In
                              lieu thereof, GCC shall reject the GCC Guaranty
                              (to the extent, if any, that it is an executory
                              contract), and the SA Lenders may assert a general
                              unsecured Class 6 claim against GCC therefor (the
                              "GCC Guaranty Claim"). To the extent that the GCC
                              Guaranty Claim is allowed by the bankruptcy court,
                              it shall be the "Allowed GCC Guaranty Claim." AMCE
                              will make available for distribution on account of
                              the Allowed GCC Guaranty Claim New AMCE Stock with
                              a Plan Value equal to that fraction of the Allowed
                              GCC Guaranty Claim, the numerator of which is the
                              total Plan Value of the New AMCE Stock (plus, if
                              applicable under clause (b) of the Conditional
                              Class 6 Recovery, the Plan Value of the Top-Up
                              AMCE Stock and any cash

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TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                              substituted by Harcourt therefor) that would have
                              been distributed to the holders of Allowed Class 6
                              Claims had the Bank Support Agreement Condition
                              not been waived and this provision had not become
                              effective, and the denominator of which is the
                              total amount of the Allowed Class 6 Claims other
                              than the Allowed GCC Guaranty Claim. The Plan
                              Value of such New AMCE Stock with respect to each
                              Allowed GCC Guaranty Claim shall be applied to
                              reduce the amount of debt outstanding under the JV
                              credit facility to which each Allowed GCC Guaranty
                              Claim relates.

                          -   If the fair market value of the New AMCE Notes
                              (based on the average of the bid and ask prices on
                              the trading date immediately prior the date of
                              distribution) to be distributed to holders of
                              Allowed Class 4 Claims is less than the Allowed
                              Class 4 Claims, then such holders shall be
                              entitled to receive additional New AMCE Notes with
                              a fair market value equal to the deficiency.

                          Option B:

                          -   All nonpriority, unsecured claims against GCC that
                              (i) are not also claims against any direct or
                              indirect subsidiary of GCC that is a chapter 11
                              debtor and (ii) would otherwise have been
                              classified in Class 6, including without
                              limitation any claim arising under or relating to
                              the GCC Guaranty, shall be separately classified
                              in a new Class 8. The holders of allowed unsecured
                              claims in Class 8, including without limitation
                              claims arising under or relating to the GCC
                              Guaranty, shall receive New AMCE Stock with a Plan
                              Value (as defined in footnote 9 below) or, at
                              AMCE's option, cash, equal to 5% of each holder's
                              Allowed Class 8 Claim.

                          -   If the fair market value of the New AMCE Notes
                              (based on the average of the bid and ask prices on
                              the trading date immediately prior to the date of
                              distribution) to be distributed to holders of
                              Allowed Class 4 Claims is less than the Allowed
                              Class 4 Claims, then such holders shall be
                              entitled to receive additional New AMCE Notes with
                              a fair market value equal to the deficiency.

                          Option C:

                          -   The Class 4 Claims and any claims arising under or
                              relating to the GCC Guaranty shall be treated in
                              such manner as AMCE designates, so long as such
                              treatment

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TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                              does not require any reduction in the amount of
                              the consideration that would have been received by
                              the holders of allowed claims in any other class
                              absent such treatment of Class 4 claims or claims
                              arising under or relating to the GCC Guaranty.

Class 5--Claims of        For purposes of the Plan, the GECC Group shall be
the GECC Group:           deemed to have Allowed Class 5 Claims in the aggregate
                          amount of $78.3 million(6).

                          On the Effective Date, or as soon thereafter as
                          practicable, each holder of an Allowed Class 5 Claim
                          secured by identifiable equipment or leaseholds (i.e.,
                          all members excluding Fifth Third and Bank Leumi),
                          whose Allowed Class 5 Claims are estimated to be $71.1
                          million in the aggregate, will receive the following
                          consideration (i) New AMCE Notes with a face amount
                          equal to 90% of its Allowed Class 5 Claim (i.e., $64
                          million in the aggregate)(7); provided, however, that
                          each Allowed Class 5 Claim holder shall have the right
                          to exercise the New AMCE Notes Exchange Option for the
                          New AMCE Notes to which it would otherwise be entitled
                          (i.e., for $56 million in cash in the aggregate); and
                          (ii) New AMCE Stock (as defined below) with an
                          aggregate Plan Value (as defined below) equal to 4.5%
                          of its Allowed Class 5 Claim (i.e., $3.2 million Plan
                          Value).

                          On the Effective Date, or as soon thereafter as
                          practicable, each holder of an Allowed Class 5 Claim
                          secured by unidentifiable equipment (i.e., Fifth Third
                          and Bank Leumi), whose Allowed Class 5 Claims are
                          estimated to be $7.2 million in the aggregate, will
                          receive the following consideration (i) New AMCE Notes
                          with a face amount equal to 50% of its Allowed Class 5
                          Claim (i.e., $3.6 million in the aggregate); provided,
                          however, that each Allowed Class 5 Claim holder shall
                          have the right to exercise the New AMCE Notes Exchange
                          Option for the New AMCE Notes to which it would
                          otherwise be entitled (i.e., for $3.15 million in cash
                          in the aggregate); and (ii) New AMCE Stock (as defined
                          below) with an aggregate Plan Value (as defined below)
                          equal to 22.5% of its Allowed Class 5 Claim (i.e.,
                          $1.62 million Plan Value).

----------

(6) $78.3 million shall be reduced by half of any adequate protection payments
received by the GECC Group in excess of $9 million in the aggregate (the "GECC
Excess Payments").

(7) AMCE shall have the right to pay cash to holders of Class 5 Claims in lieu
of part of the New AMCE Notes, at 100% of the principal amount thereof, to the
extent that AMCE's current bond indenture restricts AMCE's ability to issue New
AMCE Notes in excess of a certain aggregate amount.

                                       6
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

Class 6--Unsecured        On the Effective Date, or as soon thereafter as
Claims Other Than         practicable, each holder of an Allowed Class 6 Claim
Any Unsecured             will receive New AMCE Stock(8) with an aggregate Plan
Claims of the Banks,      Value(9) equal to such holder's pro rata share of the
Heller, the GECC          sum of (a) Base Class 6 Recovery plus (b) the
Group, or Harcourt:       Conditional Class 6 Recovery (if any), each as defined
                          below; provided, that in no event shall holders of
                          Allowed Class 6 Claims receive New AMCE Stock with a
                          Plan Value in excess of 100% of their Allowed Claims.

                          The "Base Class 6 Recovery" shall be equal to: (w)
                          $37.5 million (plus, if and only if (A) AMCE exercises
                          its rights to require GCC to reject any real estate
                          lease under 11 U.S.C. Section 365 which GCC has not
                          already rejected(10), other than the Bay Plaza
                          Expansion {which does not include the existing Bay
                          Plaza location}, Erie Commons, Summit Park and Midway
                          Mall leases, (any such newly rejected lease other than
                          the Bay Plaza Expansion, Erie Commons, Summit Park and
                          Midway Mall leases being a "Newly Rejected Lease") and
                          (B) AMCE has been afforded the reasonable opportunity
                          to renegotiate the terms of such Newly Rejected Lease
                          prior to such rejection, 32/45's (or 71.1%) of the
                          allowed unsecured claim of the lessor arising as a
                          result of such rejection of the Newly Rejected
                          Leases); plus
                          (x) to the extent that any Class 6
                          Claims are allowed on account of the rejection of the
                          theatre leases known as Rancho (Unit 422), Galleria
                          (Unit 744), Lincoln Mall (Unit 870) or Deerfield 8
                          (Unit 922) (such Allowed Class 6 Claims being

----------

(8) AMCE would be willing to discuss two alternative methods for distributing
such New AMCE Stock to holders of Allowed Class 6 Claims: (1) distributing
freely tradable New AMCE Stock directly to the holders of such claims or (2)
distributing New AMCE Stock to a liquidating trust (the "Unsecured Stock Trust")
under the control of the Committee for the benefit of the holders of Allowed
Class 6 Claims, provided that the Unsecured Stock Trust would enter into an
agreement with AMCE to fix the parameters for the orderly liquidation of such
New AMCE Stock.

(9) New AMCE Stock shall be newly issued shares of AMCE Common Stock, valued at
the average closing price per share for the 15 days prior to the Effective Date,
subject to a minimum price per share of $10. "Plan Value", when referencing New
AMCE Stock, means the product of multiplying the applicable number of shares of
New AMCE Stock by the per share value of the New AMCE Stock determined in
accordance with the preceding sentence. The number of shares of New AMCE Stock
needed to achieve a specified Plan Value is calculated by dividing that Plan
Value by the per share value of the New AMCE Stock as so determined.

(10) For purposes of this Term Sheet, each of the leases listed on Exhibit A
(the "Identified Leases") is considered to have been previously rejected by GCC,
other than the Erie Commons, Summit Park and Midway Mall leases. Exhibit A is
not an exhaustive list of the previously rejected leases.

                                       7
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                          hereinafter referred to in the aggregate as the
                          "Allowed Designated Lease Claims"), the positive
                          amount (if any) that results from multiplying (i) the
                          lesser of $1.4 million or the Allowed Designated Lease
                          Claims, minus (in either case) the amount, if any,
                          which results from subtracting the aggregate Allowed
                          Claims of John Berylson and Michael Greeley from $4
                          million and (ii) that fraction, the numerator of which
                          fraction is the total Plan Value of the New AMCE Stock
                          (plus, if applicable under clause (b) of the
                          Conditional Class 6 Recovery, the Plan Value of the
                          Top-Up AMCE Stock and any cash substituted by Harcourt
                          therefor) that would have been distributed to the
                          holders of Allowed Class 6 Claims had the Allowed
                          Designated Lease Claims been zero, and the denominator
                          of which is the total amount of the Allowed Class 6
                          Claims other than the Allowed Designated Lease Claims;
                          minus
                          (y) the amount (if any) by which the aggregate
                          amount of the "Deduction Claims" exceeds $20 million;
                          plus
                          (z) the amount (if any) by which the aggregate
                          amount of the "Deduction Claims" is less than $20
                          million.

                          As used herein, the term "Deduction Claims" shall be
                          defined as the aggregate sum of the Administrative
                          Claims (exclusive of operating expenses incurred or
                          accrued and paid in the ordinary course of business
                          for goods and services, sales taxes and federal and
                          state taxes relating to ordinary income), plus
                          retention, severance and bonus payments (including
                          bonuses paid in the normal course) (without
                          duplication), plus the Priority Tax Claims, plus the
                          Class 1 Claims, plus the Class 2 Claims, plus the Cure
                          Claims,(11) plus the adequate protection payments,
                          less the GECC Excess Payments and any adequate
                          protection payments made to Heller subsequent to
                          August 1, 2001 and applied to the reduction of the
                          pre-petition principal amount of Heller's Class 3
                          Claim, in all instances whether payments on behalf of
                          such Deduction Claims were made from August 1, 2001
                          through the Effective Date or whether such Deduction
                          Claims are outstanding on the Effective Date;
                          provided, however, that the component of Deduction
                          Claims that relates to severance and retention
                          payments, including amounts paid under the Amended and
                          Restated Termination

----------

(11) As used herein, the term "Cure Claims" means the cost of curing all
outstanding defaults under contracts to be assumed by Reorganized GCC (including
any amount reimbursed to Harcourt rather than paid to a lessor pursuant the
second paragraph of the Class 7 treatment below) and the cost of curing any
outstanding defaults under contracts previously assumed by GCC.

                                       8
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                          and Change of Control Agreements approved by the
                          Bankruptcy Court's Order dated March 16, 2001 but not
                          including any bonuses paid in the normal course, shall
                          be deemed to equal $5 million regardless of the actual
                          amounts that are paid through the Effective Date or
                          outstanding on the Effective Date; bonuses paid in the
                          normal course shall constitute a Deduction Claim based
                          on the actual amount of such bonuses paid. All fees
                          and expenses incurred by the post-confirmation
                          Committee, the Unsecured Stock Trust, the Class 6
                          distribution agent and any and all sub-agents,
                          professionals and others employed by any or all of
                          them (including, without limitation, the
                          debtors-in-possession's present or former employees
                          and counsel), shall be satisfied exclusively from
                          assets or cash otherwise distributable to the holders
                          of Allowed Class 6 Claims pursuant to this Term Sheet.
                          Additionally: (i) any fees due and payable to the
                          Office of the United States Trustee pursuant to
                          section 1930(a)(6) of title 28 of the United States
                          Code with respect to any chapter 11 cases that remain
                          open from and after the Effective Date of the Plan
                          shall be paid and satisfied exclusively from the
                          assets or cash otherwise distributable to the holders
                          of Allowed Class 6 Claims; provided that, except as
                          set forth below with respect to General Cinema
                          Theatres, Inc. ("GCT") and, under certain
                          circumstances, GCC, all of the GCC debtors' cases will
                          be closed as of the Effective Date, or as soon
                          thereafter as reasonably practicable; provided
                          further, that GCT will move to close its case promptly
                          when requested to do so by the post-confirmation
                          Committee after resolution of all disputed Class 6
                          Claims and (but only if Option B under the "Bank
                          Support Agreement Condition" is chosen) the GCC case
                          will be closed promptly after resolution of all
                          disputed Class 8 Claims. Any fees and expenses
                          (including, without limitation, professional fees and
                          expenses) incurred by the post-confirmation Committee
                          in objecting to or otherwise resolving Administrative
                          Claims and Priority Tax Claims shall be satisfied
                          exclusively from the assets or cash otherwise
                          distributable to the holders of Allowed Class 6 Claim,
                          it being understood that the reorganized debtors shall
                          have no obligation to object to or otherwise resolve
                          Administrative Claims and Priority Tax Claims, that
                          any such objection or resolution shall be at the
                          option, risk and expense of the post-confirmation
                          Committee and that the reorganized debtors will be
                          reimbursed for any out-of-pocket expenses incurred as
                          a result of any such objection or resolution.

                                       9
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                          The "Conditional Class 6 Recovery" shall be equal to
                          the sum of the following, which shall be conditioned
                          upon occurrence of the conditions described in clauses
                          (a) and (b) and may therefore be zero: (a) If the JV
                          Loan Purchase Condition is waived and AMCE selects
                          Option A described above under the heading "Bank
                          Support Agreement Condition," the Plan Value of New
                          AMCE Stock to be made available by AMCE to the holders
                          of the Allowed GCC Guaranty Claim, plus (b) to the
                          extent any pre-petition claims are allowed on account
                          of the rejection of any of the Identified Leases (any
                          such allowed claims being "Allowed Identified Lease
                          Claims"), Harcourt shall, at its own expense, purchase
                          AMCE Stock in the open market (or New AMCE Stock if
                          agreed by AMCE) for distribution to the holders of
                          Allowed Class 6 Claims such that, when added to the
                          New AMCE Stock made available by AMCE under the Base
                          Class 6 Recovery and any New AMCE Stock to be
                          distributed under clause (a) above, the AMCE Stock
                          made available by Harcourt is sufficient to enable
                          holders of Allowed Class 6 Claims other than the
                          holders of Allowed Identified Lease Claims to receive
                          the same amount of AMCE Stock per dollar amount of
                          their Allowed Class 6 Claims as they would have
                          received if the Allowed Identified Lease Claims had
                          not been allowed (the "Top-Up AMCE Stock"); provided,
                          that Harcourt may satisfy this obligation by
                          delivering, in its discretion, either a number of
                          shares of AMCE Stock equal to the Top-Up AMCE Stock or
                          cash in an amount equal to the market value of the
                          Top-Up AMCE Stock as of the Effective Date. Except as
                          provided in the preceding clause (b), Harcourt shall
                          have no responsibility with respect to any
                          distributions to third party holders of any Allowed
                          Class 6 Claim. The Conditional Class 6 Recovery is
                          intended to provide for the same treatment to the
                          holders of Allowed Class 6 Claims that are determined
                          to be such under the conditions described in clauses
                          (a) and (b) of this paragraph (in terms of the number
                          of shares of AMCE Stock per dollar of Allowed Class 6
                          Claims) as other holders of Allowed Class 6 Claims
                          would receive if the claims described in clauses (a)
                          and (b) had not become Allowed Class 6 Claims), and
                          the Conditional Class 6 Recovery shall be interpreted
                          accordingly.

                          Notwithstanding anything to the contrary contained
                          herein, the treatment of Allowed Class 6 Claims under
                          this Term Sheet is predicated upon the assumption that
                          all of the Identified Leases (other than the Erie
                          Commons, Summit Park and Midway Mall leases, which
                          shall be rejected) and all other

                                       10
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                          leases that were assigned by any of the GCC Debtors to
                          any party other than one of the GCC Debtors (the
                          "Assigned Leases") have been rejected or have deemed
                          rejected under section 365(d) of the Bankruptcy Code.
                          Accordingly, notwithstanding anything to the contrary
                          contained herein, the GCC Debtors shall reject all
                          Identified Leases that have not been previously
                          rejected, and all Assigned Leases that have not been
                          previously rejected, without any additional obligation
                          on the part of AMCE.

                          Notwithstanding anything to the contrary contained
                          herein, in the event that AMCE elects to treat claims
                          arising under or relating to the GCC Guaranty and
                          other nonpriority unsecured claims that are solely
                          claims against GCC (but not against any subsidiary
                          chapter 11 debtor) that would otherwise be classified
                          in Class 6 in accordance with Option B under the "Bank
                          Support Agreement Condition" above, then such claims
                          shall not be included in Class 6 and shall not be
                          entitled to treatment in accordance with the
                          provisions regarding Class 6 claims. Instead, all such
                          claims shall be treated as Class 8 claims in
                          accordance with Option B.

                          Notwithstanding the foregoing, upon the agreement of
                          AMCE and the Committee, Class 6 may be divided into
                          two or more sub-classes which may each receive
                          different treatment under the Plan, provided that the
                          aggregate consideration distributable to such
                          sub-classes does not exceed the total consideration
                          otherwise distributable to Class 6 pursuant to this
                          term sheet.

Class 7- Convenience      As soon as practicable following the AMCE Class 6
Class:                    Distribution Date under the Plan, each Holder of an
                          Allowed Class 6 Claim that is $500 or less or that the
                          Holder thereof elects to reduce to $500 shall receive
                          cash paid from the Class 6 recovery (or the proceeds
                          thereof), in an amount equal to seventy percent (70%)
                          of such Holder's Allowed convenience claim.
                          Notwithstanding the foregoing, if the Class 7
                          convenience claim exceed $425,000.00 the Committee may
                          elect, on or before the Confirmation Date, to
                          eliminate Class 7 of the Plan, in which event each and
                          every Allowed convenience claim shall be treated in
                          all respects as an Allowed Class 6 Claim and any
                          election of the Holder thereof to reduce its Allowed
                          Claim to $500 shall be deemed null and void.

                                       11
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

Class 8 --                As provided under Option B of the heading "Bank
Nonpriority,              Support Agreement Condition" above.
unsecured claims
against GCC that are
not also claims
against any direct or
indirect subsidiary of
GCC that is a chapter
11 debtor and that
would otherwise have
been classified in
Class 6

Class 9 -- Claims of      On the Effective Date, or as soon thereafter as
Harcourt:                 practicable, in full satisfaction of Harcourt's Class
                          7 Claims (i) Harcourt will receive cash in an amount
                          equal to $1 million; and (ii) AMCE shall, as to each
                          of the Harcourt Leases (as defined below) either (a)
                          agree to become a substitute guarantor of such
                          Harcourt Lease in exchange for the lessor under such
                          Harcourt Lease releasing Harcourt from all claims
                          thereunder or (b) absent such a release of Harcourt by
                          the applicable lessor, provide an indemnification to
                          Harcourt against any further liability related to such
                          Harcourt Lease (which indemnification shall include
                          any and all costs and liabilities of Harcourt arising
                          after the Effective Date in connection with a default
                          under such Harcourt Lease, including but not limited
                          to reasonable fees of counsel, but shall not include
                          any guarantee fee or other payment that is not based
                          upon actual costs incurred by Harcourt in satisfying
                          or defending its obligations under the applicable
                          Harcourt Lease). For purposes hereof, "Harcourt Lease"
                          includes all leases (a) under which Harcourt was the
                          original tenant, is a guarantor or is otherwise liable
                          for rent upon GCC's default in payment thereof, (b)
                          that have not been rejected by GCC as of the date of
                          this Term Sheet (other than the Erie Commons, Summit
                          Park and Midway Mall leases, which GCC shall reject
                          and all three such leases shall not be deemed to be
                          Harcourt Leases), and (c) that have not previously
                          been assigned by any of the Debtors to any party other
                          than an affiliate of the Debtors. Without limiting the
                          foregoing, none of the Identified Leases shall be
                          deemed to be a Harcourt Lease. The Harcourt Leases,
                          which include without limitation the Reserved Leases
                          (as defined below), shall be assumed as part of the
                          plan of reorganization, without any payment or subsidy
                          from Harcourt, and shall be specifically identified in
                          an exhibit to the plan of reorganization. No

                                       12
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           Harcourt Lease shall be rejected without Harcourt's
                           consent, unless otherwise agreed by AMCE and Harcourt
                           in connection with the Harcourt Lease renegotiations
                           described below.

                           AMCE acknowledges that Harcourt has paid certain cure
                           costs to the lessors under the Plaza at Chapel (Unit
                           496) and Centennial (Unit 942) leases, and Harcourt
                           will be reimbursed under the plan of reorganization
                           for such cure costs to the extent such cure costs
                           would otherwise be required to be paid to such
                           lessors in connection with the assumption of such
                           leases, in lieu of any claim with respect to such
                           cure costs by such lessors.

                           Harcourt shall also be released from all claims of
                           the Domestic Banks under the Intercreditor Agreement,
                           and the Reimbursement and Security Agreement
                           described therein shall terminate and be of no
                           further force or effect.

                           AMCE shall use reasonable commercial efforts (which
                           shall not be interpreted to require AMCE to pay any
                           amount other than its own attorneys' fees) to
                           renegotiate the Harcourt Leases prior to the
                           Effective Date. Except as provided in the following
                           sentence, Harcourt shall be entitled to participate
                           in such renegotiations until the Effective Date, but
                           direction and control of such renegotiations shall be
                           at AMCE's sole and absolute discretion. Harcourt
                           shall not be entitled to participate in renegotiation
                           of the Springfield, Hollywood Galaxy or Centennial
                           Lakes leases (the "Reserved Leases"); provided, that
                           AMCE shall keep Harcourt reasonably informed with
                           respect to the status of such negotiations and
                           provided, further, that AMCE shall not seek or obtain
                           lease concessions on other leases AMCE may have with
                           the lessors under the Reserved Leases in lieu of
                           lease concessions under the Reserved Leases without
                           Harcourt's consent. If the renegotiation of any
                           Reserved Lease results in an agreement with the
                           lessor for a replacement lease or lease buyout within
                           the time frames set forth below, Harcourt will be
                           entitled to the following: (i) with respect to each
                           Reserved Lease for which an agreement for a
                           replacement lease or lease buyout is executed prior
                           to the Effective Date, Harcourt will be entitled to
                           receive New AMCE Stock with a Plan Value of $250,000
                           on the Effective Date; and (ii) with respect to each
                           Reserved Lease for which AMCE received a written
                           proposal from the lessor for a replacement lease or
                           lease buyout prior to the Effective Date and for
                           which AMCE and such lessor execute

                                       13
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           an agreement for a replacement lease or lease buyout
                           within six (6) months after the Effective Date on
                           terms that are at least as favorable to the lessee
                           (after taking into account any payment to Harcourt
                           pursuant to this Term Sheet) as those contained in
                           such proposal, Harcourt will be entitled to receive
                           New AMCE Stock with a Plan Value of $250,000 within
                           ten (10) business days following execution of such
                           post-Effective Date agreement.

                           Harcourt agrees that it will work cooperatively with
                           AMCE with respect to the renegotiation of the
                           Harcourt Leases. Regardless of whether Harcourt
                           participates in a renegotiation, Harcourt shall
                           receive the net present value, using a 10% discount
                           rate, of 50% of any rent reductions (net of
                           inducement payments, if any, paid by AMCE) that are
                           renegotiated prior to the Effective Date for any of
                           the Harcourt Leases (excluding any rent reductions
                           that may be part of a replacement lease with respect
                           to a Reserved Lease or a lease buyout of a Reserved
                           Leases, but otherwise including any rent reduction on
                           a Reserved Lease). For purposes of the foregoing, a
                           rent reduction will be deemed to have been
                           renegotiated prior to the Effective Date if either
                           (a) the rent reduction is documented by an executed
                           and fully effective lease amendment (a "Harcourt
                           Lease Amendment") prior to or on the Effective Date,
                           or (b) notwithstanding that a Harcourt Lease
                           Amendment was not obtained by the Effective Date, (1)
                           the rent reduction was evidenced by a written
                           proposal from the lessor under the applicable
                           Harcourt Lease prior to the Effective Date and (2) a
                           Harcourt Lease Amendment is executed within six (6)
                           months following the Effective Date that includes
                           terms that are at least as favorable to the lessee
                           (after taking into account any payment to Harcourt
                           pursuant to this Term Sheet) as those contained in
                           such proposal. Amounts to which Harcourt is entitled
                           under this paragraph, if any, shall be payable in
                           cash on the later of (i) the Effective Date, or as
                           soon thereafter as practicable, or (ii) the date of
                           execution of the applicable Harcourt Lease Amendment.

                           Furthermore, except for Springfield Mall, Virginia
                           (Unit 867); Southlake, Indiana (Unit 875); Ford City,
                           Illinois (Unit 940); and Bay Plaza, New York (Unit
                           902), AMCE shall not extend the term of any of the
                           leases of which Harcourt is a guarantor beyond its
                           current term, unless Harcourt is provided evidence
                           reasonably satisfactory to it that it is not liable,
                           or is removed, as guarantor of the applicable lease
                           for any such extension

                                       14
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           period.

                           GCC shall also assign to Harcourt, without
                           representation or recourse, all of GCC's right, title
                           and interest in, to and under any collateral or
                           security, including without limitation any letters of
                           credit, guaranties and other security or documents
                           supporting the non-GCC assignee's or subtenant's
                           liability under any Assigned Leases under which
                           Harcourt may have contingent liability, whether as a
                           guarantor, original tenant or otherwise.

                           Harcourt's (and its affiliates') recovery and
                           distribution under the Plan shall be exclusively as
                           set forth in this treatment of Class 7 Allowed
                           Claims, and Harcourt (and its affiliates) shall not
                           be entitled to assert any claim in Class 6, whether
                           in its own name, in the name of a third party
                           landlord, as subrogee, as assignee or otherwise. As
                           of the Effective Date of the Plan, Harcourt (and its
                           affiliates) shall be deemed to have withdrawn any and
                           all proofs of claim asserted against the GCC Debtors
                           in any and all such capacities, with prejudice.

Class 10--Common           Subject to satisfaction of the Class 10 Participation
Stock Interests            Conditions (as defined below), a limited liability
(including any             company ("New Investments LLC") will acquire 100% of
Allowed Claims             the membership interests in GCCI LLC and, subject to
subordinated to the        certain conditions, the equity interests in New
level of common            Investments LLC will be distributed to (i) Holders of
stock under section        Allowed Interests, (ii) AMCE or its designee and
510(b) of the              (iii) investors who participate in a $16,250,000
Bankruptcy Code):          equity financing to be conducted by New Investments
                           LLC, as described in more detail below. Immediately
                           prior to such acquisition by New Investments LLC, any
                           investment portfolio assets, any net proceeds
                           received after the filing of the Plan with respect to
                           or from the disposition of such assets not initiated
                           by GCCI LLC and any furniture, fixtures and equipment
                           that are owned by GCCI Inc. will be transferred to
                           GCCI LLC, subject to any restrictions on transfers
                           binding on GCCI Inc. with respect to such
                           investments.

                           If and only if the Class 10 Participation Conditions
                           are satisfied, and not otherwise, Holders of Allowed
                           Interests shall receive the following consideration
                           on the Effective Date, or as soon thereafter as
                           practicable:

                           Each such Holder shall receive its Pro Rata Share of
                           (i) $100,000.00 Cash plus (ii) 10.416667% of the
                           limited liability

                                       15
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           interests (the "LLC Interests") of New Investments
                           LLC (the "Class 10 Percentage"), which percentage
                           shall be increased to 14% if the Preferred LLC
                           Interest Repurchase, as described below, occurs. "Pro
                           Rata Share" means the percentage calculated by
                           dividing such Holder's Allowed Common Stock Interest
                           by the aggregate amount of all Allowed Interests. The
                           distribution to each such Holder of its LLC Interests
                           shall be subject to and contingent upon the following
                           conditions (the "Distribution Conditions"): (i) the
                           filing of the notification of election on Form N-54A
                           by New Investments LLC to be subject to the
                           provisions of Sections 54 through 65 (applicable to
                           business development companies) of the Investment
                           Company Act of 1940 (the "BDC Election"), (ii)
                           effectiveness of the registration of New Investments
                           LLC on Form 10 under Section 12(g) of the Securities
                           Exchange Act of 1934 (the "34 Act Registration"), and
                           (iii) the effectiveness of registration of New
                           Investment LLC's investment manager (the "Investment
                           Manager") as an investment adviser under the
                           Investment Advisers Act of 1940 (the "Adviser Act
                           Registration"), without, in the case of any of the
                           BDC Election, the 34 Act Registration or the Adviser
                           Act Registration, the SEC requiring any changes to
                           the terms and provisions applicable to New
                           Investments LLC and the Investment Manager as
                           described herein or in the Form 10 or indicating that
                           any such term or provision might violate a provision
                           of law or regulation or subject New Investments LLC,
                           the Investment Manager or their respective member,
                           managers, employees or agents to any liability. If
                           the Distribution Conditions do not occur, New
                           Investments LLC shall have the option at the sole
                           discretion of the Investment Manager to direct that
                           no LLC Interests shall be distributed to the Holders
                           of Allowed Interests. If New Investments LLC
                           exercises such option, (i) the LLC Interests which
                           would otherwise be distributed to the Holders shall
                           be held by AMCE, or at AMCE's election, Reorganized
                           GCX or another of AMCE's designees, (ii) New
                           Investments LLC shall withdraw or not make, as the
                           case may be, its BDC Election and 34 Act Registration
                           and the Investment Manager shall withdraw or not make
                           the Adviser Act Registration, (iii) New Investments
                           LLC will operate as an investment company exempt from
                           registration under the Investment Company Act of 1940
                           (the "40 Act"), and (iv) the Holders of Allowed
                           Interests will not receive the Cash distribution
                           described above. In such event, none of New
                           Investments LLC, the Investment Manager, the
                           Reorganized Debtors or AMCE, nor their respective
                           members, managers,

                                       16
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           employees or agents shall have any liability to the
                           Holders of Allowed Interests if such Holders do not
                           receive any distribution of LLC Interests.

                           It is anticipated that New Investments LLC will file
                           the Form 10 prior to the Effective Date, and unless
                           the SEC agrees to accelerated consideration of the
                           Form 10, the SEC's decision to declare the Form 10
                           effective under the Securities Exchange Act of 1934
                           (the "34 Act") shall require at least 60 days from
                           filing. Because the BDC Election will become
                           effective upon filing, it is anticipated that New
                           Investments LLC will make the BDC Election only upon
                           the effectiveness of the 34 Act Registration.
                           Accordingly, any distribution of LLC Interests to
                           Holders of Allowed Interests may be delayed until
                           several months after confirmation until the
                           Distribution Conditions have been fulfilled or
                           waived.

                           The remaining equity interests in New Investments LLC
                           will be a special class of equity interests (the
                           "Preferred LLC Interests") which will be owned by
                           AMCE, or at AMCE's election, Reorganized GCX or
                           another of AMCE's designees. The Preferred LLC
                           Interests will represent 25.595238% of the equity of
                           New Investments LLC and will be entitled to receive a
                           distribution priority in an amount equal to $6.5
                           million (the "Preferred LLC Priority Amount"). The
                           Preferred LLC Interests will further be subject to an
                           option in favor of New Investments LLC to purchase
                           all, but not less than all, of such Preferred LLC
                           Interests for $6.5 million in Cash within 30 days
                           (the "Option Period") after the Effective Date. In
                           the event such option is not exercised, AMCE or its
                           designee shall have the right to put such Preferred
                           LLC Interests to New Investments LLC at any time
                           during the seven (7) day period after the expiration
                           of the Option Period for such $6.5 million amount.
                           (The exercise of either of such option or such put is
                           referred to as the "Preferred LLC Interest
                           Repurchase.") New Investments LLC shall not incur
                           debt or grant liens upon its assets without the
                           consent of the holders of the Preferred LLC Interests
                           while they remain outstanding. It is anticipated that
                           the Preferred LLC Interest Repurchase will occur
                           prior to the BDC Election.

                           Notwithstanding anything to the contrary contained
                           herein, in the event that any impaired Class of
                           Claims does not accept the Plan, and the Bankruptcy
                           Court determines that the proposed treatment of Class
                           10 as set forth herein violates the

                                       17
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           provisions of section 1129(b)(2) of the Bankruptcy
                           Code with respect to the treatment of such
                           nonaccepting Class, the treatment of Class 10 shall
                           be modified in any manner elected by AMCE to the
                           extent necessary to cause the Plan not to violate the
                           provisions of section 1129(b)(2) of the Bankruptcy
                           Code. In addition, if any party in interest objects
                           to the treatment of Class 10 as set forth herein and
                           the Bankruptcy Court sustains such objection, then
                           the Holders of Allowed Interests shall receive no
                           consideration under the Plan. As a matter of
                           disclosure but not as an obligation under or pursuant
                           to the Plan, in such event Reorganized GCCI Inc.
                           would retain all of its interest in GCCI LLC on the
                           Effective Date but AMCE would intend to cause the
                           sale of such interest to New Investments LLC after
                           the Effective Date for $6.5 million. All Existing GCX
                           Common Stock shall be deemed cancelled on the
                           Effective Date.

                                    If (a) prior to February 4, 2002, members of
                           the family of Richard A. Smith or their affiliates
                           (the "Smith Family") and New Investments LLC have not
                           executed an agreement obligating the Smith Family to
                           provide the Equity Financing and New Investments LLC
                           to consummate the transactions described herein with
                           respect to the Class 10 treatment, subject only to
                           the conditions described herein, or (b) prior to the
                           Confirmation Date, the $16,250,000 to be raised in
                           the Equity Financing has not been invested in or
                           committed to New Investments LLC (the "Class 10
                           Participation Conditions"), the Holders of Allowed
                           Interests shall receive no consideration under the
                           Plan.

                           The following sets forth additional information and
                           terms regarding New Investments LLC, and its
                           acquisition of the equity interests in GCCI LLC. Any
                           changes to the following information and terms will
                           be reflected in the Plan Documentary Supplement to be
                           filed prior to the Confirmation Date which will
                           include, among other documents, the LLC Operating
                           Agreement for New Investments LLC and the Investment
                           Management Agreement with New Investment LLC's
                           Investment Manager. To the extent of any
                           inconsistency between the Plan and the Plan
                           Documentary Supplement, the terms of the Plan
                           Documentary Supplement shall govern.

                           1. New Investments LLC.

                                       18
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           (a) New Investments LLC will be formed by members of
                           the family of Richard A. Smith or their affiliates
                           (the "Smith Family"), and will conduct an equity
                           financing of its LLC Interests, as described below.
                           The Smith Family includes, in addition to Richard A.
                           Smith, certain family members and related trusts,
                           charitable foundations and other entities that
                           collectively own approximately 28% of the outstanding
                           shares of GCX's Common Stock. Richard A. Smith
                           formerly served as Chairman and Chief Executive
                           Officer of GCX, and his son, Robert A. Smith,
                           formerly served as President and Chief Operating
                           Officer of GCX. John Berylson is the son-in-law of
                           Richard A. Smith.

                           (b) If the Distribution Conditions have been
                           fulfilled, New Investments LLC will be subject to all
                           the regulatory requirements and operational
                           restrictions applicable to a business development
                           company under the 40 Act. A business development
                           company is a type of closed-end investment company
                           and, as such, will not issue or have outstanding
                           redeemable securities. Business development companies
                           operate for the purpose of providing venture capital
                           financing and making available significant managerial
                           assistance to certain private or financially troubled
                           businesses. In recognition of the particular needs of
                           venture capital investment companies, the regulation
                           of business development companies under the 40 Act is
                           generally more flexible and less burdensome than that
                           applicable to traditional investment companies
                           regulated by the 40 Act. As a business development
                           company, New Investments LLC will also be required to
                           file annual, quarterly and similar reports pursuant
                           to Section 13 of the 34 Act.

                           (c) In order to avoid taxation of New Investments LLC
                           as a corporation, no interests in New Investments LLC
                           will be publicly tradable.

                           (d) New Investments LLC's business purpose will be to
                           manage and liquidate the investments of its portfolio
                           companies and to make additional investments in such
                           portfolio companies. New Investments LLC will not
                           make any investments in any companies other than such
                           portfolio companies or their respective affiliates or
                           successors.

                           2. Chestnut Hill Capital Partners LLC ("CHCP"). CHCP
                           owns 1% of the LLC interests of GCCI LLC. Prior to
                           the

                                       19
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           Effective Date, John Berylson and Demos Kouvaris, who
                           own 100% of the LLC interests of CHCP, will transfer
                           at GCX's direction all such CHCP LLC interests to
                           GCCI Inc., free and clear of all liens and
                           encumbrances (the "CHCP Transfer"), after which GCCI
                           Inc. will directly and indirectly own 100 % of the
                           LLC interests in GCCI LLC. The CHCP Transfer shall be
                           in full satisfaction of loans owed to GCX in the
                           principal amount of $419,309 by John Berlyson and in
                           the principal amount of $55,292 by Demos Kouvaris,
                           together with all interest (or other fees and
                           expenses, if any) accrued on (or with respect to)
                           such loans. New Investments LLC shall indemnify and
                           hold GCCI Inc. harmless against any loss or expense
                           incurred by GCCI Inc. with respect to CHCP
                           liabilities (other than liabilities to the Debtors),
                           if any.

                           3. Acquisition of GCCI LLC. Subject to the Class 10
                           Participation Conditions, New Investments LLC will
                           acquire from GCCI Inc. and CHCP 100% of the interests
                           (including carried interests) in GCCI LLC, free and
                           clear of all liens, encumbrances and security
                           interests of any kind (including any security
                           interests held by GCX), in consideration for the
                           issuance to GCCI Inc. of the Preferred LLC Interest
                           and the Class 10 Percentage of the LLC Interests (the
                           "Class 10 LLC Interests"). If the Distribution
                           Conditions occur, the Class 10 LLC Interests will be
                           distributed to the Holders of Allowed Interests. On
                           the Effective Date, the assets of GCCI LLC will
                           include (i) the portfolio investments of GCCI LLC and
                           GCCI Inc. as listed in Section I.6.b of the
                           Disclosure Statement, (ii) the proceeds, if any, of
                           any disposition of any of such investments received
                           after filing of the Plan with respect to or from a
                           disposition of such assets not initiated by GCCI LLC,
                           net of taxes on gains from such disposition and
                           transaction expenses, if any, and net of new capital
                           invested in the investment assets after filing of the
                           Plan, if any, and (iii) any furniture, fixture and
                           equipment assets of GCCI Inc. that are used
                           exclusively for conducting GCX's investment business.

                           4. Offering for $16,250,000 to Fund the Portfolio and
                           its Operations.

                           (a) As a condition to the acquisition by New
                           Investments LLC of the equity interests in GCCI LLC,
                           New Investments LLC shall have raised in an equity
                           financing (the "Equity Financing") $16,250,000 in
                           invested or committed capital. Investors in the
                           Equity Financing will receive LLC Interests in

                                       20
<PAGE>
                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           New Investments LLC, which LLC Interests will
                           represent, after the issuance of the Preferred LLC
                           Interests and the Class 10 LLC Interests, 63.988095%
                           of the equity of New Investments LLC. In the event
                           the Preferred LLC Interest Repurchase occurs, the LLC
                           Interests acquired by the investors in the Equity
                           Financing will represent 86% of the equity of New
                           Investments LLC.

                           (b) The Debtor understands that the Smith Family, and
                           certain affiliated trusts of the Smith Family
                           (collectively, the "Smith Investors"), together with
                           John Berylson, and certain family members and
                           affiliated trusts of John Berylson (collectively, the
                           "Berylson Investors"), intend to commit the full
                           $16,250,000 subject to the terms and conditions
                           described herein. Of this amount, it is anticipated
                           that the Berylson Investors will invest at least
                           $5,000,000. Notwithstanding the foregoing, holders of
                           Allowed Class 5 Claims who are "qualified
                           institutional buyers," as that term is defined in
                           Rule 144A promulgated pursuant to the Securities Act
                           of 1933, shall be entitled to participate in the
                           Equity Financing in an amount of up to $6,250,000.
                           Such holders of Allowed Class 5 Claims shall be
                           entitled to participate in such amount pro rata in
                           proportion to the amount of their Allowed Class 5
                           Claims and shall have over-subscription rights to the
                           extent other holders of Allowed Class 5 Claims do not
                           subscribe for their respective pro rata shares. Any
                           amounts which holders of Allowed Class 5 Claims elect
                           to purchase shall reduce the amount otherwise
                           available to the Smith Investors and the Berylson
                           Investors. New Investments LLC shall also reserve the
                           right to permit other investors to acquire LLC
                           Interests in the Equity Financing to the extent that
                           the Smith Investors and the Berylson Investors agree
                           not to purchase any LLC Interests not acquired by the
                           Holders of Allowed Class 5 Claims.

                           (c) The Berylson Investors and the Smith Investors
                           will require as a condition to proceeding with the
                           transactions described herein that (i) the
                           Confirmation Order will provide that, based on AMCE's
                           exercise of its right under Section 10.2 of the Plan
                           to elect to have the Claim of John Berylson in the
                           sum of $2,327,225.71 treated as a Class 6 Unsecured
                           Claim Allowed in full, such Claims will be so
                           treated, conditioned upon consummation of the
                           Preferred LLC Interest Repurchase, and (ii) the CHCP
                           Transfer and related loan satisfaction has occurred.
                           Except for such Claim of John Berylson, the Claim of
                           Demos Kouvaris in the sum of $117,109, any vested

                                       21
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           employee pension benefits under GCX's defined benefit
                           pension plan or 401(k) plan that either may have and
                           any salary and employee benefits (not to include in
                           any event any severance, SERP or supplemental
                           executive medical benefits) accrued and unpaid since
                           their hire by GCX or GCCI Inc. post-petition and
                           through the Effective Date, the obligations of the
                           Debtors to proceed with the transactions contemplated
                           herein shall be subject to the waiver and release by
                           each of Messrs. Berylson and Kouvaris and by CHCP of
                           any other Claims of any kind any of them may hold,
                           including without limitation any employment, deferred
                           compensation, severance or pool payment Claims.

                           5. Investment Manager and Management Fee

                           (a) A management company (the "Investment Manager")
                           will be formed which will serve as the investment
                           manager to New Investments LLC. The Investment
                           Manager will be owned and controlled by John Berylson
                           and Demos Kouvaris, who are currently the principals
                           of CHCP and manage the investment activities of GCCI
                           Inc. and GCCI LLC.

                           (b) The Investment Manager will enter into an
                           investment advisory and management agreement (the
                           "Investment Management Agreement") with New
                           Investments LLC and will receive an annual fee of 2%
                           per year of the net asset value of New Investments
                           LLC, subject to a minimum fee of $1,100,000 necessary
                           to cover the expenses, including salaries, of the
                           Investment Manager. This fee will be paid for a
                           period of four years. Thereafter, the minimum annual
                           fee will be $500,000 until all investments have been
                           liquidated. If in any year the $1,100,000 or $500,000
                           minimum, as the case may be, exceeds 2% of the net
                           asset value of New Investments LLC, such excess shall
                           be credited towards the 2% in any year in which the
                           2% exceeds the minimum for such year, but only to the
                           extent of such excess. Other expenses of New
                           Investments LLC, such as legal, auditing and
                           regulatory compliance fees, will be paid directly by
                           New Investments LLC.

                           (c) If the Distribution Conditions occur and the
                           Class 10 LLC Interests are distributed to the Holders
                           of Allowed Interests, the Investment Management
                           Agreement (i) will be for an initial term of two
                           years and be subject to annual renewals thereafter
                           with the approval of the Board of

                                       22
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           Managers and the "disinterested managers" of New
                           Investments LLC or the outstanding voting securities
                           holders of New Investments LLC in accordance with
                           Section 15 of the 40 Act, and (ii) will be subject to
                           termination upon 60 days notice, also as provided in
                           Section 15 of the 40 Act. If the Class 10 LLC
                           Interests are not distributed to the Holders of
                           Allowed Interests and New Investments LLC does not
                           make the BDC Election, the Investment Management
                           Agreement will be for an initial term of two years
                           and subject to annual renewals thereafter with the
                           approval of the Board of Managers.

                           (d) If New Investments LLC will be qualified as a
                           business development company, Investment Manager will
                           be required to register as an investment adviser
                           under the Investment Advisers Act of 1940.

                           6. Distributions. All distributions made by New
                           Investments LLC, including distributions upon
                           liquidation of New Investments LLC, will be made in
                           the following order of priority assuming the
                           Preferred LLC Interest Repurchase has occurred:

                           First, 100% to the holders of LLC Interests pro rata
                           until they have received aggregate distributions
                           equal to their Initial Capital Amounts. The "Initial
                           Capital Amounts" for the investors in the Equity
                           Financing will equal in the aggregate $16,250,000 and
                           for the Holders of Allowed Interests, assuming the
                           distribution to such holders occurs, will equal in
                           the aggregate $2,645,348.80.

                           Second, 100% to the holders of LLC Interests pro rata
                           until they have received aggregate distributions
                           equal to a 6% return, compounded annually, on their
                           Initial Capital Amounts.

                           Third, 100% to the Investment Manager until the
                           Investment Manager has received aggregate
                           distributions equal to 20% of the amounts distributed
                           pursuant to the foregoing clause Second and this
                           clause Third.

                           Fourth, 80% to the holders of LLC Interests and 20%
                           to the Investment Manager. (The distribution payable
                           to the Investment Manager pursuant to the foregoing
                           clause Third and this clause Fourth is referred to as
                           the "Carried Interest").

                                       23
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           The Investment Manager's right to receive the Carried
                           Interest shall be fully vested upon the issuance of
                           such interest in recognition of the fact that, with
                           the assistance and advice of the Investment Manager,
                           New Investments LLC will have concurrently with the
                           closing of the transactions contemplated hereby
                           acquired the entire portfolio of securities (subject
                           to follow-on investments) that New Investments LLC
                           will acquire.

                           7. Board Composition and Control of New Investments
                           LLC.

                           (a) If holders of Allowed Class 5 Claims invest at
                           least $3,000,000 in the Equity Financing, the Board
                           of Managers of New Investments LLC will include the
                           following three interested managers: a representative
                           of the Berylson Investors, who shall initially be
                           John Berylson; a representative of the Smith
                           Investors, who shall initially be Richard Smith; and
                           a representative of the holders of Allowed Class 5
                           Claims who represent a majority of the LLC Interests
                           purchased by such holders. The Board of Managers will
                           also include four disinterested managers to be
                           designated prior to confirmation and who shall be
                           nominated and elected by the holders of a majority of
                           the LLC Interests in New Investments LLC. If holders
                           of Allowed Class 5 Claims do not invest at least
                           $3,000,000 in the Equity Financing, the Board of
                           Managers of New Investments LLC will include the
                           following two interested managers: a representative
                           of the Berylson Investors, who shall initially be
                           John Berylson; and a representative of the Smith
                           Investors, who shall initially be Richard Smith. In
                           such event, the Board of Managers will also include
                           three "disinterested managers" to be designated prior
                           to confirmation and who shall be nominated and
                           elected by the holders of a majority of the LLC
                           Interests in New Investments LLC. Each member of the
                           Board shall serve for a five-year term, and any
                           replacements upon resignation or removal of a member
                           shall be made by the parties entitled to appoint such
                           member in the first instance. In the event the
                           Distribution Conditions do not occur, or are not
                           waived, and accordingly the BDC Election is not made,
                           the Board of Managers may not include any
                           disinterested managers, and additional managers may
                           be appointed with the consent of a majority of the
                           holders of LLC Interests.

                                       24
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                                                                January 28, 2002

TERM SHEET FOR THE ACQUISITION OF GCC BY AMCE

                           (b) Pursuant to the terms of the Investment
                           Management Agreement, the Investment Manager will
                           have the discretion to make disposition decisions
                           with regard to portfolio investments held by New
                           Investments LLC, and shall also make recommendations
                           to the Board of Managers regarding additional
                           investments in such portfolio companies. The approval
                           by the Board of Managers shall be required for any
                           additional investments. There will be no limitation
                           on the types of investments that may be recommended
                           by New Manager LLC, as long as such investments are
                           in companies which are then portfolio companies of
                           New Investments LLC. The approval of the Board of
                           Managers of New Investments LLC will also be required
                           prior to New Investments LLC's reinvesting the
                           proceeds of any liquidated investments, raising any
                           capital of any kind, distributing any investments in
                           kind or retaining reserves or other amounts from the
                           cash proceeds of a liquidity event which will
                           otherwise be distributed pursuant to the distribution
                           provisions discussed above.

                           8. Voting Rights of Holders of LLC Interests. Each
                           holder of an LLC Interest is entitled to a vote
                           proportionate to such holder's percentage share of
                           the equity of New Investments LLC for the election of
                           members of the Board of Managers. All voting rights
                           for the election of such members are noncumulative,
                           which means that the holders of more than 50% of the
                           LLC Interests can elect 100% of the managers then
                           nominated for election if they choose to do so and,
                           in such event, the holders of the remaining LLC
                           Interests will not be able to elect any managers.

                           9. Board Composition of Investment Manager. The Board
                           of Managers of the Investment Manager will be such
                           individuals as may be designated by Messrs. Berylson
                           and Kouvaris, who will own 100% of the Investment
                           Manager.

Class 10 -- Common         The holders of Common Stock Options shall receive no
Stock Options:             distribution. On the Effective Date all Common Stock
                           Options and any other equity interests will be
                           canceled.

                                       25
<PAGE>
                                                                January 28, 2002

TERM SHEET -- NEW AMCE NOTES
9.5% Senior Subordinated Notes due 2011

EXISTING ISSUE:   $225 million principal amount of 9.5% Senior Subordinated
                  Notes due 2011 of AMC Entertainment Inc. (the "Notes").

ISSUER:           AMC Entertainment Inc. ("AMCE" or the "Company").

COUPON:           9.5%, payable twice annually on February 1st and August 1st.

MATURITY DATE:    February 1, 2011.

OPTIONAL          The Company may redeem the notes at its option, in whole or in
REDEMPTION:       part, at any time after February 1, 2004 at 104.75% of the
                  principal thereof, declining ratably to 100.00% of the
                  principal amount thereof on or after February 1, 2007, plus in
                  each case interest accrued to the redemption date.

CHANGE OF         Upon a Change of Control, the holders of the Notes will have
CONTROL:          the right to require AMCE to repurchase the Notes at a price
                  equal to 101% of the principal amount thereof plus accrued and
                  unpaid interest to the date of repurchase.

RANKING:          The Notes are unsecured senior subordinated indebtedness
                  ranking pari passu with all of AMCE's existing and future
                  senior subordinated indebtedness. The payment of all
                  obligations in respect of the Notes will be subordinated in
                  right of payment to the prior payment in full in cash or cash
                  equivalents of all senior indebtedness. As of June 28, 2001,
                  AMCE had approximately $73.2 million of net senior
                  indebtedness and $199 million of pari passu indebtedness
                  outstanding. In addition, the Notes are effectively
                  subordinated to all liabilities of AMCE's subsidiaries,
                  including trade payables but excluding: (i) intercompany
                  obligations; (ii) liabilities under guarantees of AMCE's
                  obligations; and (iii) obligations under operating leases and
                  other obligations not reflecting in AMCE's consolidated
                  financial statements.

CERTAIN           The indenture contains certain covenants that, among other
COVENANTS:        things, restricts AMCE's ability and the ability of AMCE's
                  subsidiaries to: (i) incur additional indebtedness; (ii) pay
                  dividends or make distributions in respect of capital; (iii)
                  purchase or redeem capital stock; (iv) enter into transactions
                  with certain affiliates; (v) become liable for any
                  indebtedness that is subordinate or junior in right of payment
                  to any

   THESE SECURITIES ARE THE SAME AS THE EXISTING PUBLICLY TRADED ISSUE, WHICH
   INDENTURE PROVIDES FOR THE ABILITY TO ADD UP TO $100 MILLION OF ADDITIONAL
SECURITIES - THIS TERM SHEET IS QUALIFIED IN ITS ENTIRETY BY THE DESCRIPTION OF
      THE NOTES IN AMCE'S SEC FILINGS, WHICH ARE INCORPORATED BY REFERENCE
<PAGE>
                                                                January 28, 2002

TERM SHEET -- NEW AMCE NOTES
9.5% Senior Subordinated Notes due 2011

                  senior indebtedness and senior in right of payment to the
                  Notes; or (vi) consolidate, merge or sell all or substantially
                  all of AMCE's assets, other than in certain transactions
                  between one or more of AMCE's wholly-owned subsidiaries and
                  AMCE.

   THESE SECURITIES ARE THE SAME AS THE EXISTING PUBLICLY TRADED ISSUE, WHICH
   INDENTURE PROVIDES FOR THE ABILITY TO ADD UP TO $100 MILLION OF ADDITIONAL
SECURITIES - THIS TERM SHEET IS QUALIFIED IN ITS ENTIRETY BY THE DESCRIPTION OF
      THE NOTES IN AMCE'S SEC FILINGS, WHICH ARE INCORPORATED BY REFERENCE
<PAGE>
                                                                January 28, 2001

EXHIBIT A - IDENTIFIED LEASES

UNIT # THEATRE NAME
   410 Pga
   414 Gwinnett Place
   421 Westdale
   449 Galleria
   466 Dublin Place
   471 Coral Square
   474 Central Park
   476 Northland
   477 Burnhaven
   482 Pinellas Square
   484 Point Nasa
   493 Regency
   499 Lindbergh
   507 Janaf
   514 Lakeside (2 Units)
   662 Wyoming Valley
   691 Columbia City
   704 Lakehurst
   713 Rutgers
   716 Deerbrook
   804 Crosscreek Mall
   806 Erie Commons
   809 Shelard Park
   829 Mercer Mall
   834 Lakeside (2 Units)
   837 Hanes Mall
   841 Wyoming Valley
   846 Lafayette Sq
   853 Merchants Walk
   861 San Mateo
   869 Sandy Springs 8
   872 Summit Park
   876 Columbia Mall
   877 Chestefield
   883 Westland
   887 Colonial
   888 Arlington Park
   889 Ridgmar Town Sq
   892 Eastland
   894 Mall Of Memphis
   901 Crossroads East
   908 Lincoln Plaza 8
   910 Esplanade Mall

 THIS LISTING OF THE IDENTIFIED LEASES IS FOR PURPOSES OF DEFINING POTENTIAL
  CLAIMS UNDER THIS TERM SHEET ONLY AND DOES NOT CREATE ANY RIGHTS IN ANY THIRD
  PARTY, INCLUDING WITHOUT LIMITATION ANY LESSORS UNDER THE IDENTIFIED LEASES
<PAGE>
                                                                January 28, 2002

EXHIBIT A - IDENTIFIED LEASES

   912 Highland 10
   915 Pembroke
   918 Gateway Center
   921 Mission Bay
   923 Hairston
   925 Fountains 8
   928 Richardson
   930 Pleasant Valley
   934 Great Hills
   939 Altamonte 8
   941 Midway Mall
   947 Lake Mary
   952 Canton Cinema
   953 Fashion Square
   954 Market 7
   955 Pittsford

   THIS LISTING OF THE IDENTIFIED LEASES IS FOR PURPOSES OF DEFINING POTENTIAL
  CLAIMS UNDER THIS TERM SHEET ONLY AND DOES NOT CREATE ANY RIGHTS IN ANY THIRD
   PARTY, INCLUDING WITHOUT LIMITATION ANY LESSORS UNDER THE IDENTIFIED LEASES<PAGE>

                                                                   EXHIBIT 10.34

                                                                  EXECUTION COPY

                            STOCK PURCHASE AGREEMENT

                          DATED AS OF JANUARY 15, 2002
                                  BY AND AMONG

                               GC COMPANIES, INC.
                                 (THE "Seller")

                                       AND

                             AMC ENTERTAINMENT INC.
                          AMERICAN MULTI-CINEMA, INC.
                                      AND
                        CENTERTAINMENT DEVELOPMENT, INC.
                        (COLLECTIVELY, THE "PURCHASERS")
<PAGE>
                            STOCK PURCHASE AGREEMENT

                  THIS STOCK PURCHASE AGREEMENT, dated as of January 15, 2002,
is entered into by and among GC COMPANIES, INC., a Delaware corporation ("GCX"
or "SELLER"), and AMC ENTERTAINMENT INC., a Delaware corporation ("AMCE"),
AMERICAN MULTI-CINEMA, INC., a Missouri corporation ("AMC"), and CENTERTAINMENT
DEVELOPMENT, INC., a Delaware corporation ("CDI"), (AMCE, AMC and CDI being
hereinafter referred to collectively as the "PURCHASERS" and individually from
time to time as a "PURCHASER").

                                    Recitals

                  WHEREAS, GCX and certain of its subsidiaries (collectively,
the "DEBTORS") are the debtors and debtors-in-possession in chapter 11
proceedings pending in the United States Bankruptcy Court for the District of
Delaware (the "BANKRUPTCY COURT") as case numbers 00-3897 through 00-3927 (as
administratively consolidated, the "CHAPTER 11 CASES"); and

                  WHEREAS, GCX is a holding company engaged in three primary
lines of business (collectively, the "GC BUSINESS") through its Subsidiaries and
Affiliates: (i) a wholly-owned domestic movie theatre exhibition business (the
"DOMESTIC THEATRE BUSINESS") conducted through General Cinema Theatres, Inc.
("GCT") and its Subsidiaries, (ii) the 50% interest of General Cinema
International, Inc. ("GC INTERNATIONAL") in a South American movie theatre
exhibition business (the "SA THEATRE BUSINESS") owned by and conducted through
Hoyts General Cinema South America, Inc. ("HGCSA") and its Affiliates
(collectively, the "SA JOINT VENTURE"), and (iii) a private investment business
(the "INVESTMENT PORTFOLIO") conducted through GCC Investments, Inc. ("GCC
INVESTMENTS") and its Affiliates; and

                  WHEREAS, AMCE has entered into a letter of intent dated
December 6, 2001 (as amended, the "LOI") with GCX whereby AMCE, through its
designees, would acquire the GC Business (the "TRANSACTION") through the
acquisition of 100% of the stock of reorganized GCX under a plan of
reorganization for the Debtors in the Chapter 11 Cases; and

                  WHEREAS, AMCE desires that AMC and CDI, each wholly owned
subsidiaries of AMCE, act as its designees pursuant to the LOI, and,
accordingly, AMC will acquire 100% of the newly issued common stock of GCX (the
"NEW GCX COMMON STOCK") and CDI will acquire 100% of the GC International stock
(the "GC INTERNATIONAL STOCK") and 100% of the of the GCC Investments stock (the
"GCC INVESTMENTS STOCK"), (the New GCX Shares, GC International Stock and the
GCC Investments Stock shall be collectively referred to as the "PURCHASED
SHARES").
<PAGE>
                                   Agreements

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained in this Agreement and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.01 DEFINITIONS. Unless the context otherwise requires, the terms
defined in this Section 1.01 shall have the meanings specified for all purposes
of this Agreement. Capitalized terms used and not defined in this Agreement have
the meaning ascribed thereto in the Plan.

         "ACTIONS OR PROCEEDINGS" means any action, suit, proceeding,
arbitration or Governmental or Regulatory Authority investigation.

         "AFFILIATE" means, as applied to any Person, any other Person directly
or indirectly controlling, controlled by or under common control with that
Person. For the purposes of this definition, "control" (including with
correlative meanings, the terms "controlling", "controlled by", and "under
common control with") as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of that Person, whether through ownership of voting securities or
by contract otherwise.

         "AGREEMENT" means this Stock Purchase Agreement, the Exhibits and the
Data Room Index and the certificates delivered in connection herewith, as the
same may be amended from time to time in accordance with the terms hereof.

         "AMC" has the meaning ascribed to it in the Preamble.

         "AMCE" has the meaning ascribed to it in the Preamble.

                                        3
<PAGE>
         "AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OR CHARTER" means,
with respect to each Reorganized Debtor, the amended and restated certificate or
articles of incorporation or charter (or document of similar effect with respect
to any Debtor that is not a corporation) for such Reorganized Debtor, which
shall be substantially in the forms of the example set forth in the Plan
Documentary Supplement.

         "AMENDED AND RESTATED BYLAWS" means, with respect to each Reorganized
Debtor, the amended and restated bylaws for such Reorganized Debtor that is a
corporation, which shall be substantially in the forms of the examples set forth
in the Plan Documentary Supplement.

         "ASSETS AND PROPERTIES" of any Person means all assets and properties
of every kind, nature, character and description (whether real, personal or
mixed, whether tangible or intangible, whether absolute, accrued, contingent,
fixed or otherwise and wherever situated), including the goodwill related
thereto, operated, owned or leased by such Person, including without limitation
cash, cash equivalents, Investment Assets, accounts and notes receivable,
chattel paper, documents, instruments, general intangibles, real estate,
equipment, inventory, goods and Intellectual Property.

         "ASSOCIATE" means, with respect to any Person, any corporation or other
business organization of which such Person is an officer or partner or is the
beneficial owner, directly or indirectly, of 10% or more of any class of equity
securities or similar interests, any trust or estate in which such Person has a
substantial beneficial interest or as to which such Person serves as a trustee
or in a similar capacity and any relative or spouse of such Person.

         "AUDITED FINANCIAL STATEMENTS" has the meaning ascribed to it in
Section 3.08.

         "BANKRUPTCY CODE" means the Bankruptcy Reform Act of 1978, as amended,
as set forth in Title 11 of the United States Code, 11 U.S.C. Sections 101 et
seq., as applicable to the GC Chapter 11 Cases.

         "BANKRUPTCY COURT" has the meaning ascribed to it in the Recitals.

         "BUSINESS COMBINATION" means with respect to any Person any (a) merger,
consolidation or combination to which such Person is a party, (b) any sale,
dividend, split or other disposition of any capital stock or other equity
interests of such Person, (c) any tender offer (including without limitation a
self-tender), exchange offer, recapitalization, liquidation, dissolution or
similar transaction, (d) any sale, dividend or other disposition of all or a
material portion of the Assets and Properties of such Person or (e) the entering
into of any agreement or understanding, or the granting of any rights or
options, with respect to any of the foregoing.

                                        4
<PAGE>
         "BUSINESS DAY" means any day other than a Saturday, a Sunday or a
weekday on which banks in the City of New York or the City of Boston are
authorized to be closed.

         "CDI" has the meaning ascribed to it in the Preamble.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, and the rules and regulations promulgated
thereunder.

         "CERCLIS" means the Comprehensive Environmental Response, Compensation
and Liability Information System list of sites maintained by the United States
Environmental Protection Agency under the provisions of CERCLA.

         "CHAPTER 11 CASES" has the meaning ascribed to it in the Recitals.

         "CLOSING" has the meaning ascribed to it in Section 2.03.

         "COMMITTEE" means the Official Committee of Unsecured Creditors of the
Debtors appointed in the Chapter 11 Cases pursuant to Section 1102 of the
Bankruptcy Code.

         "CONFIRMATION ORDER" means the order entered by the Bankruptcy Court
confirming the Reorganization Plan in accordance with the provisions of Chapter
11 of the Bankruptcy Code, which order must be in form and substance reasonably
satisfactory to AMCE and GCX and consistent with the Plan.

         "CONTRACT" means any agreement, lease, license, evidence of
Indebtedness, mortgage, indenture, security agreement or other contract,
commitment or understanding (whether written or oral).

         "CONTRACT SCHEDULE" means "Schedule G - Executory Contracts and
Unexpired Leases" filed by the Debtors in the Chapter 11 Cases, as amended, a
true and correct of which has been provided by GCX to the Purchasers.

          "DATA ROOM INDEX" means that certain index of the documents,
information and other materials related to the GC Business that has been
provided by the Seller to the Purchasers and annexed hereto as Exhibit A and the
leases files for the Real Property Leases listed on Exhibit C. All of the
documents, agreements and other materials listed on the Data Room Index shall be
deemed furnished and made available to the Purchasers for all purposes of this
Agreement; provided, that documents, information and other materials listed in
the Data Room Index shall not be deemed to include any documents, information or
other materials referenced within the content of any of such items (e.g., a
reference to an agreement in the corporate minute book of a GC Entity

                                        5
<PAGE>
shall not be deemed to constitute a disclosure with respect to such agreement,
unless such agreement was listed separately on the Data Room Index).

         "DEBTOR(S)" means, individually or collectively, GCX, and each of its
subsidiaries that is a debtor and debtor-in-possession under Chapter 11 of the
Bankruptcy Code in the Chapter 11 Cases as set forth in footnote 1 of the Plan,
but does not include the GC Chapter 7 Debtors, the GC Non-Debtors or the SA
Joint Venture.

         "DIP FACILITY" means that certain Debtor in Possession Agreement dated
October 11, 2000, by and between GCX, General Electric Capital Corporation,
Fleet National Bank, and the Bank of Nova Scotia, as amended.

         "DOMESTIC THEATRE BUSINESS" has the meaning ascribed to it in the
Recitals.

         "EFFECTIVE DATE" has the meaning ascribed to it in Section 2.03.

         "EMPLOYEES" has the meaning ascribed to it in Section 3.13.

         "EMPLOYEE PLAN(S)" means all employee pension plans, any bonus,
incentive compensation, deferred compensation, profit sharing, pension,
retirement, savings, stock purchase, stock option, stock ownership, stock
appreciation rights, phantom stock, leave of absence, layoff, vacation, day or
dependent care, legal services, cafeteria, life, medical, dental, health,
accident, disability, workers compensation or other insurance, severance,
separation or other employee benefit plan, practice, policy, program or group or
individual arrangement of any kind providing money (other than as current salary
or wages), services, property or other benefits, written or oral, funded or
unfunded, and including all that have been frozen, and all trusts, escrow or
similar agreements related thereto which are maintained by any of the GC
Entities or any ERISA Affiliate with respect to any one or more of its present
or former employees, independent contractors, directors, officers or
shareholders or with respect to which any of the GC Entities or any ERISA
Affiliate has made or may be, now or in the future, required to make payments,
transfer or contributions.

         "ENVIRONMENTAL, HEALTH AND SAFETY REQUIREMENTS" shall mean all Laws
concerning public health and safety, worker health and safety, and pollution or
protection of the environment including without limitation all those relating to
the presence, use, production, generation, handling, transportation, treatment,
storage, disposal, distribution, labeling, testing, processing, discharge,
release, threatened release, control, or cleanup of any hazardous materials,
substances or wastes, as such requirements are enacted and in effect on or prior
to the date of this Agreement.

                                        6
<PAGE>
         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and the rules and regulations promulgated thereunder.

         "ERISA AFFILIATE" means any other Person that, together with GCX, GCC
Investments or GC International, would be treated as a single employer under
section 414 of the Code.

         "FINAL ORDER" has the meaning ascribed to it in the Plan.

         "FINANCIAL STATEMENTS" has the meaning ascribed to it in Section 3.08.

         "GAAP" means United States generally accepted accounting principles, as
in effect as of the relevant date.

         "GC BUSINESS" has the meaning ascribed to it in the Recitals.

         "GC CHAPTER 7 DEBTORS" means General Cinema Theatres of Florida, Inc.,
General Cinema Corp. of Georgia, General Cinema Corp. of Louisiana, General
Cinema Corp. of Rhode Island, General Cinema Corp. of Tennessee and General
Cinema Corp. of West Palm Beach, which are excluded from the Transaction.

         "GC ENTITIES" means (i) the Debtors, (ii) the GC Non-Debtors, and (iii)
the SA Joint Venture Entities.

         "GC INTERNATIONAL" has the meaning ascribed to it in the Recitals.

         "GC INTERNATIONAL STOCK" has the meaning ascribed to it in the
Recitals.

         "GC NON-DEBTORS" means the United States GCX Affiliates other than the
Debtors, to wit: (i) GC International, (ii) GC Security Corp., (iii) GCC
Investments, LLC and its Affiliates, (iii) the Premium - Liquor License Holders,
(iv) the Inactive Corporations, and (v) the Joint Venture Partners, each as
defined by and shown on the Organizational Chart.

         "GCC INVESTMENTS" has the meaning ascribed to it in the Recitals. "GCC
Investments Stock" has the meaning ascribed to it in the Recitals. "GCT" has the
meaning ascribed to it in the Recitals.

         "GCX" has the meaning ascribed to it in the Preamble.

                                        7
<PAGE>
         "GOVERNMENTAL OR REGULATORY AUTHORITY" means any court, tribunal,
arbitrator, authority, agency, commission, official or other instrumentality of
any federal, national, state, municipal, county, city or other political
subdivision with jurisdiction over any of the GC Entities or the GC Business.

         "HELLER DOCUMENTS" means that certain Lease and Security Agreement
dated as of October 28, 1999 by and between Heller EMX, Inc. and GCX, as
amended, and any documents related thereto.

         "HSR ACT" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, and the rules and regulations thereunder.

         "INDEBTEDNESS" of any Person means all obligations of such Person (a)
for borrowed money, (b) evidenced by notes, bonds, debentures or similar
instruments and (c) in the nature of guarantees of the obligations described in
clauses (a) and (b) above of any other Person.

         "INTELLECTUAL PROPERTY" means all United States and foreign trademarks
and trademark rights, trade name rights, service marks and service mark rights,
service names and service name rights, copyrights and copyright rights, patents
and patent rights, business and product names, logos and slogans and computer
programs (including all source codes, object codes, firmware, development tools,
files, records and data) whether or not subject to statutory registration, and
all common law and world-wide rights to, pending United States and foreign
applications for and registrations of, patents (including all reissues,
divisions, renewals, extensions, provisionals, continuations and continuations
in part), trademarks, service marks and copyrights.

         "INTELLECTUAL PROPERTY AGREEMENTS" has the meaning ascribed to it in
Section 3.17.

         "INTERIM OPERATING AGREEMENT" means that certain Interim Operating
Agreement dated December 6, 2001 by and between GCX and AMCE, as such agreement
is amended from time to time or modified by the Bankruptcy Court with AMCE's
consent.

         "INVESTMENT ASSETS" means all debentures, notes and other evidences of
Indebtedness, stocks, securities (including rights to purchase and securities
convertible into our exchangeable for other securities), interests in joint
ventures and general and limited partnerships, mortgage loans and other
investment or portfolio assets owned of record or beneficially by GCC
Investments and its Affiliates, as disclosed under Data Room Index Item X.

         "INVESTMENT PORTFOLIO" has the meaning ascribed to it in the Recitals.

                                        8
<PAGE>
         "KNOWLEDGE" as used in connection with GCX or the GC Entities means the
actual knowledge of the officers and directors of the GC Entities.

         "LAST STATEMENT DATE" means July 31, 2001.

         "LAW" means all laws, statutes, rules, regulations, ordinances and
other pronouncements having the effect of law of any political instrumentality
with jurisdiction over any of the GC Entities or the GC Business.

         "LIABILITY" means all indebtedness, obligations and other liabilities
of a Person (whether absolute, accrued, contingent, fixed or otherwise, or
whether due or to become due), including, without limitation, any fines,
penalties, judgments, awards, settlements respecting any judicial,
administrative or arbitration proceedings, damages, losses, claims or demands.

         "LIEN" means any mortgage, pledge, assessment, security interest, lien,
levy, charge or other encumbrance of any kind.

         "LOI" has the meaning ascribed to it in the Preamble.

         "LOI ORDER" means an order of the Bankruptcy Court approving the LOI
and Interim Operating Agreement.

         "MATERIAL ADVERSE EFFECT" means, with respect to the GC Business or the
Assets or Properties of the GC Business, any change in the condition (financial
or other), business, results of operations, prospects, assets, Liabilities or
operations of the GC Business and/or the Assets or Properties of the GC Business
taken as a whole that, individually or in the aggregate, has an adverse effect
of at least $1.5 million, or that substantially impairs the ability of the
Seller to consummate the Transaction, or any event or condition which would,
with the passage of time, constitute such a "Material Adverse Effect," except
for such changes that (i) are in the Ordinary Course of Business of the GC
Entities, (ii) are contemplated by the Plan, or (iii) occur as a result of the
September 11, 2001 terrorist attacks, general economic conditions in South
America or currency fluctuations with respect to South American countries.

         "NEW GCX STOCK" has the meaning ascribed to it in the Recitals.

         "ORDINARY COURSE OF BUSINESS" means a reasonable action taken by a
Person only if (taking into account the seasonality of the Person's business
and, in the case of GCX, the Chapter 11 Cases, (a) such action is consistent
with the past practices of such Person and is taken in the ordinary course of
normal day-to-day operations of such Person; and (b) such action is not required
to be authorized by the board of directors of such Person (or by any Person or
group of

                                        9
<PAGE>
Persons exercising similar authority) and such Person is not otherwise required
to obtain the approval of AMCE or any other person as may be required by the
Interim Operating Agreement; except to the extent such action is provided for or
contemplated by the Plan, the LOI, the Interim Operating Agreement or this
Agreement.

         "ORGANIZATIONAL CHART" means the organizational chart of GCX and its
Affiliates attached hereto as Exhibit B.

         "ORGANIZATIONAL DOCUMENTS" means with respect to any entity: (a) the
articles or certificate of incorporation and the bylaws of a corporation; (b)
the partnership agreement and any statement of partnership of a general
partnership; (c) the limited partnership agreement and the certificate of
limited partnership of a limited partnership; (d) the certificate of formation
and limited liability company agreement of any limited liability company; (e)
any charter or similar document adopted or filed in connection with the
creation, formation, or organization of a Person; and (f) any amendment to any
of the foregoing.

         "OPTION" with respect to any Person means any security, right,
subscription, warrant, option, "phantom" stock right or other Contract that
gives the right to (a) purchase or otherwise receive or be issued any shares of
capital stock or other equity interests of such Person or any security of any
kind convertible into, exchangeable or exercisable for any shares of capital
stock or other equity interests of such Person or (b) receive any benefits or
rights similar to any rights enjoyed by or accruing to the holder of shares of
capital stock or other equity interests of such Person, including without
limitation any rights to participate in the equity, income or election of
directors or officers of such Person.

         "ORDER" means any writ, judgment, decree, injunction or similar order
of any Governmental or Regulatory Authority (in each such case whether
preliminary or final).

         "PERMITTED LIENS" means (a) Liens for Taxes or governmental
assessments, charges or claims the payment of which is not yet due, or for Taxes
the validity of which are being contested in good faith by appropriate
proceedings, (b) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, materialmen and other similar Persons imposed by
applicable Law and incurred in the Ordinary Course of Business; (c) Liens
relating to deposits made in the Ordinary Course of Business in connection with
workers compensation, unemployment insurance and other types of social security;
(d) minor defects of title, easements, rights-of-way, restrictions and other
similar charges or encumbrances not materially detracting from the value of the
property or interfering with the ordinary conduct of the GC Business; (e) Liens
not created by the GC Entities which affect the underlying fee interest of any
leased Real Property; (f) Liens related to the Heller Documents; (g) Liens of
the SA Lenders against certain stock and property of GCC Hoyts Chile, Inc.,
Hoyts Cinemas Chile SA, Boca Holdings, Inc. and Hoyts General Cinema de
Argentina, S.A.;

                                       10
<PAGE>
and (h) the Lien of Bank of Nova Scotia against a $1.2 million certificate of
deposit securing that certain letter of credit issued by Bank of Nova Scotia in
favor of Fleet National Bank, which letter of credit secures one-half of the
letter of credit issued by Fleet National Bank or its Affiliates for the benefit
of the landlord of the SA Joint Venture's La Reina Alianza lease in Chile.

         "PERSON" means any natural person, corporation, joint stock
corporation, general partnership, limited partnership, limited liability company
or partnership, proprietorship, other business organization, trust, union,
association or Governmental or Regulatory Authority.

         "PLAN" means that certain Joint Plan of Reorganization of Debtors and
Official Committee of Unsecured Creditors for GC Companies, Inc. and its Jointly
Administered Subsidiaries filed with the Bankruptcy Court on December 21, 2001,
as the same may be amended with AMCE's consent.

         "PLAN DOCUMENTARY SUPPLEMENT" means a supplement to the Plan,
containing the Plan Documents, to be filed with the Bankruptcy Court no later
than ten (10) Business Days prior to the commencement of the Confirmation
Hearing, as said supplement may be amended from time to time at any time prior
to the Effective Date.

         "PLAN DOCUMENTS" has the meaning ascribed to it in the Plan.

         "PROPONENTS" means those parties in interest proposing the Plan, i.e.,
the Debtors and the Committee.

         "PURCHASED SHARES" has the meaning ascribed to it in the Recitals.

         "PURCHASERS" has the meaning ascribed to it in the Recitals.

         "QUARTERLY STATEMENTS" has the meaning ascribed to it in Section 3.08.
"Real Property" has the meaning ascribed to it in Section 3.14(a). "Real
Property Leases" has the meaning ascribed to it in Section 3.14(a).

         "REIMBURSEMENT AGREEMENT" means that certain Amended and Restated
Reimbursement and Security Agreement dated January 26, 1999 between GCX and
Harcourt General, Inc.

         "REORGANIZED DEBTORS" means, collectively, all of the Debtors or any
successors thereto by merger, consolidation, acquisition, or otherwise on and
after the Effective Date.

                                       11
<PAGE>
         "REPRESENTATIVES" means Purchaser and its Affiliates and each of their
respective officers, employees, agents, counsel, accountants, financial
advisors, consultants and other representatives.

         "SA JOINT VENTURE" has the meaning ascribed to it in the Recitals.

         "SA JOINT VENTURE ENTITIES" means HGCSA and its Affiliates, as shown on
the Organizational Chart.

         "SA LENDERS" has the meaning ascribed to it in the Plan.

         "SA THEATRE BUSINESS" has the meaning ascribed to it in the Recitals.

         "SELLER" has the meaning ascribed to it in Preamble.

         "SUBSIDIARY" means, with respect to any Person, (a) any corporation as
to which more than 50% of the outstanding stock having ordinary voting rights or
power (and excluding stock having voting rights only upon the occurrence of a
contingency unless and until such contingency occurs and such rights may be
exercised) is owned or controlled, directly or indirectly, by such Person and/or
by one or more of such Person's Subsidiaries, and (b) any partnership, joint
venture or other similar relationship between such Person (or any Subsidiary
thereof) and any other Person (whether pursuant to a written agreement or
otherwise) if such Person has a more than 50% equity interest therein.

         "TAX" OR "TAXES" means any and all United States and foreign federal,
state, municipal or local net or gross income, gross receipts, net proceeds,
sales, use, ad valorem, value added, transfer, franchise, recapture,
withholding, payroll, employment, excise, premium, property, alternative or
add-on minimum, environmental or other taxes, assessments, duties, fees, levies
or other governmental charges of any nature whatsoever, but shall not include
any assessment or other charges of guaranty funds or similar organizations.

         "TAX CODE" means the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder.

         "TAX RETURN" means any returns, reports, statements (including any
estimated reports, returns or statements) and other similar filings required to
be filed for purposes of a particular Tax.

         "THIRD PARTY CLAIM" has the meaning ascribed to it in Section 8.02.

         "TRANSACTION" has the meaning ascribed to it in the Recitals.

                                       12
<PAGE>
         1.02 INTERPRETATION. As used in this Agreement, the words "include" and
"including," are not words of limitation and should be read to also add "without
limitation." The word "or" is not exclusive and the words "herein", "hereof",
"hereby", "hereto" and "hereunder" refer to this Agreement as a whole. Any
reference to any applicable Law shall be deemed also to refer to all rules and
regulations promulgated thereunder unless the context otherwise requires.
Whenever required by the context, any gender shall include any other gender, the
singular shall include the plural and the plural shall include the singular.
Unless the context otherwise requires, references herein (a) to Articles,
Sections, Exhibits and Schedules mean the Articles and Sections of and the
Exhibits and Schedules attached to this Agreement and (b) to an agreement,
instrument or other document means such agreement, instrument or other document
as amended, supplemented and modified through the date hereof unless the context
otherwise requires and thereafter from time to time to the extent permitted by
this Agreement. The Schedules and Exhibits referred to herein shall be construed
with and as an integral part of this Agreement to the same extent as if they
were set forth verbatim herein. The Table of Contents and titles to Articles and
headings of Sections or Schedules are inserted for convenience of reference only
and shall not be deemed a part of or to affect the meaning or interpretation of
this Agreement.

         1.03 ACCOUNTING RULES. Except as otherwise expressly provided, all
accounting terms used in this Agreement, whether or not defined in Section 1.01,
shall be construed in accordance with GAAP. If and so long as any Person has one
or more Subsidiaries, such accounting terms shall be determined on a
consolidated basis for the Person and each of its Subsidiaries, and the
financial statements and other financial information to be furnished by any
Person pursuant to this Agreement shall be consolidated and presented in
consolidating financial statements in accordance with GAAP.

                                   ARTICLE II
                        SALE OF PURCHASED SHARES; CLOSING

         2.01 PURCHASE AND SALE OF PURCHASED SHARES.

         (a) GCX agrees to sell to AMC, and AMC agrees to purchase from GCX, the
New GCX Stock at the Closing on the terms and subject to the conditions set
forth in this Agreement.

         (b) GCX agrees to sell to CDI, and CDI agrees purchase from GCX, the GC
International Stock at the Closing on the terms and subject to the conditions
set forth in this Agreement.

                                       13
<PAGE>
         (c) GCX agrees to sell to CDI, and CDI agrees purchase from GCX, the
GCC Investments Stock at the Closing on the terms and subject to the conditions
set forth in this Agreement.

         2.02 PURCHASE PURSUANT TO PLAN. The Purchased Shares are being sold
pursuant to and in consideration of the Plan and consideration provided for
therein, and no additional consideration shall be paid at Closing.

         2.03 CLOSING. The Closing (the "CLOSING") of the purchase and sale of
the Purchased Shares shall occur at the offices of Goodwin Procter LLP, Exchange
Place, Boston, MA 02109, at 10:00 A.M. local time, (a) on the first Business Day
following the date the Confirmation Order shall have become a Final Order or (b)
such other date as the Purchasers and the Seller shall mutually agree (the date
on which the Closing takes place being the "EFFECTIVE DATE"). At the Closing,
the Seller will sell and the Purchasers shall purchase the Purchased Shares,
free and clear of all Liens, and the Seller shall deliver to Purchasers a stock
certificate or certificates evidencing the Purchased Shares, duly endorsed to
the appropriate Purchaser with all required stock transfer tax stamps affixed or
provided for. At the Closing, there shall also be delivered by the Purchasers
and the Seller the certificates and other agreements, documents and instruments
to be delivered under Article V or as conditions to Closing under Article VI.

                                   ARTICLE III
                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Each of the representations and warranties set forth in this Article
III is qualified by the agreements and other documents listed on the Data Room
Index. Furthermore, no agreement, document or Lien for which no GC Entity has
any obligations after the Effective Date as a result of its rejection or
termination pursuant to the Plan shall be deemed to breach any of such
representations or warranties, regardless of whether such agreement, document or
Lien is listed on the Data Room Index. Subject to the foregoing, the Seller
hereby represents and warrants to the Purchasers as follows:

         3.01 ORGANIZATION AND QUALIFICATION. Each of the GC Entities is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization and has full entity power and authority to conduct
the GC Business conducted by it and to own, use and lease its Assets and
Properties. Each of the GC Entities is duly qualified or licensed to do business
and is in good standing in each jurisdiction where the nature of the GC Business
conducted by it or the Assets and Properties owned or leased by it makes such
qualification or license necessary, except where the failure to be qualified or
licensed (individually or in the aggregate) would not have a Material Adverse
Effect.

                                       14
<PAGE>
         3.02 CAPITALIZATION.

         (a) The authorized capital stock of the Reorganized Debtors, including
with respect to the New GCX Stock, will be set forth in the Amended and Restated
Certificate of Incorporation or Charter of such Reorganized Debtor as of the
Effective Date.

         (b) The authorized capital stock of GC International consists of 3,000
shares of common stock, no par value per share, all of which shares are issued
and outstanding and are owned by GCX, free and clear of all Liens except for
Liens arising under the DIP Facility and the Reimbursement Agreement. There are
no outstanding Options with respect to GC International or agreements,
arrangements or understandings to issue Options with respect to the GC
International, and there are no preemptive rights or agreements, arrangements or
understandings to issue preemptive rights with respect to the issuance or sale
of GC International capital stock.

         (c) The authorized capital stock of GCC Investments consists of 100
shares of common stock, no par value per share, 10 of which shares are issued
and outstanding and are owned by GCX, free and clear of all Liens except for
Liens arising under the DIP Facility. There are no outstanding Options with
respect to GCC Investments or agreements, arrangements or understandings to
issue Options with respect to the GCC Investments, and there are no preemptive
rights or agreements, arrangements or understandings to issue preemptive rights
with respect to the issuance or sale of GCC Investments capital stock.

         (d) The authorized capital stock of each of the GC Non-Debtors
(excluding GC International) is set forth in the Organizational Documents
included in the Data Room Index, and such Organizational Documents have not been
amended or modified and remain in full force and effect. The issued and
outstanding capital stock of the GC Non-Debtors (excluding GC International) are
owned as set forth on the Organizational Chart, free and clear of all Liens
except under the DIP Facility and the Reimbursement Agreement. There are no
outstanding Options with respect to any capital stock of the GC Non-Debtors
(excluding GC International) or agreements, arrangements or understandings to
issue Options with respect thereto, and there are no preemptive rights or
agreements, arrangements or understandings to issue preemptive rights with
respect to the issuance or sale of the GC Non-Debtors' (excluding GC
International) capital stock.

         (e) The authorized capital stock of each of the SA Joint Venture
Entities is set forth in the Organizational Documents listed in the Data Room
Index, and such Organizational Documents have not been amended or modified and
remain in full force and effect. The issued and outstanding capital stock of the
SA Joint Venture Entities are owned as set forth on the Organizational Chart,
free and clear of all Liens except the Liens of the SA Lenders against certain
stock of GCC Hoyts Chile, Inc., Hoyts Cinemas Chile SA, Boca Holdings, Inc. and
Hoyts General Cinema de

                                       15
<PAGE>
Argentina, S.A. Except as provided by Data Room Index, there are no outstanding
Options with respect to or agreements, arrangements or understandings to issue
Options with respect thereto, and there are no preemptive rights or agreements,
arrangements or understandings to issue preemptive rights with respect to the
issuance or sale of the SA Joint Venture Entities' capital stock.

         3.03 AUTHORIZATION AND ENFORCEABILITY. The Seller has the full
corporate power and authority to execute and deliver this Agreement, to perform
its obligations hereunder and to consummate the Transaction. The execution,
delivery and performance of this Agreement by the Seller and the consummation by
the Seller of the Transaction has been duly and validly approved by the Seller,
and no other corporate action on the part of any Seller is necessary to
authorize the execution, delivery and performance of this Agreement and the
consummation of the Transaction. This Agreement has been duly and validly
executed and delivered by each Seller and constitutes the legal, valid and
binding obligation of the Seller enforceable against the Seller in accordance
with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws relating to the enforcement of creditors' rights generally
and by general principles of equity.

         3.04 CORPORATE STRUCTURE. Except as shown on the Organizational Chart,
as disclosed by Data Room Index and the Investment Assets, no GC Entity holds
any equity, partnership, limited liability company, joint venture or other
interest in any other Person. The minute books and other similar records of the
Seller and GC Entities as provided pursuant to Data Room Index contain true and
complete records, in all material respects, of all actions taken at all meetings
and by all written consents in lieu of meetings of the stockholders or members
(as the case may be), the board of directors and any committee of the board of
directors of each of the GC Entities.

         3.05 NO CONFLICTS. Subject to confirmation of the Plan by the
Bankruptcy Court, the execution and delivery by the Seller of this Agreement,
the performance by the Seller of its obligations under this Agreement, and the
consummation of the Transaction does not and will not, except in each case where
such conflict, breach or Lien creation individually or in the aggregate would
not be reasonably expected to have a Material Adverse Effect: (a) conflict with
or result in a violation or breach of any of the terms, conditions or provisions
of Organizational Documents of any GC Entity; (b) conflict with or result in a
violation or breach of any term or provision of any Law or Order applicable to
any GC Entity or any of GC Entities' Assets and Properties; (c) conflict with or
result in a violation or breach of, constitute (with or without notice or lapse
of time or both) a default under, require any GC Entity to obtain any consent,
approval or action of, make any filing with or give any notice to, any Person as
a result or under the terms of, or result in or give to any person any right of
termination, cancellation, acceleration or modification in or with respect to,
any material Contract or Permit to which any GC Entity is a party or by which
its respective Assets and Properties are bound (which for purposes hereof shall
exclude any executory contract or unexpired lease listed in the Contract
Schedule that is rejected pursuant to the Plan); or (d) result

                                       16
<PAGE>
in the creation or imposition of any Lien upon the Purchased Shares or any Lien
upon the Assets and Properties of any of the GC Entities.

         3.06 GOVERNMENTAL APPROVALS AND FILINGS. Except for expiration or early
termination of the waiting period under the HSR Act, confirmation of the Plan by
the Bankruptcy Court and certain consent and approvals that may be needed to
transfer certain liquor licenses, no consent, approval or action of, filing with
or notice to, any Governmental or Regulatory Authority on the part of any GC
Entity is required in connection with the execution, delivery and performance of
this Agreement or the consummation of the Transaction.

         3.07 SEC DOCUMENTS. Since October 31, 1997, GCX has timely filed all
reports, schedules, forms, statements and other documents required to be filed
by GCX with the Securities and Exchange Commission ("SEC") pursuant to the
reporting requirements of the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT") (all of the foregoing filed prior to the date hereof and after
October 31, 1997, and all exhibits included therein and the financial statements
and schedules thereto and documents incorporated by reference therein, the "SEC
DOCUMENTS"). As of their respective date or as heretofore amended, the SEC
Documents complied in all material respects with the reporting requirements of
the Exchange Act or with the requirements of the Securities Act of 1933 with
respect to documents filed thereunder.

         3.08 FINANCIAL STATEMENTS. The Seller has furnished or made available
to the Purchasers true and complete copies of the following financial
statements: (a) the audited consolidated financial statements of GCX and its
Subsidiaries included in GCX's Annual Report on Form 10-K for the fiscal year
ended October 31, 2000, with the report thereon of GCX's independent auditor
(the "AUDITED FINANCIAL STATEMENTS"); (b) the quarterly unaudited consolidated
financial statements of GCX and its Subsidiaries included in GCX's Quarterly
Reports on Form 10-Q for the fiscal quarters ended January 31, 2001, April 30,
2001 and July 31, 2001 (the "QUARTERLY STATEMENTS"); and (c) unaudited
theatre-by-theatre profit and loss statements for the nine month period ended
July 31, 2001 (collectively, the "DOMESTIC FINANCIAL STATEMENTS"). All of the
Domestic Financial Statements are true and correct in all material respects and
were prepared from the books of account or other financial records of the GC
Entities. The Audited Financial Statements and Quarterly Financial Statements
(i) have been prepared in accordance with GAAP and the published rules and
regulations of the SEC applicable thereto applied on a consistent basis, except
as may be indicated in the notes thereto and except, in the case of unaudited
Financial Statements, year-end adjustments and (ii) fairly present the
consolidated financial position of the GC Entities included in each such
Domestic Financial Statement.

         The Seller has also furnished or made available to the Purchasers true
and complete copies of the following financial statements of the SA Joint
Venture: (a) the audited consolidated financial

                                       17
<PAGE>
statements of the SA Joint Venture in each country that it operates for the year
ended [DECEMBER 31, 2000], with the report thereon of the SA Joint Venture's
independent auditor (the "SA AUDITED FINANCIAL STATEMENTS"); and (b) the
unaudited financial statements and comparison to budget of the SA Joint Venture
for the year to date ended September 30, 2001 (the "SA INTERIM FINANCIAL
STATEMENTS") (collectively, the "SA FINANCIAL STATEMENTS"). All of the SA
Financial Statements are true and correct in all material respects, were
prepared from the books of account or other financial records of the SA Joint
Venture Entities and fairly present the consolidated financial position of the
SA Joint Venture Entities included in each such SA Financial Statement. The SA
Audited Financial Statements have been prepared in accordance with generally
accepted accounting principles of the country to which such statements relate
applied on a consistent basis, except as may be indicated in the notes thereto.

         3.09 ABSENCE OF CHANGES. Since the Last Statement Date, the GC Entities
have been operated in all material respects in the Ordinary Course of Business
and there has not been any change or any event or development which,
individually or together with other such events or development, has had a
Material Adverse Effect. In addition, without limiting the foregoing, except in
the Ordinary Course of Business or except as otherwise expressly contemplated by
this Agreement or the Interim Operating Agreement or otherwise disclosed in
writing to the Purchasers, there has not occurred since the Last Statement Date:

         (a) any amendment or change to the Organizational Documents of the GC
Entities;

         (b) any direct or indirect redemption, purchase or other acquisition by
any GC Entity of any equity securities of any other GC Entity;

         (c) any authorization, issuance, sale or other dispositions by any GC
  Entity of any shares of capital stock of any other GC Entity, or any Option
  relating to such capital stock or any modification or amendment of any right
  of any holder of any outstanding shares of capital stock of any GC Entity;

         (d) except for GCX's Bankruptcy Court approved severance and retention
or incentive programs, (i) any increase in the salary or bonus of any director
or officer of the GC Entities, other than salary increases in the Ordinary
Course of Business, (ii) any payment of consideration of any nature whatsoever
(other than salary, bonus or dividend equivalent salary paid in the Ordinary
Course of Business) to any officer, director or stockholder of any of the GC
Entities, (iii) any grant of any severance, continuation or termination pay to
any director, officer, stockholder or employee of the GC Entities, or (iv) any
adoption, entering into, amendment, modification or termination (partial or
complete) of any Employee Plan or employment contract with respect to any
director, officer or stockholder of the GC Entities;

                                       18
<PAGE>
         (e) except for under the DIP Facility, (i) any incurrence by any GC
Entity of any Indebtedness or (ii) any voluntary purchase, cancellation,
prepayment or complete or partial discharge in advance of a scheduled payment
date with respect to, or written waiver of any right of any GC Entity under, any
Indebtedness owing to any GC Entity;

         (f) any physical damage, destruction or other casualty loss (whether or
not covered by insurance) affecting any of the GC Entities' Assets and
Properties in an aggregate amount exceeding $100,000;

         (g) excluding with respect to the SA Joint Venture, any write-off or
write-down of or any determination to write off or write down any of the Assets
and Properties of the GC Entities in an aggregate amount exceeding $5,000,000;

         (h) any purchase of any material Assets and Properties of any GC Entity
or any sale, license or other disposition of, or incurrence of a Lien (other
than a Permitted Lien) on, any material Assets and Properties of the GC
Entities;

         (i) except for the documents and agreements listed in the Data Room
Index and except pursuant to the Plan, any entering into any amendment,
modification, termination (partial or complete) or granting of a written waiver
under (i) any material Contract or (ii) any material Permit held by any of the
GC Entities;

         (j) any capital expenditures or commitments for additions to property,
plant or equipment of any of the GC Entities constituting capital assets in an
aggregate amount exceeding $25,000.

         (k) any transaction by any of the GC Entities with any officer,
director, stockholder, Affiliate or Associate of any of the GC Entities other
than (i) any transaction that would not constitute a breach of subsection (d) or
(e) above, or (ii) pursuant to any Contract listed within the Data Room Index;

         (l) the commencement of any Action or Proceedings against, or
investigation of, any of the GC Entities or their respective affairs (of which
any of the GC Entities has received written notice);

         (m) written notice of any claim of ownership by a third party of any of
the GC Entities' Intellectual Property or written notice of infringement by any
of the Seller or GC Entities of any third party's Intellectual Property rights;

                                       19
<PAGE>
         (n) any loan or advance by any of the GC Entities to any Person, except
for advances to employees for travel and business expenses;

         (o) any material change in the accounting method or procedures of any
of the GC Entities, or

         (p) any entering into of an agreement to do or engage in any of the
foregoing, including any Business Combination not otherwise restricted by the
foregoing paragraphs.

         3.10 NO UNDISCLOSED LIABILITIES. Except as reflected or reserved
against in the Financial Statements or as disclosed in the Schedule of Assets
and Liabilities filed with respect to the Debtors in the Chapter 11 Cases or as
disclosed in the Data Room Index, there are no Liabilities of any of the GC
Entities or relating to or affecting any of their Assets and Properties required
to be reflected in Financial Statements in accordance with GAAP, other than
Liabilities incurred in the Ordinary Course of Business since the Last Statement
Date.

         3.11 LEGAL PROCEEDINGS. Except as disclosed by Data Room Index: (a)
there are no Actions or Proceedings pending against any GC Entity or any of the
respective Assets and Properties; (b) there are no Orders outstanding against
any GC Entity; and (c) there have been no notices, complaints or other forms of
written inquiry received by any GC Entity from any Governmental or Regulatory
Authority charged with the regulation of any of the GC Entities' respective
operations and affairs, the adverse determination of which, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect.

         3.12 COMPLIANCE WITH LAWS AND ORDERS. Except as disclosed under Data
Room Index, none of the GC Entities is in violation of or in default under any
Law or Order applicable to such GC Entity or any of their respective Assets and
Properties that would reasonably be expected to have a Material Adverse Effect.

         3.13 EMPLOYEE PLANS.

         (a) Except as described in Section 5.05 hereof, set forth in Data Room
Index is a complete and correct list of all Employee Plans maintained or
contributed to by the GC Entities or any ERISA Affiliate or pursuant to which
the GC Entities or any ERISA Affiliate may have any Liability or covering
employees or former or retired employees of the GC Entities ("EMPLOYEES") with
respect to their employment with the GC Entities. Except as disclosed in Data
Room Index, each such Employee Plan is in writing and true and complete copies
of the following items relating to each Employee Plan, where applicable, have
heretofore been furnished or made available to Purchasers: (i) the Employee Plan
and any trust, custodial or other funding agreement, including all amendments
thereto: (ii) the three most recent actuarial reports and annual reports filed
with any

                                       20
<PAGE>
relevant Governmental or Regulatory Authority for the three (3) most recent plan
years; (iii) the most recent summary plan description, summary of material
modifications to such summary plan descriptions and all material Employee
communications relating to such Employee Plans distributed within the last 12
months; and (iv) the most recent custodian or trustee reports or other financial
statement for funded Employee Plans.

         (b) No oral or written promise, commitment or representation has been
made by any GC Entity (i) to amend any of the Employee Plans or to provide
increased benefits thereunder to any of the GC Entities' present or former
employees, independent contractors, directors, officers or shareholders, except
pursuant to the requirements, if any, of the Employee Plans, any collective
bargaining agreements or as otherwise provided in this Agreement or the Plan,
(ii) to establish any new Employee Plan or (iii) to fund or continue any
Employee Plan beyond the Effective Date. To the Seller's Knowledge, each
Employee Plan can be terminated on or immediately after the Effective Date
without making any additional contribution to such Employee Plan other than
normal contributions with respect to the 2002 plan year prorated through the
Effective Date.

         (c) Each Employee Plan has been maintained, operated and administered
in compliance with its terms and all related documents or agreements and in
compliance with all applicable Laws, except where the failure to comply would
not have a Material Adverse Effect. Each Employee Plan that is an "employee
pension benefit plan" within the meaning of ERISA Section 3(2) is a qualified
plan under Tax Code Section 401, and nothing has occurred with respect to such
plan that would cause the loss of such qualification. Without limiting the
foregoing, the Seller has amended the GC Companies, Inc. Retirement Plan
(effective December 16, 1993) and the GC Companies, Inc. 401(k) Savings Plan
(Amended and Restated effective September 1, 1999) to comply with the statutory
changes applicable thereto known as "GUST" and shall has submitted the plans to
the IRS for favorable determination letters. Any non-compliance or failure
properly to administer a Plan or related trust or fund has not exposed such
Employee Plan or related trust or fund or any GC Entity, nor would it be
reasonably likely to result in any exposure of the Purchasers or the GC
Entities, to any Taxes, penalties or Liabilities to any Person or expose the
Employee Plan to disqualification of the trust or fund or to loss of tax exempt
status.

         (d) There have been, as of the Effective Date, no prohibited
transactions as described in Tax Code Section 4975 or Title I, Part 4 of ERISA
involving any Employee Plan. The Seller is not aware of any facts or
circumstances that could give rise to any Tax imposed by Tax Code Section 4975
with respect to any Employee Plan. There is no pending or, to the Knowledge of
Seller, threatened claim (other than claims for benefits in the ordinary
course), assessment, complaint, proceeding or investigation of any kind before
any Governmental or Regulatory Authority with respect to any Employee Plan.

                                       21
<PAGE>
         (e) All insurance premiums required with respect to any Employee Plan
up to the Effective Date have been or shall be paid on or prior to the Effective
Date and, with respect to any such insurance policy, there shall be no Liability
of any of the GC Entities in the nature of a retroactive rate adjustment, loss
sharing arrangement or other actual or contingent Liability arising wholly or
partially out of events occurring prior to the Effective Date.

         (f) All benefits, expenses and other amounts due and payable to or
under any Employee Plan on or prior to the Effective Date and all contributions
(including Employee contributions), transfers or payments required to be made to
any Employee Plan on or prior to the Effective Date, have been paid or shall be
paid prior to the Effective Date.

         (g) No Employee Plan provides benefits, including without limitation
death or medical benefits, beyond termination of service or retirement other
than (i) coverage mandated by Law or (ii) as disclosed in Data Room Index.

         (h) Except as disclosed in Data Room Index, no GC Entity maintains or
participates in, nor is obligated to contribute to, nor has ever maintained or
participated in, nor been obligated to contribute to, any "MULTIEMPLOYER PLAN"
within the meaning of Section 3(37) of ERISA or any "defined benefit pension
plan" within the meaning of ERISA Section 3(35).

         (i) The Audited Domestic Financial Statements fully and accurately
reflect all unfunded Liability under, in connection with or relating to the
Employee Plans.

         3.14 REAL PROPERTY.

         (a) Data Room Index Item XI and the GC Companies list of active theatre
and office properties, dark leased properties and inactive owned properties
attached hereto as Exhibit C contains a true and correct list, as of the date of
this Agreement, of all real property owned, leased, subleased or otherwise
occupied by any the GC Entities (as lessor or lessee), together with a brief
description of the location thereof (the "REAL PROPERTY", and the leases or
subleases relating thereto, including any amendments and renewal letters, are
herein called the "REAL PROPERTY LEASES"). Each of the Real Property Leases
provided for review by the Purchasers' Representatives in the Data Room was a
correct and complete copy of such Real Property Lease, and none of the Real
Property Leases has been amended or modified except as set forth in Data Room
Index.

         (b) Subject to the terms of the Real Property Leases, the GC Entities
have a valid and subsisting leasehold estate in and the right to quiet enjoyment
of each of the Real Properties leased by them for the full term of the lease
thereof. Subject to assumption pursuant to the Plan of each Real Property Lease
not previously assumed by a GC Entity, each Real Property Lease is in full

                                       22
<PAGE>
force and effect and is a legal, valid and binding agreement, of the GC Entity
that is a party thereto, and, assuming that it is a legal, valid and binding
agreement of the other party thereto, is enforceable in accordance with its
terms against the parties thereto except as the enforceability thereof may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws relating to the enforcement of creditors'
rights generally and by general principles of equity. Except for the Chapter 11
Cases, there is no material default by the GC Entities under any Real Property
Lease or, to the Knowledge of any of the GC Entities, any material default
thereunder by the other party thereto. None of the GC Entities owe brokerage,
commissions or finders fees with respect to any such Real Property Lease or
leased Real Property, except to the extent that the any of the GC Entities may
renew the term of any such Real Property Lease, in which case any such
commissions and fees would be in amounts that are reasonable and customary for
premises similar to those leased, given their intended use and terms. Since the
Last Statement Date, none of the GC Entities, has exercised any option or right
to (i) cancel or terminate any Real Property Lease, (ii) lease additional
premises, (iii) materially reduce or relocate the premises demised under any
Real Property Lease, (ii) lease additional premises, (iii) reduce or relocate
the premises demised under any Real Property Lease or (iv) purchase any real
property, which transaction is pending.

         (c) None of the GC Entities has received notice of any pending zoning
or other land-use regulation Actions or Proceedings applicable to the Real
Property that would have a Material Adverse Effect.

         3.15 TANGIBLE PERSONAL PROPERTY. The GC Entities are in possession of
and have good and marketable title to, or have valid leasehold interests in or
valid rights under contract to use, all material tangible personal property used
in the conduct of their respective businesses, including all tangible personal
property reflected on the Financial Statements for the period ended on the Last
Statement Date and tangible personal property acquired since that date, other
than property disposed of since such date in the Ordinary Course of Business.
All such tangible personal property is free and clear of all Liens, other than
Permitted Liens or as disclosed in Data Room Index.

         3.16 INTELLECTUAL PROPERTY RIGHTS.

         (a) Data Room Index is a GC Companies, Inc. Trademark Status Report and
lists all of the GC Entities United States or foreign registrations or
applications issued by, filed with or recorded by any Governmental or Regulatory
Authority as of the date listed on such report; all of such registrations and
applications are in full force and effect and all necessary registration,
maintenance and renewal fees in connection therewith have been paid and all
necessary documents and certificates in connection therewith have been filed
with the relevant patent, copyright, trademark or other authority in the United
States or foreign jurisdictions, as the case may be, for

                                       23
<PAGE>
the purpose of maintaining the registrations or applications for registration of
such Intellectual Property, except as otherwise disclosed in such report. All
the Intellectual Property owned by the GC Entities is free and clear of any and
all Liens, other than Permitted Liens or the lien imposed by any license or
other permission to use itself. None of the GC Entities has any Knowledge that
such Intellectual Property is being infringed by any other Person or that the GC
Entities are infringing any Intellectual Property of any other Person. As of the
date of this Agreement, no material claim is pending or, to the Knowledge of any
GC Entity, threatened to such effect or with respect to the ownership, validity,
license or use of, or any infringement resulting from, the GC Entities'
Intellectual Property.

         (b) All material licenses, agreements and permissions pertaining to
Intellectual Property owned, licensed or otherwise used by the GC Entities (the
"INTELLECTUAL PROPERTY AGREEMENTS") are contained in the Data Room Index and
have been made available to the Purchasers' Representatives. The consummation of
the transactions contemplated by this Agreement will neither violate nor result
in the breach, modification, cancellation, termination or suspension of the
Intellectual Property Agreements and the GC Entities are in compliance with, and
have not breached any term of, the Intellectual Property Agreements and, to the
Knowledge of the Seller, all of the other parties to such Intellectual Property
Agreement are in compliance with, and have not breached, any of the terms
thereof. Each GC Entity owns all right, title and interest in and to, or has
rights sufficient to use, as currently used by such GC Entity, to all
Intellectual Property used the GC Entities.

         3.17 CONTRACTS.

         (a) The Data Room Index and the Contracts Schedule contains a correct
and complete list of each of the following Contracts or other arrangements
(correct and complete copies or, if not in writing, reasonably complete and
accurate written descriptions of which, together with all material amendments
and supplements thereto and all written waivers of any terms thereof were
furnished or made available to the Purchasers' Representatives in the Data Room
or, with respect to Contracts not listed in the Data Room Index, upon the
Purchasers' request), to which any GC Entity is a party or by which any of its
Assets and Properties is bound, including:

                  (i) (A) all Contracts providing for a commitment of employment
         or consultation services for a special term that involve the payment or
         potential payment pursuant to the terms of any GC Entity of more than
         $100,000 and that are not cancelable without penalty within ninety (90)
         days and (B) all Contracts involving an obligation of any GC Entities
         to make material severance or other payments (with or without notice,
         passage of time or both) to any Person in connection with, or as a
         consequence of, the transactions contemplated hereby or to any
         employee, other than with respect to salary payments in the Ordinary
         Course of Business;

                                       24
<PAGE>
                  (ii) all Contracts with any Person containing any provision or
         covenant prohibiting or limiting the ability of any Seller or GC Entity
         to engage in any business activity or compete with any Person or
         prohibiting or limiting the ability of any Person to compete with the
         Seller or GC Entity.

                  (iii) all partnership, joint venture, shareholders' or other
         similar Contracts with any Person;

                  (iv) all material Contracts with independent contractors,
         sales agents, insurance agents, insurance brokers, and other types of
         insurance producers and distributors;

                  (v) all material Contracts relating to any prospective
         Business Combination;

                  (vi) all material Contracts between or among any GC Entity, on
         the one hand, and any current or former officer, director, stockholder,
         Affiliate or Associate of any Seller or GC Entity, or any Associate of
         any such officer, director, stockholder or Affiliate on the other hand;

                  (vii) all collective bargaining Contracts;

                  (viii) all leases of material personal property;

                  (ix) any Contract or series of related Contracts that involves
         receipts, expenditures, performance of services or delivery of goods or
         material by the GC Entities of an amount or value in excess of $20,000,
         except for film licensing contracts and orders for trade goods,
         services and supplies in the Ordinary Course of Business;

                  (x) any fidelity or surety bond;

                  (xi) all Contracts that (A) limit or contain restrictions on
         the ability of the GC Entities to declare or pay dividends on, to make
         any other distribution in respect of, or to issue or purchase, redeem
         or otherwise acquire, its capital stock, to incur Indebtedness, to
         incur or suffer to exist any Lien, to purchase or sell any Assets and
         Properties, to change the lines of business in which it participates or
         engages or to engage in any Business Combination, (B) require any GC
         Entity to maintain specified financial ratios or levels of net worth or
         other indicia of financial condition or (C) require any GC Entity to
         maintain insurance in certain amounts or with certain coverages;

                  (xiii) all powers of attorney or comparable delegations of
         authority; and

                                       25
<PAGE>
                  (xiv) all other Contracts or series of related Contracts that
         involve the payment or potential payment pursuant to the terms of any
         such Contract by the GC Entity of more than $50,000 for a term longer
         than six months from the date of this Agreement and that are not
         cancelable without penalty upon the GC Entity giving at least 30 days
         notice.

         (b) Subject to the Chapter 11 Cases, each Contract required to be
disclosed in the Data Room Schedule pursuant to subsection (a) above is in full
force and effect and is a legal, valid and binding agreement of the GC Entities
party thereto, and, assuming that it is a legal, valid and binding agreement of
the other party thereto, is enforceable in accordance with its terms against the
parties thereto, except as the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws relating to the enforcement of creditors' rights generally
and by general principles of equity and except for such Contracts, the
non-enforceability of which would not reasonably be expected to have a Material
Adverse Effect. Subject to the Chapter 11 Cases, there is no default by the GC
Entity party thereto under any such Contract nor, to the Knowledge of the
Seller, any default thereunder by the other party thereto that would reasonably
be expected to have a Material Adverse Effect.

         3.18 PERMITS AND LICENSES. The Data Room Index contains a true and
complete list of all material Permits issued to the GC Entities, as of the date
of this Agreement, setting forth the owner, the function and the expiration and
renewal date of each. Each such Permit is in full force and effect; and none of
the GC Entities is in default (or with the giving of notice or lapse of time or
both, would be in default) under any such Permit, except where such default
would not result in a Material Adverse Effect.

         3.19 INSURANCE. The Data Room Index contains a correct and complete
list of all liability, property, workers' compensation, fidelity, directors' and
officers' liability, social, welfare pension and other insurance policies in
effect on the date of this Agreement that are issued to the GC Entities and that
insure the business, operations or employees of the GC Entities. The insurance
coverage provided by the policies issued to the GC Entities will not terminate
or lapse by reason of the Transaction. Each such policy is in full force and
effect, all premiums due thereunder have been paid when due and no GC Entity has
received any notice of cancellation or termination in respect of any such policy
or is in default thereunder. To the Knowledge of the Seller, no insurer under
any policy referred to in this Section is denying liability with respect to a
claim thereunder or defending under a reservation of rights clause.

         3.20 RELATED PARTY TRANSACTIONS. Except for intercompany payables,
there is no Indebtedness between any of the GC Entities on the one hand, and any
officer, director, stockholder (including any GC Entity), Affiliate or Associate
of any of the GC Entities, or any Associate of any such officer, director,
stockholder or Affiliate, on the other hand, (b) none of the

                                       26
<PAGE>
GC Entities provides any assets, services or facilities to any such officer,
director, stockholder (including any GC Entity) or any such Affiliate or
Associate, (c) no officer, director, stockholder (including any GC Entity) or
any such Affiliate or Associate has any interest, directly or indirectly, in any
entity which furnishes or sells any goods or services or provides any facilities
to any Affiliate, except that ownership of no more than 5% of the outstanding
capital stock of a publicly traded corporation shall not be deemed to be an
interest for the purposes of this Section 3.20.

         3.21 EMPLOYEES; LABOR RELATIONS. Except as disclosed by the Data Room
Index, no unfair labor practice complaint or sex or age discrimination or
harassment claim is pending against the GC Entities before any Governmental or
Regulatory Authority. There has been no material work stoppage or strike by
employees of any of the GC Entities, and to the Seller' Knowledge, none have
been threatened.

         3.22 ENVIRONMENTAL MATTERS. Except as disclosed under the Data Room
Index:

         (a) All of the Assets and Properties (including underlying groundwater)
owned or leased by the GC Entities have been, and continue to be, owned or
leased by the GC Entities in material compliance with all Environmental, Health
and Safety Requirements.

         (b) There have been no past, and there are no pending or threatened

                  (i)      claims, complaints, notices or requests for
                           information received by any of the GC Entities with
                           respect to any alleged violation of any
                           Environmental, Health and Safety Requirement that,
                           singly or in the aggregate, would reasonably be
                           expected to have a Material Adverse Effect, or

                  (ii)     complaints, notices or inquiries to any of the GC
                           Entities regarding potential liability under any
                           Environmental, Health or Safety Requirement that,
                           singly or in the aggregate, would reasonably be
                           expected to have a Material Adverse Effect.

         (c) There have been no releases of hazardous materials at, on or under
any property now or previously owned or leased by any GC Entity that, singly or
in the aggregate, have or may be reasonably be expected to have a Material
Adverse Effect.

         (d) No property now or previously owned or leased by any GC Entity is
listed or proposed for listing on the National Priorities List pursuant to
CERCLA or, to the Seller's Knowledge, on the CERCLIS or any similar federal or
state list of sites requiring investigation or clean-up under any Environmental,
Health or Safety Requirement.

                                       27

<PAGE>
         (e)      There are no underground storage tanks, active or abandoned,
including petroleum storage tanks, on or under any property now or previously
owned or leased by any GC Entity that, singly or in the aggregate, have or may
be reasonably be expected to have a Material Adverse Effect.

         (f)      None of the GC Entities has directly transported or directly
arranged for the transportation of any hazardous material to any location that
is listed or proposed for listing on the National Priorities List pursuant to
CERCLA, on the CERCLIS or on any similar federal or state list or that is the
subject of federal, state or local enforcement actions or other investigations,
which may lead to material claims against any GC Entity for any remedial work,
damage to natural resources or personal injury, including claims under CERCLA.

         (g)      There are no polychlorinated biphenyls or friable asbestos
present at any property now or previously owned or leased by any GC Entity that,
singly or in the aggregate, have or may be reasonably be expected to have a
Material Adverse Effect.

         (h)      No conditions exist at, on or under any property now or
previously owned or leased by any GC Entity that, with the passage of time, the
giving of notice or both, would give rise to liability under any Environmental,
Health and Safety Requirement that, singly or in the aggregate, have or may be
reasonably be expected to have a Material Adverse Effect.

         3.23     OTHER NEGOTIATIONS; BROKERS. No agent, broker, finder,
investment banker, financial advisor or other similar third party will be
entitled to any fee, commission or other compensation from any GC Entity in
connection with the Transaction based upon arrangements made by or on behalf of
the Seller.

         3.24     BANK AND BROKERAGE ACCOUNTS. The Data Room Index sets forth:
(a) a true and complete list of the names and locations of all banks, trust
companies, securities brokers and other financial institutions at which the GC
Entities have an account or safe deposit box or maintains a banking, custodial
or trading relationship, and (b) a true and complete list and description of
each such account, box and relationship, indicating in each case the account
number.

         3.25     TAX      With respect to each GC Entity, except as would not
reasonably be expected to have a Material Adverse Effect: (i) all Tax Returns
required to be filed on or before the Effective Date by it with respect to any
Taxes have been timely filed with the appropriate governmental agencies in all
jurisdictions in which such Tax Returns are required to be filed, and all such
Tax Returns correctly reflect, in all material respects its liability for Taxes
for the periods, properties, or events covered thereby; (ii) all Taxes payable
with respect to the Tax returns referred to in the preceding clause, all Taxes
accruable prior to the Effective Date, whether disputed or not, whether or not
shown on any Tax Return, and whether or not currently due or payable, will have

                                       28
<PAGE>
been paid in full prior to the Effective Date, or an adequate accrual will have
been made in accordance with GAAP; (iii) Seller have no Knowledge of any
unassessed Tax deficiencies or of any audits or investigations pending or
threatened against it with respect to any Taxes; (iv) there is in effect no
extension for the filing of any Tax Return and it has not extended or waived the
application of any statute of limitations of any jurisdiction regarding the
assessment or collection of any Tax; (v) no claim has ever been made by any Tax
authority in a jurisdiction in which it does not file Tax returns that it is or
may be subject to taxation by that jurisdiction; (vi) there are no Liens for
Taxes upon any of its assets except for Permitted Liens; and (vii) it has timely
made all deposits required by Law to be made with respect to employees
withholding and other payroll, employment, or other withholding Taxes, including
the portions of such Taxes imposed upon it.

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS

         Each Purchaser hereby represents and warrants to each Seller as
follows:

         4.01     ORGANIZATION. Each of the Purchasers is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization and has full entity power and authority to conduct its business and
to own, use and lease its Assets and Properties.

         4.02     AUTHORITY. Each of the Purchasers has the full corporate power
and authority to execute and deliver this Agreement, to perform its obligations
hereunder, and to consummate the Transaction. The execution, delivery and
performance of this Agreement by each Purchaser and the consummation by each
Purchaser of the Transaction has been duly and validly approved by the Board of
Directors of each Purchaser and by AMCE's preferred stockholder, and no other
corporate action on the part of any Purchaser is necessary to authorize the
execution, delivery and performance by any Purchaser of this Agreement and the
consummation by any Purchaser of the Transaction. This Agreement has been duly
and validly executed and delivered by each Purchaser and constitutes the legal,
valid and binding obligation of such Purchaser enforceable against such
Purchaser in accordance with its terms, except as the enforceability thereof may
be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws relating to the enforcement of creditors'
rights generally and by general principles of equity.

         4.03     NO CONFLICTS. Subject to confirmation of the Plan by the
Bankruptcy Court, the execution and delivery by each Purchaser of this
Agreement, the performance by each Purchaser of its obligations under this
Agreement, and the consummation of the Transaction does not and will not, except
in each case where such conflict, breach or Lien creation individually or in the
aggregate would not be reasonably expected to have a Material Adverse Effect:
(a) conflict with or result in a violation or breach of any of the terms,
conditions or provisions of Organizational Documents of

                                       29
<PAGE>
such Purchaser; (b) conflict with or result in a violation or breach of any term
or provision of any Law or Order applicable to such Purchaser or any of its
Assets and Properties; (c) conflict with or result in a violation or breach of,
constitute (with or without notice or lapse of time or both) a default under,
require such Purchaser to obtain any consent, approval or action of, make any
filing with or give any notice to, any Person as a result or under the terms of,
or result in or give to any person any right of termination, cancellation,
acceleration or modification in or with respect to, any material Contract or
Permit to which any such Purchaser is a party or by which its respective Assets
and Properties are bound; or (d) result in the creation or imposition of any
Lien upon any of the Assets and Properties of such Purchaser.

         4.04     LEGAL PROCEEDINGS . Except for the objection of Fleet National
Bank, N.A. and the Acting U.S. Trustee entered in the Chapter 11 Cases, there
are no Actions or Proceedings pending against such Purchaser or any of its
Assets and Properties which (a) could reasonably be expected to result in the
issuance of an Order restraining, enjoining or otherwise prohibiting or make
illegal the consummation of any of the Transaction or (b) could reasonably be
expected, individually or in the aggregate with other such Actions or
Proceedings, to have a Material Adverse Effect on the ability of the Purchasers
to consummate the Transaction or to hinder or delay such consummation.

         4.05     FINANCING. The Purchasers have sufficient cash or cash
equivalents on hand or available under its revolving credit facility to fund the
cash requirements of the Plan.

         4.06     NEW AMCE STOCK . Upon issuance and delivery of the New AMCE
Stock as contemplated by the Plan, such New AMCE Stock will be duly authorized,
validly issued, fully paid and non-assessable, free of all preemptive or similar
rights.

         4.07     SEC DOCUMENTS. Since October 31, 1997, AMCE has timely filed
all reports, schedules, forms, statements and other documents required to be
filed by AMCE with the SEC pursuant to the reporting requirements of the
Exchange Act (all of the foregoing filed prior to the date hereof and after
October 31, 1997, and all exhibits included therein and the financial statements
and schedules thereto and documents incorporated by reference therein, the "AMCE
SEC DOCUMENTS"). As of their respective date or as heretofore amended, the AMCE
SEC Documents complied in all material respects with the reporting requirements
of the Exchange Act or with the requirements of the Securities Act of 1933 with
respect to documents filed thereunder.

                                    ARTICLE V
                            COVENANTS OF THE PARTIES

                                       30
<PAGE>
         5.01     CONDUCT OF BUSINESS PRIOR TO THE CLOSING. From the date hereof
until Closing, the Seller covenants and agrees to conduct the GC Business in the
Ordinary Course of Business and in accordance with the Interim Operating
Agreement, except as may be otherwise expressly provided for by this Agreement
or the Plan or by the Bankruptcy Court.

         5.02     LOI PROVISIONS. From the date hereof until the Closing, the
binding provisions of the LOI in Section 3 (except for Section 3(c))thereof
shall remain in full force and effect.

         5.03     NOTICE OF CERTAIN MATTERS. Each of the Seller and Purchasers
covenant and agree to give prompt notice in writing to the other. (a) if it
becomes actually aware that any representation or warranty of it contained
herein was not true and correct in any material respect as of the date hereof or
will not be true and correct in any material respect as of the Effective Date,
(b) if it becomes actually aware of the occurrence of any event which will
result in the failure to satisfy a condition specified in Article VI hereof, and
(c) of any written notice or other communication in writing from any third party
alleging that the consent of such third party is or may be required in
connection with the Transaction. The party giving such notice will use all
reasonable efforts, and shall be entitled to use, any and all efforts, to cure
any such inaccuracy or failure or to obtain such consent prior to the Closing.

         5.04     FURTHER ACTION. Prior to the Closing, each of the parties
hereto shall execute and deliver such documents and other papers and take such
further actions as may be reasonably required or advisable to carry out the
provisions hereof and give effect to the Transaction.

         5.05     SEVERANCE. Subject to Closing, the Reorganized Debtors will
provide severance benefits in accordance with GCX's existing severance policy to
GCX Home Office, National Office and VIP Ticket Office employees if (i) their
employment is terminated on the Effective Date, (ii) their employment is
terminated at a date beyond the Effective Date specified by the Reorganized
Debtors (in which case they must work the specified time period after the
Effective Date to be eligible for severance) or (iii) they are offered a
continuing position at their current compensation level, no later than June 30,
2002, but the position offered is not located in Boston and they choose within
two weeks after such offer not to accept the offer of employment. The provisions
of this Section shall supercede and replace that certain letter agreement
regarding severance dated December 6, 2001 between AMCE and GCX. In addition,
the provisions of AMCE's letter dated December 19, 2001 (a copy of which is
attached hereto as Exhibit D) delivered pursuant to Interim Operating Agreement
Section 2(r) shall be unaffected.

                                   ARTICLE VI
                              CONDITIONS TO CLOSING

                                       31
<PAGE>
         6.01     CONDITIONS TO OBLIGATIONS OF SELLER. The obligations of Seller
to consummate the transactions contemplated by this Agreement shall be subject
to the fulfillment and satisfaction of each of the following conditions prior to
the Effective Date, excluding only such conditions as may be waived by Seller:

         (a)      REPRESENTATIONS AND WARRANTIES; COVENANTS. (i) The
representations and warranties of Purchasers contained in this Agreement shall
be true and correct in all material respects as of the Closing with the same
force and effect as if made as of the Closing (other than such representations
and warranties which address matters only as of a particular date, which shall
be true and correct in all material respects as of such date), except for
breaches that individually or in the aggregate would not reasonably be expected
to have a Material Adverse Effect, (ii) all of the covenants contained in this
Agreement to be complied with by Purchasers on or before the Closing shall have
been complied with before the Closing, except for breaches that individually or
in the aggregate would not reasonably be expected to have a Material Adverse
Effect, and (iii) Seller shall have received a certificate of the Purchasers to
such effect signed by a duly authorized officer thereof.

         (b)      LEGAL ACTION OR PROCEEDING. There shall be no Action or
Proceeding pending or threatened seeking to enjoin, restrain, prohibit or make
illegal or impose any materially adverse conditions in connection with, the
consummation of the Transaction.

         (c)      CONFIRMATION ORDER. The Plan shall have been confirmed by the
Bankruptcy Court and the Confirmation Order shall have become a Final Order.

         (d)      GOVERNMENTAL FILINGS AND CONSENTS. All governmental orders,
approvals and consents to the transactions contemplated by this Agreement
relating to the Transaction shall have been obtained and be in effect on the
Closing Date, except to the extent that the failure to obtain any such consent
would not be considered material by a reasonable seller or have the effect of
making the Transactions contemplated by this Agreement illegal or otherwise
prohibit consummation of such Transactions. Any applicable waiting periods
(including any extensions thereof) under the HSR Act relating to the Transaction
contemplated hereby shall have expired or otherwise been terminated.

         (e)      ADDITIONAL DOCUMENTATION. Each of the following documents must
have been delivered to Seller by the Purchasers:

                  (i)      a certificate of each Purchaser's Secretary or an
         Assistant Secretary certifying the resolutions of the Purchaser's Board
         of Directors approving the Transaction and the names and signatures of
         its officers authorized to sign this Agreement and any other document
         required to be delivered hereunder;

                                       32
<PAGE>
                  (ii)     a certificate certifying the accuracy of the
         Purchasers' representations and warranties as described in Section
         6.01(a) of this Agreement; and

                  (iii)    such other documents as Seller may reasonably request
         for the purpose of (A) evidencing the accuracy of any Purchasers'
         representations and warranties, (B) evidencing the performance by
         either Purchaser of, or the compliance by either Purchaser with, any
         covenant or obligation required to be performed or complied with by
         such Purchaser, (C) evidencing the satisfaction of any condition
         referred to in this Section 6.01, or (D) otherwise facilitating the
         consummation or performance of the Transaction.

         6.02     CONDITIONS TO OBLIGATIONS OF PURCHASERS. The obligations of
the Purchasers to consummate the Transaction shall be subject to the fulfillment
and satisfaction of each of the following conditions prior to the Effective
Date, excluding only such conditions as may be waived by the Purchasers.

         (a)      REPRESENTATIONS AND WARRANTIES; COVENANTS. (i) The
representations and warranties of Seller contained in this Agreement shall be
true and correct in all material respects as of the Closing with the same force
and effect as if made as of the Closing (other than such representations and
warranties which address matters only as of a particular date, which shall be
true and correct in all material respects as of such date), except for breaches
that individually or in the aggregate would not reasonably be expected to have a
Material Adverse Effect (ii) all of the covenants contained in Article 5 of this
Agreement to be complied with by Seller on or before the Closing shall have been
complied with before the Closing, except for breaches that individually or in
the aggregate would not reasonably be expected to have a Material Adverse
Effect, and (iii) Purchasers shall have received a certificate of Seller to such
effect signed by Seller and a duly authorized officer thereof.

         (b)      LEGAL ACTION OR PROCEEDING. There shall be no Action or
Proceeding pending or threatened seeking to enjoin, restrain, prohibit or make
illegal or impose any materially adverse conditions in connection with, the
consummation of the Transaction, or shall otherwise have a Material Adverse
Effect.

         (c)      CONFIRMATION ORDER. The Plan shall have been confirmed by the
Bankruptcy Court and the Confirmation Order shall have become a Final Order.

         (d)      GOVERNMENTAL FILINGS AND CONSENTS. All governmental orders,
approvals and consents to the transactions contemplated by this Agreement
relating to the Transaction shall have been obtained and be in effect on the
Closing Date, except to the extent that the failure to obtain any such consent
would not be considered material by a reasonable seller or have the effect of

                                       33
<PAGE>
making the Transactions contemplated by this Agreement illegal or otherwise
prohibit consummation of such Transactions. Any applicable waiting periods
(including any extensions thereof) under the HSR Act relating to the Transaction
contemplated hereby shall have expired or otherwise been terminated.

         (e)      ADDITIONAL DOCUMENTATION. Each of the following documents must
have been delivered to Purchasers:

                  (i)      a certified copy of the Amended and Restated
         Certificate of Incorporation of GCX as filed with the Delaware
         Secretary of State;

                  (ii)     a certificate of the Seller's Secretary or an
         Assistant Secretary certifying the resolutions of the Seller's Board of
         Directors approving the Transaction and names and signatures of its
         officers authorized to sign this Agreement and any other document
         required to be delivered hereunder;

                  (iii)    a certificate certifying the accuracy of the Seller's
         representations and warranties as described in Section 6.02(a) of this
         Agreement;

                  (iv)     stock certificates evidencing the Purchased Shares,
         duly endorsed to the appropriate Purchaser with all required stock
         transfer tax stamps affixed or provided for in order to transfer such
         Purchased Shares to Purchasers pursuant to this Agreement;

                  (v)      certified copies of the Confirmation Order and the
         docket in the Chapter 11 Cases demonstrating that the Confirmation
         Order has become a Final Order of the Bankruptcy Court; and

                  (vi)     such other documents as Purchasers may reasonably
         request for the purpose of (A) evidencing the accuracy of the Seller's
         representations and warranties, (B) evidencing the performance by the
         Seller of, or the compliance by the Seller with, any covenant or
         obligation required to be performed or complied with by the Seller, (C)
         evidencing the satisfaction of any condition referred to in this
         Section 6.02, or (D) otherwise facilitating the consummation or
         performance of the Transaction.

         (f)      BANKRUPTCY ASSUMPTION; REJECTION. Each material executory
contract and unexpired lease (which includes all theatre leases) of any Debtor
not previously assumed, rejected or deemed to have been rejected shall have been
assumed, rejected or assumed and assigned to a GCX or AMCE Subsidiary designated
by AMCE, as determined by AMCE in its sole discretion, except (i) as otherwise
provided in the Plan or (ii) if the counterparty to such a contract or lease
objects to any such assignment and the Bankruptcy Court does not approve such
assignment. Each

                                       34
<PAGE>
such executory contract and unexpired lease shall have been assumed, rejected or
assumed and assigned, as the case may be, as designated by AMCE, by a Final
Order satisfactory to AMCE, which may be the Confirmation Order.

         (g)      LEASE AMENDMENTS. Each of the lease amendments referenced in
the table below shall have become effective:

<TABLE>
<CAPTION>
         PROPERTY                             STATUS OF AMENDMENT
--------------------------------    --------------------------------------------
<S>                                 <C>
Irving Mall, Irving, Texas (Unit    Fully executed, but not effective until
984)                                Tenant assumes the Lease; but if the Lease
                                    is not assumed on or before December 31,
                                    2001, the Amendment is null and void.

Barton Creek, Austin, Texas         Fully executed, but not effective until
(Unit 982)                          Tenant assumes the Lease; but if the Lease
                                    is not assumed on or before December 31,
                                    2001, the Amendment is null and void.

Franklin Mills, Philadelphia,       Amendment is fully executed but not
Pennsylvania (Unit 965)             effective until Tenant assumes Lease in
                                    bankruptcy.
</TABLE>

                                   ARTICLE VII
                                   TERMINATION

         7.01     GROUNDS FOR TERMINATION. This Agreement may be terminated at
any time prior to the Closing:

         (a)      by mutual agreement of AMCE and GCX;

         (b)      by AMCE, if the Seller materially breaches this Agreement,
including (i) if the representations and warranties of the Seller are materially
incorrect; (ii) a material breach by the Seller of any of its covenants
contained in this Agreement; and (iii) if any of the conditions in Section 6.02
has not been satisfied as of the Effective Date and AMCE has not waived such
condition on or before the Effective Date, and the Seller fails to cure such,
and any one, of the breaches outlined above within thirty (30) days after AMCE
gives GCX written notice of such breach;

         (c)      by AMCE, if the Seller materially breaches the LOI, the
Interim Operating Agreement, the Plan or Bankruptcy Court order executed and or
entered, as applicable, in connection with the Transaction and Seller fail to
cure such, and any one, of the breaches outlined above within thirty (30) days
after AMCE gives GCX written notice of such breach;

                                       35
<PAGE>
         (d)      by GCX, if any of the Purchasers materially breaches this
Agreement, including (i) if the representations and warranties of the Purchasers
are materially incorrect; (ii) a material breach by any of the Purchasers of any
of its covenants contained in this Agreement; and (iii) if any of the conditions
in Section 6.01 has not been satisfied as of the Effective Date and GCX has not
waived such condition on or before the Effective Date, and Purchasers fail to
cure such, and any one, of the breaches outlined above within thirty (30) days
after GCX gives AMCE written notice of such breach;

         (e)      by GCX if any of the Purchasers materially breaches the LOI,
the Interim Operating Agreement, the Plan, or any Bankruptcy Court order
executed and or entered, as applicable, in connection with the Transaction and
Purchasers fail to cure such, and any one, of the breaches outlined above within
thirty (30) days after GCX gives AMCE written notice of such breach;

         (f)      by either party upon termination of the LOI or the Interim
Operating Agreement.

         7.02     REMEDIES.

         (a)      EFFECT OF TERMINATION. If this Agreement is terminated as
permitted by Section 7.01, such termination shall be without liability of any
party to any other party to this Agreement except as provided within Section
3(f)(ii) of the LOI.

         (b)      SPECIFIC PERFORMANCE. The parties hereto recognize that any
breach of the terms of this Agreement may give rise to irreparable harm for
which money damages would not be an adequate remedy, and accordingly agree,
that, in addition to other remedies, the non-breaching party will be entitled to
enforce the terms of this Agreement by a decree of specific performance without
the necessity of proving the inadequacy of a remedy of money damages and without
the posting of any bond or other security.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.01     NONSURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties made herein or in any certificate, instrument or
document delivered pursuant hereto shall expire with and not survive beyond the
Closing and thereafter no party hereto or any shareholder, director, officer,
employee or Affiliate of such party shall be under any liability whatsoever
(whether under this Agreement or otherwise) with respect to any representations
or warranties.

                                       36
<PAGE>
         8.02     NOTICES. All notices, requests and other communications
hereunder must be in writing and will be deemed to have been duly given only if
delivered personally against written receipt or by facsimile transmission or
mailed by prepaid first class certified mail, return receipt requested, or
delivered by a recognized overnight courier service prepaid, to the parties at
the following addresses or facsimile numbers:

         (a)      If to Purchasers, to:

                           AMC Entertainment Inc.
                           106 W. 14th Street, Suite 2000
                           Kansas City, Missouri 64105
                           Attention:  Peter C. Brown
                           Facsimile: (816) 480-4617

                  with a copy to (which will not itself constitute notice):

                           Lathrop & Gage L.C.
                           2345 Grand Boulevard, Suite 2800
                           Kansas City, Missouri 64108-2612
                           Attention: Raymond F. Beagle, Jr., Esq.
                           Facsimile: (816) 292-2001

         (b)      If to Seller, to:

                           GC Companies, Inc.
                           1300 Boylston Street
                           Chestnut Hill, Massachusetts 02467
                           Attention: G. Gail Edwards
                           With a copy to: Philip J. Szabla, Esq.
                           Facsimile: (617) 264-8206

                  with a copy to (which will not itself constitute notice):

                           Goodwin Procter LLP
                           Exchange Place
                           Boston, Massachusetts 01209
                           Attention: Daniel M. Glosband, P.C.
                           Facsimile: (617) 523-1231

                                       37
<PAGE>
All such notices, requests and other communications will (a) if delivered
personally to the address as provided in this Section, be deemed given upon
delivery, (b) if delivered by facsimile transmission to the facsimile number as
provided for in this Section, be deemed given upon receipt, (c) if delivered by
mail in the manner described above to (i) an address in the United States as
provided in this Section, be deemed given on the earlier of the third Business
Day following mailing or upon receipt or (ii) an address outside of the United
States as provided in this Section, be deemed given on the earlier of the tenth
Business Day following mailing or upon receipt and (d) if delivered by overnight
courier to the address as provided for in this Section, be deemed given on the
earlier of the first Business Day following the date sent by such overnight
courier or upon receipt (in each case regardless of whether such notice request
or other communication is received by any other Person to whom a copy of such
notice is to be delivered pursuant to this Section). A party from time to time
may change its address, facsimile number or other information for the purpose of
notices to that party by giving notice specifying such change to the other party
hereto.

         8.03     ENTIRE AGREEMENT. Except for the LOI and the Interim Operating
Agreement and except as provided in Article V above or in Section 8.05 below,
this Agreement supersedes all prior discussions and agreements between the
parties with respect to the subject matter hereof and thereof and contain the
sole and entire agreement between the parties hereto with respect to the subject
matter hereof.

         8.04     EXPENSES. Except as otherwise expressly provided in this
Agreement, each party will pay its own costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby.

         8.05     CONFIDENTIALITY. The Purchasers agree that, except as provided
in the LOI or this Agreement, that certain letter agreement respecting
confidentiality and nondisclosure dated June 29, 2001 between GCX and AMCE shall
remain in effect. The provisions of this Section shall survive the termination
of this Agreement, but such letter agreement shall terminate and be merged into
the Closing.

         8.06     AMENDMENT AND WAIVER. Any provision of this Agreement may be
amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by each of the parties, or in the case of a
waiver, by the party against whom the waiver is to be effective, subject in each
case to approval of the Bankruptcy Court where required. No failure or delay by
any party in exercising any right, power or privilege under this Agreement will
operate as a waiver of such right, power privilege nor will any single or
partial exercise of such right, power or privilege preclude any other or further
exercise of such right, power or privilege or the exercise of any other right,
power or privilege.

                                       38
<PAGE>
         8.07     NO THIRD PARTY BENEFICIARY. The terms and provisions of this
Agreement are intended solely for the benefit of each party hereto and their
respective successors or permitted assigns. It is not the intention of the
parties to confer third-party beneficiary rights, and this Agreement does not
confer any such rights upon any other Person.

         8.08     NO ASSIGNMENT BINDING EFFECT. Neither this Agreement nor any
rights, interest, or obligation hereunder may be assigned (by operation of law
or otherwise) by any Seller without the prior written consent of AMC, and any
attempt to do so will be void; provided, however, that Purchaser may assign all
of its rights and obligations under this Agreement to a wholly-owned subsidiary
to Purchaser without obtaining the consent of Seller as long as such assignment
does not relieve Purchaser of its obligations under this Agreement and is
evidenced by a written assignment agreement in which the assignee expressly
assumes such rights and obligations. Subject to the preceding sentence, this
Agreement is binding upon, inures to the benefit of and is enforceable by the
parties hereto and their respective heirs, executors, personal representatives,
successors and assigns.

         8.09     SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future Law and if the
rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (a) such provision will be fully
severable, (b) this Agreement will be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, (c) the
remaining provisions of this Agreement will remain in full force and effect and
will not be affected by the illegal, invalid or unenforceable provision or by
its severance here from and (d) in lieu of such illegal, invalid or
unenforceable provision, there will be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.

         8.10     GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.

         8.11     CONSTRUCTION. The parties hereto agree that this Agreement is
the product of negotiation between parties and individuals, all of whom were
represented by counsel, and each of whom had an opportunity to participate in
and did participate in the drafting of each provision hereof. Accordingly,
ambiguities in this Agreement, if any, shall not be construed strictly or in
favor of or against any party hereto but rather shall be given a fair and
reasonable construction.

                                       39
<PAGE>
         8.12     COUNTERPARTS. This Agreement may be executed in any number of
counterparts each of which will be deemed an original, but all of which together
will constitute one and the same instrument.

                         *** SIGNATURE PAGE FOLLOWS ***

                                       40
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                             "SELLER"

                                             GC COMPANIES, INC.

                                             By:________________________________
                                                 G. Gail Edwards, President and
                                                 Chief Operating Officer

                                             "PURCHASERS"

                                             AMC ENTERTAINMENT INC.

                                             By:________________________________
                                                 Craig R. Ramsey
                                                 Senior Vice President and Chief
                                                 Financial Officer

                                             AMERICAN MULTI-CINEMA, INC.

                                             By:________________________________
                                                 Craig R. Ramsey
                                                 Senior Vice President and Chief
                                                 Financial Officer

                                             CENTERTAINMENT
                                             DEVELOPMENT, INC.

                                             By:________________________________
                                                 Craig R. Ramsey
                                                 Senior Vice President and Chief
                                                 Financial Officer
<PAGE>
                                    Exhibit A

                                 DATA ROOM INDEX

Attached
<PAGE>
                                    Exhibit B

                              ORGANIZATIONAL CHART

Attached
<PAGE>
                                    Exhibit C

                                  REAL PROPERTY

Attached
<PAGE>
                                    Exhibit D

                                RETENTION LETTER

Attached

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