AMC ENTERTAINMENT INC (Form Type: 8-K, Filing Date: 07/14/2010)

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

AMC ENTERTAINMENT INC.
(Exact name of registrant as specified in its charter)

920 Main Street
Kansas City, Missouri 64105-1977
(Address, including zip code, of registrant's
principal executive offices)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

As previously reported in our Form 8-K filed on May 25, 2010, a subsidiary of AMC Entertainment Inc. ("AMCE") completed the acquisition of 92 theatres and 928 screens from Kerasotes Showplace Theatres, LLC ("Kerasotes") on May 24, 2010. We are filing the information in Exhibits 2.1, 99.1 and 99.2 to provide additional information related to the acquisition of Kerasotes.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On July 8, 2010, the Board of Directors (the "Board") of AMC Entertainment Holdings, Inc. (the "Company") and the stockholders of the Company approved the adoption of the AMC Entertainment Holdings, Inc. 2010 Equity Incentive Plan (the "Plan"). The following is a brief description of the terms and conditions of the Plan. On the same date, the Board approved the grants of certain awards to certain employees, including its named executive officers.

The purpose of the Plan is to attract, retain and motivate officers, employees, non-employee directors, and consultants of the Company, and its subsidiaries and affiliates and to promote the success of the Company's business by providing the participants with appropriate incentives.

The aggregate number of shares of common stock of the Company available for delivery pursuant to awards granted under the Plan is 39,312 shares (subject to adjustment as provided in the Plan), which may be either authorized and unissued shares of the Company's common stock or shares of common stock held in or acquired for the Company's treasury.

Subject to adjustment as provided for in the Plan, (i) the number of shares available for granting incentive stock options under the Plan will not exceed 19,652 shares and (ii) the maximum number of shares that may be granted to a participant each year is 7,862. To the extent shares subject to an award are not issued or delivered by reason of (i) the expiration, cancellation, forfeiture or other termination of an award, (ii) the withholding of such shares in satisfaction of applicable taxes or (iii) the settlement of all or a portion of an award in cash, then such shares will again be available for issuance under the Plan.

Directors, officers and other employees of the Company, its subsidiaries and affiliates, as well as others performing consulting services for the Company, a subsidiary or affiliate will be eligible for grants under the Plan.

The Plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights ("SARs"), restricted stock awards, other stock-based awards or performance-based compensation awards.

Award agreements under the Plan generally have the following features, subject to change by the Compensation Committee:

In consideration for the grants of the awards, the award agreements subject the participants to certain restrictive covenants and confidentiality obligations.

In the event of any corporate event or transaction involving the Company, a subsidiary and/or an affiliate such as a merger, reorganization, capitalization, stock split, spin-off, or any similar corporate event or transaction, the Compensation Committee will, to prevent dilution or enlargement of participants' rights under the Plan, substitute or adjust in its sole discretion the awards.

Subject to the terms of the Plan, the Compensation Committee, in its sole discretion, may amend, alter, suspend, discontinue or terminate the Plan, or any part thereof or any award (or award agreement), at any time. In the event any award is subject to Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), the Compensation Committee may amend the Plan and/or any award agreement without the participant's prior consent to exempt the Plan and/or any award from the application of Section 409A, preserve the intended tax treatment of any such award or comply with the requirements of Section 409A.

The foregoing description of the Plan and award agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the Plan and forms of award agreements, copies of which are attached as Exhibit 10.1, Exhibit 10.2, Exhibit 10.3 and Exhibit 10.4 to this report and incorporated herein by reference.

On the date the Board adopted the Plan, the Board approved the grants of the following awards to the named executive officers of the Company. The awards will be granted under the forms of award agreements, which terms and conditions are described above. All the grants of nonqualified stock options will be at a per share strike price of $752, which per share price is equal to the fair market value of a share of common stock of the Company on the date of grant.

Gerardo I. Lopez, the Chief Executive Officer and President of the Company, will receive 1,048 shares of non-qualified stock options, 1,048 restricted shares (time vesting) and 1,049 restricted shares (performance vesting). Craig R. Ramsey (Executive Vice President and Chief Financial Officer) and

John D. McDonald (Executive Vice President, U.S. and Canada Operations), each will receive 629 shares of non-qualified stock options, 629 restricted shares (time vesting) and 629 restricted shares (performance vesting). Kevin M. Connor (Senior Vice President, General Counsel & Secretary) and Robert J. Lenihan (President, Film Programming) each will receive 210 shares of non-qualified stock options, 210 restricted shares (time vesting) and 209 restricted shares (performance vesting). Samuel D. Gourley (President, AMC Film Programming) will receive 105 shares of non-qualified stock options, 105 restricted shares (time vesting) and 105 restricted shares (performance vesting).

On July 14, 2010, the Company filed a Registration Statement on Form S-1 (the "Registration Statement") relating to an initial public offering of shares of its common stock. The Registration Statement disclosed non-public material information about AMCE.

AMCE is furnishing the information in this Item 7.01 and in Exhibit 99.3 to comply with Regulation FD. Such information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of AMCE's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

UNIT PURCHASE AGREEMENT

AMONG

KERASOTES SHOWPLACE THEATRES HOLDINGS, LLC,

KERASOTES SHOWPLACE THEATRES, LLC,

SHOWPLACE THEATRES HOLDING COMPANY, LLC,

AMC SHOWPLACE THEATRES, INC.,

AND

AMERICAN MULTI-CINEMA, INC.



ARTICLE I		DEFINITIONS	2
	Section 1.1	Definitions	2
	Section 1.2	Interpretation	13
ARTICLE II		CONTRIBUTION, PURCHASE AND SALE; PURCHASE PRICE	13
	Section 2.1	Contribution	13
	Section 2.2	Purchase and Sale of the Unit	13
	Section 2.3	Closing Date Payments; Purchase Price	13
	Section 2.4	Purchase Price Adjustments	14
	Section 2.5	Purchase Price Adjustments Payment	15
	Section 2.6	Allocation of Purchase Price	17
	Section 2.7	Withholding	17
ARTICLE III		CLOSING	17
	Section 3.1	Closing Date	17
	Section 3.2	Payments on the Closing Date	17
	Section 3.3	Buyer's Additional Closing Date Deliveries	18
	Section 3.4	Seller's Closing Date Deliveries	18
ARTICLE IV		REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER	19
	Section 4.1	Organization and Good Standing	19
	Section 4.2	Authorization; Conflicts	20
	Section 4.3	Enforceability	21
	Section 4.4	Capitalization	21
	Section 4.5	Subsidiaries	21
	Section 4.6	Reports and Financial Statements; Undisclosed Liabilities	22
	Section 4.7	Absence of Certain Developments	23
	Section 4.8	Title to Assets; Liens	23
	Section 4.9	Transactions with Affiliates	23
	Section 4.10	Insurance	24
	Section 4.11	Tax Matters	24
	Section 4.12	Material Contracts and Obligations	25
	Section 4.13	Real Property—Owned	25
	Section 4.14	Real and Personal Property—Leased	26
	Section 4.15	Intellectual Property	26
	Section 4.16	Necessary Property; Condition of Property	27



	Section 4.17	Necessary Licenses and Permits	27
	Section 4.18	Compliance with Laws and Governmental Permits	27
	Section 4.19	Environmental Compliance	28
	Section 4.20	Litigation	28
	Section 4.21	No Material Adverse Effect	29
	Section 4.22	Employee Benefit Plans	29
	Section 4.23	Withholding; Labor Relations	29
	Section 4.24	No Brokers	29
	Section 4.25	Goodwill Passes; Prepaid Tickets	29
	Section 4.26	Concession Inventory	30
	Section 4.27	ADA Compliance	30
ARTICLE V		REPRESENTATIONS AND WARRANTIES OF BUYER AND GUARANTOR	30
	Section 5.1	Organization and Good Standing	30
	Section 5.2	Authorization; Conflicts	30
	Section 5.3	Enforceability	30
	Section 5.4	Litigation	31
	Section 5.5	Financial Capability	31
	Section 5.6	Investment Intent	31
	Section 5.7	No Brokers	31
ARTICLE VI		ACTIONS PRIOR TO THE CLOSING DATE	31
	Section 6.1	Access to Information	31
	Section 6.2	Notification	32
	Section 6.3	Consents of Third Parties; Governmental Approvals	33
	Section 6.4	Operations Prior to the Closing Date	34
	Section 6.5	Exclusivity	35
	Section 6.6	Termination of Affiliate Transactions	36
	Section 6.7	Financial Information	36
	Section 6.8	Trademark Registration	36
	Section 6.9	Termination of National CineMedia Agreement	37
	Section 6.10	Services Agreement	37
	Section 6.11	Landlord Consents	37
ARTICLE VII		ADDITIONAL AGREEMENTS	38
	Section 7.1	Tax Matters	38
	Section 7.2	Employee Matters	40



	Section 7.3	Contact with Employees, Suppliers and Others	42
	Section 7.4	Confidentiality	43
	Section 7.5	Release	44
	Section 7.6	Change of Corporate Name; Removal of Names and Marks	44
	Section 7.7	Gift Cards and Passes	44
	Section 7.8	Web Site Data	45
	Section 7.9	Web Site Operation and Cooperation	45
	Section 7.10	Termination of Blue Light Holdings Lease	45
ARTICLE VIII		CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER AND GUARANTOR	45
	Section 8.1	No Breach of Covenants and Warranties	45
	Section 8.2	No Material Adverse Effect	46
	Section 8.3	No Restraint	46
	Section 8.4	Governmental Approvals	46
	Section 8.5	Contribution	46
	Section 8.6	Termination of Agreements	46
	Section 8.7	Other Deliverables	46
ARTICLE IX		CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER AND THE COMPANY	47
	Section 9.1	No Misrepresentation or Breach of Covenants and Warranties	47
	Section 9.2	No Restraint	47
	Section 9.3	Governmental Approvals	47
	Section 9.4	Other Deliverables	47
ARTICLE X		INDEMNIFICATION	48
	Section 10.1	Indemnification by Parent and Seller	48
	Section 10.2	Indemnification by Buyer and Guarantor	49
	Section 10.3	Notice of Claims	49
	Section 10.4	Resolution of Indemnifiable Claims	49
	Section 10.5	Third Person Claims	50
	Section 10.6	Determination of Indemnification Amounts	50
	Section 10.7	Escrow Fund	52
	Section 10.8	Exclusive Remedy	52
ARTICLE XI		TERMINATION	52
	Section 11.1	Termination	52
	Section 11.2	Notice of Termination	53

UNIT PURCHASE AGREEMENT, dated as of December 9, 2009, among ShowPlace Theatres Holding Company, LLC, a Delaware limited liability company (the "Company"), Kerasotes Showplace Theatres, LLC, a Delaware limited liability company ("Seller"), Kerasotes Showplace Theatres Holdings, LLC, a Delaware limited liability company ("Parent"), AMC ShowPlace Theatres, Inc., a Delaware corporation ("Buyer"), and American Multi-Cinema, Inc., a Missouri corporation ("Guarantor").

WHEREAS, Parent is the owner of all of the issued and outstanding membership units of Seller and Seller is the owner of all of the issued and outstanding membership units of the Company; and

WHEREAS, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all of the issued and outstanding membership units of the Company, all on the terms and subject to the conditions set forth herein;

WHEREAS, as an inducement for Buyer and the Guarantor to enter into this Agreement and the Buyer Ancillary Agreements, concurrent with execution and delivery of this Agreement, (i) certain indirect equity holders of Parent are entering into guarantee, exclusivity and confidentiality agreements, and (ii) certain equity holders of Parent are entering into exclusivity and confidentiality agreements (collectively, the "Equity Holder Agreements") pursuant to which, among other things, certain indirect equity holders will severally guarantee collectively 100% of the monetary obligations of Seller and Parent hereunder, and all such direct and indirect equity holders will agree not to sell or otherwise transfer, or cause to be sold or otherwise transferred, his, her or its respective direct or indirect equity interests in Parent prior to the Closing;

WHEREAS, each of Buyer and Guarantor, as an inducement for the Company, Seller and Parent to enter into this Agreement, and each of Parent, Seller, Kerasotes Theatres, Inc., a Delaware corporation ("KTI"), Anthony Kerasotes, Dean Kerasotes, and Victoria Constan, as an inducement for Buyer and the Guarantor to enter into this Agreement, is entering into a non-competition agreement (the "Buyer Non-Competition Agreement," in the case of Buyer and Guarantor, and, in the case Parent, Seller, KTI, Anthony Kerasotes, Dean Kerasotes, and Victoria Constan, collectively, the "Seller Non-Competition Agreements"), in each case to be effective as of the Closing and pursuant to which Buyer and Guarantor, on the one hand, and each of Parent, Seller, KTI, Anthony Kerasotes, Dean Kerasotes, and Victoria Constan, on the other hand, agree, subject to the terms and conditions of the Buyer Non-Competition Agreement or their respective Seller Non-Competition Agreement, as applicable, during the five-year period following the Closing Date, not to own, operate, manage or otherwise be involved with the ownership, operation, or management of any movie theatre in the 5-mile radius surrounding (i) any theatre that is a Retained Asset, in the case of Buyer and Guarantor, and (ii) any theatre that is contributed to the Company pursuant to the Contribution in the case of each of Parent, Seller, KTI, Anthony Kerasotes, Dean Kerasotes, and Victoria Constan.

WHEREAS, as an inducement for the Company, Seller and Parent to enter into this Agreement, Guarantor is entering into this Agreement; and

WHEREAS, immediately prior to the Closing on the Closing Date, Parent shall cause Seller to contribute to the Company (the "Contribution") all of Seller's right, title and interest in, to and under all of the theatres, properties, assets and liabilities of Seller other than those theaters, properties, assets and liabilities set forth on Schedule I (the "Retained Assets") and Schedule II (the "Retained Liabilities").

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, it is hereby agreed among the Company, Seller and Buyer as follows:

Section 1.1 Definitions. In this Agreement, the following terms have the meanings specified or referred to in this Section 1.1 and shall be equally applicable to both the singular and plural forms.

"Acquisition Proposal" means any offer, proposal or indication of interest relating to or made in connection with (i) the acquisition of Parent, Seller, the Company, or any Subsidiary, (ii) a merger, consolidation or other business combination in which Parent, Seller, the Company, or any Subsidiary, as applicable, does not survive, (iii) the acquisition of any of the capital stock of Parent, Seller, the Company or any Subsidiary, or (iv) the sale of any material assets of Parent, Seller, the Company or any Subsidiary.

"Adjustment Indebtedness" means the Indebtedness set forth on Schedule 1.1.

"Affiliate" means, with respect to any Person that is an entity, any other Person that directly or indirectly controls, is controlled by or is under common control with such Person, and with respect to any Person that is an individual, any direct or indirect family member of such Person and any other Person that directly or indirectly is controlled by such Person, in each case where "control" (including, with correlative meaning, the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct the management and policies of a Person, whether through the ownership of voting securities, Contract or otherwise.

"Agreed Accounting Principles" means GAAP; provided, however, with respect to any matter as to which there is more than one generally accepted accounting principle, Agreed Accounting Principles means the generally accepted accounting principles applied in the preparation of the Company's audited balance sheet dated as of December 31, 2008.

"Antitrust Laws" means the Sherman Act, the Clayton Act, the HSR Act, the Federal Trade Commission Act and all other federal and state Requirements of Law that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restriction of trade or business or competition through merger or acquisition.

"Audited Financial Statements" has the meaning specified in Section 4.6(a).

"Benefits Continuation Period" has the meaning specified in Section 7.2(d).

"Business Day" means any day other than a Saturday, Sunday or day on which commercial banks located in New York, New York are required or permitted to be closed.

"Buyer" has the meaning specified in the first paragraph of this Agreement.

"Buyer Ancillary Agreements" means all agreements, instruments and documents being or to be executed and delivered by Buyer or an Affiliate of Buyer under this Agreement or in connection herewith, including the Escrow Agreement, Buyer Non-Competition Agreement, Services Agreement, Equity Holder Agreements, Seller License Agreement, Buyer License Agreement and the Chicago Office Sublease Agreement.

"Buyer Fundamental Representations" means those representations and warranties contained in Sections 5.1 (Organization and Good Standing), 5.2 (Authorization; Conflicts) (to the extent such representations and warranties are made with respect to the Buyer's organizational documents), 5.3 (Enforceability), and 5.7 (No Brokers).

"Buyer Group Member" means (i) Buyer and its Affiliates (including the Company and the Subsidiaries after the Closing), (ii) the directors, officers, partners, members, stockholders, employees, agents and representatives of Buyer and its Affiliates (including of the Company and the Subsidiaries after the Closing) and (iii) the respective successors and assigns of each of the foregoing.

"Buyer License Agreement" means the license agreement to be dated as of the Closing Date, by and between Buyer and Seller, pursuant to which Buyer will, among other things, provide Seller with an irrevocable, fully-paid, non-exclusive and transferable license to use the name "ShowPlace" (i) in the Chicago, IL, Minneapolis, MN and Secaucus, NJ markets, as well as in the markets in which Seller is permitted to own or operate any other theatre pursuant to the terms of the applicable Seller Non-Competition Agreement; provided, that Seller shall use the term "ShowPlace" only in conjunction with the term "Icon" except in the Secaucus, NJ market, where the name "ShowPlace" may be used alone, and (ii) on Gift Cards and Passes, in the case of each of clauses (i) and (ii), in the manner set forth in the Buyer License Agreement.

"Buyer Non-Competition Agreement" has the meaning specified in the Recitals.

"Cash" means those consolidated current assets of the Company reflected on the line items of the Company's balance sheet as "Cash" and "Short Term Investments" and calculated in accordance with the Agreed Accounting Principles, consistently applied.

"Chicago Office Sublease Agreement" means the sublease agreement to be dated as of the Closing Date between the Company and Seller pursuant to which the Company agrees to sublease from Seller one floor of office space currently leased by Seller pursuant to the Office Lease between River Forks, LLC (as successor in interest to Finova Capital Corporation) and Seller, dated June 15, 1999, as amended on November 4, 2004.

"Closing" means the closing of the transfer of the Unit from Seller to Buyer in exchange for the Closing Date Payment Amount.

"Closing Date Balance Sheet" has the meaning specified in Section 2.4(c).

"Closing Date Deferred Revenue" has the meaning specified in Section 2.4(c).

"Closing Date Payment Amount" has the meaning specified in Section 2.3(a).

"Closing Date Transaction Costs" has the meaning specified in Section 2.4(c).

"Closing Date Working Capital" has the meaning specified in Section 2.4(c).

"Company" has the meaning specified in the first paragraph of this Agreement.

"Company Intellectual Property" has the meaning specified in Section 4.15(a).

"Confidentiality Agreement" has the meaning specified in Section 6.1(a).

"Contract" means any written or oral agreement, arrangement, authorization, commitment, contract, indenture, instrument, lease, license, obligation, plan, practice, restriction, understanding or undertaking of any kind or character.

"Contribution Agreement" means the agreement pursuant to which the Contribution shall be effected, which shall be in form and substance reasonably satisfactory to Buyer.

"Copyrights" means United States and foreign registered and unregistered copyrights, and pending applications to register the same.

"Court Order" means any administrative decision, judgment, order, writ, injunction, ruling, award or decree of any foreign, federal, state, local or other court, tribunal or other Governmental Body of competent jurisdiction and any award in any arbitration proceeding.

"Current Assets" means those consolidated current assets of Seller reflected on the line items of the balance sheet of Seller set forth on Exhibit A and calculated in accordance with the Agreed Accounting Principles, consistently applied.

"Current Liabilities" means those consolidated current liabilities of Seller reflected on the line items of the balance sheet of Seller set forth on Exhibit A and calculated in accordance with the Agreed Accounting Principles, consistently applied.

"Deferred Revenue" means the consolidated aggregate amount of deferred revenue of the Seller as set forth on Exhibit A, including gift cards, "movie money," premier tickets, discount tickets, advance sales, internet advance sales and deferred marketing funds, calculated in accordance with the Agreed Accounting Principles, consistently applied.

"Employee Benefit Plan" means (i) each employee benefit plan, within the meaning of Section 3(3) of ERISA (including each Multiemployer Plan and Guaranteed Pension Plan) and (ii) each and every written, unwritten, formal or informal plan, agreement, program, policy or other arrangement involving direct or indirect compensation (other than workers' compensation, unemployment compensation and other government programs), employment, severance, consulting by an individual, disability benefits, supplemental unemployment benefits, vacation benefits, retirement benefits, deferred compensation,

profit-sharing, bonuses, stock options, stock appreciation rights, other forms of incentive compensation, post-retirement insurance benefits, or other benefits, entered into, maintained or contributed to by Seller, the Company or any of the Subsidiaries or with respect to which Seller, the Company or any of the Subsidiaries has any Liability (including any contingent liability).

"Encumbrance" means any lien, claim, charge, security interest, mortgage, pledge, easement, conditional sale or other title retention agreement, defect in title or other restrictions of a similar kind.

"Environmental Laws" means all Requirements of Law concerning worker exposure to any Hazardous Material and pollution or protection of the environment (including those relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, Release, threatened Release, control or cleanup of any Hazardous Material).

"Environmental Matter" means any Liability of the Company or any Subsidiary relating to (i) the Release or threatened Release of a Hazardous Material or (ii) violations of applicable Environmental Laws.

"ERISA Affiliate" means any Person which is treated as a single employer with the Company or any Subsidiary under subsections (b), (c), (m) or (o) of Section 414 of the Code.

"Escrow Agreement" means the escrow agreement to be dated as of the Closing Date, by and among Buyer, Seller and the Escrow Agent, substantially in the form attached hereto as Exhibit D.

"Estimated Closing Date Cash" has the meaning specified in Section 2.3(a)(ii).

"Estimated Closing Date Working Capital" has the meaning specified in Section 2.4(a).

"Estimated Deferred Revenue" has the meaning specified in Section 2.3(a)(iv).

"Estimated Transaction Costs" has the meaning specified in Section 2.3(a)(v).

"Expenses" means any and all reasonable out-of-pocket costs and expenses actually incurred in connection with defending or asserting any Proceeding incident to any matter indemnified against hereunder (including court filing fees, court costs, arbitration fees or costs, witness fees and reasonable fees and disbursements of legal counsel, expert witnesses, accountants and other professionals).

"GAAP" means United States generally accepted accounting principles, consistently applied by the Company.

"Governmental Body" means any foreign, federal, state, local or municipal or other governmental authority or regulatory body, including any court, commission, instrumentality, authority, or administrative agency.

"Guaranteed Pension Plan" means any employee pension benefit plan subject to Title IV of ERISA, or a plan subject to the minimum funding standards of Section 412 of the Code or Section 302 of ERISA.

"Guarantor" has the meaning specified in the first paragraph of this Agreement.

"Hazardous Material" means any waste, pollutant, or hazardous or toxic substance or waste, as such terms are defined in Environmental Laws and includes, for purposes of this Agreement, any petroleum or petroleum wastes.

"Indebtedness" means the aggregate consolidated indebtedness of the Company, including, without duplication, (i) any obligations under any indebtedness for borrowed money (including all obligations for principal, interest premiums, penalties, fees, expenses, breakage costs and bank overdrafts thereunder), (ii) any obligations evidenced by any note, bond, debenture or other debt security, (iii) any commitment by which a Person assures a financial institution against loss (including contingent reimbursement obligations with respect to letters of credit), (iv) any off-balance sheet financing, including synthetic leases and project financing, (v) all obligations under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (vi) any payment obligations in respect of banker's acceptances or letters of credit, (vii) any obligations with respect to interest rate swaps, collars, caps and similar hedging obligations, (viii) all obligations for the deferred and unpaid purchase price of property or services (other than trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice that are not more than ninety (90) days past due), (ix) any obligations referred to in clauses (i) through (viii) above of any Person which are either guaranteed or secured by any Encumbrance upon the Company or any Subsidiary or any of their respective assets or properties and (x) accrued and unpaid or declared and unpaid interest of any such foregoing obligation.

"Intellectual Property" means Copyrights, Patent Rights, Trademarks and Trade Secrets.

"Interim Financial Statements" has the meaning specified in Section 4.6(a).

"Knowledge of Buyer" means, as to a particular matter, the actual knowledge of the following persons after reasonable investigation and inquiry: Kevin Connor and Kelly Schemenauer.

"Knowledge of the Company" means, as to a particular matter, the actual knowledge of the following persons after reasonable investigation and inquiry: Tony Kerasotes, Dean Kerasotes, Jim DeBruzzi, Tim Johnson, Bill Budig and Gregg Ferlin.

"Liability" means any liability, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due.

"Losses" means any and all liabilities, losses, costs, settlement payments, awards, judgments, fines, penalties, damages, expenses, deficiencies or other charges, including such liabilities, losses, costs,

settlement payments, awards, judgments, fines, penalties, damages, expenses, deficiencies or other charges resulting from, associated with or comprised of loss of profits, loss of use or revenue and diminution in value, including reasonable legal fees and expenses, but excluding all other special, consequential, or punitive damages of any kind, other than any such damages payable to a third Person.

"Material Adverse Effect" means any occurrence, condition, change, event or effect that, individually or in the aggregate, is or is reasonably likely to be materially adverse to (a) the business, assets, financial condition or results of operations of Parent, Seller, the Company and the Subsidiaries (other than with respect to the Retained Assets and the Retained Liabilities) taken as a whole, or (b) the ability of the Company, Seller, Parent or any Affiliate (including any direct or indirect equity holder of Seller) to consummate the transactions contemplated hereby or by any Seller Ancillary Agreement or to perform their respective obligations hereunder or under any Seller Ancillary Agreement, but shall exclude any occurrence, condition, change, event or effect to the extent resulting or arising from: (i) any change in any Requirement of Law; (ii) any change in interest rates or general economic conditions in the industry in which the Company and the Subsidiaries operate or affecting the United States economy in general; (iii) any change that is generally applicable to the industry in which Parent, Seller, the Company and the Subsidiaries operate; (iv) any change in GAAP; (v) any outbreak of hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening after the date hereof of any such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof; (vi) the entry into or announcement of this Agreement and/or the consummation of the transactions contemplated hereby; (vii) the taking of any action by Parent, Seller or the Company required to be taken pursuant to this Agreement (other than any action taken by Parent, Seller or the Company pursuant to Section 6.4(a)), or if Buyer fails to consent to the taking of any action that requires Buyer's consent under this Agreement, the failure or omission by Parent, Seller or the Company to take such action; and (viii) any divestures of properties or assets of the Seller or the Company that are made as required pursuant to Section 6.3(e) in order for the parties hereto to satisfy the conditions to Closing set forth in the first sentence of each of Section 8.3 and Section 9.3; provided, however, that in the case of each of (i) through (v), inclusive, so long as such effect does not materially disproportionately affect Seller, the Company or any Subsidiary in comparison to other participants in the industry in which Seller, the Company and the Subsidiaries operate.

"Material Contract" means any outstanding Contract (whether in writing or not and whether or not entered into in the ordinary course of business consistent with past practice, unless otherwise noted below) to which the Company or any of the Subsidiaries is a party or is bound, or pursuant to which any assets or properties of the Company or any Subsidiary is subject or bound, that (a) obligates or commits the Company or any of the Subsidiaries to expend or otherwise pay an amount in excess of $100,000 (b) entitles the Company or any of the Subsidiaries to receive an amount in excess of $100,000, (c) obligates or commits the Company or any of the Subsidiaries to incur any Indebtedness, (d) restricts the Company's or any Subsidiary's line of business or limits or prevents its competition with any Person, (e) provides for sharing of profits, revenues or cash flows, with another Person, (f) subjects any of the Company's or any Subsidiary's properties to an Encumbrance (other than Permitted Encumbrances), (g) provides for the issue, award or purchase of any securities of the Company or any of the Subsidiaries (or securities or obligations that are convertible into or exchangeable or exercisable for securities of the Company or any of the Subsidiaries), (h) provides for loans, bonuses, pensions, deferred or incentive compensation, retirement or severance payments, profit-sharing, insurance or other benefit plans or programs for any current or former unitholder, stockholder, partner, officer, member, consultant, director or employee of the Company or any of the Subsidiaries or relates to any collective bargaining agreement or any other arrangement with any labor union or employee organization, (i) is an employment agreement, arrangement or understanding with any current or former unitholder, stockholder, partner, officer, member, consultant, director or employee of the Company or any of the Subsidiaries, (j) is a lease agreement pursuant to which the Company or

any Subsidiary leases any real property required to be disclosed on Schedule 4.14, (k) relates to the purchase or sale of any material assets, Subsidiary, or business of the Company or any Subsidiary at any time during the past three (3) years (other than purchases or sales of equipment or other personal property in the ordinary course of business, consistent with past practice), (l) grants or licenses to the Company or any of the Subsidiaries any rights in any material Intellectual Property (other than any agreements pursuant to which the Company licenses Software commercially available under "shrink-wrap" or "click-through" license agreements), (m) is an intercompany Contract (involving the Company or a Subsidiary, as one party, and the Company or another Subsidiary, as the other party); (n) involves the Company or a Subsidiary, as one party, and an Affiliate, officer, director or employee of the Company or any Subsidiary (including any officers, directors, or employees of Seller, or any direct or indirect equity holder of Seller and such equity holder's Affiliates, but not including the Company or any Subsidiary); (o) is with any Governmental Body (other than Governmental Permits); (p) grants power of attorney to any third Person; (q) relates to the licensing of films for theatrical exhibition where such Contract survives for a period other than such period related to the display of a particular film; or (r) obligates or commits the Company or any of the Subsidiaries to receive, expend or otherwise pay an amount in excess of $100,000 and that is not subject to termination, in the sole discretion of the Company or a Subsidiary, upon not more than 60 days notice. Any reference to a dollar amount in this definition shall be calculated in the aggregate on an annual basis and shall include any interest, fees or expenses associated therewith.

"Multiemployer Plan" means a "multiemployer plan," as defined in Section 4001(a)(3) or 3(37) of ERISA.

"Non-Clearance Termination Fee" has the meaning specified in Section 11.3(b).

"Parent" has the meaning specified in the first paragraph of this Agreement.

"Patent Rights" means United States and foreign patents and patent applications, continuations, continuations-in-part, divisions or reissues.

"Payoff Letter" means a written statement from any holder of Indebtedness to be repaid at Closing, setting forth the amount of such Indebtedness due or accrued to such Person through the Closing and acknowledging that upon payment of the amount set forth in such letter at Closing, such Person will have received all amounts due to such Person from Seller, the Company and the Subsidiaries, and releasing any and all guarantees of such Indebtedness and Encumbrances on or against the properties or assets of Seller, the Company or any Subsidiary that exist under such Indebtedness, in each case in form and substance reasonably acceptable to Buyer and Seller.

"Permitted Acquisition Proposal" means any offer, proposal or indication of interest relating to or made in connection with any proposed issuance, sale, exchange, redemption, conversion or transfer of capital stock of Parent or Seller after the Closing for capital raising purposes or as part of any post-Closing recapitalization of Parent or Seller.

"Permitted Encumbrances" means (i) liens for Taxes and other governmental charges and assessments which are not yet due and payable, for which Seller or the Company has appropriate reserves as required by GAAP, as shown on the Financial Statements, (ii) liens of landlords and liens of carriers, warehousemen, mechanics and materialmen and other like liens arising in the ordinary course of business for sums not yet due and payable, (iii) liens to secure Indebtedness that will be paid off at Closing pursuant to this Agreement, (iv) Encumbrances expressly identified as Encumbrances on the Schedules to this Agreement (as the same may be updated pursuant to the terms of this Agreement), (v) Encumbrances or imperfections on property which are set forth on or described in documents expressly referred to on Schedule 1.2, (vi) Encumbrances disclosed to Buyer in writing (including without limitation in any title policy, title commitment, land title survey, or update to any of the foregoing, delivered or made available to Buyer prior to the date hereof; provided that, for purposes of this clause (vi), no Encumbrances caused by Seller or its Affiliates after the date hereof shall be "Permitted Encumbrances"), (vii) any other Encumbrances or imperfections on property which, in the aggregate, are not material in amount or do not materially detract from the value of or materially impair the existing use of the property affected by such Encumbrance or imperfection and (viii) any Encumbrance caused directly and solely by Buyer or its agents.

"Person" means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or Governmental Body.

"Preliminary Closing Date Balance Sheet" has the meaning specified in Section 2.4(b)(i).

"Preliminary Closing Statement" has the meaning specified in Section 2.4(b)(ii).

"Proceeding" means any action, lawsuit, proceeding, investigation or other claim.

"Providence" means Providence Equity Partners IV, L.P. and Providence Equity Operating Partners IV, L.P.

"Providence's Pro Rata Share" means 61.1% of any indemnification obligations of Parent or Seller pursuant to Article X.

"Real Property" means, collectively, the Owned Real Property and the Leased Real Property.

"Recorded Intellectual Property" means (a) registered patents and pending patent applications (including provisional applications); (b) registered trademarks, or service marks, applications to register trademarks, intent-to-use applications, or other registrations or applications related to trademarks or service marks; (c) registered copyrights and applications for copyright registration; and (d) any other Intellectual Property that is the subject of an application, certificate, filing, registration or other document issued by, filed with, or recorded by the United States Patent and Trademark Office, the United States Register of Copyrights, Network Solutions, Inc. (or other authorized domain name registration entities) or the corresponding offices of other U.S. and foreign jurisdictions.

"Regulatory Material Adverse Effect" means any divestiture of theatres required to be made by Buyer pursuant to Section 6.3(e) that, individually or in the aggregate, is or is reasonably likely to be materially adverse to the business, assets, financial condition or results of operations of Seller, the Company and the Subsidiaries, taken as a whole. For purposes of determining whether a Regulatory Material Adverse Effect has occurred, (i) no consideration shall be given to any divestiture of, or other

effect on, any theatre that is a Retained Asset, (ii) Buyer shall treat the divestiture of any theatres owned by it or any of its Affiliates as if they were divestitures of theatres owned by Seller, the Company or any Subsidiary, and (iii) consideration will be given to any net proceeds (whether in the form of cash or other property) received by Buyer or its Affiliates or the Company in connection with any divestiture of theatres required to be made by Buyer pursuant to Section 6.3(e) (or, if this Agreement is terminated pursuant to Section 11.1(d) or Section 11.1(e) and any such required divestitures have not been made, the net proceeds Buyer could reasonably have expected to receive in connection with any such required divestitures). The effect of any such divestitures by Buyer shall be measured by the 2009 operating cash flow of the divested theatres against the consolidated 2009 operating cash flow of the Seller.

"Release" means the release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration of a Hazardous Material into the environment.

"Remedial Action" means actions required by any Environmental Law to (i) clean up, remove, treat or in any other way address Hazardous Materials in the environment, (ii) prevent the Release or threatened Release or minimize the further Release of Hazardous Materials or (iii) investigate and determine if Remedial Action is required, and to design and implement such Remedial Action, including any necessary post-remedial investigation, monitoring, operation and maintenance and care.

"Retained Seller Employees" has the meaning specified in Section 7.2(b).

"Retained Theatre Employee" means the employees of Seller who are principally employed to provide services to a Retained Theatre.

"Retained Theatres" means each of the theatres identified on Schedule I as a Retained Asset.

"Requirements of Law" means any foreign, federal, state and local laws, statutes, regulations, rules, codes or ordinances enacted, adopted, issued or promulgated by any Governmental Body, including principles of common law.

"Schedules" means the disclosure schedules delivered by Seller and the Company to Buyer, which form a part of this Agreement.

"Securities Act"means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time.

"Seller" has the meaning specified in the first paragraph of this Agreement.

"Seller Ancillary Agreements" means all agreements, instruments and documents being or to be executed and delivered by any Seller or an Affiliate of any Seller under this Agreement or in connection herewith, including the Contribution Agreement, Escrow Agreement, Seller Non-Competition Agreement, Services Agreement, the Equity Holder Agreements, the Seller License Agreement, Buyer License Agreement and the Chicago Office Sublease Agreement.

"Seller Fundamental Representations" means those representations and warranties contained in Sections 4.1 (Organization and Good Standing), 4.2 (Authorization; Conflicts) (but only to the extent such representations and warranties are made with respect to the organizational documents of the

Company or any Subsidiary), 4.3 (Enforceability), 4.4 (Capitalization), 4.5 (Subsidiaries), 4.6(e), (Indebtedness) and 4.24 (No Brokers).

"Seller Group Member" means (i) Seller and its Affiliates (other than the Company and the Subsidiaries after the Closing), (ii) the directors and officers, partners, members, stockholders, employees, agents or representatives of Seller and its Affiliates (other than the Company and the Subsidiaries after the Closing) and (iii) the respective successors and assigns of each of the foregoing.

"Seller Guarantor" means each of Providence Equity Partners IV, L.P., Providence Equity Operating Partners IV, L.P., Anthony Kerasotes, Dean Kerasotes, and Victoria Constan.

"Seller License Agreement" means the license agreement to be dated as of the Closing Date, by and between Buyer and Seller, pursuant to which Seller will, among other things, provide Buyer and its Affiliates with an irrevocable, fully-paid, non-exclusive and transferable license to use (i) the name "Five Buck Club" in perpetuity in each market where any theatre acquired by Buyer pursuant to this Agreement is located, as well as in any market where Buyer or its Affiliates currently, or at any time in the future, in accordance with the terms of the Buyer Non-Competition Agreement, owns or operates any theatre, and (ii) the Retained Names, for a period of 1 year following the Closing Date, on, and in connection with the management, operation, and advertisement of, any theatre contributed to the Company and acquired by Buyer on the Closing Date which bears or uses any Retained Name as of the date of this Agreement.

"Seller Non-Competition Agreement" has the meaning specified in the Recitals.

"Seller Retention Obligations" means (i) all costs, fees and expenses of the Company and any Subsidiary arising out of or related to any and all change of control, severance, retention or other transaction bonuses or payments that are paid or due and payable prior to or at the Closing, and (ii) all costs, fees and expenses of the Company and any Subsidiary arising out of or related to any and all change of control, severance, retention or other transaction bonuses or payments of the Company or any Subsidiary that are due and payable after the Closing, other than any cash severance amount payable to a Retained Seller Employee under the Buyer's Severance Policy and payments or benefits payable to a Continuing Employee by Buyer or any of its Affiliates under any plan or agreement of Buyer or any of its Affiliates in which a Continuing Employee becomes a participant following the Closing.

"Seller's Dependant FSA Plan" has the meaning specified in Section 7.2(g).

"Seller's Pro Rata Share" means 38.9% of any indemnification obligations of Parent or Seller pursuant to Article X.

"Software" means computer software programs and software systems, including all databases, compilations, tool sets, compilers, higher level "proprietary" languages, related documentation and materials, whether in source code, object code or human readable form; provided, however, that Software does not include software that is available generally through retail stores, distribution networks or is otherwise subject to "shrink-wrap" or "click-through" license agreements, including any software pre-installed in the ordinary course of business as a standard part of hardware purchased by the Company or a Subsidiary.

"Straddle Period" means any taxable year or period beginning before and ending after the Closing Date.

"Subsidiaries" means each of Kerasotes Colorado Cinema LLC, a Delaware limited liability company and Colorado Cinema Group LLC, a Delaware limited liability company.

"Swap" means the Swap Agreement between Deutsche Bank AG and Kerasotes Showplace Theatres, LLC dated September 4, 2008.

"Swap Termination Costs" means the aggregate of all amounts payable by Seller or its Affiliates (other than the Company and the Subsidiaries) in connection with the termination of the Swap, including all termination, breakage or other fees and expenses arising thereunder or with respect thereto.

"Target Deferred Revenue Amount" means, (i) $5,500,000, in the event that the Closing Date is on or prior to March 31, 2010, and (ii) $4,000,000, in the event that the Closing Date is after March 31, 2010.

"Tax" means (i) any federal, state, local or foreign income, gross receipts, property, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add-on minimum, ad valorem, value added, transfer or excise tax, windfall profit, severance, production, stamp or environmental tax or (ii) any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, addition to tax or additional amount imposed by any taxing authority of any Governmental Body.

"Tax Return" means any return, report or similar statement required to be filed (or that is voluntarily filed) with respect to any Tax (including any attached schedules), including any information return, claim for refund, amended return or declaration of estimated Tax.

"Trademarks" means all registered and unregistered United States federal, state and foreign trademarks, service marks and trade names, and pending applications to register the foregoing.

"Trade Secrets" means confidential ideas, trade secrets, know-how, concepts, methods, processes, formulae, reports, data, customer lists, mailing lists, business plans, or other proprietary information that provides the owner with a competitive advantage.

"Transaction Costs" means (a) all costs, fees and expenses of the Company, any Subsidiary, Seller, Parent or any Affiliate (including any direct or indirect equity holder) of any of the foregoing, in each case to the extent payable by the Company or any Subsidiary, including all legal, investment banking, and management and advisory fees, costs and expenses, in each case to the extent incurred in connection with or related to the transactions contemplated by this Agreement or any Seller Ancillary Agreement; (b) all Seller Retention Obligations; and (c) 50% of (i) any fees associated with filings made by the parties pursuant to the terms hereof under the HSR Act, (ii) any transfer Taxes payable as a result of the consummation of the transactions contemplated by this Agreement or the Contribution Agreement, and (iii) all costs, fees or other expenses incurred by any party hereto or their respective Affiliates to obtain replacement title insurance policies with respect to any Owned Real Property for which any existing title insurance policy terminates (or is otherwise not transferable to the Company) as a result of the Contribution (it being acknowledged and agreed that all such replacement title insurance policies shall be obtained from a reputable insurance provider and on terms and conditions reasonably equivalent to the policies currently held by Seller or any of its Affiliates with respect to each parcel of Owned Real Property).

Section 1.2 Interpretation. For purposes of this Agreement, (i) the words "include", "includes" and "including" shall be deemed to be followed by the words "without limitation", (ii) the word "or" is not exclusive and (iii) the words "herein", "hereof", "hereby", "hereto" and "hereunder" refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (i) to Articles, Sections, Exhibits and Schedules mean the Articles and Sections of, and the Exhibits and Schedules attached to, this Agreement; (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. 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. Titles to Articles and headings of Sections 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.

Section 2.1 Contribution. Immediately prior to the Closing, Seller shall (a) contribute, transfer, convey, assign and deliver to the Company, on a going concern basis, all of Seller's right, title and interest in, to and under all of the assets, rights and properties of Seller of every kind, character and description, whether tangible or intangible, whether real, personal or mixed, whether accrued or contingent, and wherever located, which are owned or held as of the date thereof by Seller, including the equity interests in the Subsidiaries but excluding the Unit and the Retained Assets (collectively, the "Contributed Assets"), and (b) transfer and assign, and cause the Company to assume and agree to pay, perform and fully discharge when due, all Liabilities of Seller other than the Retained Liabilities (collectively, the "Assumed Liabilities") pursuant to the terms of the Contribution Agreement.

Section 2.2 Purchase and Sale of the Unit. Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Seller shall sell, transfer, assign, convey and deliver to Buyer, and Buyer shall purchase and accept from Seller, the Unit, free and clear of all Encumbrances.

Section 2.3 Closing Date Payments; Purchase Price. (a) The amount payable by Buyer on the Closing Date for the Unit (the "Closing Date Payment Amount") shall be equal to:

(b) Buyer shall pay the Closing Date Payment Amount to Seller at Closing in accordance with Section 3.2.

Section 2.4 Purchase Price Adjustments. The Purchase Price is to be adjusted pursuant to the procedures set forth in Section 2.3 and this Section 2.4 (the "Purchase Price Adjustments"):

(a) Not more than three (3) days prior to the Closing Date, Seller shall deliver to Buyer a certificate (the "Pre-Closing Statement") executed on behalf of Seller by its Chief Executive Officer and Chief Financial Officer, dated the date of its delivery, stating that there has been conducted under the supervision of such officers a review of all relevant information and data then available and setting forth the best estimate by Seller of (i) Working Capital (the "Estimated Closing Date Working Capital"), (ii) Estimated Closing Date Cash, (iii) Estimated Transaction Costs, and (iv) Estimated Deferred Revenue (in the case of clauses (i), (ii) and (iv), as of 11:59 p.m. Central Standard Time on the day immediately preceding the Closing Date, provided that all transactions contemplated by this Agreement occurring on the Closing Date but prior to Closing, including the payments made pursuant to Sections 3.2(b) and (c) , shall be deemed to have occurred as of 11:58 p.m. Central Standard Time on the day immediately preceding the Closing Date), and any adjustment in the Purchase Price required pursuant to Sections 2.3(a)(ii), (iii), (iv), or (v) all in reasonable detail prepared in accordance with the Agreed Accounting Principles, as applicable.

(b) As promptly as practicable (but not later than 30 days) following the Closing Date, Buyer shall:

(c) Seller may, within 30 days after the date of receipt of the Preliminary Closing Date Balance Sheet and Preliminary Closing Statement, deliver to Buyer a written statement setting forth its objections thereto, together with a summary of the reasons therefor and calculations which, in its view, are necessary to eliminate such objections. In the event Seller does not so object within such 30 day period, the Preliminary Closing Date Balance Sheet, the Preliminary Closing Statement, and the calculations of Working Capital, Cash, Transaction Costs and Deferred Revenue set forth in the Preliminary Closing Statement shall be final and binding for purposes of this Agreement as the "Closing Date Balance Sheet," the "Closing Statement," "Closing Date Working Capital," "Closing Date Cash," "Closing Date Transaction Costs," and "Closing Date Deferred Revenue" respectively. In the event Seller so objects within such 30-day period, Buyer and Seller shall use their reasonable efforts to resolve by written agreement (the "Agreed Adjustments") any differences as to the Preliminary Closing Date Balance Sheet, the Preliminary Closing Statement and the calculations of Working Capital, Cash, Transaction Costs and Deferred Revenue set forth in the Preliminary Closing Statement and, in the event Seller and Buyer so resolve any such differences, the Preliminary Closing Date Balance Sheet and Preliminary Closing Statement, and the calculations of Working Capital, Cash, Transaction Costs and Deferred Revenue set forth in the Preliminary Closing Statement, shall be final and binding for purposes of this Agreement as the "Closing Date Balance Sheet," the "Closing Statement," "Closing Date Working Capital," "Closing Date Cash," "Closing Date Transaction Costs," and "Closing Date Deferred Revenue" respectively, in each case as adjusted by the Agreed Adjustments. In the event any objections raised by Seller are not resolved by Agreed Adjustments within 15 days after Seller advises

Buyer of Seller's objections, then Buyer and Seller shall submit the objections that are then unresolved to a national accounting firm acceptable to both Buyer and Seller, and such firm (the "Accounting Firm") shall be directed by Buyer and Seller to resolve the unresolved objections (solely as to whether any disputed matter had been determined in a manner inconsistent with the Agreed Accounting Principles and whether there exist any mathematical errors) as promptly as reasonably practicable and to deliver written notice to each of Buyer and Seller setting forth its resolution of the disputed matters. The Preliminary Closing Date Balance Sheet and Preliminary Closing Statement, and the calculations of Working Capital, Cash, Transaction Costs and Deferred Revenue set forth in the Preliminary Closing Statement, shall be final and binding for purposes of this Agreement as the "Closing Date Balance Sheet," the "Closing Statement," "Closing Date Working Capital," "Closing Date Cash," "Closing Date Transaction Costs," and "Closing Date Deferred Revenue," respectively, in each case after giving effect to any Agreed Adjustments and to the resolution of disputed matters by the Accounting Firm.

(d) The parties hereto shall make available to Buyer, Seller and, if applicable, the Accounting Firm, such books, records and other information (including work papers) as any of the foregoing may reasonably request in order to prepare or review the Preliminary Closing Date Balance Sheet and Preliminary Closing Statement, respectively, or any matters submitted to the Accounting Firm. The fees and expenses of the Accounting Firm shall be paid 50% by Buyer and 50% by Seller.

Section 2.5 Purchase Price Adjustments Payment. The Purchase Price shall be subject to adjustment as follows:

(b) Cash Adjustment: (i) If Estimated Closing Date Cash exceeds Closing Date Cash, then the Purchase Price shall be decreased on a dollar-for-dollar basis by an amount equal to such deficit, and (ii) if Closing Date Cash exceeds Estimated Closing Date Cash, then the Purchase Price shall be increased on a dollar-for-dollar basis by an amount equal to such excess.

(c) Transaction Cost Adjustment: (i) If Estimated Transaction Costs exceed Closing Date Transaction Costs, then the Purchase Price shall be increased on a dollar-for-dollar basis by an amount equal to such excess, and (ii) if Closing Date Transaction Costs exceed Estimated Transaction Costs, then the Purchase Price shall be reduced on a dollar-for-dollar basis by an amount equal to such deficit.

(d) Deferred Revenue Adjustment: In the event that (i) Estimated Closing Date Deferred Revenue exceeds Closing Date Deferred Revenue, then the Purchase Price shall be increased by an amount equal to such excess, provided that in no event shall any adjustment pursuant to this Section 2.5(d) exceed the amount by which the Purchase Price was decreased pursuant to Section 2.3(a)(iv), and (ii) Closing Date Deferred Revenue exceeds Estimated Closing Date Deferred Revenue, then the Purchase Price shall be decreased by an amount equal to such excess.

(e) If the aggregate amount by which the Purchase Price is required to be increased pursuant to Sections 2.5(a), (b), (c) and (d) is greater than the aggregate amount by which the Purchase Price is required to be decreased pursuant to Sections 2.5(a), (b), (c), and (d), Buyer shall pay to Seller by wire transfer of immediately available funds an amount equal to such excess, promptly, but in any case

within five (5) Business Days following such determination. If the aggregate amount by which the Purchase Price is required to be increased pursuant to Sections 2.5(a), (b) , (c) and (d) is less than the aggregate amount by which the Purchase Price is required to be decreased pursuant to Sections 2.5(a), (b), (c), and (d) Seller shall pay to Buyer by wire transfer of immediately available funds an amount equal to such deficit, promptly, but in any case within five (5) Business Days following such determination; provided, however, that Buyer may, in its sole discretion, direct the Escrow Agent to pay such amount to Buyer out of the Escrow Fund in accordance with the terms of the Escrow Agreement.

Section 2.6 Allocation of Purchase Price. Within 30 days following completion of the Closing Date Balance Sheet, Buyer and Seller shall work together in good faith to prepare a schedule (the "Allocation Schedule") allocating the Purchase Price (as adjusted pursuant to Section 2.4 and including any other consideration paid to Seller, including the Assumed Liabilities) among the assets of the Company. Buyer and Seller each agrees to file Internal Revenue Service Form 8594, and all federal, state, local and foreign Tax Returns, in accordance with the Allocation Schedule. Buyer and Seller each agrees to provide the other promptly with any other information required to complete Form 8594.

Section 2.7 Withholding. Buyer (and any other Person required to withhold any Tax with respect to any payment of Purchase Price or other payment made under this Agreement) shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable pursuant to this Agreement such amounts as required to be deducted or withheld therefrom under any provision of U.S. federal, state, local or foreign Tax law. To the extent such amounts are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement as having been paid to the Person to whom such amounts would otherwise have been paid.

Section 3.1 Closing Date. The Closing shall be consummated on a date and at a time agreed upon by Buyer and Seller, but in no event later than the second Business Day after the conditions set forth in Articles VIII and IX have been satisfied or waived (to the extent permitted), at the offices of Sidley Austin LLP, One South Dearborn Street, Chicago, Illinois, or at such other time and place as shall be agreed upon by Buyer and Seller. The time and date on which the Closing is actually held is referred to herein as the "Closing Date."

Section 3.2 Payments on the Closing Date. At the Closing, Buyer shall pay:

(a) to Seller, an amount equal to the Closing Date Payment Amount by wire transfer of immediately available funds to the bank account(s) identified by Seller in writing on or before the Closing Date; provided, however, that Seller shall be entitled to direct Buyer to pay a portion of the Closing Date Payment Amount to any third Persons to satisfy the payment of the Adjustment Indebtedness and the Swap Termination Costs, in each case as set forth in any applicable Payoff Letters with respect to such Adjustment Indebtedness or Swap Termination Costs (provided that copies of such Payoff Letters shall be delivered to Buyer not less than 2 Business Days prior to Closing);

(b) to such account or accounts as Seller shall specify, an amount sufficient to pay in full the aggregate Estimated Transaction Costs, to the extent not paid prior to Closing or included in the calculation of Estimated Closing Date Working Capital; and

(c) to the Escrow Agent, the Escrow Fund by wire transfer of immediately available funds to the bank account(s) identified in the Escrow Agreement.

Section 3.3 Buyer's Additional Closing Date Deliveries. Subject to fulfillment or waiver (where permissible) of the conditions set forth in Article VIII, at the Closing, Buyer shall deliver to Seller all of the following:

(a) a copy of Buyer's Certificate of Incorporation certified as of a recent date by the Secretary of State of the State of Delaware;

(b) a certificate of good standing of Buyer issued as of a recent date by the Secretary of State of the State of Delaware;

(c) a certificate of the secretary or an assistant secretary of Buyer, dated the Closing Date, in form and substance reasonably satisfactory to Seller, as to: (i) no amendments to the Certificate of Incorporation of Buyer since the date of the certificate specified in clause (a) above; (ii) the By-laws of Buyer in effect as of the Closing Date; and (iii) the resolutions of the board of directors of Buyer authorizing the execution and performance of this Agreement, each Buyer Ancillary Agreement to which Buyer is a party and the transactions contemplated hereby and thereby;

(d) the certificate contemplated by Section 9.1, duly executed by a duly authorized officer of Buyer and Guarantor; and

(e) each other Buyer Ancillary Agreement to which Buyer is a party, duly executed by Buyer.

Section 3.4 Seller's Closing Date Deliveries. Subject to fulfillment or waiver (where permissible) of the conditions set forth in Article IX, at the Closing, Seller shall deliver to Buyer all of the following:

(a) a copy of the Certificate of Formation of the Company certified as of a recent date by the Secretary of State of the State of Delaware;

(b) certificates of good standing of Seller and the Company issued as of a recent date by the Secretary of State of the State of Delaware;

(c) a certificate of the secretary or an assistant secretary of the Company, dated the Closing Date, in form and substance reasonably satisfactory to Buyer, as to: (i) no amendments to the Certificate of Formation of the Company since the date specified in clause (a); (ii) the Limited Liability Company Agreement of the Company in effect as of the Closing Date; and (iii) the resolutions of the Board of Managers of the Company authorizing the execution and performance of this Agreement, each Seller Ancillary Agreement to which the Company or any Subsidiary is a party and the transactions contemplated hereby and thereby;

(d) a certificate of the secretary or an assistant secretary of Seller, dated the Closing Date, in form and substance reasonably satisfactory to Buyer, as to: (i) the Certificate of Formation of Seller in effect as of the Closing Date; (ii) the Third Amended and Restated Limited Liability Company Agreement of Seller in effect as of the Closing Date; and (iii) the resolutions of the Board of Managers of Seller authorizing the execution and performance of this Agreement, each Seller Ancillary Agreement to which Seller is a party and the transactions contemplated hereby and thereby;

(e) all consents, waivers or approvals required to be obtained by the Company with respect to the consummation of the transactions contemplated by this Agreement or any Seller Ancillary Agreement and set forth on Schedule 3.4(e);

(f) the certificate contemplated by Section 8.1, duly executed by a duly authorized officer of Parent, the Company or Seller, as applicable;

(g) the written resignations of each manager of the Company's and each Subsidiary's Board of Managers;

(i) Payoff Letters with respect to all Indebtedness to be repaid at Closing as set forth on Schedule 3.4(i), including under the Swap and the Third Amended and Restated Credit Agreement, dated as of October 29, 2004, among the Company, Seller and the other parties appearing on the signature pages thereto;

(j) each other Seller Ancillary Agreement to which the Company, Seller or any direct or indirect equity holder of Seller is a party, duly executed by Seller, the Company, and/or such other parties, as applicable;

(k) a certificate representing the Unit, duly endorsed for transfer or with unit powers affixed thereto executed in blank in proper form for transfer;

(l) a certificate, duly executed and acknowledged, in form and substance reasonably satisfactory to the Buyer, to the effect that Seller is not a foreign Person for purposes of Sections 897 and 1445 of the Code; and

(m) all books and records of Parent, Seller, the Company and each Subsidiary except as set forth on Schedule I hereto.

As an inducement to Buyer to enter into this Agreement and to consummate the transactions contemplated hereby, except as set forth on the Schedules, Parent and Seller hereby jointly and severally represent and warrant to Buyer, as of the date hereof, as follows:

(a) Parent is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, with full limited liability company power to own, lease and operate its assets and properties and carry on its business as presently owned or conducted or proposed to be conducted.

(b) Seller is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, with full limited liability company power to own, lease and operate its assets and properties and carry on its business as presently owned or conducted or proposed to be conducted. Seller is licensed or qualified to transact business and is in good standing as a foreign limited liability company in each jurisdiction listed on Schedule 4.1(b). Seller is not required to be so qualified and authorized to do business in any jurisdiction other than those listed on Schedule 4.1(b), except where the failure to so qualify would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

(c) The Company is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, with full limited liability company power to own, lease and operate its assets and properties and carry on its business as presently owned or conducted or proposed to be conducted. As of the Closing Date, the Company shall be licensed or qualified to transact business and shall be in good standing as a foreign limited liability company in each jurisdiction listed on Schedule 4.1(c). As of the date hereof, the Company is not required to be so qualified and authorized to do business in any foreign jurisdiction, and as of the Closing, the Company will not be required to be so qualified and authorized to do business in any jurisdiction other than those listed on Schedule 4.1(c), except where the failure to so qualify would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

(d) Each Subsidiary is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, with full limited liability company power to own, lease and operate its assets and properties and carry on its business as presently owned or conducted or proposed to be

conducted. Each Subsidiary is licensed or qualified to transact business and is in good standing as a foreign limited liability company in each jurisdiction listed on Schedule 4.1(d). No Subsidiary is required to be so qualified and authorized to do business in any jurisdiction other than those listed on Schedule 4.1(d), except where the failure to so qualify would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

(e) Prior to the date hereof, Seller has delivered or made available to Buyer true and complete copies of the certificates of formation, limited liability company agreements (or similar organizational documents), minute books, and other organizational documents of each of Parent, Seller, the Company, and the Subsidiaries, and any and all equity holders or members agreements, voting agreements, registration rights agreements, and any similar agreements, in each case with respect to Parent, Seller, the Company or any Subsidiary, to which any of Parent, Seller, the Company, any Subsidiary, or any of their respective Affiliates or equity holders are party, in each case as amended through the date of this Agreement.

(a) The execution, delivery and performance by Parent of this Agreement and each Seller Ancillary Agreement to which it is a party (i) are within Parent's limited liability company power and authority, (ii) have been duly authorized by all necessary limited liability company and equity holder actions and proceedings, (iii) do not and will not require the approval or consent of, or any filing with, any Governmental Body, except in connection, or in compliance, with the provisions of the HSR Act and such approvals, consents and filings set forth on Schedule 4.2(a), and (iv) do not and will not (A) conflict with, result in a violation of, or result in a breach of the terms, conditions or provisions of, (B) constitute a default under (whether with or without the passage of time, the giving of notice or both), (C) result in the creation of any Encumbrance (other than Permitted Encumbrances) upon the properties or assets of Seller, the Company or any Subsidiary (or the equity interests in the Company held by Seller or in Seller held by Parent) pursuant to, or (D) give any third party the right to modify, terminate or accelerate any obligation under (x) the Third Amended and Restated Limited Liability Company Agreement of Parent (or similar organizational documents), (y) any Requirements of Law to which Parent or its properties or assets is subject or bound, or (z) any Contract to which Parent or its properties or assets is subject or bound, except, in the case of clauses (y) and (z), for any such conflicts, defaults, creations, rights, violations or requirements that would not, individually or in the aggregate, adversely affect, or reasonably be expected to adversely affect, Seller, the Company and the Subsidiaries, taken as a whole, in any material respect.

(b) The execution, delivery and performance by Seller and the Company of this Agreement and each Seller Ancillary Agreement to which each is a party (i) are within each party's respective limited liability company power and authority, (ii) have been duly authorized by all necessary limited liability company and equity holder actions and proceedings, (iii) do not and will not require the approval or consent of, or any filing with, any Governmental Body, except in connection, or in compliance, with the provisions of the HSR Act and such approvals, consents and filings set forth on Schedule 4.2(b), and (iv) do not and will not (A) conflict with, result in a violation of, or result in a breach of the terms, conditions or provisions of, (B) constitute a default under (whether with or without the passage of time, the giving of notice or both), (C) result in the creation of any Encumbrance (other than Permitted Encumbrances) upon the properties or assets of Seller, the Company or any Subsidiary (or the equity interests in the Company held by Seller or in Seller held by Parent) pursuant to, or (D) give any third party the right to modify, terminate or accelerate any obligation under (x) the Limited Liability Company Agreement (or similar organizational documents) of Seller, the Company or any Subsidiary, (y) any Requirements of Law to which Seller, the Company or any Subsidiary, or any of their respective properties, assets or employees, is subject or bound, or (z) any Material Contract, except, in the case of clauses (x) and (y), for any such conflicts, defaults, creations, rights, violations or requirements that would not, individually or in the aggregate, adversely affect, or reasonably be expected to adversely affect, Seller, the Company and the Subsidiaries, taken as a whole, in any material respect.

Section 4.3 Enforceability. The execution, delivery and performance by Parent, Seller and the Company of this Agreement and each Seller Ancillary Agreement to which each is a party will result in valid and binding obligations of Parent, Seller and the Company, respectively, enforceable against each in accordance with the respective terms and provisions hereof and thereof, except to the extent that such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Requirements of Law relating to creditors' rights generally and subject to general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law).

(a) Parent is authorized to issue 75,000 Class A units, 175,000 Class B units and 10,417 Class C units, each of which has been issued and is outstanding as of the date hereof and is held and beneficially owned by the record holders thereof, free and clear of all Encumbrances. Each holder of units of Parent, and the amount and class of units of Parent held by each holder, are set forth on Schedule 4.4(a). Other than the Class A units, Class B units, and Class C units, there are no equity securities or other securities of Parent that have been issued or are outstanding. Each of the Class A units, Class B units and Class C units has been duly authorized and validly issued, is fully paid and non-assessable and has been offered, issued, sold and delivered to the record holders thereof in compliance with all applicable Requirements of Law, including the Securities Act.

(b) Seller is authorized to issue one membership unit (the "Seller Unit"), which has been issued and is outstanding as of the date hereof and is held of record and beneficially owned by Parent, free and clear of all Encumbrances. Other than the Seller Unit, no equity securities or other securities of Seller have been issued or are outstanding. The Seller Unit is owned of record and beneficially by Parent, free and clear of all Encumbrances, has been duly authorized and validly issued, is fully paid and non-assessable and has been offered, issued, sold and delivered to Parent in compliance with all applicable Requirements of Law, including the Securities Act.

(c) The Company is authorized to issue one membership unit, which has been issued and is outstanding as of the date hereof and is held of record and beneficially owned by Seller, free and clear of all Encumbrances. Other than the Unit, no equity securities or other securities of the Company have been issued or are outstanding. The Unit is owned of record and beneficially by Seller, free and clear of all Encumbrances, has been duly authorized and validly issued, is fully paid and non-assessable and has been offered, issued, sold and delivered to Seller in compliance with all applicable Requirements of Law, including the Securities Act.

(d) Except for this Agreement, there are no agreements, arrangements, warrants, options, puts, calls, preemptive or other rights, subscriptions, instruments convertible into or exchangeable for, or other commitments, plans or understandings of any character assigned or granted by Parent, Seller, the Company or any Subsidiary or to which Parent, Seller, the Company or any Subsidiary is a party, relating to the issuance, sale, purchase, redemption, conversion, exchange, registration, voting or transfer of any of (i) the Class A units, Class B units, Class C units of Parent, (ii) the Seller Unit, (iii) the Unit, or (iv) any other securities of Parent, Seller, the Company or the Subsidiaries. No bonds, debentures, notes or other indebtedness of Parent, Seller, the Company or the Subsidiaries entitling the holders thereof to vote on any matters on which the holders of voting equity of Parent, Seller, the Company or the Subsidiaries may vote are issued and outstanding. There are no outstanding or authorized equity appreciation, phantom equity, profit participation or other similar rights with respect to capital units of, or other equity or voting interests in, Parent, Seller, the Company or any Subsidiary.

Section 4.5 Subsidiaries. Other than the Company and the Subsidiaries, Seller does not have any direct or indirect subsidiaries and does not hold of record or beneficially own, directly or indirectly through any other Person, and has not agreed to purchase or otherwise acquire, the capital stock or other equity or voting interests of, or any interest convertible into or exchangeable for, such capital stock or such equity or voting interests of, any Person. Schedule 4.5 sets forth for each Subsidiary the

amount of its authorized and outstanding membership interests, and there are no other membership interests or other securities of any Subsidiary issued or outstanding. As of the date hereof, all of the outstanding membership interests of each Subsidiary are owned of record and beneficially by Seller, free and clear of all Encumbrances, have been duly authorized and validly issued, are fully paid and non-assessable, and have been offered, issued, sold and delivered to Seller in compliance with all applicable Requirements of Law, including the Securities Act. As of the Closing, all of the outstanding membership interests of each Subsidiary will be owned of record and beneficially by the Company, free and clear of all Encumbrances, will have been duly authorized and validly issued, will be fully paid and non-assessable, and will have been offered, issued, sold and delivered to the Company in compliance with all applicable Requirements of Law, including the Securities Act. Parent does not have any direct or indirect subsidiaries other than Seller, the Company and the Subsidiaries and does not hold of record or beneficially own, directly or indirectly through any other Person, and has not agreed to purchase or otherwise acquire, the capital stock or other equity or voting interests of, or any interest convertible into or exchangeable for, such capital stock or such equity or voting interests of, any Person other than Seller, the Company and the Subsidiaries.

Section 4.6 Reports and Financial Statements; Undisclosed Liabilities.

(a) Attached hereto as Schedule 4.6(a) are (i) the audited consolidated balance sheet of Seller as of December 31, 2008, December 31, 2007, and December 31, 2006 and the related audited consolidated statements of income, retained earnings and cash flows for the fiscal years ended December 31, 2008, December 31, 2007, and December 31, 2006 (the "Audited Financial Statements") and (ii) the unaudited consolidated balance sheet (the "Interim Balance Sheet") of Seller as of October 31, 2009 (the "Balance Sheet Date") and the related consolidated statements of income, retained earnings and cash flows for the nine months ended October 31, 2009 (the "Interim Financial Statements", and together with the Audited Financial Statements, the "Financial Statements").

(b) The Financial Statements (i) have been prepared from, and are consistent with, the books and records of Seller (which, to the extent transferred to Buyer hereunder, are true and correct in all material respects) and have been prepared in accordance with GAAP, applied on a basis consistent with prior periods except as otherwise stated therein and except, with respect to the Interim Financial Statements, for the absence of footnotes and normal year-end audit adjustments and (ii) present fairly, in all material respects, the consolidated financial position of Seller as of the dates indicated and the consolidated results of operations and cash flows of Seller for the respective periods covered thereby.

(c) Neither Seller nor the Company has any material Liabilities except for (i) Liabilities that are required under GAAP to be reflected or reserved against in the Financial Statements, (ii) Liabilities set forth in the Financial Statements, (iii) Liabilities that have arisen in the ordinary and usual course of the Seller's business consistent (in amount and kind) with past practices (none of which is a Liability resulting from breach of Contract, breach of warranty, tort, infringement claim or lawsuit or violation of any Requirements of Law) since the Balance Sheet Date, (iv) Liabilities under the Material Contracts set forth on Schedule 4.12(a), and (v) Liabilities set forth on Schedule 4.6(c).

(d) Seller maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions engaged in by Seller or any of the Subsidiaries are executed in material compliance with the general policies of Seller and the Subsidiaries and/or the general or specific authorizations of management of Seller and the Subsidiaries, (ii) access to assets of Seller and the Subsidiaries is permitted only in accordance with the general policies of Seller and the Subsidiaries and/or the general or specific authorizations of management of Seller and the Subsidiaries, and (iii) all intercompany transactions, charges and expenses among or between Seller, any of the Subsidiaries, Parent and/or their respective Affiliates are accurately reflected at fair arms' length value on the books and records of Seller and the Subsidiaries.

(e) All Indebtedness of Seller, the Company and the Subsidiaries is set forth on Schedule 4.6(e).

Section 4.7 Absence of Certain Developments. Except for entering into this Agreement and the Seller Ancillary Agreements, from the Balance Sheet Date until the date of this Agreement, neither the Company, Seller nor any Subsidiary has, whether or not in the ordinary course of business consistent with past practice, done any of the following:

(a) declared, set aside, paid to a reserve fund or made any dividend of cash or property or any other distribution in respect of the Seller's, Company's or any of the Subsidiaries' securities;

(b) purchased, redeemed or otherwise retired any securities of Seller, the Company or any of the Subsidiaries, directly or indirectly;

(c) implemented a material increase in the base compensation, commission compensation or bonuses of Seller's, the Company's or any of the Subsidiaries' directors, officers, members or employees, except for normal periodic increases in the ordinary course of business, consistent with past practice;

(d) suffered any substantial damage, destruction or other casualty loss, or forfeiture of, any property or assets, whether or not covered by insurance, or waived any valuable right or cancelled any material Indebtedness;

(e) except as set forth on Schedule 4.7(e), entered into, amended or terminated any Material Contract, or had any Contract of a type that would be classified as a "Material Contract" terminated by a third party;

(f) made any change in accounting procedures, policies or practices, except as required by GAAP;

Section 4.8 Title to Assets; Liens. Except for assets disposed of in accordance with the terms of this Agreement, as of the date hereof, Seller or a Subsidiary has, and as of the Closing Date, the Company or a Subsidiary will have, good and marketable title to the following, in each case free and clear of all Encumbrances, except for Permitted Encumbrances: (i) all of the material assets reflected on the Closing Date Balance Sheet and (ii) each material item of equipment and other tangible personal property reflected on the Interim Financial Statements as owned by Seller or a Subsidiary.

Section 4.9 Transactions with Affiliates. Except for those transactions or agreements set forth on Schedule 4.9 ("Affiliate Transactions"), (i) neither Parent, Seller, the Company nor any Subsidiary is indebted to any director, officer, member, unitholder, stockholder, employee or consultant of or to Parent, Seller, the Company or to any Affiliate of Parent, Seller or the Company except with respect to amounts due as normal salaries, wages or reimbursement of ordinary business expenses or routine employee advances for expenses, (ii) no director, officer, member, direct or indirect unitholder, stockholder, employee or consultant of or to Parent, Seller, the Company or any Subsidiary, nor any Affiliate of Parent, Seller or the Company, is now indebted to Parent, Seller or the Company or any Subsidiary, except for business expense advances incurred in the ordinary course of business consistent with past practices, (iii) neither Parent, Seller, the Company, any Subsidiary nor any of their respective Affiliates holds of record or beneficially owns, directly or indirectly, any securities of any Person with which Parent, Seller, the Company or a Subsidiary had a vendor, customer, service provider, consulting, creditor, supplier, representative or other business relationship, and (iv) neither Parent nor any of its Affiliates (other than Seller, the Company or any Subsidiary, but including its or their direct or indirect equity holders) (A) have, own, or lease, or have had, owned, or leased, any economic or other interest in any asset, tangible or intangible, that is used by or intended for use by Seller, the Company, any Subsidiary, or any of their respective employees in carrying out the business of Seller, the Company or any Subsidiary, or (B) provides any services to, or is party to any Contract or policies the benefits or

burdens of which are for or borne by Seller, the Company, any Subsidiary, or any of their respective employees.

Section 4.10 Insurance. A list of all policies of title, liability, fire, worker's compensation and other forms of insurance (including bonds) insuring Parent's, Seller's and the Subsidiaries' properties, assets, operations and employees as of the date hereof is set forth on Schedule 4.10. As of the date of this Agreement, all such policies are in full force and effect. Neither Parent, Seller nor any Subsidiary is in material default with respect to its obligations under any such insurance policy. Each such insurance policy (a) is legal, valid, binding and enforceable as to Seller or a Subsidiary, as applicable, and to the Company's Knowledge, the other Persons that are parties thereto and (b) will be legal, valid, binding, enforceable as to the Company or a Subsidiary, as applicable, and to the Company's Knowledge, the other Persons named as parties thereto, and in full force and effect on identical terms, immediately following the consummation of the transactions contemplated hereby and by any Seller Ancillary Agreement. Schedule 4.10 attached hereto sets forth a list of all material claims, if any, made by Parent, Seller or any Subsidiary since January 1, 2007 against an insurer in respect of coverage under an insurance policy listed or required to be listed on Schedule 4.10. There have been no denials of claims or reservation of rights letters with regard to such claims. Except as set forth on Schedule 4.10 attached hereto, neither Parent, Seller nor any Subsidiary has and, since January 1, 2007 neither Parent, Seller not any Subsidiary has had (or been subject to), any self-insurance or co-insurance programs.

(a) None of the Company or any Subsidiary has ever elected to be treated as an association taxable as a corporation for U.S. federal, state and local tax purposes, and each of the Company and the Subsidiaries has, at all times since its formation, been treated as an entity disregarded from its owner for U.S. federal, state and local income tax purposes.

(b) The Company and each Subsidiary has filed all material Tax Returns and all related reports that are required by applicable law to be filed with any foreign, federal, provincial, state or local Governmental Body. All material Taxes of the Company and any Subsidiary and any other Taxes with respect to the Retained Assets (the "Covered Taxes") (whether or not shown to be due on such Tax Returns) have been paid in full. No material Tax Return filed by the Company or any Subsidiary has been audited during the past three (3) years and, to the Knowledge of the Company, no audit or review has been threatened in writing with respect to such Tax Returns.

(c) None of the Company nor any Subsidiary has been notified in writing of any deficiencies or assessments in connection with any Tax Return of the Company or any Subsidiary, or relating to Covered Taxes and, to the Knowledge of the Company; there are no pending Tax audits and no waivers of statutes of limitations have been given or requested with respect to the Company or the Subsidiaries, or relating to Covered Taxes.

(d) None of the Company nor any Subsidiary has incurred any material Liability for Taxes from and after the Balance Sheet Date other than Taxes incurred in the ordinary course of business consistent with previous years and past practices.

(e) The Company and each Subsidiary has complied in all material respects with all applicable laws relating to the collection or withholding of Taxes (such as sales Taxes or withholding of Taxes from the wages of employees or payments to other third parties).

(f) No claim has ever been made in writing by any Taxing authority in a jurisdiction in which the Company or any Subsidiary does not file Tax Returns that any such Person is or may be subject to taxation by that jurisdiction.

(g) None of the Company nor any Subsidiary has earned income or gain that (i) has been accrued or accounted for financial accounting purposes, or that is reflected on the Financial Statements and (ii) has been deferred and will be recognized after the Closing Date for Tax purposes.

(h) None of the Company nor any Subsidiary is a party to any Tax sharing indemnity or similar agreement allocating Tax Liability that will not be terminated on the Closing Date without any future Liability to the Company or Subsidiary, as applicable (including for past Taxes).

(i) To the Knowledge of the Company, none of the assets of the Company or any Subsidiary are (i) tax-exempt use property under Section 168(h) of the Code; (ii) tax-exempt bond financed property under Section 168(g) of the Code; (iii) limited use property under Revenue Procedure 2001-28; or (iv) treated as owned by any Person under Section 168 of the Code.

(j) Except as set forth on Schedule 4.11(j), the Company nor any Subsidiary has any Liability under any unclaimed property, escheat or similar Requirements of Law.

(a) Attached hereto as Schedule 4.12(a) is a true, complete and accurate list of all Material Contracts as of the date hereof.

(b) All Material Contracts required to be disclosed pursuant to this Section 4.12 are valid, binding and in full force and effect as to Seller, the Company or a Subsidiary, as applicable, and to the Company's Knowledge, the other Persons named as parties thereto. Neither Seller, the Company nor any Subsidiary nor, to the Company's Knowledge, any other party thereto, is in material breach or violation of, or material default under, nor is there any reasonable basis for a claim of such breach, violation or default by Seller, the Company or a Subsidiary or, to the Company's Knowledge, any other party thereto, under the terms of any such Material Contract. No event has occurred that constitutes or, with the lapse of time or the giving of notice or both, would constitute, a material breach, violation or default of a Material Contract by Seller, the Company, any Subsidiary or, to the Company's Knowledge, any other party thereto. Except as set forth on Schedule 4.12(b), neither Seller, the Company nor any Subsidiary has received, since December 31, 2008, any written notice of the intention of any Person to terminate any Material Contract. Prior to the date hereof, Seller has made a true and complete copy of all Material Contracts available to Buyer, including all amendments thereto.

Section 4.13 Real Property—Owned. Schedule 4.13 sets forth a description of each tract, parcel or subdivided lot of real property owned by Seller, the Company or any of the Subsidiaries (together with all improvements thereon and fixtures therein and all other rights appurtenant thereto but excluding all owned real property, if any, included in the Retained Assets, the "Owned Real Property"). As of the date hereof Seller or a Subsidiary has, and as of the Closing the Company or a Subsidiary will have, fee simple, and good, marketable and valid, title to the Owned Real Property identified on Schedule 4.13, free and clear of all Encumbrances (other than Permitted Encumbrances). None of the Owned Real Property is subject to any lease or occupancy agreement, and, except as set forth on Schedule 4.13, none of such Owned Real Property currently is or has been subject to any material lease or occupancy agreement at any time during the past three (3) years. All of Seller's, the Company's and the Subsidiaries' facilities located on the Owned Real Property are supplied with utilities and other material public services reasonably necessary for the operation by Seller, the Company or such Subsidiary of such facilities, all of which services are adequate in all material respects in accordance with all applicable Requirements of Law. All of the Owned Real Property that is currently vacant or on which there is a vacant or non-operating theatre is set forth on Schedule 4.13(b), along with a description of each such Owned Real Property including (i) the purpose for which the property has been used prior to the date hereof (by Parent, Seller, the Company, any Subsidiary or any of their respective Affiliates, or, if not used by any such party, by the Person from which the property was acquired), (ii) a

description of all material structures on the property, and (iii) the material reasons why such Owned Real Property is not currently in use.

Section 4.14 Real and Personal Property—Leased. Set forth on Schedule 4.14 is a true and accurate description of all real and material personal property leased by Seller, the Company or any Subsidiary. The leased real property set forth on Schedule 4.14, together with all improvements thereon and fixtures therein and other rights appurtenant thereto but excluding any leased real property included in the Retained Assets is referred to herein as the "Leased Real Property". Prior to the date hereof, Seller has made available to Buyer true and complete copies of the leases in effect at the date hereof relating to the Leased Real Property and all material leased personal property. With respect to such leases, the property described in each lease is presently used by Seller, the Company or the Subsidiary indicated on Schedule 4.14 as lessee under such lease, and such leases are in full force and effect and neither Seller, the Company nor any Subsidiary has assigned or transferred any rights under any such lease (except for collateral assignments that will be released at Closing and except pursuant to the Contribution). Neither Seller, the Company nor any Subsidiary is in material default under the terms of any such lease, nor, to the Company's Knowledge, is the lessor in material default under any such lease, and no events have occurred that, with the giving of notice or the lapse of time, or both, would be a material default under any such lease by Seller, the Company or any Subsidiary, or to the Company's Knowledge, by any such lessor. With respect to the Leased Real Property: (i) neither Seller, the Company nor the applicable Subsidiary shares any space with or sublets any space to any other Person, (ii) Seller, the Company or the applicable Subsidiary enjoys peaceful and quiet possession, in all material respects, of such Leased Real Property; (iii) each real property lease listed on Schedule 4.14 is legal, valid, binding and enforceable on Seller, the Company or the applicable Subsidiary and, to the Knowledge of the Company, on the other party thereto in accordance with its terms (except in each case to the extent that such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Requirements of Law relating to creditors' rights generally and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law)), and is in full force and effect, (iv) all of Seller's, the Company's and the Subsidiaries' facilities have received all material Governmental Permits required in connection with the operation thereof by Seller, the Company or such Subsidiary and have been operated and maintained by Seller, the Company or such Subsidiary, in all material respects, in accordance with applicable Requirements of Law; and (v) all of Seller, the Company's and the Subsidiaries' facilities located on the Leased Real Property are supplied with utilities and other services necessary for the operation by Seller, the Company or such Subsidiary of such facilities, including gas, electricity, water, telephone, sanitary sewer, and storm sewer, all of which services are adequate in accordance with all applicable Requirements of Law and are provided via public roads or via permanent, irrevocable, appurtenant easements benefiting such Leased Real Property. All of the Owned Real Property and Leased Real Property constitute all or substantially all of the real property used in connection with the operation of the business of Seller, the Company and the Subsidiaries as currently conducted (other than the Retained Assets). Notwithstanding the foregoing, neither Parent nor Seller makes any representations or warranties under this Section 4.14 with respect to the Retained Assets and Retained Liabilities.

(a) All Recorded Intellectual Property owned by or licensed to Seller, the Company or any Subsidiary in connection with its respective business as presently conducted is set forth on Schedule 4.15(a) (collectively, the "Company Intellectual Property"). The Company Intellectual Property is in force, in good standing and has been properly maintained and renewed, in all material respects, including, without limitation, the timely payment of all maintenance fees, in accordance with all applicable provisions of applicable Requirements of Law.

(b) All material unregistered Trademarks owned by Seller, the Company or any Subsidiary are set forth on Schedule 4.15(b).

(c) Seller, the Company or a Subsidiary owns or has a valid license interest in the Company Intellectual Property without any infringement upon or misappropriation of the Intellectual Property rights of any third Person. No royalties or fees are payable by Seller, the Company or any Subsidiary to any Person by reason of the use, ownership or license of any of the Company Intellectual Property or any other Intellectual Property. Neither Seller, the Company nor any Subsidiary has entered into any licenses, sublicenses or agreements relating to the use by any other Person of any Company Intellectual Property or other Intellectual Property.

(d) To the Knowledge of the Company, no other Person is infringing or misappropriating any Intellectual Property used, owned by or licensed to Seller, the Company or any Subsidiary. No charge or claim is pending or, to the Knowledge of the Company, threatened, nor has any charge or claim been made since January 1, 2007 against Seller, the Company or any Subsidiary to the effect that, nor does the operation of the business of Seller, the Company or any Subsidiary or the sale of their products or services, infringe upon or misappropriate in any way any Intellectual Property owned or held by any other Person.

(e) To the Knowledge of the Company, Seller's, the Company's and each Subsidiary's respective business do not use or in any way make use of any Trade Secrets of any third Person that it does not have the right to use.

(f) Seller and each Subsidiary has used commercially reasonable efforts to protect the confidentiality of all Trade Secrets held by Seller, the Company and the Subsidiaries.

Section 4.16 Necessary Property; Condition of Property. The properties and assets owned, leased by, or licensed to Seller, the Company and the Subsidiaries (a) constitute all of the properties and assets, real and personal, tangible and intangible, that are used or intended for use in the conduct of Seller's, the Company's and the Subsidiaries' respective businesses in the manner and to the extent presently conducted, and (b) are in good operating condition and repair (subject to normal wear and tear) and are adequate for the uses to which they are being put. Notwithstanding the foregoing, neither Parent nor Seller makes any representations or warranties under this Section 4.16 with respect to the Retained Assets and Retained Liabilities.

Section 4.17 Necessary Licenses and Permits. Seller, the Company and each Subsidiary has all material licenses, franchises, permits, privileges, immunities, approvals and other authorizations from a Governmental Body (collectively, "Governmental Permits") that are necessary to entitle them to own or lease, operate and use their assets and to carry on and conduct their respective businesses substantially as conducted immediately prior to the date of this Agreement. A list of all Governmental Permits is set forth on Schedule 4.17. None of the Governmental Permits limits in any material respect the operation of Seller's, the Company's or any Subsidiary's business as presently conducted. The Governmental Permits have been validly issued or assigned to Seller, the Company or a Subsidiary and are, and at all times during the past three (3) years have been, in good standing and in full force and effect. The execution and delivery of this Agreement and each Seller Ancillary Agreement by Parent, Seller and the Company, and the consummation of the transactions contemplated hereby and thereby, shall not conflict with, result in a violation of, constitute a default under or result in the termination or revocation of any material Governmental Permit.

Section 4.18 Compliance with Laws and Governmental Permits. Seller, the Company and each Subsidiary is, and at all times during the past three (3) years has been, in compliance, in all material respects, with all Requirements of Laws and Governmental Permits, and is not now, and at all times during the past three (3) years has not been, in default under or in violation of, in any material respect, any Requirements of Law (including Requirements of Laws relating to the issuance or sale of securities, antitrust, zoning and building codes and ordinances, occupational safety and transportation), Governmental Permit or Court Order, in each case applicable to its business or any of its properties, assets or employees. Neither Seller, the Company nor any Subsidiary has received any written, or, to

the Knowledge of the Company, other notification alleging any violations of any of the foregoing since January 1, 2007 with respect to which adequate corrective action has not been taken. Notwithstanding anything in this Section 4.18, the representations contained in Section 4.11 (Tax Matters), Section 4.19 (Environmental Compliance), Section 4.22 (Employee Benefit Plans) and Section 4.23 (Withholding; Labor Relations) are the exclusive representations and warranties of Parent and Seller with respect to compliance with Requirements of Law applicable to the subject matters of such Sections.

(a) The operations of Seller, the Company and the Subsidiaries comply and have at all times since January 1, 2007 complied, in all material respects, with all applicable Environmental Laws and all Governmental Permits issued pursuant to Environmental Laws, and, to the Knowledge of the Company, neither Seller, the Company nor any Subsidiary has contracted for, authorized, allowed or suffered any operations or activities involving the handling, treatment, processing, storage, use, generation, release, discharge, emission, or disposal of any Hazardous Materials, except in compliance, in all material respects, with all applicable Environmental Laws.

(b) To the Knowledge of the Company, any asbestos-containing material present within any Owned Real Property or Leased Real Property is not, and is not reasonably likely to become, friable and no underground storage tank is located at any Owned Real Property.

(c) There is no, and during the past three (3) years there has not been any, action, lawsuit, proceeding, claim or, to the Company's Knowledge, investigation pending, or to Company's Knowledge, threatened, alleging any Environmental Matter on the part of Seller, the Company or any Subsidiary, including with respect to any Real Property.

(d) Except as set forth on Schedule 4.19, there have been no Releases or threatened Releases of Hazardous Materials at any Owned Real Property, or to the Knowledge of the Company, at any Leased Real Property or any formerly owned or leased real property, that could require Remedial Action by, or otherwise result in any material Environmental Matter to, Seller, the Company or any Subsidiary.

(e) Prior to the date hereof, Seller has made available to Buyer copies of the most recent environmental assessment reports (including so called Phase I or Phase II environmental assessment reports or asbestos surveys) in its possession ("Environmental Reports") relating to any Owned Real Property or Leased Real Property.

(f) The representations and warranties contained in this Section 4.19 and, to the extent related to any Governmental Permit required by any Environmental Law, Section 4.17, are the exclusive representations and warranties in this Agreement in respect of Seller's, the Company's and the Subsidiaries' compliance with Environmental Laws.

Section 4.20 Litigation. There is no Proceeding pending or, to the Knowledge of the Company, threatened against Parent, Seller, the Company or any Subsidiary, or any of their respective assets or properties, at law or in equity, before any Governmental Body or arbitrator of any kind, or against any director, officer, member or, to the Knowledge of the Company, employee or direct or indirect equity holder of Parent, Seller, the Company or any Subsidiary, as the case may be, that relates to or affects Seller, the Company, any Subsidiary or the operation of their respective businesses as now conducted or the consummation of the transactions contemplated hereby or by any Seller Ancillary Agreement. During the three (3) years immediately preceding the date of this Agreement, there has been no Proceeding against Parent, Seller, the Company or any Subsidiary, or any of their respective assets or properties, at law or in equity, before any Governmental Body or arbitrator of any kind, or against any director, officer, member or, to the Knowledge of the Company, employee or direct or indirect equity holder of Parent, Seller, the Company or any Subsidiary, as the case may be, that had or, if adversely determined would have been reasonably likely to have had, a Material Adverse Effect.

Section 4.21 No Material Adverse Effect. From December 31, 2008 until the date of this Agreement, there has not been a Material Adverse Effect.

(a) Schedule 4.22(a) contains a true and complete list of each material Employee Benefit Plan. With respect to each Employee Benefit Plan identified on Schedule 4.22(a), Seller has provided or made available to Buyer a current copy (or to the extent no such copy exists, a description) thereof (including, without limitation, all amendments thereto) that is accurate and complete in all material respects and, to the extent applicable, the most recent summary plan description and summary of material modifications thereto, if any.

(b) During the six-year period prior to the Closing Date, none of Seller, the Company, any of its Subsidiaries, or any of their respective ERISA Affiliates has ever, and none of their former ERISA Affiliates has, while an ERISA Affiliate, maintained, sponsored, contributed to or been required to contribute to a Guaranteed Pension Plan or Multiemployer Plan or a plan maintained in connection with any trust described in Section 501(c)(9) of the Code.

(c) Each Employee Benefit Plan intended to qualify under Section 401(a) of the Code and each trust intended to be exempt under Section 501(a) of the Code either (i) has obtained a currently effective favorable determination letter issued by the Internal Revenue Service as to its qualified status under the Code or (ii) such plan is a prototype plan or a volume submitter plan for which an opinion letter has been issued by the IRS and, to the Knowledge of the Company, no event or omission has occurred which would cause any such Employee Benefit Plan to lose its qualification under the applicable Code section.

Section 4.23 Withholding; Labor Relations. Seller has delivered or made available to Buyer prior to the date hereof a list containing the title, length of service, and annual salary or wage rates and bonuses paid during the prior twelve month period of all employees of Seller. Seller and the Company are, and each Subsidiary is, and at all times during the past three (3) years has been, in compliance, in all material respects, with all applicable Requirements of Law relating to its employees, including Requirements of Law relating to employment, employment practices, wages, hours, and occupational safety and health, and are not, and have not been during the past three (3) years, liable in any material respect for any arrears of wages or any taxes or penalties for failure to comply with any of the foregoing. There are not, and have not been at any time during the past three (3) years, any collective bargaining agreements covering any of the employees of Seller, the Company or any Subsidiary. No consent of any union (or any similar group or organization) is or was required in connection with the consummation of the transactions contemplated by this Agreement. There are no pending, or, to the Knowledge of the Company, threatened (i) material employment discrimination or other employment charges, claims, or complaints against or involving Seller, the Company or any Subsidiary before any Governmental Body or arbitrator of any kind; (ii) unfair labor practice charges or complaints, disputes or grievances affecting Seller, the Company or any Subsidiary; (iii) union representation petitions respecting the employees of Seller, the Company or any Subsidiary; (iv) efforts being made to organize any of the employees of Seller, the Company or any Subsidiary; or (v) strikes, slow downs, work stoppages, or lockouts or threats thereof affecting Seller, the Company or any Subsidiary.

Section 4.24 No Brokers. Except with respect to the services of Peter J. Solomon Company, neither Parent, Seller, the Company nor any Person acting on the behalf of either has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement or any Seller Ancillary Agreement.

Section 4.25 Goodwill Passes; Prepaid Tickets. As of the Closing Date, except as set forth on Schedule 4.25 or included in Closing Date Deferred Revenue, with respect to the Company or any Subsidiary, there does not exist any unexpired and outstanding (i) tickets, or entitlements to tickets,

donated, given, issued, sold, or awarded (including in connection with any settlement or otherwise) to consumers entitling the holder thereof to admission without charge, (ii) coupons or rights in any media entitling consumers to purchase theater admission tickets at a discount from the regular public theater admission price, or (iii) motion picture theater admission tickets, gift cards, or gift certificates which have been purchased by or donated, given, issued or awarded (including in connection with any settlement or otherwise) to consumers and which entitle such ticketholders to admission without any further consideration or at a discount after the Closing Date.

(a) As of the date hereof, the concession inventories of Seller and each Subsidiary (i) are, in all material respects, accurately valued and properly reflected on the Financial Statements consistent with past practices, (ii) consist, in all material respects, of items of a quality, quantity and condition useable and saleable in the ordinary course of business consistent with past practices, (iii) were acquired and have been maintained at normal levels in the ordinary course of business consistent with past practice, and (iv) are not subject to any material write-down or write-off.

(b) As of the Closing, the concession inventories of the Company and each Subsidiary (i) will be, in all material respects, accurately valued and properly reflected on the Financial Statements consistent with past practices, (ii) will consist, in all material respects, of items of a quality, quantity and condition useable and saleable in the ordinary course of business consistent with past practices, (iii) will have been acquired and maintained at normal levels in the ordinary course of business consistent with past practice, and (iv) will not be subject to any material write-down or write-off.

Section 4.27 ADA Compliance. There are, and for the past three (3) years there have been, no Proceedings of any kind pending, or to the Company's Knowledge, threatened, alleging the Seller's or the Company's failure to comply with Titles I and III of the Americans With Disabilities Act of 1990, as amended from time to time, Public Law 101-336; 42 U.S.C. §§12101, et seq., or any similar Federal, state or local statute; rule, ordinance or regulation governing access for the disabled or handicapped, with respect to any Real Property.

As an inducement to Seller and the Company to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer and Guarantor hereby jointly and severally represent and warrant to Seller and the Company, as of the date hereof, as follows:

Section 5.1 Organization and Good Standing. Each of Buyer and Guarantor is a corporation duly organized, validly existing and in good standing in the State of Delaware, with full corporate power to own, lease and operate its assets and properties and carry on its business as presently owned or conducted or proposed to be conducted.

Section 5.2 Authorization; Conflicts. The execution, delivery and performance by each of Buyer and Guarantor of this Agreement and of each Buyer Ancillary Agreement to which Buyer and/or Guarantor is a party (i) are within Buyer's of Guarantor's (as the case may be) corporate power and authority, (ii) have been duly authorized by all necessary corporate and shareholder actions and proceedings and (iii) do not and will not conflict in any material respect with, or result in any material breach of, any provision of Buyer's Certificate of Incorporation or By-Laws, any material agreement to which Buyer or Guarantor is a party or any Requirements of Law to which or by which Buyer or its assets is subject or bound.

Section 5.3 Enforceability. The execution, delivery and performance by Buyer and Guarantor of this Agreement and of each Buyer Ancillary Agreement will result in valid and binding obligations of

Buyer and Guarantor enforceable against such Buyer and Guarantor in accordance with the respective terms and provisions hereof and thereof, except to the extent that such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Requirements of Law relating to creditors' rights generally and subject to general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law).

Section 5.4 Litigation. There is no Proceeding pending or, to the Knowledge of Buyer, threatened against Buyer or Guarantor or any of their assets or properties, at law or in equity, before any Governmental Body or arbitrator of any kind, or, to Buyer's Knowledge, against any unitholder, stockholder, director, officer, member or employee of Buyer, that would, or would reasonably be expected to, materially impair the ability of Buyer or Guarantor to perform its obligations under this Agreement or consummate the transactions contemplated by this Agreement or any Buyer Ancillary Agreement.

Section 5.5 Financial Capability. Buyer has, and at all times prior to the Closing Date will have, sufficient immediately available U.S. funds to enable Buyer to pay the Closing Date Payment Amount at Closing in accordance with Section 3.2, to permit Buyer to perform in a timely manner all of its obligations under this Agreement, and to consummate the transactions contemplated by this Agreement, in accordance with the terms and subject to the conditions herein.

Section 5.6 Investment Intent. Buyer is acquiring the Unit as an investment for its own account and not with a view to the distribution thereof. Buyer acknowledges that the Unit has not been registered under the Securities Act and agrees not to sell, transfer, assign, pledge or hypothecate the Unit in the absence of registration under, or pursuant to an applicable exemption from, federal and applicable state securities laws.

Section 5.7 No Brokers. Neither Buyer nor Guarantor or any other Person acting on its behalf has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement.

Buyer, Seller and the Company covenant and agree to take the following actions between the date hereof and the Closing Date:

(a) The Company shall afford to the officers, employees and authorized representatives of Buyer (including agents, contractors, independent public accountants and attorneys) reasonable access during normal business hours, upon reasonable advance notice, at Buyer's sole cost and expense, to the officers, employees, properties, books, and business, financial and other records of the Company and the Subsidiaries to the extent Buyer reasonably deems necessary or desirable, and shall furnish to Buyer or its authorized representatives such additional information concerning the Company and the Subsidiaries as Buyer or its authorized representatives shall reasonably request, including financial statements, pro forma financial information, financial data, audit reports and other information as may be required to prepare any filings under any applicable federal or state securities laws; provided, however, that: (i) neither the Company nor any Subsidiary shall be required to disclose to Buyer or any representative of Buyer information the disclosure of which is precluded by any Requirement of Law and, (ii) any information provided to Buyer or any of its representatives pursuant to this Agreement shall be held by Buyer and its representatives in accordance with, and shall be subject to the terms of, the Confidentiality Agreement, dated as of July 17, 2009, between Buyer and Seller (the "Confidentiality Agreement"). Buyer agrees that such investigation shall be conducted in such a manner as not to

interfere unreasonably with the operations of the Company and the Subsidiaries. Buyer and Seller agree that Buyer's right to enter onto and into any Real Property shall be governed by Section 6.1(b).

(b) Without limiting Section 6.1(a), Buyer and its agents and contractors shall have the right, at Buyer's sole cost and expense, to enter onto and into the Real Property at reasonable times and in a reasonable manner as agreed to with Seller prior to such entry for the purpose of making such tests and inspections as Buyer deems necessary in connection with this Agreement and as otherwise in accordance with this Agreement; provided, however, that (i) Seller may require, as a condition to any such entry, that any such Person is accompanied by a representative of Seller during such entry and (ii) no such Person shall conduct any test in connection with a Phase II environmental report or any other test that involves drilling, boring or similar intrusive or invasive action on, in or under the Real Property without Seller's prior written consent, which may be granted or withheld in Seller's sole and absolute discretion. Buyer agrees that such tests and inspections shall be conducted in such a manner as not to interfere unreasonably with the operations of the Company and the Subsidiaries, and consistent with Seller's obligations under any leases regarding any Leased Real Property. Prior to any entry on any Real Property by Buyer, its agents or contractors pursuant to this Section 6.1(b), Buyer shall provide to Seller evidence, reasonably satisfactory to Seller, demonstrating that Buyer or its agents and contractors, as applicable, have and maintain comprehensive general liability insurance coverage covering any and all Liabilities with respect to or arising out of any work or investigations at the Real Property to be performed by or for Buyer or its agents or contractors as set forth in this Agreement, and thereafter Buyer shall maintain, or shall cause its agents and contractors to maintain, as applicable, such insurance in full force and effect. The policy of insurance shall have limits of not less than $2,000,000 combined single limit per occurrence, shall be issued by a reputable insurance company qualified to do business in the states in which the Real Property is located and shall name Seller as an additional named insured. After making such tests and inspections, Buyer, at Buyer's sole cost and expense, shall restore, or cause to be restored, the Real Property to substantially the same condition as existed prior to such tests and inspections. Further, Buyer shall deliver to Seller a true, correct and complete copy of any report of the results of any tests, inspections and/or analyses of the Real Property not later than two (2) Business Days after any termination of this Agreement; provided, however, that with respect to any such report not yet received by Buyer as of the date of such termination, Buyer shall deliver the same to Seller within two (2) Business Days after Buyer's receipt thereof.

(c) Without limiting Section 6.1(a) or Section 6.1(b), Buyer and its agents and contractors shall have the right, at Buyer's sole cost and expense, and subject to the conditions described in Section 6.1(b), to enter onto and into the Owned Real Property at reasonable times and in a reasonable manner as agreed to with Seller in connection with (i) Buyer's efforts to obtain a policy of title insurance for each parcel of Owned Real Property, in favor of Buyer or its designee in the amount of the fair market value of each parcel of Owned Real Property, (ii) having an ALTA/ACSM "As Built" Survey prepared with respect to each parcel of Owned Real Property, and (iii) obtaining any other information or documents Buyer reasonably requests so that it may comply with the requirements of Buyer's existing credit facility.

Section 6.2 Notification. (a) Seller, on the one hand, and Buyer, on the other hand, shall each promptly notify the other in writing upon the occurrence of any development that would or would reasonably be expected to result in a condition to Closing not being satisfied.

(b) Seller may, at any time prior to the date that is two (2) Business Days prior to Closing, update or supplement those Schedules to the representations and warranties contained in Article IV of this Agreement (other than those Schedules to the representations and warranties in Section 4.21) (any such updated or supplemented Schedule, an "Updated Schedule") to account for any material variances from the representations and warranties contained in Article IV that arise after the date hereof; provided, that the Schedules shall not be updated or supplemented (i) to correct errors or omissions that were known by the Company or Seller prior to the date of this Agreement, (ii) to account for

developments or matters that relate to or arise out of events that occurred prior to the date of this Agreement or (iii) to account for developments or matters that arise from a violation of any covenant or agreement contained herein.

Section 6.3 Consents of Third Parties; Governmental Approvals. (a) The Company, Seller and Buyer will act diligently and reasonably in attempting to secure, before the Closing Date, each consent, approval or waiver, in form and substance reasonably satisfactory to the other party, required to be obtained from any party (other than a Governmental Body) to consummate the transactions contemplated by this Agreement or any Seller Ancillary Agreement, and Seller will, upon request of Buyer, use commercially reasonable efforts to seek estoppel letters in form and substance reasonably acceptable to Buyer from any lessors of Leased Real Property; provided, however, that neither the Company, Seller nor any of their respective Affiliates shall be required to expend money, commence or participate in any litigation or offer or grant any accommodation (financial or otherwise) to any third Person in connection with the obligations described in this Section 6.3.

(b) Buyer shall act diligently and reasonably, and Seller and the Company, upon the request of Buyer, shall use their respective commercially reasonable efforts to cooperate with Buyer, in attempting to secure any consents and approvals of any Governmental Body required to be obtained by Buyer in order to permit the consummation of the transactions contemplated by this Agreement or any Seller Ancillary Agreement.

(c) As promptly as practicable after the date hereof (at a date to be agreed by the parties), each of the parties hereto shall file with the Federal Trade Commission and the Antitrust Division of the Department of Justice the notifications and other information required to be filed under the HSR Act with respect to the transactions contemplated hereby. Each party warrants that all such filings by it will be, as of the date filed, true and accurate in all material respects and in material compliance with the requirements of the HSR Act. Each of the parties hereto agrees to file any additional information requested by such agencies under the HSR Act and to make available to the other parties such information relative to its business, assets and property as such other parties may be required to file pursuant to the HSR Act or at the request of such agencies. Each of the parties hereto will provide to the other parties copies of all correspondence between it (or its advisors) and any such agency relating to this Agreement or any of the matters described in this Section 6.3(c); provided that such correspondence may be provided only to outside counsel of the parties if it contains or reveals confidential information of Buyer, Seller, the Company or their respective Affiliates.

(d) The parties agree to promptly notify each other of any oral or written communication they receive from any Governmental Body relating to the matters that are subject of this Agreement, permit each other to review in advance any communication proposed to be made by such party to any Governmental Authority and provide each other with copies of all correspondence, filings or other communications between them or any of their representatives, on the one hand, and any Governmental Body of members of its staff, on the other hand; provided that such communications may be provided only to outside counsel of the parties to the extent that they contain or reveal confidential information of Buyer, Seller, the Company or their respective Affiliates. The parties agree not to participate in any meeting, or engage in any substantive conversation, with any Governmental Body in respect of such filings, investigation or other inquiry unless they consult with the other party in advance and, to the extent permitted by such Governmental Body, give the other party the opportunity to attend and participate at such meeting or conversation.

(e) Without limiting the generality of Buyer's undertaking pursuant to Section 6.3(c), Buyer agrees to take any and all steps necessary to avoid or eliminate each and every impediment under any Antitrust Law that may be asserted by any Governmental Body so as to enable the parties hereto to expeditiously consummate the transactions contemplated by this Agreement no later than the Outside Date (as such date may be extended pursuant to Section 11.1(e)) including proposing, negotiating, committing to and effecting, by consent decree, hold separate orders or otherwise, the sale, divesture or disposition of such of its (or, following the Closing, the Company's or any Subsidiaries') assets, properties or businesses as may be required to be divested in order to avoid the entry of, or to effect the dissolution of, any injunction, temporary restraining order or other order in any suit or proceeding, which would otherwise have the effect of materially delaying or preventing the consummation of the transactions contemplated by this Agreement; provided, however, that Buyer shall not be required to take any actions that would or would be reasonably expected to result in a Regulatory Material Adverse Effect. In addition, Buyer shall defend through litigation any claim asserted in court by any Person in order to avoid entry of, or to have vacated or terminated, any decree, order or judgment (whether temporary, preliminary or permanent) that would prevent the Closing by the Outside Date. Seller and the Company will each use their commercially reasonable efforts to cooperate with Buyer in obtaining any such authorizations, consents, orders and approvals. Seller shall not, without the Buyer's prior written consent in the Buyer's sole discretion, discuss or commit to any divestiture transaction, or discuss or commit to alter their business or commercial practices in any way, or otherwise discuss, take or commit to take any action that limits the Buyer's freedom of action with respect to, or the Buyer's ability to retain any of the business, product lines or assets of, the Business or otherwise receive the full benefits of this Agreement.

(f) In the event the parties receive a request for information and documentary materials (a "Second Request") following the HSR Act filing, the parties will use their respective reasonable best efforts to respond to such Second Request as promptly as possible.

Section 6.4 Operations Prior to the Closing Date. (a) Except as set forth in Schedule 6.4 or as otherwise contemplated by this Agreement or consented to in writing by Buyer, each of the Seller and the Company shall (and shall cause each Subsidiary to) conduct its business in the ordinary course and shall use its commercially reasonable efforts to (i) preserve intact, in all material respects, the current business organization and ongoing operations of Seller, the Company and the Subsidiaries (including the relationships between Seller, the Company and the Subsidiaries and their respective directors, officers, executives, and managers, although neither shall be required to pay, or promise to pay, any consideration (other than compensation to which such individuals are currently entitled as directors or employees, subject to any changes in compensation in accordance with existing compensation policies, practices or procedures) as an inducement to continue their employment with Seller, the Company or any Subsidiary); (ii) maintain relations and goodwill with suppliers, customers, landlords, employees, creditors, and movie studios with whom Seller, the Company and the Subsidiaries have relationships; (iii) perform in all material respects its obligations under the Material Contracts; (iv) maintain the properties and assets of Seller, the Company and the Subsidiaries in good repair and condition (excluding normal wear and tear); (v) maintain the insurance policies of Seller, the Company and the Subsidiaries in a manner consistent with past practice; and (vi) pay all Taxes as such Taxes become due and payable consistent with past practice.

(b) Except as set forth in Schedule 6.4 or as otherwise contemplated by this Agreement (including with respect to the Contribution) or consented to in writing by Buyer (which Buyer agrees shall not be unreasonably withheld or delayed with respect to the matters set forth in clauses (vi), (x), (xi), (xii), (xv) or (xviii) of this Section 6.4(b)), Buyer agrees shall not be unreasonably withheld or delayed), Seller and the Company shall not (and shall not permit any Subsidiary to): (i) issue, sell or deliver any equity interest or any securities convertible into, options with respect to, warrants to purchase or rights to subscribe for, any equity interest; (ii) effect any recapitalization, reclassification, unit or equity

interest dividend, unit split or like change in its capitalization or otherwise make any change in its capital structure; (iii) amend its Certificate of Formation or Limited Liability Company Agreement (or equivalent organizational documents); (iv) merge with or into, consolidate with or acquire all or substantially all of the stock or assets of any other Person; (v) create, incur or assume any Indebtedness, other than (x) trade payables in the ordinary course of business consistent with past practice or (y) borrowings under Seller's, the Company's or any of the Subsidiaries' existing credit facilities (to the extent such amounts are to be taken into account in the calculation of the Closing Date Payment Amount); (vi) make any material loans to any Person or advances to employees of Seller, the Company or any Subsidiary not, in the case of advances, in the ordinary course of business consistent with past practice; (vii) make any capital contributions to, or investments in, or acquire the securities of, any other Person; (viii) make any change in any accounting or auditing practice, other than those required by GAAP; (ix) make or change any material Tax election, change any annual Tax accounting period, adopt or change any material method of Tax accounting, file any amended Return, enter into any closing agreement, consent to the extension or waiver of the limitations period applicable to any Tax claim or assessment, surrender any right to claim a Tax refund or take or omit to take any other action, if any such change, adoption, filing, consent, surrender, action or omission would have the effect of materially increasing the Tax liability of Seller, the Company or any of the Subsidiaries; (x) enter into any Contract of the type that would be required to be disclosed on Schedule 4.12(a) if entered into prior to the date hereof; (xi) terminate, cause the termination of, amend, renew or extend any Material Contract, or waive or release any material rights or claims thereunder; (xii) pay, discharge, or satisfy any material claims or Liabilities, other than in the ordinary course of business consistent with past practice, or fail to pay or otherwise satisfy (except if being contested in good faith) any material accounts payable, Liabilities, or obligations when due and payable; (xiii) create any new subsidiary; (xiv) adopt a plan of complete or partial liquidation or dissolution; (xv) make any material change in the compensation of the directors, officers or salaried employees of Seller, the Company or any Subsidiary (other than employees who will not be Company Employees) and except for (A) salary increases to salaried employees (other than officers and directors) made in the ordinary course of business) and (B) the adoption of a retention bonus and/or severance benefit plan established by Seller for the benefit of employees of Seller, the Company or any Subsidiaries, solely to the extent that all bonuses, benefits, or other amounts payable thereunder are deemed to constitute Seller Retention Obligations and are otherwise for the sole account of Parent or Seller; (xvi) dispose of or acquire any assets outside the ordinary course of business consistent with past practice; (xvii) grant any material licenses under any material Company Intellectual Property other than in the ordinary course of business; (xviii) make any change in any accounting, auditing, billing or collection practice, except as required by GAAP or Requirements of Law; (xix) make any material change to its ordinary course cash management practices; (xx) mortgage, pledge, or subject to any Encumbrance any asset or property of Seller, the Company or any Subsidiary, whether tangible or intangible, except Permitted Encumbrances; or (xxi) agree to do any of the foregoing.

(c) Notwithstanding anything to the contrary in this Section 6.4 (but otherwise subject to the terms of this Agreement, including, for the avoidance of doubt, Section 6.5), Sections 6.4(a) and 6.4(b) shall not in any way apply to the Retained Assets or Retained Liabilities; provided, that (i) title to the Retained Assets and Retained Liabilities shall remain with Seller or Parent, as applicable, and (ii) any actions taken by Parent or Seller with respect to the Retained Assets and Retained Liabilities shall not interfere with the consummation of the transactions contemplated by this Agreement or adversely effect the Company, any Subsidiary, or the businesses, theatres, properties, assets or liabilities thereof (other than de minimis adverse effects).

Section 6.5 Exclusivity. Until such time, if any, as this Agreement is terminated pursuant to Article XI, each of Parent, Seller and the Company agrees that it shall not, and shall cause the Subsidiaries and the Affiliates, directors, officers, employees, direct and indirect equity holders and representatives of Parent, Seller, the Company and the Subsidiaries not to directly or indirectly solicit,

initiate or knowingly encourage any inquiries or proposals from, discuss or negotiate with, provide any information to, or consider the merits of any inquiries or proposals from, any Person (other than Buyer) relating to any Acquisition Proposal other than a Permitted Acquisition Proposal. Parent, the Company and Seller shall, and shall cause their Affiliates, direct and indirect equity holders, and representatives to, immediately cease any such discussions or negotiations related to any Acquisition Proposal currently in progress with any Person other than Buyer and shall cease providing any such Person information regarding Parent, Seller, the Company, or any Subsidiary. As soon as reasonably practicable (and in any event within one Business Day) after receipt by Parent, Seller, the Company or any of the Subsidiaries (including through a notification by its representatives) of any Acquisition Proposal or any request for information or inquiry which it reasonably believes could lead to an Acquisition Proposal, Seller shall provide Buyer with written notice of the material terms and conditions of such Acquisition Proposal, request or inquiry, the identity of the Person making any such Acquisition Proposal, request or inquiry and a copy of such proposal, request or inquiry, if in writing (or, where such proposal, request or inquiry was not in writing, a description of the terms of such proposal, request or inquiry), and any written material submitted in connection with such proposal, request or inquiry. Notwithstanding the foregoing, until the earlier of (i) the Closing and (ii) the termination of this Agreement pursuant to Article XI, neither Parent, Seller nor the Company shall enter into, or cause the Subsidiaries to enter into, any definitive agreement with respect to a Permitted Acquisition Proposal without Buyer's prior written consent, which shall not be unreasonably withheld to the extent that such transactions would not materially interfere with the consummation of the transactions contemplated by this Agreement or any Seller Ancillary Agreement. Without limiting any of the terms, conditions, or rights provided for in this Agreement, Parent, Seller and the Company acknowledge and agree that Buyer shall have the right to seek specific performance of the provisions of this Section 6.5 pursuant to the terms and conditions of Section 11.3(d). Each of Parent, Seller and the Company acknowledge and agree that any violation of (A) the restrictions set forth in this Section 6.5 by any of their respective Affiliates, directors, officers, employees, direct or indirect equity holders or representatives, or the Subsidiaries, or (B) Section 1.1 or 2.1 (Exclusivity), as applicable, of any Equity Holder Agreement by any Affiliate of Parent, Seller, or the Company party thereto, whether or not such Person is purporting to act on behalf of Parent, Seller, the Company or otherwise, shall be deemed a breach of this Section 6.5.

Section 6.6 Termination of Affiliate Transactions. Each of Parent, Seller and the Company shall take, and shall cause their respective Affiliates, including the Subsidiaries, to take, such action as may be necessary so that, as of the Closing Date, the Affiliate Transactions and the other rights or obligations between the Company or any Subsidiary, on the one hand, and Seller or any of its Affiliates (other than the Company and any Subsidiary), on the other hand, identified on Schedule 6.6 shall be terminated and of no further or continued force or effect.

Section 6.7 Financial Information. Seller shall provide Buyer (i) from the date hereof until the Closing, within 15 Business Days after the end of each month, with an unaudited consolidated balance sheet and related consolidated statements of income, changes in stockholder's equity and cash flow of Seller as of and for the month then ended and (ii) as soon as reasonably practicable following December 31, 2009, with the audited consolidated balance sheet of Seller as of December 31, 2009, and the related audited consolidated statements of income, retained earnings and cash flows for the fiscal year ended December 31, 2009, prepared, in the case of both (i) and (ii) above, on the same basis as the Financial Statements.

Section 6.8 Trademark Registration. As soon as practicable following the date hereof, Buyer shall prepare, and Parent and Seller shall use commercially reasonable efforts to file, or cause the Company and the Subsidiaries to file, as directed in writing by Buyer, a U.S. federal trademark registration for the "ShowPlace Theatres" common law trademark. Buyer shall pay all Expenses incurred in connection with preparing such filing and shall promptly pay or reimburse Seller, the Company and the

Subsidiaries, as applicable, for any reasonably documented expenses incurred thereby in connection with filing such registration. Seller shall use commercially reasonable efforts to assist Buyer in the preparation of such filing with respect to the details of such application. For the avoidance of doubt, any failure to file such registration with, or to obtain the approval of such registration from, any applicable Governmental Body, other than any such failure resulting from the failure of Seller, the Company, or any Subsidiary to use its commercially reasonable efforts in accordance with the terms of this Section 6.8, shall not be deemed a breach of this Section 6.8.

Section 6.9 Termination of National CineMedia Agreement. Seller shall cause the Network Affiliate Agreement between Seller and National CineMedia LLC, dated August 8, 2007 (the "CineMedia Agreement"), to be transferred and assigned to the Company immediately prior to the Closing, and, immediately following such transfer and assignment, Seller and Buyer recognize that the CineMedia Agreement will terminate effective immediately at the Closing in accordance with the self-operative terms set forth in Section 9.2(d) of the CineMedia Agreement upon acquisition by a "Founding Member." Buyer and Guarantor shall be responsible (and shall reimburse Seller or its Affiliates, if necessary) for all Losses and Expenses arising in connection with the transfer, assignment or termination of the CineMedia Agreement pursuant to this Section 6.9.

Section 6.10 Services Agreement. Prior to the Closing, Buyer and Seller shall enter into a services agreement (the "Services Agreement") to be effective as of the Closing Date, by and between Buyer and Seller, upon terms reasonably agreeable to each party. The parties acknowledge and agree that all services provided by Buyer to Seller under the Services Agreement shall be provided at Buyer's cost plus 2%, payable by Seller in accordance with the terms of the Services Agreement.

Section 6.11 Landlord Consents. Each of Parent, Seller and the Company hereby acknowledges and agrees that within five (5) Business Days following receipt of written notice from Buyer, it shall send to the landlords under each of the leases set forth on Schedule 6.11 written consents to the assignment of such leases to the Company in connection with the Contribution, and/or to the change in control of the Company upon the consummation of the transactions contemplated by this Agreement, as applicable. Such consents shall be in form and substance satisfactory to Buyer. Each of Parent, Seller and the Company shall use reasonable best efforts to obtain such consents under such leases as soon as possible following the date hereof; provided, however, that, for purposes of this Section 6.11, "reasonable best efforts" shall not include any obligation of any of Parent, Seller or the Company to commence or participate in any litigation or expend any amount of money other than de minimis amounts in connection with requesting such consents. Each of Parent, Seller and the Company shall coordinate with and obtain the prior consent and input from Buyer prior to contacting via mail, telephone or otherwise any such landlord in connection with its obligations under this Section 6.11. In the event that any such landlord proposes to condition the execution by such landlord of any such consent upon any amendment, modification or waiver of any term under such underlying lease, or any other agreement regarding the operation of the business of the Company, any Subsidiary, Buyer, or its Affiliates, Parent, Seller or the Company, as applicable, shall promptly, and in any event within three (3) Business Days following receipt of such request, inform Buyer in writing of such request and shall not respond to any such request without first speaking with and obtaining the consent of Buyer as to how to respond to any such request. In the event Parent, Seller, the Company or any Subsidiary receives any notification or information from any such landlord in connection with any such consent to assignment, Seller shall promptly, and in any event within three (3) Business Days following receipt thereof, provide written copies of such notifications or information (or written summaries of such notifications or information if provided orally) to Buyer. In no event shall Seller execute, or cause the Company or any Subsidiary to execute, any such consent without the prior written consent of Buyer, which consent may be withheld, conditioned or delayed in Buyer's sole discretion.

(c) Assistance and Cooperation. After the Closing Date, Seller and Buyer shall (and shall cause their respective Affiliates to):

(a) Immediately prior to the Closing on the Closing Date, Seller shall transfer to the Company the employment of all employees of Seller, other than Anthony Kerasotes, Dean Kerasotes, the Retained Theatre Employees and the Retained Seller Employees (such transferred employees, the "Company Employees").

(b) Seller shall determine in its sole discretion and provide to Buyer, in accordance with this Section 7.2(b), a written schedule setting forth the names of designated executive-level Seller employees and exempt, non-executive administrative staff Seller employees, in each case whose employment shall not be transferred by Seller to the Company immediately prior to the Closing on the Closing Date (the "Retained Seller Employees"). Seller shall provide to Buyer (i) a preliminary schedule of the Retained Seller Employees not later than 45 days after the date of this Agreement, (ii) an updated schedule of the Retained Seller Employees not later than 90 days after the date of this Agreement and (iii) any final modifications to such updated schedule as soon as practicable prior to the Closing, provided that such modifications made pursuant to this clause (iii) shall not increase the number of Retained Seller Employees by more than 10% or change the names of more than 15% of the Company Employees on the schedule provided pursuant to clause (ii). Seller shall identify on such finalized schedule not more than seven executive-level Retained Seller Employees and not more than five exempt, non-executive administrative staff Retained Seller Employees to receive a cash transaction bonus (each, an "Eligible Seller Employee") in an amount equal to the cash severance benefit that would have been payable to such Eligible Seller Employee pursuant to Buyer's severance policy set forth on Schedule 7.2(b) ("Buyer's Severance Policy") if such Eligible Seller Employee was a participant in the Buyer's Severance Policy and was entitled to severance pay due to a termination of employment by Buyer as of the Closing, and for each such Eligible Seller Employee, a true and correct schedule of the number of years of service to be credited for each such Eligible Seller Employee for purposes of calculating the applicable transaction bonus for such Eligible Seller Employee. Buyer shall pay to Seller on the Closing Date an amount equal to the aggregate transaction bonus amount for the Eligible Seller Employees determined under this Section 7.2(b) and Seller shall pay to each Eligible Seller Employee as soon as practicable after the Closing Date the applicable transaction bonus amount determined under this Section 7.2(b) for such Eligible Seller Employee. For purposes of calculating the transaction bonus for each Eligible Seller Employee, such Eligible Seller Employee shall be given credit for all service with Seller, the Company and any Subsidiary (or all service credited by Seller, the Company or a Subsidiary) to the same extent as if rendered to Buyer. Notwithstanding anything in this Section 7.2(b), but except as provided in any Seller Ancillary Agreement, Seller shall not be prohibited from hiring any Company Employee that is terminated by Buyer following the Closing.

(c) For the six-month period following the Closing Date, Seller agrees to make available to Buyer the services of the Retained Seller Employees, to the extent they are then employed by Seller, to perform transition services to Buyer as Buyer and Seller shall reasonably agree from time to time, provided that such services do not materially interfere with the Retained Seller Employees' obligations to Seller and its Affiliates. In consideration for such transition services provided by a Retained Seller Employee, Buyer agrees to pay Seller an amount equal to the hourly rate of the Retained Seller Employee's base salary paid by Seller, pro-rated for any quarter hour of such service, and shall reimburse Seller for reasonable out-of-pocket expenses incurred in connection with providing such transition services. Seller shall submit monthly invoices in a form reasonably acceptable to Buyer for any such transition services performed pursuant to this Section 7.2(c). The reasonably documented transition services fees and out-of-pocket reasonable expenses, if any, incurred for any particular month pursuant to this Section 7.2(c) shall be paid by Buyer no later than 30 days after the date on which Seller sends an invoice to Buyer.

(d) Buyer agrees that each Company Employee who is employed by Buyer, the Company, any Subsidiary or any of their respective Affiliates on or after the Closing (a "Continuing Employee") shall be provided, for a period commencing on the Closing Date and ending on the earlier of the termination of such Continuing Employee's employment with such entities or the first anniversary of the Closing Date (the "Benefits Continuation Period"), with (i) base salary that is not less than the base salary paid by Seller or any Subsidiary immediately prior to the Closing Date and (ii) other compensation and benefits, including without limitation incentive compensation, vacation, sick leave and paid time off benefits, that are not less favorable to such employee than the compensation and benefits provided by Buyer to similarly situated employees of Buyer (provided that for purposes of determining the amount of incentive compensation under any Buyer plan, no Continuing Employee shall be given credit for periods of service on or prior to the Closing Date). Buyer shall provide severance benefits to each Continuing Employee whose employment is terminated by Buyer at or following the Closing pursuant to and in accordance with Buyer's severance plans and policies that are applicable to similarly situated employees of Buyer, and for purposes of calculating severance benefits for each such Continuing Employee, such Continuing Employee shall be given credit for all service with Seller, the Company and any Subsidiary (or all service credited by Seller, the Company or a Subsidiary) to the same extent as if rendered to Buyer; provided, however, that no such service recognition shall result in any duplication of benefits. For purposes of calculating the amount of the transaction bonuses payable to Eligible Seller Employees pursuant to Section 7.2(b) and for purposes of providing severance benefits to Continuing Employees pursuant to this Section 7.2(d), the Seller employees listed on Schedule 7.2(d) shall be deemed to be eligible for the level of severance benefits provided to "executives" within the meaning of such policy.

(e) Buyer shall, or shall cause the Company and each Subsidiary to, credit to Continuing Employees and honor the amount of accrued but unused vacation and sick leave that such employees had accrued under Seller's paid time off policy as of the Closing Date.

(f) Buyer shall ensure that, for all purposes under any employee benefit plan maintained or assumed by Buyer or any of its Affiliates in which any Continuing Employee becomes a participant as of or after the Closing Date (other than for purposes of calculating benefits under a defined benefit pension plan or calculating benefits under an incentive compensation plan), such Continuing Employee shall be given credit for all service with Seller, the Company and any Subsidiary (or all service credited by Seller, the Company or a Subsidiary) to the same extent as if rendered to Buyer, provided, however, that no such service recognition shall result in any duplication of benefits. Buyer shall, or shall cause the Company and each Subsidiary to (i) waive all limitations as to preexisting conditions, exclusions and waiting periods with respect to participation and coverage requirements applicable to the Continuing Employees under any welfare or fringe benefit plan in which the Continuing Employees may be eligible to participate on or after the Closing Date, and (ii) provide each Continuing Employee with credit under any welfare plans of Buyer, the Company, any Subsidiary or any of their respective Affiliates in which such Continuing Employee becomes eligible to participate on or after the Closing Date for any co-payments and deductibles paid by such Continuing Employee for any out-of-pocket expenditures paid by such Continuing Employee during the plan year in which the Closing Date occurs under corresponding welfare plans maintained by Seller or any Subsidiary prior to the Closing Date as though such amounts had been paid in accordance with the terms and conditions of the applicable plan maintained by Buyer, the Company, any Subsidiary or any of their respective Affiliates, as applicable, for the plan year in which the Closing Date occurs; provided, however, that in the case of any such plan that is not a self-insured plan, the foregoing treatment shall be subject to any required approval of the applicable insurance provider, which approval Buyer shall use all commercially reasonable efforts to obtain.

(g) To the extent that any Continuing Employee participated in the health flexible spending account plan under the Kerasotes ShowPlace Theatres, LLC Flexible Spending Plan ("Seller's Health

FSA Plan") during the calendar year that includes the Closing Date, effective as of the Closing Date, Seller shall transfer to the corresponding health flexible spending plan of Buyer the account balances and elections of the Continuing Employees for such Plan Year under the Seller's Health FSA Plan, regardless of whether the balance is positive or negative, in accordance with the requirements of Revenue Ruling 2002-32. To the extent that any Continuing Employee participated in Seller's dependent care flexible spending account plan under the Kerasotes ShowPlace Theatres, LLC Flexible Spending Plan ("Seller's Dependent Care FSA Plan") during the calendar year that includes the Closing Date, effective as of the Closing Date, Seller shall transfer to the corresponding dependent care flexible spending plan of Buyer the account balances of the Continuing Employees for such calendar year under Seller's Dependent Care FSA Plan. As soon as reasonably practicable after the Closing Date, Seller shall cause all records relating to the Continuing Employees' participation in the Seller's Health FSA Plan and Seller's Dependent Care FSA Plan to be transferred to Buyer. For avoidance of doubt, Buyer and its Affiliates shall have no Liability under the Kerasotes ShowPlace Theatres, LLC Flexible Spending Plan for any calendar year prior to the year in which the Closing Date occurs and shall not assume or have any Liability under the Kerasotes ShowPlace Theatres, LLC Flexible Spending Plan following the Closing except as expressly set forth in this Section 7.2(g).

(h) Seller shall pay to each Company Employee who is participating in an annual bonus plan of Seller immediately prior to Closing, a bonus with respect to the portion of the bonus determination period ending on the Closing Date. For avoidance of doubt, Buyer and its Affiliates shall have no obligation to pay or provide, or have any Liability for, any bonus to any Company Employee with respect to any performance or bonus determination period ending on a date prior to the Closing Date.

(i) Notwithstanding anything herein to the contrary, the parties to this Agreement do not intend for this Agreement to amend any Employee Benefit Plans or arrangements or create any rights or obligations except between the parties to this Agreement. No Company Employee or other current or former employee of the Company or any Subsidiary, including any beneficiary or dependent thereof, or any other person not a party to this Agreement, shall be entitled to assert any claim hereunder. For avoidance of doubt, except for any cash transaction bonus obligations paid to Seller with respect to any Eligible Seller Employee pursuant to Section 7.2(b), Buyer and its Affiliates shall have no obligation to pay or provide, or have any Liability for, any compensation or benefits to any Retained Seller Employee.

(j) Nothing in this Agreement shall create any obligation on the part of Buyer, Company or any of the Subsidiaries to continue the employment of any Continuing Employee for any definite period following the Closing Date, and, except as set forth in this Section 7.2, nothing in this Agreement shall be construed to preclude Buyer, Company or any of its Subsidiaries from altering, amending, or terminating any employee benefit plan, or the participation of any of their respective employees in such plans, at any time.

Section 7.3 Contact with Employees, Suppliers and Others. Buyer hereby agrees that it is not authorized to and shall not (and shall not permit any of its employees, agents, representatives or Affiliates to) contact any officer, director, employee, franchisee, supplier, customer, distributor or other material business relation of the Company or any Subsidiary prior to the Closing with respect to matters relating to the Company, Seller, this Agreement, or the transactions contemplated hereby without the prior written consent of Seller; provided, however, to the extent reasonably requested by Buyer prior to the Closing, Buyer may make inquiries of and have meetings and discussions with, those Persons having business relationships with Parent, Seller or the Subsidiaries (including those Persons set forth on Schedule 7.3), and Parent and Seller shall use commercially reasonable efforts to facilitate, and shall cooperate with Buyer in connection with, such inquires, meetings and discussions.

(a) Buyer agrees and acknowledges that it remains bound by the Confidentiality Agreement from and after the date hereof until the Closing. If this Agreement is terminated prior to Closing in accordance with the terms and conditions of Article XI, the Confidentiality Agreement shall remain in full force and effect in accordance with its terms.

(b) Each of Seller and Buyer acknowledges and agrees that it and its Affiliates possess and have had access to confidential information related to the business, properties, assets and liabilities of the Company and the Subsidiaries and their respective Affiliates. For a period of five (5) years from the Closing Date, each of Seller and Buyer agrees to use the same degree of care, but no less than reasonable care, to protect confidential information related to the business, properties, assets and liabilities of the Company and the Subsidiaries as it uses, as of the date hereof, to protect its own confidential information and that of its Affiliates. Each of Seller and Buyer acknowledges and agrees that, during such 5-year period after the Closing, it shall not use or disclose such confidential information for any purpose or to any party without the prior written consent of the other party; provided, however, that (i) Seller shall be entitled to use any Retained Assets in connection with the operation of the Retained Theatres or any other theatres owned or operated by Seller in accordance with the Seller Non-Competition Agreement; and (ii) either party may disclose such confidential information to the extent such confidential information is required to be disclosed pursuant to a valid Court Order, in which case, such party shall promptly notify, to the extent possible, the other party, and take all commercially reasonable steps to assist such other party in contesting such Court Order or in protecting such other party's rights prior to disclosure (and in any event, the disclosing party shall only disclose such confidential information to the extent required by such Court Order). Each of Parent and Seller acknowledges and agrees that any violation of (x) the restrictions set forth in this Section 7.4 by any of their respective Affiliates, directors, officers, employees, direct or indirect equity holders or representatives, or the Subsidiaries, or (y) Section 3.1 of any Equity Holder Agreement by any Affiliate or direct or indirect equity holder of Parent or Seller party thereto, whether or not such Person is purporting to act on behalf of Parent or Seller or otherwise, shall be deemed a breach of this Section 7.4.

(c) Notwithstanding anything to the contrary in this Agreement, the parties hereto acknowledge and agree that Buyer shall have sole ownership of, and the exclusive right, title and interest in and to, all customer lists, data, and other customer information of any kind, and in any format (whether stored physically, electronically or otherwise) related to all theatres owned by Seller; provided that Seller shall be entitled to retain a copy of any customer lists maintained by Seller, and Seller shall be entitled to use such customer lists in connection with the operation of the Retained Theatres and any other theatre owned or operated by Seller in accordance with the terms of the applicable Seller Non-Competition Agreement. For the avoidance of doubt, except as set forth in Section 7.8, Buyer will not provide, and Seller shall not be entitled to retain or use, any other customer lists or customer data of any type following the Closing.

Section 7.5 Release. As a material inducement to Buyer to enter into this Agreement, effective as of the Closing, each of Parent and Seller agrees not to sue, and fully releases and discharges Buyer, the Company, the Subsidiaries and each of their respective Affiliates, representatives, directors, officers, employees, successors and assigns (collectively, the "Releasees"), with respect to and from any and all claims, demands, rights, liens, Contracts, covenants, causes of action, obligations, debts, and Losses of whatever kind or nature in law, equity or otherwise, whether now known or unknown, which such party now owns or holds or has at any time owned or held against the Releasees with respect to the operations of the Company and the Subsidiaries and in Seller's and Parent's capacity as direct and indirect equity holders of the Company; provided, however, that nothing in this Section 7.5 will be deemed to constitute a release by either Parent or Seller of (i) any claim, demand or cause of action for which the facts and circumstances giving rise thereto first arise following the Closing, (ii) any right that Parent or Seller may have to enforce its rights under this Agreement or any Seller Ancillary Agreement or Buyer Ancillary Agreement or (iii) any claim, demand or cause of action in connection with or arising out of the transactions contemplated by this Agreement or any Seller Ancillary Agreement or Buyer Ancillary Agreement. It is the intention of each of Parent and Seller that such release be effective as a bar to each and every claim, demand and cause of action hereinabove specified, except with respect to the foregoing exceptions. In furtherance of this intention, each of Parent and Seller hereby expressly waives, effective as of the Closing, to extent permitted by Requirements of Law and subject to the exceptions set forth in this Section 7.5, any and all rights and benefits conferred upon such party by Requirements of Law, and expressly consents that this release will be given full force and effect according to each and all of its express terms and provisions, including those related to unknown claims, demands and causes of action, if any, and those relating to any other claims, demands and causes of action hereinabove specified.

(a) Subject to and except as permitted by the terms of the Seller License Agreement, following the Closing, Buyer shall not represent that it or its Affiliates (including the Company and the Subsidiaries) retain any connection with Parent or Seller (other than as set forth herein or in any Buyer Ancillary Agreement) and, within 9 months following the Closing, shall cause the Company and the Subsidiaries to remove the names "Kerasotes" and "Icon" and associated logos, including the "K" logo (collectively, the "Retained Names") from their respective advertisements, signs, purchase orders, invoices, sales orders, labels, letterheads, shipping documents, catalogues, publicity materials, and all other items and materials whatsoever, and Buyer agrees that the Retained Names, including all trademark rights and goodwill therein, are retained by Seller and not transferred to Buyer in the transactions contemplated by this Agreement.

(b) Subject to and except as permitted by the terms of the Buyer License Agreement, following the Closing, neither Parent nor Seller shall represent that it or its Affiliates retain any connection with the Company or the Subsidiaries (other than as set forth herein or in any Buyer Ancillary Agreement) and, within 60 days following the Closing, shall ensure that it and its Affiliates have removed the phrase "ShowPlace Theatres" and all variations thereof and terms similar thereto, as well as any other name, brand, logo, and other marks associated with or used by any theatre or other property or asset of the Company or any Subsidiary to be transferred to Buyer (except for the Retained Names), from their respective advertisements, signs, purchase orders, invoices, sales orders, labels, letterheads, shipping documents, catalogues, publicity materials, and all other items and materials whatsoever.

Section 7.7 Gift Cards and Passes. Buyer and Seller each hereby acknowledge and agree that following the Closing neither party nor any of their respective Affiliates shall have any obligation to honor or accept any gift cards, gift certificates, discount tickets, coupons, complimentary admission passes or prepaid passes (collectively, "Gift Cards and Passes") issued by the other party or its Affiliates. To the extent that either Buyer or Seller does elect to honor any such Gift Cards and Passes

issued by the other party or its Affiliates, it shall do so at its own cost and without any right to reimbursement from the other party.

Section 7.8 Web Site Data. Buyer and Seller hereby acknowledge and agree that all information gathered by Parent, Seller, the Company and the Subsidiaries with respect to all web sites hosted or operated by or for Parent, Seller, the Company or any Subsidiary (the "Seller Web Sites"), including all customer information and other information relating to customer usage and traffic patterns relating to the Seller Web Sites (the "Web Site Data") are Contributed Assets to which Buyer has all right, title and interest; provided that Seller shall have the right to access and use such Web Site Data in accordance with the terms of Section 7.4(b) and 7.9.

Section 7.9 Web Site Operation and Cooperation. For a period of one year immediately following the Closing Date, Buyer and Seller each agree that they will cooperate to facilitate the administration, operation and maintenance of the Seller Web Sites included in Section 10 of Schedule 1 other than showplaceicon.com, showplaceicon.org, showplaceicon.biz, showplaceicon.org (the "Designated Web Sites") in a mutually beneficial manner and to promote the successful implementation of the transactions contemplated by this Agreement, including by taking all steps reasonably necessary or desirable to modify the Designated Web Sites to direct web site user visits and inquiries regarding (a) theatres that are Contributed Assets to such web site as Buyer may designate and (b) the Retained Theatres to such web site as Seller may designate, as applicable. During such one-year period, Buyer will provide to Seller, on a monthly basis, a copy of all customer data collected on the Designated Web Sites that relate to any of the Retained Theatres, and Seller shall have the right to use such data in accordance with the terms of Section 7.4(b).

Section 7.10 Termination of Blue Light Holdings Lease. Seller acknowledges and agrees that (i) Seller is party to that certain Lease Agreement between Seller and Blue Light Holdings, LLC ("Blue Light"), dated as of August 18, 2008 (the "Blue Light Lease"), pursuant to which Blue Light agrees to deliver to Seller, and Seller agrees to lease from Blue Light, the premises as described therein on the terms and conditions set forth therein, and (ii) the Blue Light Lease is subject to termination by Seller upon the failure by Blue Light to deliver to Seller such premises, subject to the terms and conditions of the Blue Light Lease, on or before February 28, 2010. Seller shall, without the requirement of any further action or notice by Buyer, Guarantor, or any of their respective Affiliates, provide written notice to Buyer and Guarantor within two (2) Business Days following the date on which Seller's right to terminate the Lease becomes effective in accordance with its terms and shall, at Buyer's sole discretion and pursuant to the written instructions of Buyer, take all actions reasonably requested by Buyer to terminate the Blue Light Lease in accordance with its terms.

The obligations of Buyer and Guarantor under this Agreement shall, at the option of Buyer, be subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

(a) There shall not have been any material breach by Parent, the Company or Seller in the performance of any of their respective covenants and agreements herein (other than the covenants and agreements in Section 6.11) that has not been remedied or cured. There shall not have been any breach by Parent, the Company or Seller in the performance of any of their respective covenants and agreements in Section 6.11 hereof that has not been remedied or cured.

(b) Each of the representations and warranties of Parent and Seller contained in this Agreement (as modified by the Schedules but excluding any Updated Schedules delivered to Buyer pursuant to Section 6.2) shall have been true and correct as of the date hereof (except to the extent that such

representations and warranties expressly relate to (i) the Closing or the Closing Date or (ii) an earlier date, in which case they shall have been true and correct as of such earlier date) and shall be true and correct on the Closing Date as though made on the Closing Date (except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall have been true and correct as of such earlier date), except, in each case hereunder, where such failure to be true and correct (in each case hereunder, without giving effect to any limitation or qualification in such representation or warranty as to "materiality" including the word "material" or "Material Adverse Effect", other than with respect to Section 4.21 and the definition of "Material Contract" for purposes of Section 4.12(a)), would not, and would not reasonably be expected to, have a Material Adverse Effect.

(c) There shall have been delivered to Buyer one or more certificate as to the satisfaction of the conditions described in Sections 8.1(a) and 8.1(b), dated the Closing Date, signed by a duly authorized officer of Parent, the Company or Seller, as applicable.

Section 8.2 No Material Adverse Effect. Between the date hereof and the Closing Date, there shall have been no Material Adverse Effect and there shall have been delivered to Buyer a certificate as to the satisfaction of the condition described in this Section 8.2, dated the Closing Date and signed by a duly authorized officer of Seller.

Section 8.3 No Restraint. The waiting period under the HSR Act, and any agreement with any Governmental Body not to consummate the transactions contemplated by this Agreement, shall have expired or been terminated. No Court Order shall be in effect which restrains or prohibits any material transaction contemplated hereby or in any Seller Ancillary Agreement or Buyer Ancillary Agreement and no Requirement of Law shall have been adopted that makes consummation of the transactions contemplated hereby or in any Seller Ancillary Agreement or Buyer Ancillary Agreement illegal or otherwise prohibited.

Section 8.4 Governmental Approvals. All approvals and actions of or by all Governmental Bodies required to be obtained prior to the Closing by applicable Requirements of Law and necessary to consummate the transactions contemplated hereby or by any Buyer Ancillary Agreement shall have been obtained.

Section 8.5 Contribution. The Contribution shall have been consummated on terms and pursuant to definitive documentation reasonably satisfactory to Buyer.

Section 8.6 Termination of Agreements. The agreements set forth on Schedule 8.6 shall have been terminated and Buyer shall have received reasonably satisfactory proof thereof.

Section 8.7 Other Deliverables. Each of the items specified in Section 3.4 shall have been duly executed, as applicable, and delivered by Seller, the Company, and each other party thereto in form and substance reasonably acceptable to Buyer.

Buyer and Guarantor may proceed with the Closing notwithstanding the failure of any one or more of the foregoing conditions without satisfaction, in whole or in part, thereof and without providing a written waiver. If, at any time prior to the Closing, Seller or the Company delivers to Buyer and Guarantor a written notice specifying in reasonable detail the failure of any of the conditions described in this Article VIII or the breach by Seller or the Company of any of the representations, warranties or covenants of Seller or the Company contained herein and Buyer and Guarantor proceeds with the Closing nevertheless, Buyer and Guarantor shall be deemed to have waived, for all purposes, any rights or remedies it may have against Seller and the Company with respect to the failure or breach described in such notice.

The obligations of Seller and the Company under this Agreement shall, at the option of Seller, be subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

Section 9.1 No Misrepresentation or Breach of Covenants and Warranties.

(a) There shall not have been any material breach by Buyer or Guarantor in the performance of any of its covenants and agreements herein that has not been remedied or cured.

(b) Each of the representations and warranties of Buyer contained in this Agreement shall be true and correct on the Closing Date shall have been true and correct as of the date hereof (except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall have been true and correct as of such earlier date) and shall be true and correct on the Closing Date as though made on the Closing Date (except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall have been true and correct as of such earlier date), except, in each case hereunder, where such failure to be true and correct (in each case hereunder, without giving effect to any limitation or qualification in such representation or warranty as to "materiality" (including the word "material")), would not, and would not reasonably be expected to, have, individually or in the aggregate, a material adverse effect on Buyer's ability to consummate the transactions contemplated hereby or by any Seller Ancillary Agreement.

(c) There shall have been delivered to Seller one or more certificate as to the satisfaction of the conditions described in Sections 9.1(a) and 9.1(b), dated the Closing Date, signed by a duly authorized officer of Buyer and Guarantor.

Section 9.2 No Restraint. The waiting period under the HSR Act, and any agreement with any Governmental Body not to consummate the transactions contemplated by this Agreement, shall have expired or been terminated. No Court Order shall be in effect which restrains or prohibits any material transaction contemplated hereby or in any Seller Ancillary Agreement or Buyer Ancillary Agreement and no Requirement of Law shall have been adopted that makes consummation of the transactions contemplated hereby or in any Seller Ancillary Agreement or Buyer Ancillary Agreement illegal or otherwise prohibited.

Section 9.3 Governmental Approvals. All approvals and actions of or by all Governmental Bodies required to be obtained prior to the Closing by applicable Requirements of Law and necessary to consummate the transactions contemplated hereby shall have been obtained.

Section 9.4 Other Deliverables. Each of the items specified in Section 3.3 shall have been duly executed, as applicable, and delivered by Buyer and Guarantor and each other party thereto in form and substance reasonably acceptable to Seller.

Seller and the Company may proceed with the Closing notwithstanding the failure of any one or more of the foregoing conditions without satisfaction, in whole or in part, thereof and without providing a written waiver. If, at any time prior to the Closing, Buyer or Guarantor deliver to Seller a written notice specifying in reasonable detail the failure of any of the conditions described in this Article IX or the breach by Buyer or Guarantor of any of the representations, warranties or covenants of Buyer or Guarantor contained herein and Seller and the Company proceed with the Closing nevertheless, Seller and the Company shall be deemed to have waived, for all purposes, any rights or remedies it may have against Buyer or Guarantor with respect to the failure or breach described in such notice.

Section 10.1 Indemnification by Parent and Seller. (a) From and after the Closing, Parent and Seller agree to jointly and severally indemnify and hold harmless each Buyer Group Member from and against any and all Losses and Expenses incurred by such Buyer Group Member in connection with or arising from:

(b) The indemnification provided for in Section 10.1(a) shall terminate upon the expiration of the applicable survival period set forth in Section 12.1 hereof (and no claims shall be made by any Buyer Group Member under Section 10.1(a) thereafter), except that the indemnification by Seller shall continue as to any Losses or Expenses with respect to which any Buyer Group Member has validly given a Claim Notice to Seller in accordance with the requirements of Section 10.3 on or prior to the date such indemnification would otherwise terminate in accordance with this Section 10.1(b), as to which the obligation of Seller shall continue solely with respect to the specific matters described in such Claim Notice until the liability of Seller shall have been determined pursuant to this Article X and Seller shall have reimbursed all Buyer Group Members for the full amount of such Losses and Expenses that are payable with respect to such Claim Notice in accordance with this Article X.

Section 10.2 Indemnification by Buyer and Guarantor. (a) From and after the Closing, Buyer and Guarantor agree to jointly and severally indemnify and hold harmless each Seller Group Member from and against any and all Losses and Expenses incurred by such Seller Group Member in connection with or arising from:

(b) The indemnification provided for in Section 10.2(a) shall terminate upon the expiration of the applicable survival period set forth in Section 12.1 hereof (and no claims shall be made by any Seller Group Member under Section 10.2(a) thereafter), except that the indemnification by Buyer shall continue as to any Losses or Expenses with respect to which any Seller Group Member has validly given a Claim Notice to Buyer in accordance with the requirements of Section 10.3 on or prior to the date such indemnification would otherwise terminate in accordance with this Section 10.2(b), as to which the obligation of Buyer shall continue solely with respect to the specific matters described in such Claim Notice until the liability of Buyer shall have been determined pursuant to this Article X and Buyer shall have reimbursed all Seller Group Members for the full amount of such Losses and Expenses that are payable with respect to such Claim Notice in accordance with this Article X.

Section 10.3 Notice of Claims. Any party hereto seeking indemnification hereunder (the "Indemnified Party") shall promptly give to the party obligated to provide indemnification to such Indemnified Party (the "Indemnitor") a written notice (a "Claim Notice") describing in reasonable detail the facts giving rise to the claim for indemnification hereunder and shall include in such Claim Notice (if then known) the amount, or the method of computation of the amount, of such claim and a reference to the provision of this Agreement or any other agreement, document or instrument executed hereunder or in connection herewith upon which such claim is based.

Section 10.4 Resolution of Indemnifiable Claims. After the giving of any Claim Notice pursuant to Section 10.3, the amount of indemnification to which an Indemnified Party shall be entitled under this Article X shall be determined: (i) by written agreement between the Indemnified Party and the Indemnitor; (ii) by a final judgment or decree of any court of competent jurisdiction; or (iii) by any other means to which the Indemnified Party and the Indemnitor shall agree in writing. The judgment or decree of a court shall be deemed final when the time for appeal, if any, shall have expired and no appeal shall have been taken or when all appeals taken shall have been finally determined. The Indemnified Party shall have the burden of proof in establishing the amount of Losses and Expenses suffered by it.

Section 10.5 Third Person Claims. (a) Any Indemnified Party seeking indemnification in respect of, arising out of or involving a claim or demand made by a third Person against the Indemnified Party (a "Third Person Claim") shall notify the Indemnitor in writing, and in reasonable detail, of such Third Person Claim within 10 days after the Indemnified Party's receipt of written notice thereof. Thereafter, the Indemnified Party shall deliver to the Indemnitor, within five Business Days after the Indemnified Party's receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to the Third Person Claim. Any Claim Notice involving a Third Person Claim shall refer to the provision of this Agreement upon which the claim described in such Claim Notice is based and describe in reasonable detail the facts giving rise to an alleged basis for such claim and the amount, if known, of the Liability asserted against the Indemnitor by reason of such claim. The failure to give notice in accordance with this Section 10.5 shall not relieve the Indemnitor of its obligations hereunder except to the extent it shall have been materially prejudiced by such failure.

(b) The Indemnitor shall, subject to the limitations set forth in this Section 10.5(b), have the sole and absolute right, after the receipt of notice, at its option and at its own expense, to be represented by counsel of its choice and to control and defend against, negotiate or otherwise deal with any Proceeding which relates to any Third Person Claim; provided, however, that if the Indemnitor elects to control the Proceeding, such counsel shall be reasonably acceptable to the Indemnified Party and the Indemnified Party may participate in any such Proceeding with counsel of its choice and at its own expense (other than in the case of fees and expenses that are incurred prior to the date the Indemnitor effectively assumes control of such defense), and provided further, that if in the reasonable opinion of the Indemnified Party's counsel, a conflict of interest exists or may arise in the event the Indemnitor elects to control or defend any Third Person Claim, the Indemnified Party may, at its sole election, solely control and defend against, negotiate or otherwise deal with any such claim and such fees and expenses will be born by the Indemnitor to the extent such fees and expenses were incurred in connection with defending against those elements of the Proceeding with respect to which such conflict exists. Additionally, to the extent that (i) the Indemnitor elects not to defend such Third Person Claim, or (ii) the claim for indemnification relates to or arises in connection with any criminal Proceeding, the Indemnified Party may defend against, deal with and otherwise control such Third Person Claim using counsel of its choosing, at the expense of the Indemnitor; provided, however, that the Indemnitor shall be obligated pursuant to this Section 10.5(b) to pay for only one firm of counsel (and one local or special counsel in each applicable jurisdiction or to the extent reasonably engaged by the Indemnified Party) for all Indemnified Parties. The parties hereto agree to cooperate fully with each other in connection with the defense, negotiation or settlement of any Third Person Claim; provided, however, that neither the Indemnitor nor the Indemnified Party may settle or compromise any such Third Person Claim without the written consent of the Indemnified Party or the Indemnitor, as applicable, which consent shall not be unreasonably withheld, or delayed; provided, further, that the Indemnitor may settle or compromise any Third Party Claim without the consent of the Indemnified Party if (A) the Indemnitor pays or agrees to pay or cause to be paid all amounts arising out of such settlement or compromise, (B) such settlement or compromise would not encumber any of the material assets of any Indemnified Party or impose any restriction or condition that would apply to or materially adversely affect any Indemnified Party or the conduct of any Indemnified Party's business, (C) the Indemnitor obtains, as a condition of such settlement or compromise, a complete release of any Indemnified Party that could reasonably be affected by such Third-Party Claim, and (D) such settlement or compromise does not involve any admission of liability or wrongdoing by any Indemnified Party or any of its Affiliates.

(c) To the extent of any inconsistency between this Section 10.5 and Section 7.1(b) (relating to Tax contests), the provisions of Section 7.1(b) shall control with respect to Tax contests.

Section 10.6 Determination of Indemnification Amounts. (a) The amount of any and all Losses and Expenses under this Article X shall be determined net of (i) any Tax benefits actually realized by

the Indemnified Party arising from the deductibility of any such Losses and Expenses or otherwise and (ii) any amounts actually recovered by the Indemnified Party under insurance policies, indemnities or other reimbursement arrangements with respect to such Losses and Expenses. Each party hereby waives, to the extent permitted under its applicable insurance policies, any subrogation rights that its insurer may have with respect to any indemnifiable Losses and Expenses.

(b) Any indemnification payment under this Agreement shall be treated as an adjustment to the Purchase Price for Tax purposes.

(c) If an Indemnified Party recovers from any third Person an amount in respect of a matter for which such Indemnified Party has been indemnified pursuant to this Article X, such Indemnified Party shall promptly remit to the appropriate Indemnitor the amount so recovered (after deducting therefrom the full amount of the expenses actually incurred by the Indemnified Party in procuring such recovery, including insurance premiums paid and insurance deductibles applied), but not in excess of the sum of (i) any amount paid by the Indemnitor to or on behalf of the Indemnified Party in respect of such matter and (ii) any amount expended by the Indemnitor in pursuing or defending any claim arising out of such matter.

(d) Each of the parties agrees to take all commercially reasonable steps to mitigate their respective Losses and Expenses upon and after becoming aware of any event or condition which could or could reasonably be expected to give rise to any Losses and Expenses for which they may be entitled to indemnification hereunder; provided, however, that no party hereto or their respective Affiliates shall be required to make any material monetary expenditure, commence or participate in any Proceeding, offer or grant any material accommodation to any Person, or take, or refrain from taking, any action that would or would reasonably be expected to adversely affect the business, operations, results or condition (financial or otherwise) of such party or its Affiliates in any material respect in connection with such mitigation.

(e) Neither Parent nor Seller shall be obligated to indemnify any Buyer Group Member with respect to any matter to the extent that such matter was included in the calculation of Closing Date Working Capital.

(f) Notwithstanding anything to the contrary set forth in this Agreement, if any Indemnified Party seeks recovery pursuant to this Article X for Losses constituting a loss of profits or loss of use or revenue, such Indemnified party shall, prior to recovering against any Indemnitor, be required to use commercially reasonable efforts to seek recovery from all policies of insurance, including business disruption or similar policies, that are then-maintained by such Indemnified Party or its Affiliates (in the case of Affiliate insurance policies, only to the extent such policies are applicable to Losses suffered by such Indemnified Party), and pursuant to all rights of indemnification against third party landlords that such Indemnified Party or its Affiliates, as applicable, may have under applicable lease agreements with respect to such Losses; provided, however, that (i) in no event shall the terms of this Section 10.6(f) be deemed to require any Person to obtain any new or maintain any existing insurance policies, (ii) any Losses or Expenses incurred by such Indemnified Party in connection with its efforts to seek recovery against such third parties shall be Losses subject to indemnification pursuant to this Article X, and (iii) any amounts not covered by applicable insurance policies or any other contract or agreement (whether in the form of deductibles, amounts in excess of applicable caps, or otherwise), and any increase in rent, insurance premiums, or other Losses or Expenses of any kind resulting from such Indemnified Party's efforts to seek recovery against such third parties shall be Losses subject to indemnification pursuant to this Article X. Notwithstanding anything to the contrary in this Agreement, for purposes of this Section 10.6, the term "Affiliate" shall not include any investment fund (or any officer, director, employee, equity holder, or general or limited partner thereof, or any portfolio company owned, in whole or in part, thereby (other than AMC Entertainment, Inc., a Delaware corporation) that, directly or indirectly, owns any equity securities of Guarantor.

Section 10.7 Escrow Fund. From and after the Closing, any indemnification obligations of Seller or Parent shall be paid first, from the Escrow Fund pursuant to the terms of the Escrow Agreement; second, after the entire Escrow Fund has been paid to a Buyer Group Member or released and returned to Seller pursuant to the terms of the Escrow Agreement, directly by Seller or Parent (provided that Providence shall pay directly its Pro Rata Share of Seller's and Parent's indemnification obligations pursuant to Providence's Equity Holder Agreement); provided, that upon or after the occurrence of any of (a) the voluntary or involuntary dissolution, liquidation or winding up of Seller or Parent, (b) the transfer of more than 25% in value (based on book value calculated as of the Closing) of the assets of Seller or Parent to any third party (unless such third party agrees in writing to assume its pro rata share, based on the book value of the transferred assets calculated as of the Closing, of the obligations of Seller and Parent under this Article X (for which Parent and Seller shall remain fully liable), or (c) the failure of Seller or Parent to pay any amounts required to be paid thereby pursuant to this Agreement within 30 days of such amount becoming due and payable by the Seller or Parent, then any indemnification obligations of Seller and Parent not paid to a Buyer Group Member pursuant to this Section 10.7 shall be paid (to the extent of Seller's Pro Rata Share) by each Seller Guarantor (other than Providence Equity Partners IV, L.P. and Providence Equity Operating Partners IV, L.P.) in accordance with such Seller Guarantor's Equity Holder Agreement.

Section 10.8 Exclusive Remedy. Each of the parties hereto acknowledges and agrees that, from and after the Closing, its sole and exclusive monetary remedy against the other party or any Affiliates of the other party with respect to any and all claims relating (directly or indirectly) to the subject matter of this Agreement or the transactions contemplated hereby (other than for a claim of knowing fraud, willful misconduct or intentional misrepresentation) shall be pursuant to the indemnification provisions set forth in this Article X. Notwithstanding the foregoing, nothing in this Section 10.8 shall be deemed to limit the rights of Parent and Seller under Section 11.3(b) or the rights of Buyer under Section 11.3(d) hereof.

Section 11.1 Termination. Anything contained in this Agreement to the contrary notwithstanding, this Agreement may be terminated at any time prior to the Closing Date:

(b) by Buyer, if there has been a breach by Parent, Seller, or the Company of any of their respective representations, warranties, covenants or agreements contained in this Agreement, or any breach by any direct or indirect equity holder of Parent of any covenant or agreement contained in any Equity Holder Agreement to which such equity holder is a party that is to be performed prior to the Closing, in each case that would or would reasonably be expected to give rise to the failure of a condition set forth in Article VIII and Parent, Seller or the Company, as applicable, fails to cure such breach within thirty (30) Business Days after receipt of written notice thereof (except no cure period shall be provided for a breach which by its nature cannot be cured); provided, that neither Buyer nor Guarantor is then in material breach of any representation, warranty, covenant or agreement contained herein;

(c) by Seller, if there has been a breach by Buyer or Guarantor of any of their respective representations, warranties, covenants or agreements contained in this Agreement which would or would reasonably be expected to give rise to the failure of a condition set forth in Article IX and Buyer or Guarantor, as applicable, fails to cure such breach within thirty (30) Business Days after receipt of written notice thereof (except no cure period shall be provided for a breach which by its nature cannot be cured); provided, that neither Parent, Seller nor the Company is then in material breach of any representation, warranty, covenant or agreement contained herein;

(d) by Buyer or Seller if any final and non-appealable Court Order shall have been issued permanently restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; or

(e) by Buyer or Seller if the Closing shall not have occurred on or before June 7, 2010, or such later date as may be mutually agreed in writing by Buyer and Seller (the "Outside Date"); provided, that, in the event that all conditions to Closing set forth in Article VIII have been satisfied (other than the condition set forth in the first sentence of Section 8.3 and those conditions in Article VIII that, by their terms, may only be satisfied as of the Closing) on or prior to such date, the Outside Date shall, automatically and without further notice or other action by the parties hereto, be extended to December 9, 2010; provided, however, that the right to terminate this Agreement under this Section 11.1(e) shall not be available to any party who is in material breach of this Agreement as of the date of such proposed termination.

Section 11.2 Notice of Termination. Any party desiring to terminate this Agreement pursuant to Section 11.1 shall give written notice of such termination, which notice shall specify the Section of this Agreement pursuant to which it is being terminated, to the other party to this Agreement.

(a) If this Agreement shall be terminated pursuant to this Article XI, all further obligations of the parties under this Agreement (other than the obligations described in the last sentence of Section 6.1(b), Section 7.4, Section 10.2(a)(iii), this Section 11.3, and Article XII, each of which shall survive any such termination) shall be terminated without further Liability of any party to the other; provided, however, that nothing herein shall relieve any party from Liability for fraud, intentional misconduct or willful and wanton breach of this Agreement.

(b) In the event that this Agreement is terminated by Buyer or Seller pursuant to Section 11.1(d) or 11.1(e) and, in each case, at the time of such termination, (i) the conditions set forth in Article IX (other than (A) the conditions set forth in Sections 9.2 and 9.3 (but only to the extent the Court Order is issued or brought, or the approvals required to be obtained, are under applicable Antitrust Laws), (B) the delivery of certificates which (in light of the underlying facts as of the time of such termination and any waiver of the condition set forth in Section 9.1(a) deemed made pursuant to Section 11.1(e)) would be capable of being delivered but are to be delivered on the Closing Date and (C) such other conditions the failure of which to be satisfied by such date has been principally caused by a material breach by Buyer or Guarantor of any representation, warranty or covenant hereunder or the facts or circumstances underlying such breach), have been satisfied or (to the extent permitted by Requirements of Law) waived, (ii) Buyer does not have the right to terminate this Agreement pursuant to Section 11.1(b), and (iii) neither Buyer nor Seller has the right to terminate this Agreement pursuant to Section 11.1(d) for any reason other than that consummation of the transactions contemplated hereby would violate any Antitrust Law (or would have the right to so terminate assuming that the relevant Court Order referenced in Section 11.1(d) has become final and non-appealable at the time of such termination), then Buyer or Guarantor shall pay Seller a fee equal to $5,500,000 (the "Non-Clearance Termination Fee") by wire transfer of immediately available funds on the third Business Day following the date of such termination of this Agreement.

(c) Buyer and the Guarantor each acknowledges that the provisions contained in Section 11.3(b) constitute an integral part of the transactions contemplated by this Agreement, and that, without these agreements, neither Parent nor Seller would have entered into this Agreement. Accordingly, if Buyer or the Guarantor fails to promptly pay the Non-Clearance Termination Fee pursuant to Section 11.3(b), and, in order to obtain such payment Parent, Seller or the Company, as the case may be, commences a suit which results in a judgment against Buyer or the Guarantor, as applicable, for any of the amounts set forth in Section 11.3(b), then Buyer or the Guarantor shall pay to the Company its Expenses in connection with such suit, together with interest on the amount of the Non-Clearance Termination Fee

at the prime rate of JPMorgan Chase Bank, N.A. in effect on the date plus 2% per annum from the date such amount was required to be paid until the date actually received by the Company.

(d) Each of Parent, Seller, the Company, Buyer and Guarantor acknowledges and agrees that any breach or failure to perform any of the provisions of this Agreement or any Buyer Ancillary Agreement or Seller Ancillary Agreement in accordance with their specific terms would result in immediate and irreparable harm or injury for which money damages would not be an adequate remedy. Accordingly, each of Parent, Seller, the Company, Buyer and Guarantor agrees that, unless and until this Agreement has been terminated in accordance with its terms, each party shall be entitled, for any violation or threatened violation of the provisions of this Agreement or any Buyer Ancillary Agreement or Seller Ancillary Agreement, an injunction or injunctions to restrain such violation or threatened violation and to specifically enforce the terms and provisions of thereof without the necessity of posting a bond or other form of security. In the event that any action should be brought in equity to enforce the provisions of this Agreement or any Buyer Ancillary Agreement or Seller Ancillary Agreement, no party hereto or any of their respective Affiliates, will allege, and each party hereby waives the defense, that there is an adequate remedy at law.

Section 12.1 Survival of Representations, Warranties and Covenants. The representations, warranties and covenants contained in this Agreement and in any certificate delivered pursuant hereto shall, in each case, survive the consummation of the transactions contemplated by this Agreement, as follows:

(a) The indemnification provided for in Section 10.1(a)(ii) shall (i) with respect to Seller Fundamental Representations, survive indefinitely; (ii) with respect to the representations and warranties contained in Section 4.11 (Tax Matters), survive until the date that is six months after the expiration of the latest applicable statute of limitations period; (iii) with respect to the representations and warranties contained in Section 4.19 (Environmental Compliance) survive until the date that is three (3) years after the Closing Date; and (iv) with respect to all other representations and warranties contained in Article IV, survive until the earlier of (A) eighteen (18) months after the Closing Date and (B) the date that is 90 days after the receipt of the Company of audited consolidated financial statements of the Company as of and for the 12 month period ended December 31, 2010 (prepared in accordance with the Agreed Accounting Principles);

(b) The indemnification provided for in Section 10.2(a)(ii) shall (i) with respect to Buyer Fundamental Representations, survive indefinitely; and (ii) with respect to all other representations and warranties contained in Article V, survive until the earlier of (A) eighteen (18) months after the Closing Date and (B) the date that is 90 days after the receipt of the Company of audited consolidated financial statements of the Company as of and for the 12 month period ended December 31, 2010 (prepared in accordance with the Agreed Accounting Principles);

(c) The indemnification provided for in Section 10.1(a)(i) and Section 10.2(a)(i) shall survive until such covenant or obligation is performed or was required to have been performed;

(d) The indemnification provided for Section 10.1(a)(iii), Section 10.1(a)(iv), and Section 10.2(a)(iii) shall survive indefinitely.

Section 12.2 No Public Announcement. None of Buyer, Seller or the Company shall, without the approval of the others (including with respect to both timing and content), make or permit any of their respective Affiliates to make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that any such party shall be so obligated by Requirements of Law, in which case the other parties shall be advised and shall use

their reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with the accounting and the Securities and Exchange Commission disclosure obligations or the rules of any stock exchange.

Section 12.3 Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed given or delivered when delivered personally or when actually received when sent by registered or certified mail or by private courier addressed as follows:

or to such other address as such party may indicate by a notice delivered to the other party hereto.

Section 12.4 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however, that no party to this Agreement may assign its rights prior to the Closing or delegate its obligations under this Agreement without the express prior written consent of the other parties to this Agreement. Following the Closing, any party may assign any of its rights hereunder, but no such assignment shall relieve it of its obligations hereunder.

Section 12.5 Access to Records after Closing. For a period of six (6) years after the Closing Date, Seller and its representatives, on the one hand, and Buyer and its Affiliates on the other hand, shall have reasonable access to all of the books and records of the Company and the Subsidiaries in the possession of the other party (including those books and records of the Company primarily related to the Retained Assets and the Retained Liabilities to the extent such retained books and records relate to any of the theatres, properties, assets or Liabilities transferred to Buyer at Closing) to the extent that such access may reasonably be required by Seller or Buyer, as applicable, including in connection with any Proceeding before any Governmental Body or with respect to Taxes, in each case to the extent related to the operations of the Company and the Subsidiaries on or prior to the Closing Date. Such access shall be afforded by Buyer or Seller, as applicable, upon receipt of reasonable advance notice and during normal business hours. Buyer or Seller, as applicable, shall be solely responsible for any costs or expenses incurred by it pursuant to this Section 12.5. If Seller, on the one hand, or Buyer or the Company on the other hand, shall desire to dispose of any of such books and records prior to the expiration of such 6-year period, such party shall, prior to such disposition, give the other party a reasonable opportunity, at such other party's expense, to segregate and remove such books and records as such other party may select.

Section 12.6 Entire Agreement; Amendments. This Agreement, the Exhibits and Schedules referred to herein, the documents delivered pursuant hereto (including the Seller Ancillary Agreements and Buyer Ancillary Agreements) and the Confidentiality Agreement contain the entire understanding of the parties hereto with regard to the subject matter contained herein or therein, and supersede all other prior representations, warranties, agreements, understandings or letters of intent between or among any of the parties hereto. This Agreement shall not be amended, modified or supplemented except by a written instrument signed by Buyer, the Company and Seller.

Section 12.7 Interpretation. Disclosure of any fact or item in any Schedule hereto referenced by a particular section in this Agreement shall be deemed to have been disclosed with respect to every other section in this Agreement to which such fact's or item's relevance is reasonably apparent. Unless this Agreement specifically provides otherwise, (i) neither the specification of any dollar amount in any representation or warranty contained in this Agreement nor the inclusion of any specific item in any Schedule hereto shall be deemed to imply that such amount, or higher or lower amounts, or the item so included or other items, are or are not material, and no party shall use the fact of the setting forth of any such amount or the inclusion of any such item in any dispute or controversy between the parties as to whether any obligation, item or matter not described herein or included in any Schedule is or is not material for purposes of this Agreement; (ii) except for those items specified in Section 6.4(b) or included in any schedule related to Section 6.4, neither the specification of any item or matter in any representation or warranty contained in this Agreement nor the inclusion of any specific item in any Schedule hereto is intended to imply that such item or matter, or other items or matters, are or are not in the ordinary course of business, and no party shall use the fact of the setting forth or the inclusion of any such item or matter in any dispute or controversy between the parties as to whether any obligation, item or matter not described herein or included in any Schedule is or is not in the ordinary course of business for purposes of this Agreement. Pursuant to Section 6.2, Seller and the Company may, from time to time prior to the Closing, deliver written Updated Schedules to Buyer. No such Updated Schedule shall be evidence, in and of itself, that the representations and warranties in the corresponding section are no longer true and correct in all material respects. No such Updated

Schedules shall be deemed to cure any breach that exists as of the date hereof for purposes of Section 8.1. If, however, the Closing occurs, any such Updated Schedules will be effective to cure and correct for purposes of Article X, any breach of any representation or warranty which would have existed if Seller or the Company had not delivered such Updated Schedules, and all references to any Schedule which is supplemented or amended as provided in Section 6.2 shall for purposes after the Closing be deemed to be a reference to such Schedule as so supplemented or amended by such Updated Schedule.

Section 12.8 Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an authorized representative of such party. The failure of any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach.

Section 12.9 Expenses. Except as expressly set forth herein, each party hereto will pay all costs and expenses incident to its negotiation and preparation of this Agreement and to its performance and compliance with all agreements and conditions contained herein on its part to be performed or complied with, including the fees, expenses and disbursements of its counsel and independent public accountants; provided, however, that all Transaction Costs shall be the responsibility of Buyer to the extent included in Closing Date Working Capital. Notwithstanding anything herein to the contrary, in the event that any Transaction Costs are either not paid prior to Closing or not reflected in the Closing Date Working Capital, any and all such Transaction Costs shall be payable solely by Seller and none of Buyer, the Company or any Subsidiary shall have any Liability therefor.

Section 12.10 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

Section 12.11 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each of the parties hereto and delivered to Seller, the Company and Buyer.

(a) Each of the parties hereto agrees to use its commercially reasonable efforts to take or cause to be taken all action, to do or cause to be done, and to assist and cooperate with the other party in doing, all things reasonably necessary, proper or advisable under applicable Requirements of Law or otherwise to consummate and make effective, the transactions contemplated by this Agreement, including: (i) the satisfaction of the conditions precedent to the obligations of such party; and (ii) the execution and delivery of such instruments, and the taking of such other actions as may reasonably be requested in order to carry out the intent of this Agreement; provided, however, that notwithstanding the foregoing, no party hereto or their respective Affiliates shall be required to make any material monetary expenditure, commence or participate in any Proceeding before any Government Body or offer or grant any material accommodation (financial or otherwise) to any Person in connection with the obligations described in this Section 12.12. Notwithstanding the foregoing, in the event (and to the extent) of any inconsistency between the terms and conditions of this Section 12.12 and the terms and

conditions of any other Section of this Agreement, including Section 6.3, the terms and conditions of such other Section shall control.

(b) Following the Closing, Seller shall, and shall cause its Affiliates (including its direct and indirect equity holders) to (i) provide to the Buyer and its advisors and representatives, upon reasonable advance notice and without undue interruption to Seller's business, access during normal business hours to the books and records of the Company pertaining to the operation of the Company's business, properties and personnel prior to the Closing (to the extent retained by Seller) and (ii) assist and cooperate with the Buyer, its auditors, and, if different from Buyer's auditors, the auditors of the Financial Statements, to the extent reasonably requested by the Buyer or such auditors (including, without limitation, by providing customary documentation, including representation letters, to the Buyer or such auditors), in each case, in connection with (a) the preparation of the financial statements of the Buyer and its Affiliates, (b) the use and disclosure of the Financial Statements, any other financial information of the Company and the Subsidiaries relating to the period prior to Closing, and of any successor financial statements and other information derived therefrom, in connection with any Filings, (c) the Buyer obtaining customary comfort letters from its auditors or, if different, the auditors of the Financial Statements in connection with any Filings, (d) the Buyer obtaining such auditor's consent to use their audit reports and comfort letters in connection with any Filings and (e) conforming the Financial Statements for use in any Filings; provided that the Buyer will reimburse Seller for any and all of its expenses reasonably incurred by it and its Affiliates and representatives in connection with providing such cooperation; provided further that none of Parent, Seller or any of their respective Affiliates shall be deemed to have made any representation or warranty with respect to any information provided pursuant to this Section 12.12 except as specifically set forth in Article IV hereof. "Filings" means, with respect to the Buyer and/or its Affiliates, any (i) issuance of securities in transactions registered under the Securities Act, or in transactions exempt from the registration requirements thereunder, (ii) filings with, or reporting obligations under, the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (or similar filings or reporting obligations in other relevant jurisdictions or under Requirements of Law), and (iii) the provision of information to investors and Governmental Bodies in connection with such securities.

Section 12.13 Disclaimer of Warranties. Buyer acknowledges that it has conducted an independent investigation and verification of the financial condition, results of operations, assets, liabilities, properties and projected operations of Seller, the Company and the Subsidiaries, taken as a whole, and, in making its determination to proceed with the transactions contemplated by this Agreement, Buyer has relied on the results of its own independent investigation and verification and the representations and warranties of Parent and Seller expressly and specifically set forth in Article IV, as qualified by the Schedules and Updated Schedules. Neither Parent nor Seller nor the Company make any representations or warranties with respect to any projections, forecasts or forward-looking information provided to Buyer, except as set forth in Article IV. There is no assurance that any projected or forecasted results will be achieved. EXCEPT AS TO THOSE MATTERS EXPRESSLY COVERED BY THE REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND THE CERTIFICATES DELIVERED BY PARENT, SELLER AND THE COMPANY PURSUANT TO SECTION 8.1, (i) SELLER IS SELLING THE UNIT (AND THE BUSINESS AND ASSETS OF THE COMPANY REPRESENTED THEREBY) ON AN "AS IS, WHERE IS" BASIS AND PARENT, SELLER AND THE COMPANY DISCLAIM ALL OTHER WARRANTIES, REPRESENTATIONS AND GUARANTEES WHETHER EXPRESS OR IMPLIED AND (ii) NEITHER PARENT NOR SELLER NOR THE COMPANY MAKE ANY REPRESENTATION OR WARRANTY AS TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AND NO IMPLIED WARRANTIES WHATSOEVER. Buyer acknowledges that neither Parent nor Seller, except as set forth in Article IV, nor the Company or any of their respective representatives or Affiliates or any other Person has made any representation or warranty, express or implied, as to the accuracy or completeness of any memoranda, charts or summaries heretofore made available by Parent, Seller, the Company or

their representatives or Affiliates to Buyer or any other information which is not included in this Agreement or the Schedules (including any Updated Schedules delivered to Buyer pursuant to Section 6.2), and none of Parent, Seller, the Company or any of their representatives or Affiliates or any other Person will have or be subject to any Liability to Buyer, any Affiliate of Buyer or any other Person resulting from the distribution of any such information to, or use of any such information by, Buyer, any Affiliate of Buyer or any of their agents, consultants, accountants, counsel or other representatives.

Section 12.14 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

(a) This Agreement and all matters arising out of or in connection with the subject matter hereof shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

(b) By the execution and delivery of this Agreement, Buyer, Seller and the Company submit to the personal jurisdiction of any state or federal court in the State of Illinois in any suit or Proceeding arising out of or relating to this Agreement. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 12.15 Binding Effect. This Agreement will be binding on and inure solely to the benefit of each party hereto, and, except as expressly set forth in Article X, nothing in this Agreement, express or implied, is intended to or will confer upon any other Person any right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.

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

1.1 Establishment. AMC Entertainment Holdings, Inc., a Delaware corporation (the "Company"), hereby establishes the 2010 Equity Incentive Plan (the "Plan") as set forth herein.

1.2 Purpose of Plan. The purpose of this Plan is to attract, retain and motivate officers, employees, non-employee directors, and consultants of the Company and its Subsidiaries and Affiliates and to promote the success of the Company's business by providing the Participants with appropriate incentives.

Whenever capitalized in this Plan, the following terms shall have the meanings set forth below.

2.2 "Annual Award Limit" shall have the meaning set forth in Section 5.1(b) hereof.

2.3 "Award" means any Option, Stock Appreciation Right, Restricted Stock, Other Stock-Based Award, or Performance-Based Compensation that is granted under this Plan.

2.4 "Award Agreement" means either (a) a written agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, or (b) a written statement issued by the Company, a Subsidiary, or Affiliate to a Participant describing the terms and conditions of the actual grant of such Award.

2.6 "Capital Stock" of any Person means any and all shares, interest, participations or other equivalents (however designated) of such Person's capital stock, including preferred stock, any rights (other than debt securities convertible into capital stock), warrant or options to acquire such capital stock, whether outstanding as of the Effective Date or issued thereafter.

2.7 "Change of Control" unless otherwise specified in the Award Agreement, means an event or series of events that results in any of the following:

provided, that, in no event shall a Change of Control be deemed to occur, for purposes of this Plan and any Award Agreement, as a result of (i) an IPO or (ii) a change in the majority of the Incumbent Board in connection with an IPO or a secondary public offering.

2.8 "Code" means the U.S. Internal Revenue Code of 1986, as amended from time to time.

2.9 "Committee" means the Compensation Committee of the Board or any other committee designated by the Board to administer this Plan. If the Shares are traded on an established market, the Committee shall be comprised of at least two members, each of whom shall be (a) a Non-Employee Director, (b) an Outside Director, and (c) an "independent director" within the meaning of the listing requirements of any exchange on which the Company is listed.

2.10 "Consultant" means any person who provides bona fide services to the Company or any Subsidiary or Affiliate as a consultant or advisor, excluding any Employee or Director.

2.11 "Covered Employee" means for any Plan Year, a Participant designated by the Company as a potential "covered employee" as such term is defined in Section 162(m) of the Code.

2.13 "Effective Date" means the date set forth in Section 14.14 hereof.

2.14 "Employee" means an officer or other employee of the Company, a Subsidiary or Affiliate, including a member of the Board who is an employee of the Company, a Subsidiary or Affiliate.

2.15 "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

2.16 "Fair Market Value" means, as of any date, the per Share value determined as follows, in accordance with applicable provisions of Section 409A of the Code:

2.17 "Incentive Stock Option" means an Option intended to meet the requirements of an incentive stock option as defined in Section 422 of the Code and designated as an Incentive Stock Option.

2.18 "Initial Public Offering" or "IPO" shall mean the first completion of a sale of common stock of the Company pursuant to a registration statement which has become effective under the Securities Act (excluding registration statements on Form S-4, S-8 or similar limited purpose forms), in which the Common Stock shall be listed and traded on a national exchange or on the NASDAQ National Market System.

2.19 "Non-Employee Director" means a person defined in Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission.

2.20 "Nonqualified Stock Option" means an Option that is not an Incentive Stock Option.

2.21 "Other Stock-Based Award" means any right granted under Article 9 hereof.

2.22 "Option" means any stock option granted from time to time under Article 6 hereof.

2.23 "Option Price" means the purchase price per Share subject to an Option, as determined pursuant to Section 6.2 hereof.

2.24 "Outside Director" means a member of the Board who is an "outside director" within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

2.25 "Participant" means any eligible person as set forth in Section 4.1 hereof to whom an Award is granted.

2.26 "Performance-Based Compensation" means compensation under an Award that is intended to constitute "qualified performance-based compensation" within the meaning of the regulations promulgated under Section 162(m) of Code or any successor provision.

2.27 "Performance Measures" means measures as described in Section 10.2 on which the performance goals are based in order to qualify Awards as Performance-Based Compensation.

2.28 "Performance Period" means the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to an Award.

2.29 "Person" means any natural person, sole proprietorship, general partnership, limited partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, governmental authority, or any other organization, irrespective of whether it is a legal entity and includes any successor (by merger or otherwise) of such entity.

2.31 "Restricted Stock" means any Award granted under Article 8 hereof.

2.32 "Restriction Period" means the period during which Restricted Stock awarded under Article 8 of this Plan is subject to forfeiture.

2.34 "Share" means a share of common stock of the Company, par value $0.01 per share, or such other class or kind of shares or other securities resulting from the application of Article 12 hereof.

2.35 "Stock Appreciation Right" means any right granted under Article 7 hereof.

2.36 "Subsidiary" means (i) any corporation of which more than 50% of the outstanding shares of Capital Stock having ordinary voting power for the election of directors is owned directly or indirectly by such Person; and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person, directly or indirectly, has a more than 50% equity interest.

2.37 "Ten Percent Shareholder" means a person who on any given date owns, either directly or indirectly (taking into account the attribution rules contained in Section 424(d) of the Code), stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company or a Subsidiary or Affiliate.

3.1 Authority of the Committee. This Plan shall be administered by the Committee, which shall have full power to interpret and administer this Plan and Award Agreements and full authority to select the Participants to whom Awards will be granted, to determine the type and amount of Awards to be granted to each such Participant and the terms and conditions of Awards and Award Agreements, and to make such Award grants to such Participants and enter into the related Award Agreements. Without limiting the generality of the foregoing, the Committee may, in its sole discretion, but subject to the limitations in Article 11, Section 6.6, and Section 10.6 hereof, clarify, construe or resolve any ambiguity in any provision of this Plan or any Award Agreement, extend the term or period of exercisability of any Awards, or waive any terms or conditions applicable to any Award. Awards may, in the discretion of the Committee, be made under this Plan in assumption of, or in substitution for, outstanding awards previously granted by the Company or any of its Subsidiaries or Affiliates or a company acquired by the Company or with which the Company combines. The Committee shall have full and exclusive discretionary power to adopt rules, forms, instruments, and guidelines for administering this Plan as the Committee deems necessary or proper. Notwithstanding anything in this Section 3.1 to the contrary, the Board, or any other committee or sub-committee established by the Board, is hereby authorized (in addition to any necessary action by the Committee) to grant or approve Awards as necessary to satisfy the requirements of Section 16 of the Exchange Act and the rules and regulations thereunder and to act in lieu of the Committee with respect to Awards made to Non-Employee Directors under this Plan. All actions taken and all interpretations and determinations made by the Committee or by the Board (or any other committee or sub-committee thereof), as applicable, shall be final and binding upon the Participants, the Company, and all other interested individuals.

3.2 Delegation. The Committee may delegate to one or more of its members, one or more officers of the Company or any of its Subsidiaries or Affiliates, and one or more agents or advisors such administrative duties or powers as it may deem advisable; provided, that, the Committee shall not delegate to officers of the Company or any of its Subsidiaries or Affiliates the power to make grants of Awards to officers of the Company or any of its Subsidiaries or Affiliates; provided, further, that, no delegation shall be permitted under this Plan that is prohibited by applicable law.

4.1 Eligibility. Participants will consist of such Employees, Directors and Consultants as the Committee in its sole discretion determines and whom the Committee may designate from time to time to receive Awards. Designation of a Participant in any year shall not require the Committee to designate such person to receive an Award in any other year or, once designated, to receive the same type or amount of Award as granted to the Participant in any other year.

4.2 Type of Awards. Awards under this Plan may be granted in any one or a combination of: (a) Options, (b) Stock Appreciation Rights, (c) Restricted Stock, (d) Other Stock-Based Awards, and (e) Performance-Based Compensation Awards. This Plan sets forth the performance goals and procedural requirements to permit the Company to design Awards that qualify as Performance-Based Compensation, as described in Article 10 hereof. Awards granted under this Plan shall be evidenced by Award Agreements (which need not be identical) that provide additional terms and conditions associated with such Awards, as determined by the Committee in its sole discretion; provided, however, that in the event of any conflict between the provisions of this Plan and any such Award Agreement, the provisions of this Plan shall prevail.

6.1 Grant of Options. The Committee is hereby authorized to grant Options to Participants. Each Option shall permit a Participant to purchase from the Company a stated number of Shares at an Option Price established by the Committee, subject to the terms and conditions described in this Article 6 and to such additional terms and conditions, as established by the Committee, in its sole discretion, that are consistent with the provisions of this Plan. Options shall be designated as either Incentive Stock Options or Nonqualified Stock Options, provided that Options granted to Directors shall be Nonqualified Stock Options. An Option granted as an Incentive Stock Option shall, to the extent it fails to qualify as an Incentive Stock Option, be treated as a Nonqualified Stock Option. Neither the Committee nor the Company or any of its Subsidiaries or Affiliates shall be liable to any

Participant or to any other Person if it is determined that an Option intended to be an Incentive Stock Option does not qualify as an Incentive Stock Option. Options shall be evidenced by Award Agreements which shall state the number of Shares covered by such Option. Such Award Agreements shall conform to the requirements of this Plan, and may contain such other provisions, as the Committee shall deem advisable.

6.2 Terms of Option Grant. The Option Price shall be determined by the Committee at the time of grant, but shall not be less than 100% of the Fair Market Value of a Share on the date of grant. In the case of any Incentive Stock Option, the Option Price shall be (a) if granted to a person other than a Ten Percent Shareholder, not less than 100% of the Fair Market Value of a Share on the date of grant or (b) if granted to a Ten Percent Shareholder, not less than 110% of the Fair Market Value of a Share on the date of grant.

6.3 Option Term. The term of each Option shall be determined by the Committee at the time of grant and shall be stated in the Award Agreement, but in no event shall such term be greater than ten years (or, in the case on an Incentive Stock Option granted to a Ten Percent Shareholder, five years).

6.4 Time of Exercise. Options granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.

6.5 Method of Exercise. Except as otherwise provided in this Plan or in an Award Agreement, an Option may be exercised for all, or from time to time any part, of the Shares for which it is then exercisable. For purposes of this Article 6, the exercise date of an Option shall be the later of the date a notice of exercise is received by the corporate secretary of the Company and, if applicable, the date full payment is received by the Company pursuant to clauses: (a), (b), (c) (d), or (e) in the following sentence (including the applicable tax withholding pursuant to Section 14.3 hereof). The aggregate Option Price for the Shares as to which an Option is exercised shall be paid to the Company at the election of the Participant (a) in cash or its equivalent (e.g., by cashier's check), (b) to the extent permitted by the Committee, in Shares (whether or not previously owned by the Participant) having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee, (c) partly in cash and, to the extent permitted by the Committee, partly in such Shares (as described in (b) above), (d) to the extent permitted by the Committee, by reducing the number of Shares otherwise deliverable upon the exercise of the Option by the number of Shares having a Fair Market Value equal to the Option Price, or (e) if there is a public market for the Shares at such time, subject to such requirements as may be imposed by the Committee, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the aggregate Option Price for the Shares being purchased. The Committee may prescribe any other method of payment that it determines to be consistent with applicable law and the purpose of this Plan. In addition, the Participant must deliver to the corporate secretary any representations and documents as the Committee (or the Board, in the case of Options granted to Non-Employee Directors) deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act, Exchange Act and any other federal or states securities laws or regulations. The Committee (or the Board in the case of Options granted to Non-Employee Directors) may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer orders to transfer agents and registrars.

6.6 Limitations on Incentive Stock Options. Incentive Stock Options may be granted only to employees of the Company or of a "parent corporation" or "subsidiary corporation" (as such terms are defined in Section 424 of the Code) at the date of grant. To the extent the aggregate Fair Market Value

(generally determined as of the time the Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year under all plans of the Company and of any "parent corporation" or "subsidiary corporation" exceeds $100,000, the amount in excess of $100,000 (and the portion of any Option relating thereto) shall be treated as a Nonqualified Stock Option. For purposes of the preceding sentence, Incentive Stock Options will be taken into account generally in the order in which they are granted. Each provision of this Plan and each Award Agreement relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in Section 422 of the Code, and any provisions of the Award Agreement thereof that cannot be so construed shall be disregarded.

7.1 Grant of Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation Rights to Participants. Stock Appreciation Rights shall be evidenced by Award Agreements that shall conform to the requirements of this Plan and may contain such other provisions, as the Committee shall deem advisable. Subject to the terms of this Plan and any applicable Award Agreement, a Stock Appreciation Right granted under this Plan shall confer on the holder thereof a right to receive, upon exercise thereof, the excess of (a) the Fair Market Value of a specified number of Shares on the date of exercise over (b) the Fair Market Value of such specified number of Shares on the date of the grant. Such payment may be in the form of cash, Shares, other property or any combination thereof, as the Committee shall determine in its sole discretion.

7.2 Terms of Stock Appreciation Right. Subject to the terms of this Plan and any applicable Award Agreement, the grant price (which shall not be less than 100% of the Fair Market Value of a Share on the date of grant), term, methods of exercise, methods of settlement, and any other terms and conditions of any Stock Appreciation Right shall be as determined by the Committee. The Committee may impose such other conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate. No Stock Appreciation Right shall have a term of more than ten years from the date of grant.

8.1 Grant of Restricted Stock. The Committee is hereby authorized to grant and otherwise issue Restricted Stock to Participants. An Award of Restricted Stock is a grant by the Committee of a specified number of Shares to the Participant, which Shares are subject to forfeiture upon the occurrence of specified events. Participants shall be awarded Restricted Stock in exchange for consideration not less than the minimum consideration required by applicable law. Restricted Stock shall be evidenced by an Award Agreement, which shall conform to the requirements of this Plan and may contain such other provisions, as the Committee shall deem advisable.

8.2 Terms of Restricted Stock Awards. Each Award Agreement evidencing a Restricted Stock grant shall specify Restriction Period(s), the number of Shares of Restricted Stock subject to the Award, the performance, employment or other conditions (including the termination of a Participant's service whether due to death, disability or other reason) under which the Restricted Stock may be forfeited to the Company and such other provisions as the Committee shall determine. Any Restricted Stock granted under this Plan shall be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates (in which case, the certificate(s) representing such Shares shall be legended as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and deposited by the Participant, together with a stock power endorsed in blank, with the Company, to be held in escrow during the Restriction Period). At the end of the Restriction Period, the restrictions imposed hereunder and under the Award Agreement shall lapse with respect to the number of Shares of Restricted Stock as determined by the Committee, and the legend shall be removed and such number of Shares delivered to the Participant (or, where appropriate, the Participant's legal representative).

8.3 Voting and Dividend Rights. The Committee shall determine and set forth in a Participant's Award Agreement whether or not a Participant holding Restricted Stock granted hereunder shall have the right to exercise voting rights with respect to the Restricted Stock during the Restriction Period (the Committee may require a Participant to grant an irrevocable proxy and power of substitution) and/or have the right to receive dividends on the Restricted Stock during the Restriction Period (and, if so, on what terms).

8.4 Performance Goals. The Committee may condition the grant of Restricted Stock or the expiration of the Restriction Period upon the Participant's achievement of one or more performance goal(s) specified in the Award Agreement. If the Participant fails to achieve the specified performance goal(s), the Committee shall not grant the Restricted Stock to such Participant or the Participant shall forfeit the Award of Restricted Stock to the Company, as applicable.

8.5 Section 83(b) Election. If a Participant makes an election pursuant to Section 83(b) of the Code concerning Restricted Stock, the Participant shall be required to file promptly a copy of such election with the Company.

The Committee, in its sole discretion, may grant Awards of Shares and Awards that are valued, in whole or in part, by reference to, or are otherwise based on the Fair Market Value of Shares (the "Other Stock-Based Awards"), including without limitation, restricted stock units, dividend equivalent rights, and other phantom awards. Such Other Stock-Based Awards shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive one or more Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Each Other Stock-Based Award shall be evidenced by an Award Agreement which shall conform to the requirements of this Plan. Subject to the provisions of this Plan, the Committee shall determine to whom and when Other Stock-Based Awards will be made, the number of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards, whether such Other Stock-Based Awards shall be settled in cash, Shares or a combination of cash and Shares, and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and issued shall be fully paid and non-assessable).

10.1 Grant of Performance-Based Compensation Awards. To the extent permitted by Section 162(m) of the Code, the Committee is authorized to design any Award so that the amounts or Shares payable or distributed pursuant to such Award are treated as "qualified performance-based compensation" within the meaning of Section 162(m) of the Code and related regulations.

10.2 Performance Measures. The vesting, crediting and/or payment of Performance-Based Compensation shall be based on the achievement of objective performance goals based on one or more of the following Performance Measures: (a) sales or revenue; (b) earnings per share; (c) measurable achievement in quality, operation and compliance initiatives; (d) objectively determinable measure of non-financial operating and management performance objectives (including, but not limited to, employee engagement); (e) net earnings (either before or after interest, taxes, depreciation and amortization); (f) economic value-added (as determined by the Committee); (g) net income (either before or after taxes); (h) operating earnings; (i) cash flow (including, but not limited to, operating cash flow and free cash flow); (j) cash flow return on capital; (k) return on net assets; (l) return on stockholders' equity; (m) return on assets; (n) return on capital; (o) stockholder returns, dividends and/or other distributions; (p) return on sales; (q) gross or net profit margin; (r) productivity; (s) expenses; (t) margins; (u) operating efficiency; (v) customer satisfaction; (w) measurable achievement in quality and compliance

initiatives; (x) working capital; (y) debt; (z) debt reduction; (aa) price per share of stock; (bb) market share; (cc) completion of acquisitions; (dd) business expansion; (ee) product diversification; and (ff) new or expanded market penetration. The foregoing criteria shall have any reasonable definitions that the Committee may specify, which may include or exclude any or all of the following items, as the Committee may specify: (pp) extraordinary, unusual or non-recurring items; (qq) effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results; (rr) effects of currency fluctuations; (ss) effects of financing activities (e.g., effect on earnings per share of issuing convertible debt securities); (tt) expenses for restructuring, productivity initiatives or new business initiatives; (uu) impairment of tangible or intangible assets; (vv) litigation or claim judgments or settlements; (ww) non-operating items; (xx) acquisition expenses; (yy) discontinued operations; and (zz) effects of assets sales or divestitures. Any Performance Measure may be used to measure the performance of the Company and/or any of the Subsidiaries or Affiliates as a whole, any business unit thereof or any combination thereof against any goal including past performance or compared to the performance of a group of comparable companies, or a published or special index, in each case that the Committee, in its sole discretion, deems appropriate.

10.3 Establishment of Performance Goals for Covered Employees. No later than 90 days after the commencement of a Performance Period (but in no event after 25% of such Performance Period has elapsed), the Committee shall establish in writing: (a) the performance goals applicable to the Performance Period; (b) the targets to be used to measure the performance goals in terms of an objective formula or standard; (c) the formula for computing the amount of compensation payable to the Participant if such performance goals are obtained; and (d) the Participants or class of Participants to which such performance goals apply. The outcome of such performance goals must be substantially uncertain when the Committee establishes the goals.

10.4 Adjustment of Performance-Based Compensation. Awards that are designed to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines.

10.5 Approval of Performance-Based Compensation. The vesting and settlement of Performance-Based Compensation Awards shall be contingent upon the approval of this Plan by a majority of the stockholders of the Company, including the applicable Performance Measures relating thereto. To the extent necessary for purposes of Section 162(m) of the Code, this Plan shall be resubmitted to stockholders for their reapproval with respect to bonuses payable for the taxable years of the Company commencing on and after the fifth (5^th) anniversary of the initial stockholder approval, or at such earlier time required by Section 162(m) of the Code.

10.6 Certification of Performance. Except for Awards that pay compensation attributable solely to an increase in the value of Shares, no Award designed to qualify as Performance-Based Compensation shall be vested, credited or paid, as applicable, with respect to any Participant until the Committee certifies in writing that the performance goals and any other material terms applicable to such Performance Period have been satisfied.

10.7 Terms of Performance-Based Compensation Awards. Each provision of this Plan and each Award Agreement relating to Performance-Based Compensation shall be construed so that each such Award shall be "qualified performance-based compensation" within the meaning of Section 162(m) of the Code and related regulations, and any provisions of the Award Agreement thereof that cannot be so construed shall be disregarded.

11.1 General. The Company intends that all Awards be structured in compliance with, or to satisfy an exemption from, Section 409A of the Code and all regulations, guidance, compliance

programs and other interpretative authority thereunder ("Section 409A"), such that there are no adverse tax consequences, interest, or penalties under Section 409A as a result of the payments. Notwithstanding the Company's intention, in the event any Award is subject to Section 409A, the Committee may, in its sole discretion and without a Participant's prior consent, amend this Plan and/or Awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and actions with retroactive effect) as are necessary or appropriate to (a) exempt this Plan and/or any Award from the application of Section 409A, (b) preserve the intended tax treatment of any such Award, or (c) comply with the requirements of Section 409A, including without limitation any such regulations guidance, compliance programs and other interpretative authority that may be issued after the date of the grant.

11.2 Payments to Specified Employees. Notwithstanding any contrary provision in this Plan or Award Agreement, any payment(s) of nonqualified deferred compensation (within the meaning of Section 409A) that are otherwise required to be made under this Plan to a "specified employee" (as defined under Section 409A) as a result of his or her separation from service (other than a payment that is not subject to Section 409A) shall be delayed for the first six months following such separation from service (or, if earlier, until the date of death of the specified employee) and shall instead be paid (in a manner set forth in the Award Agreement) on the day that immediately follows the end of such six-month period or as soon as administratively practicable thereafter. Any remaining payments of nonqualified deferred compensation shall be paid without delay and at the time or times such payments are scheduled to be made.

11.3 Separation from Service. A termination of service shall not be deemed to have occurred for purposes of any provision of this Plan or any Award Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of service, unless such termination is also a "separation from service" within the meaning of Section 409A and the payment thereof prior to a "separation from service" would violate Section 409A. For purposes of any such provision of this Plan or any Award Agreement relating to any such payments or benefits, references to a "termination," "termination of employment," "termination of service," or like terms shall mean "separation from service."

12.1 Adjustments in Authorized Shares. In the event of any corporate event or transaction involving the Company, a Subsidiary and/or an Affiliate (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, stock dividend, stock split, reverse stock split, split up, spin-off, combination of Shares, exchange of Shares, dividend in kind, amalgamation, or other like change in capital structure (other than normal cash dividends to stockholders of the Company), or any similar corporate event or transaction, the Committee, to prevent dilution or enlargement of Participants' rights under this Plan, shall substitute or adjust, , as applicable, the number and kind of Shares or other property that may be issued under this Plan or under particular forms of Awards, the number and kind of Shares or other property subject to outstanding Awards, the Option Price, grant price or purchase price applicable to outstanding Awards, the Annual Award Limits, and/or other value determinations applicable to this Plan or outstanding Awards; provided that the Committee, in its sole discretion, shall determine the methodology or manner of making such substitution or adjustment. The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect such changes or distributions and may modify any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods.

12.2 Change of Control. Upon the occurrence of a Change of Control after the Effective Date, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any

governing governmental agencies or national securities exchanges, or unless the Committee shall determine otherwise in the Award Agreement, the Committee is authorized (but not obligated) to make adjustments in the terms and conditions of outstanding Awards, including without limitation the following (or any combination thereof): (a) continuation or assumption of such outstanding Awards under this Plan by the Company (if it is the surviving company or corporation) or by the surviving company or corporation or its parent; (b) substitution by the surviving company or corporation or its parent of awards with substantially the same terms for such outstanding Awards (excluding the consideration payable upon settlement of the Awards); (c) accelerated exercisability, vesting and/or lapse of restrictions under outstanding Awards immediately prior to the occurrence of such event; (d) upon written notice, provide that any outstanding Awards must be exercised, to the extent then exercisable, during a reasonable period of time immediately prior to the scheduled consummation of the event, or such other period as determined by the Committee (contingent upon the consummation of the event), and at the end of such period, such Awards shall terminate to the extent not so exercised within the relevant period; and (e) cancellation of all or any portion of outstanding Awards for fair value (as determined in the sole discretion of the Committee and which may be zero) which, in the case of Options and Stock Appreciation Rights or similar Awards, may equal the excess, if any, of the value of the consideration to be paid in the Change of Control transaction to holders of the same number of Shares subject to such Awards (or, if no such consideration is paid, Fair Market Value of the Shares subject to such outstanding Awards or portion thereof being canceled) over the aggregate Option Price or grant price, as applicable, with respect to such Awards or portion thereof being canceled.

13.1 Duration of Plan. Unless sooner terminated as provided in Section 13.2 hereof, this Plan shall terminate on the tenth anniversary of the Effective Date.

13.2 Amendment, Modification, Suspension, and Termination of Plan. Subject to the terms of this Plan, the Committee may amend, alter, suspend, discontinue or terminate this Plan or any portion thereof or any Award (or Award Agreement) hereunder at any time, in its sole discretion. Without limiting the generality of the foregoing, the Committee may in its sole discretion amend the terms of outstanding Awards to reduce the Option Price of outstanding Options or Stock Appreciation Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights with an Option Price that is less than the Option Price of the original Options or Stock Appreciation Rights, and may take such any such action without stockholder approval.

14.1 No Right to Service or Award. The granting of an Award under this Plan shall impose no obligation on the Company, any Subsidiary or any Affiliate to continue the service of a Participant and shall not lessen or affect any right that the Company, any Subsidiary or any Affiliate may have to terminate the service of such Participant. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated).

14.2 Settlement of Awards; Fractional Shares. Each Award Agreement shall establish the form in which the Award shall be settled. The Committee shall determine whether cash, Awards, other securities or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be issued, rounded, forfeited, or otherwise eliminated.

14.3 Tax Withholding. The Company shall have the power and the right to deduct or withhold automatically from any amount deliverable under the Award or otherwise, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. With respect to required withholding, Participants may elect (subject to the Company's automatic withholding right set out above), subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction.

14.4 No Guarantees Regarding Tax Treatment. Participants (or their beneficiaries) shall be responsible for all taxes with respect to any Awards under this Plan. The Committee and the Company make no guarantees to any Person regarding the tax treatment of Awards or payments made under this Plan. Neither the Committee nor the Company has any obligation to take any action to prevent the assessment of any tax on any Person with respect to any Award under Section 409A of the Code or Section 457A of the Code or otherwise and none of the Company, any of its Subsidiaries or Affiliates, or any of their employees or representatives shall have any liability to a Participant with respect thereto.

14.5 Non-Transferability of Awards. Unless otherwise determined by the Committee, an Award shall not be transferable or assignable by the Participant except in the event of his death (subject to the applicable laws of descent and distribution) and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate. No transfer shall be permitted for value or consideration. An award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. Any permitted transfer of the Awards to heirs or legatees of the Participant shall not be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.

14.6 Conditions and Restrictions on Shares. The Committee may impose such other conditions or restrictions on any Shares received in connection with an Award as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received for a specified period of time or a requirement that a Participant represent and warrant in writing that the Participant is acquiring the Shares for investment and without any present intention to sell or distribute such Shares. The certificates for Shares may include any legend which the Committee deems appropriate to reflect any conditions and restrictions applicable to such Shares.

14.7 Awards to Non-U.S. Employees or Directors. To comply with the laws in countries other than the United States in which the Company or any Subsidiary or Affiliate operates or has Employees, Directors or Consultants, the Committee, in its sole discretion, shall have the power and authority to: (a) determine which Subsidiaries or Affiliates shall be covered by this Plan; (b) determine which Employees, Directors or Consultants outside the United States are eligible to participate in this Plan; (c) modify the terms and conditions of any Award granted to Employees, Directors or Consultants outside the United States to comply with applicable foreign laws; (d) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals; and (e) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.

14.8 Rights as a Stockholder. Except as otherwise provided herein or in the applicable Award Agreement, a Participant shall have none of the rights of a stockholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares.

14.9 Severability. If any provision of this Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, or as to any Person or Award, or would disqualify this Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of this Plan or the Award, such provision shall be stricken as to such jurisdiction, Person, or Award, and the remainder of this Plan and any such Award shall remain in full force and effect.

14.10 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments that the Company or any of its Subsidiaries or Affiliates may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other Person. To the extent that any Person acquires a right to receive payments from the Company under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts. This Plan is not subject to the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time.

14.11 No Constraint on Corporate Action. Nothing in this Plan shall be construed to (a) limit, impair, or otherwise affect the Company's right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets, or (b) limit the right or power of the Company to take any action which such entity deems to be necessary or appropriate.

14.12 Successors. All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.

14.13 Governing Law. This Plan and each Award Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction.

14.14 Effective Date. This Plan shall be effective as of the date of adoption by the Board, which date is set forth below (the "Effective Date").

14.15 Stockholder Approval. This Plan will be submitted for approval by the stockholders of the Company at an annual meeting or any special meeting of stockholders of the Company within 12 months of the Effective Date. Any Awards granted under this Plan prior to such approval of stockholders shall be effective as of the date of grant, but no such Award may be exercised or settled and no restrictions relating to any Award may lapse prior to such stockholder approval, and if stockholders fail to approve this Plan as specified hereunder, this Plan and any Award shall be terminated and cancelled without consideration.

This Plan was duly adopted and approved by the Board of Directors of the Company on the 8th day of July, 2010.

AMC Entertainment Holdings, Inc.
2010 Equity Incentive Plan

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

THIS NONQUALIFIED STOCK OPTION AWARD AGREEMENT (the "Award Agreement") is made effective as of the [ ] day of [ ], 2010 (the "Date of Grant"), between AMC Entertainment Holdings, Inc., a Delaware corporation (the "Company"), and [grantee] (the "Participant"):

WHEREAS, the Company has adopted the AMC Entertainment Holdings, Inc. 2010 Equity Incentive Plan (the "Plan"), which Plan is incorporated herein by reference and made a part of this Award Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the option provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

1. Grant of the Option. The Company hereby grants to the Participant the right and option (the "Option") to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate of [ ] Shares. The Option is intended to be a Non-Qualified Stock Option.

2. Option Price. The purchase price of the Shares subject to the Option shall be $[ ] per Share (the "Option Price").

3. Option Term. The term of the Option shall be ten (10) years, commencing on the Date of Grant (the "Option Term"). The Option shall automatically terminate upon the expiration of the Option Term, or at such earlier time specified herein or in the Plan.

4. Vesting of the Option. Subject to the Participant's continued service to the Company through the applicable vesting date, the Option shall vest in equal installments on each of the first four (4) anniversaries of the Date of Grant, such that twenty five percent (25%) of the Option vests on each such anniversary. At any time, the portion of the Option which has become vested in accordance with the terms hereof shall be called the "Vested Portion".

5. Acceleration of Vesting. Notwithstanding Section 4 hereof, if within the one (1) year period following a Change of Control, the Participant's service is terminated by the Company or any Affiliate without Cause, the Option shall immediately vest as of the date of such termination of service.

8. Restrictive Covenants. In consideration for the grant of the Option hereunder, the Participant agrees to comply with the covenants set forth in this Section 8.

Notwithstanding the foregoing, if the Participant is a party to an employment agreement or other agreement with the Company or any Affiliate and such agreement contains restrictive covenants, the restrictive covenants in such agreement will control for purposes of this Award Agreement; provided that in the event the restrictive covenants of the aforementioned agreement do not contain all the restrictions described in this Award Agreement, then the additional restrictions in the Award Agreement shall apply to the Participant in addition to the restrictions described in the aforementioned agreement.

9. Adjustment of Shares. In the event of any corporate event or transaction (as described in Section 12.1 of the Plan), the terms of this Award Agreement (including, without limitation, the number and kind of Shares subject to this Award Agreement and the Option Price) shall be adjusted as set forth in Section 12.1 of the Plan.

"Cause" shall mean, (i) a material breach by the Participant of any of the Participant's obligations under any written agreement with the Company or any of its Affiliates, (ii) a material violation by the Participant of any of the Company's policies, procedures, rules and regulations applicable to employees generally or to similarly situated employees, in each case, as they may be amended from time to time in the Company's sole discretion; (iii) the failure by the Participant to reasonably and substantially perform his or her duties to the Company or its Affiliates (other than as a result of physical or mental illness or injury) or the failure by the Participant to comply with reasonable directives of the Board; (iv) the Participant's willful misconduct (including abuse of controlled substances) or gross negligence that is injurious to the Company, its Affiliates or any of their customers, clients or employees; (v) the Participant's fraud, embezzlement, misappropriation of funds or beach of fiduciary duty against the Company or any of its Affiliates (or any predecessor thereto or successor thereof); or (vi) the commission by the Participant of a felony or other serious crime involving moral turpitude. Notwithstanding the foregoing, if the Participant is a party to an employment agreement with the Company or any Affiliate at the time of his or her termination of employment and such employment agreement contains a different definition of "cause" (or any derivation thereof), the definition in such employment agreement will control for purposes of this Award Agreement.

"Disability" shall mean a physical or mental impairment which, as reasonably determined in good faith by the Committee, renders the Participant unable to perform the essential functions of his or her employment or service with the Company or any Affiliate, even with reasonable accommodation that does not impose an undue hardship on the Company or any Affiliate, for a period of at least 180 consecutive days (or 180 days during any twelve (12) month period) unless a longer period is required by federal or state law, in which case that longer period would apply.

"Retirement" shall mean retirement from employment or service as a Director with the Company or any Affiliate, as determined by the Committee in its sole discretion.

11. No Right to Continued Service. The granting of the Option evidenced hereby and this Award Agreement shall impose no obligation on the Company or any Affiliate to continue the Service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate the service of such Participant.

12. Securities Laws/Legend on Certificates. The issuance and delivery of Shares shall comply (or be exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company's securities may then be traded. The Company shall not be obligated to file any registration statement under any applicable securities laws to permit the purchase or issuance of any Shares under the Plan or Awards, and accordingly any certificates for Shares or documents granting Awards may have an appropriate legend or statement of applicable restrictions endorsed thereon. If the Company deems it necessary to ensure that the issuance of Shares under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such Shares would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as the Company may reasonably request which satisfies such requirements.

13. Transferability. Unless otherwise provided by the Committee, the Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided, that, the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. During the Participant's lifetime, the Option is exercisable only by the Participant.

14. Withholding. No Shares will be issued pursuant to the exercise of this Option unless and until the Person exercising this Option shall have remitted to the Company an amount sufficient to satisfy any federal, state or local withholding tax requirements, or shall have made other arrangements satisfactory to the Company with respect to such taxes. The Participant may elect that all or any part of such withholding requirement be satisfied by retention by the Company of a portion of the Shares purchased upon exercise of this Option. If such election is made, the Shares so retained shall be credited against such withholding requirement at the Fair Market Value on the date of exercise. In no event, however, shall the Company accept Shares for payment of taxes in excess of required tax withholding rates.

15. Notices. Any notification required by the terms of this Award Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.

16. Entire Agreement. This Award Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

17. Waiver. No waiver of any breach or condition of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

18. Successors and Assigns. The provisions of this Award Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate, whether or not any such person shall have become a party to this Award Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

19. Choice of Law. This Award Agreement shall be governed by the law of the State of Delaware (regardless of the laws that might otherwise govern under applicable Delaware principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and remedies.

20. Option Subject to Plan. By entering into this Award Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The Option is subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

21. No Guarantees Regarding Tax Treatment. The Participant (or his beneficiaries) shall be responsible for all taxes with respect to the Option. The Committee and the Company make no guarantees regarding the tax treatment of the Option. Neither the Committee nor the Company has any obligation to take any action to prevent the assessment of any tax under Section 409A of the Code or Section 457A of the Code or otherwise and none of the Company, any Affiliate, or any of their employees or representatives shall have any liability to the Participant with respect thereto.

22. Amendment. The Committee may amend or alter this Award Agreement and the Option granted hereunder at any time, subject to the terms of the Plan.

23. Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

24. Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

AMC Entertainment Holdings, Inc.
920 Main Street
Suite 1400
Kansas City, MO 64105

1. Exercise of Option. This constitutes notice to AMC Entertainment Holdings, Inc. (the "Company") that pursuant to my Nonqualified Stock Option Award Agreement (the "Award Agreement") under the Company's 2010 Equity Incentive Plan (the "Plan") I elect to purchase the number of Shares of Company common stock set forth below and for the price set forth below. By signing and delivering this notice to the Company, I hereby acknowledge that I am the holder of the stock option (the "Option") exercised by this notice and have full power and authority to exercise the same.

2. Form of Payment. Forms of payment other than cash or its equivalent (e.g. by cashier's check) are limited by the Plan and are permissible only to the extent approved by the compensation committee of the Board of Directors of the Company (the "Committee") or any committee designated thereby, in its sole discretion.

3. Delivery of Payment. With this notice, I hereby deliver to the Company the full purchase price of the Optioned Shares and any and all withholding taxes due in connection with the exercise of my Option.

4. Rights as Stockholder. While the Company will endeavor to process this notice in a timely manner, I acknowledge that until the issuance of the shares underlying the Optioned Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to such shares, notwithstanding the exercise of my option(s). No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance of the optioned stock.

5. Interpretation. Any dispute regarding the interpretation of this notice shall be submitted promptly by me or by the Company to the Committee, which shall review such dispute at its next regular meeting. The resolution of such a dispute by such administrator of the Plan shall be final and binding on all parties.

6. Governing Law; Severability. This notice is governed by the internal substantive laws but not the choice of law rules, of Delaware. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this notice will continue in full force and effect without said provision.

7. Entire Agreement. The Plan and the Award Agreement under which the Optioned Shares were granted are incorporated herein by reference, and together with this notice constitute the entire agreement of the parties with respect to the subject matter hereof.

A release is required as a condition for receiving the benefits upon separation from service provided pursuant to the Nonqualified Stock Option Award Agreement between AMC ENTERTAINMENT HOLDINGS, INC. (the "Company") and [grantee] ("Participant") dated [ ], 2010, (the "Award Agreement"); thus, by executing this release ("Release"), you have advised us that you hold no claims against the Company, its predecessors, successors or assigns, affiliates, shareholders or members and each of their respective officers, directors, agents and employees (collectively, the "Releasees"), and by execution of this Release you agree to waive and release any such claims, except relating to any compensation, severance pay and benefits described in any written agreement between you and the Company.

You understand and agree that this Release will extend to all claims, demands, liabilities and causes of action of every kind, nature and description whatsoever, whether known, unknown or suspected to exist, which you ever had or may now have against the Releasees in your capacity as an employee of the Company, including, without limitation, any claims, demands, liabilities and causes of action arising from your employment with the Releasees and the termination of that employment, including any claims for severance or vacation pay, business expenses, and/or pursuant to any federal, state, county, or local employment laws, regulations, executive orders, or other requirements, including, but not limited to, Title VII of the 1964 Civil Rights Act, the 1866 Civil Rights Act, the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Workers Adjustment and Retraining Notification Act and any other local, state or federal fair employment laws, and any contract or tort claims.

You understand and agree that this Release is intended to include all claims by you or on your behalf alleging discrimination on the basis of race, sex, religion, national origin, age, disability, marital status, or any other protected status or involving any contract or tort claims based on your termination from the Company. It is also acknowledged that your termination is not in any way related to any work-related injury.

It also is understood and agreed that the remedy at law for breach of the Award Agreement, any restrictive covenant agreements between you and the Company, and/or this Release shall be inadequate, and the Company shall be entitled to injunctive relief in respect thereof.

Your ability to receive payments and benefits under the terms of the Award Agreement will remain open for a 21-day period after your separation from service to give you an opportunity to consider the effect of this Release. At your option, you may elect to execute this Release on an earlier date. Additionally, you have seven days after the date you execute this Release to revoke it. As a result, this Release will not be effective until eight days after you execute it. We also want to advise you of your right to consult with legal counsel prior to executing a copy of this Release.

I hereby state that I have carefully read this Release and that I am signing this Release knowingly and voluntarily with the full intent of releasing the Releases from any and all claims, except as set forth herein. Further, if signed prior to the completion of the 21 day review period, this is to acknowledge that I knowingly and voluntarily signed this Release on an earlier date.

THIS RESTRICTED STOCK AWARD AGREEMENT (this "Award Agreement") is made effective as of the [ ] day of [ ], 2010 (the "Date of Grant"), between AMC Entertainment Holdings, Inc., a Delaware corporation (the "Company"), and [grantee] (the "Participant"):

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the restricted stock provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

1. Restricted Stock Award. Subject to the terms and conditions of the Plan and this Award Agreement, the Company hereby grants to the Participant [ ] Shares (the "Restricted Shares"), which shall vest and become nonforfeitable in accordance with Section 3 hereof.

2. Certificates. A certificate or certificates representing the Restricted Shares shall be issued by the Company and shall be registered in the name of the Participant on the stock transfer books of the Company promptly following execution of this Award Agreement by the Participant, but shall remain in the physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 3 hereof. As a condition to the receipt of this Award Agreement, the Participant shall deliver to the Company a Stock Power in the form attached hereto as Exhibit A, duly endorsed in blank, relating to the Restricted Shares. Each certificate representing the Restricted Shares shall bear the following legend:

As soon as administratively practicable, but not later than sixty (60) days, following the vesting of the Restricted Shares (as described in Section 3 hereof), and upon the satisfaction of all other applicable conditions, including, but not limited to, the payment by the Participant of all applicable withholding taxes, the Company shall deliver or cause to be delivered to the Participant, or in the case of Participant's death, Participant's beneficiary, a certificate or certificates for the applicable Shares of Restricted Stock which shall not bear the legend described above, but may bear such other legends as the Company deems advisable pursuant to Section 6 below.

4. Rights as a Stockholder. The Participant shall have none of the rights of a stockholder of the Company until the Restricted Shares vest, provided, that, the Participant shall have the right to receive dividends on the Restricted Shares (the "Dividends") subject to the remainder of this Section 4. The Dividends, if any, shall be held by the Company and shall be subject to forfeiture until such time that the Restricted Shares on which the Dividends were distributed vest in accordance with Section 3 above. The Dividends shall be released to the Participant as soon as administratively practicable, but not later than the time of delivery to the Participant, in accordance with Section 2 above, of certificates representing the Restricted Shares on which the Dividends were distributed.

5. Restrictive Covenants. In consideration for the grant of the Restricted Shares hereunder, the Participant agrees to comply with the covenants set forth in this Section 5. Notwithstanding the foregoing, if the Participant is a party to an employment agreement or other agreement with the Company or any Affiliate and such agreement contains restrictive covenants, the restrictive covenants in such agreement will control for purposes of this Award Agreement; provided that in the event the restrictive covenants of the aforementioned agreement do not contain all the restrictions described in this Award Agreement, then the additional restrictions in the Award Agreement shall apply to the Participant in addition to the restrictions described in the aforementioned agreement.

6. Adjustment of Shares. In the event of any corporate event or transaction (as described in Section 12.1 of the Plan), the terms of this Award Agreement (including, without limitation, the number and kind of Shares subject to this Award Agreement) shall be adjusted as set forth in Section 12.1 of the Plan.

7. No Right to Continued Service. The granting of the Restricted Stock evidenced hereby and this Award Agreement shall impose no obligation on the Company or any Affiliate to continue the service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate the service of such Participant.

8. Securities Laws/Legend on Certificates. The issuance and delivery of Shares shall comply (or be exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company's securities may then be traded. The Company shall not be obligated to file any registration statement under any applicable securities laws to permit the purchase or issuance of any Shares under the Plan or Awards, and accordingly any certificates for Shares or documents granting Awards may have an appropriate legend or statement of applicable restrictions endorsed thereon. If the Company deems it necessary to ensure that the issuance of Shares under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such Shares would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as the Company may reasonably request which satisfies such requirements.

9. Transferability. Unless otherwise provided by the Committee, the Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and

unenforceable against the Company or any Affiliate; provided, that, the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Restricted Shares to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.

10. Withholding. The Company shall have the power and the right to deduct or withhold automatically from any payment or shares of common stock deliverable under this Award Agreement or require the Participant to remit to the Company or applicable Affiliate, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Award Agreement.

11. Notices. Any notification required by the terms of this Award Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.

12. Entire Agreement. This Award Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

13. Waiver. No waiver of any breach or condition of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

14. Successors and Assigns. The provisions of this Award Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate, whether or not any such person shall have become a party to this Award Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

15. Choice of Law. This Award Agreement shall be governed by the law of the State of Delaware (regardless of the laws that might otherwise govern under applicable Delaware principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and remedies.

16. Restricted Shares Subject to Plan. By entering into this Award Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The Restricted Shares are subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

17. No Guarantees Regarding Tax Treatment. Participants (or their beneficiaries) shall be responsible for all taxes with respect to the Restricted Shares. The Committee and the Company make no guarantees regarding the tax treatment of the Restricted Shares. Neither the Committee nor the Company has any obligation to take any action to prevent the assessment of any tax under Section 409A of the Code or Section 457A of the Code or otherwise and none of the Company, any Subsidiary or Affiliate, or any of their employees or representatives shall have any liability to a Participant with respect thereto.

18. Amendment. The Committee may amend or alter this Award Agreement and the Restricted Shares granted hereunder at any time, subject to the terms of the Plan.

19. Section 83(b) Election. In the event the Participant determines to make an election with the Internal Revenue Service (the "IRS") under Section 83(b) of the Code and the regulations promulgated thereunder (the "83(b) Election"), the Participant shall provide a copy of such form to the Company promptly following its filing, which is required under current law to be filed with the IRS no later than thirty (30) days after the Date of Grant of the Restricted Shares. The form for making an 83(b) Election is attached hereto as Exhibit C. The Participant is advised to consult with his or her own tax advisors regarding the purchase and holding of the Restricted Shares, and the Company shall bear no liability for any consequence of the Participant making an 83(b) Election or failing to make an 83(b) Election.

20. Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

21. Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto AMC Entertainment Holdings, Inc. (the "Company"), ( ) shares of common stock, par value $0.01 per share, of the Company standing in his/her/their/its name on the books of the Company represented by Certificate No. herewith and does hereby irrevocably constitute and appoint his/her/their/its attorney-in-fact, with full power of substitution, to transfer such shares on the books of the Company.

A release is required as a condition for receiving the benefits upon separation from service provided pursuant to the Restricted Stock Award Agreement between AMC ENTERTAINMENT HOLDINGS, INC. (the "Company") and [grantee] ("Participant") dated [ ], 2010, (the "Award Agreement"); thus, by executing this release ("Release"), you have advised us that you hold no claims against the Company, its predecessors, successors or assigns, affiliates, shareholders or members and each of their respective officers, directors, agents and employees (collectively, the "Releasees"), and by execution of this Release you agree to waive and release any such claims, except relating to any compensation, severance pay and benefits described in any written agreement between you and the Company.

This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

This election must be filed with the Internal Revenue Service Center with which taxpayer files his Federal income tax returns and must be made within thirty (30) days after the Date of Grant. This filing should be made by registered or certified mail, return receipt requested. The taxpayer shall also provide a copy of such form to AMC Entertainment Holdings, Inc. and to American Multi-Cinema, Inc. promptly following its filing. The taxpayer should retain two (2) additional copies of the completed form for filing with Federal and state tax returns for the taxpayer's current tax year and an additional copy for the taxpayer's records.

AMC Entertainment Holdings, Inc.
2010 Equity Incentive Plan

RESTRICTED STOCK AWARD AGREEMENT

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

13. Waiver. No waiver of any breach or condition of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

18. Amendment. The Committee may amend or alter this Award Agreement and the Restricted Shares granted hereunder at any time, subject to the terms of the Plan.

This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

To the Member and Board of Directors of
Kerasotes Showplace Theatres, LLC
Chicago, Illinois

We have audited the accompanying statements of assets and liabilities of the Kerasotes Showplace Theatres Sold to AMC Entertainment Inc. (the "Theatres") as of December 31, 2009, and 2008, and the related statements of income and cash flows for the years ended December 31, 2009, 2008 and 2007. These financial statements are the responsibility of the Theatres' management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Theatres' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of the Kerasotes Showplace Theatres Sold to AMC Entertainment Inc. as of December 31, 2009 and 2008, and the results of their operations and their cash flows for the years ended December 31, 2009, 2008 and 2007 in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 2 to the financial statements, these financial statements pertain to the Kerasotes Showplace Theatres Sold to AMC Entertainment Inc. by Kerasotes Showplace Theatres, LLC (the "Parent"). The accompanying financial statements have been prepared from the records maintained by the Parent and may not necessarily be indicative of the conditions that would have existed or the results of the operations if the Theatres had been operated as an unaffiliated company. Portions of certain assets, liabilities, income and expenses represent allocations made from the Parent to the Theatres that are applicable to the Parent as a whole.

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

STATEMENTS OF ASSETS AND LIABILITIES

As of December 31, 2009 and 2008

			2009			2008

Assets
Current Assets:
	Due from Parent		$	30,233,158		$	67,321,610
	Accounts receivable			4,227,816			5,167,257
	Inventories			1,550,867			1,533,362
	Other current assets			5,737,930			4,609,948

		Total current assets		41,749,771			78,632,177

Property and Equipment:
	Land			11,471,194			11,471,193
	Land improvements			17,632,816			17,577,549
	Buildings and improvements			85,905,548			85,899,287
	Leasehold improvements			21,903,276			21,593,529
	Equipment			170,476,408			166,604,851
	Construction in progress			76,113			49,364

		Total property and equipment		307,465,355			303,195,773

Less accumulated depreciation				(170,779,219	)		(151,025,656	)

		Property and equipment—net		136,686,136			152,170,117

Other Assets:
	Goodwill			24,153,064			24,153,064
	Intangible assets—net			25,963,411			27,408,299
	Other assets			687,762			700,115

		Total other assets		50,804,237			52,261,478

Total			$	229,240,144		$	283,063,772

Liabilities and Net Assets
Current Liabilities:
	Accounts payable		$	4,356,479		$	8,244,810
	Accrued payroll and payroll taxes			4,851,429			1,926,996
	Accrued property taxes			10,938,383			12,204,983
	Other accrued expenses			13,879,500			12,430,529
	Other accrued taxes			1,221,388			831,361
	Deferred revenue and other liabilities			6,060,329			5,632,324
	Current portion of developer reimbursements			262,588			56,221
	Current portion of long-term debt to Parent			665,613			40,665,612
	Current portion of deferred gain			7,347,616			7,347,616

		Total current liabilities		49,583,325			89,340,452
Long-Term Liabilities:
	Developer reimbursements			16,784,275			14,793,366
	Long-term debt to Parent			24,849,121			54,538,009
	Deferred gain from sale-leaseback transactions			113,048,858			120,396,474
	Deferred rent and other long-term liabilities			7,364,737			9,891,240

	Total liabilities			211,630,316			288,959,541
Commitments and Contingencies				—			—
Net Assets				17,609,828			(5,895,769	)

Total			$	229,240,144		$	283,063,772

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

STATEMENTS OF INCOME

For the Years Ended December 31, 2009, 2008 and 2007

			2009			2008			2007

Revenues:
	Box office revenue		$	211,489,296		$	188,536,649		$	167,070,271
	Concession revenue			97,914,429			90,516,423			82,910,994
	Other operating revenue			16,560,734			9,664,611			9,101,016

		Total revenues		325,964,459			288,717,683			259,082,281

Operating Revenues:
	Film expense and advertising costs			117,493,029			105,299,786			93,013,579
	Cost of concession sales			11,911,423			10,528,086			9,046,089
	General and administrative expenses			17,011,193			16,671,037			14,904,875
	Theatre occupancy costs			65,318,610			65,629,446			49,988,848
	Depreciation and amortization			21,893,823			23,947,330			24,110,749
	Other operating expenses			68,827,081			62,971,984			54,287,656
	Amortization of deferred gain			(7,347,616	)		(7,268,376	)		(5,543,587	)

		Total operating expenses		295,107,543			277,779,293			239,808,209

Income from operations				30,856,916			10,938,390			19,274,072

Other Expenses
	Interest expense to Parent			(4,150,202	)		(5,215,322	)		(11,133,088	)
	Other income and expenses—net			(3,291,037	)		(279,297	)		(4,005,048	)

		Total other expenses		(7,441,239	)		(5,494,619	)		(15,138,136	)

Net Income			$	23,415,677		$	5,443,771		$	4,135,936

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2009, 2008, and 2007

					2009			2008			2007

Cash flows from operating activities:
	Net income				$	23,415,677		$	5,443,771		$	4,135,936
	Adjustments to reconcile net income to net cash flows from operating activities:
		Depreciation and amortization				21,893,823			23,947,330			24,110,749
		Amortization of debt issuance costs and other noncash interest expense				1,270,351			656,131			922,721
		Loss on disposal of property				46,874			519,715			3,902,837
		Amortization of deferred gain				(7,347,616	)		(7,268,376	)		(5,543,587	)
		Loss from equity investment in Kerasotes Colorado Cinema, LLC				—			—			228,795
		Changes in:
			Accounts receivable			(285,560	)		(1,836,196	)		(212,753	)
			Inventories			(17,505	)		(57,658	)		(36,189	)
			Other assets			44,184			(484,661	)		(2,543,722	)
			Accounts payable			(2,691,554	)		(438,787	)		3,413,292
			Other current liabilities			5,253,179			367,259			3,663,650
			Deferred rent and other long-term liabilities			(337,764	)		1,404,736			2,773,609

				Net cash flows from operating activities		41,244,089			22,253,264			34,815,338

Cash flows from investing activities:
	Capital expenditures					(7,515,670	)		(5,778,911	)		(26,915,634	)
	Construction costs reimbursable by developers					—			(14,750,000	)		—
	Cash paid for capitalized interest					—			(336,858	)		(184,912	)
	Proceeds from sale of property					68,638			98,383,985			100,083,847
	Purchase of Kerasotes Colorado Cinemas—net of cash acquired					—			817,305			(52,622,350	)
	Acquisition of theatres					—			(75,517,400	)		(12,652,954	)

				Net cash flows from investing activities		(7,447,032	)		2,818,121			7,707,997

Cash flows from financing activities:
	Proceeds from borrowings from Parent					—			30,454,014			82,697,526
	Principal payments on borrowings from Parent					(69,688,884	)		(31,700,000	)		(103,437,522	)
	Due from Parent					37,088,452			(37,325,532	)		(20,567,887	)
	Principal payments on developer reimbursement financing obligations					(244,492	)		(24,867	)		—
	Payment of debt issuance costs					(2,177,133	)					(1,215,452	)
	Proceeds from developer reimbursements for construction costs					1,225,000			13,525,000			—

				Net cash flows from financing activities		(33,797,057	)		(25,071,385	)		(42,523,335	)

Net change in cash						—			—			—
Cash—beginning of year						—			—			—

Cash—end of year					$	—		$	—		$	—

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION—Cash paid during the year for:
	Interest—net of amount capitalized				$	2,972,064		$	4,383,172		$	10,539,433

	Replacement tax				$	3,444		$	14,404		$	—

SUPPLEMENTAL DISCLOSURES OF NONCASH OPERATING, INVESTING, AND FINANCING ACTIVITIES:
	Sale-leaseback deferred gain (amortization over 20 years)				$	—		$	19,017,834		$	25,594,136

	Amounts reflected in accounts payable and fixed assets at year-end				$	190,204		$	1,386,981		$	—

	Amounts reflected in accrued expenses and fixed assets at year-end				$	1,032		$	1,329,377		$	144,246

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

NOTES TO FINANCIAL STATEMENTS

As of December 31, 2009 and 2008, and

For the Years Ended December 31, 2009, 2008, and 2007

The Theatres' operations are primarily located throughout the Midwest in the states of Illinois, Indiana, Iowa, Missouri, Minnesota, and Ohio. Over the years, the Theatres have grown through the construction and acquisition of theatres, most recently in the states of Colorado, Wisconsin, and California.

The Theatres are not a separate legal entity, and were operated by Kerasotes Showplace Theatres, LLC (the "Parent") during the periods presented. On December 9, 2009, the Parent agreed to sell these theatre assets comprising a substantial majority of the Parent's theatres and transfer related liabilities to AMC Entertainment Inc. ("AMC") (the "Sale"); this sale was closed on May 24, 2010. Further discussion of the Sale is included in Note 2.

Management's Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Preopening Expenses—Costs incurred prior to opening of a new theatre are expensed as incurred. These costs include advertising and other start-up costs incurred prior to the operation of new theatres and are reported in their respective lines in the statements of income.

Accounts Receivable—An allowance for doubtful accounts is provided only if specific accounts are considered uncollectible. If items become uncollectible, they will be charged to operations when that determination is made. Management determined no allowance was required as of December 31, 2009 or 2008.

Inventories—Inventories consist primarily of concession items and are carried at the lower of cost, determined by the first-in, first-out method, or market.

Property and Equipment—Property and equipment, consisting of buildings, land and leasehold improvements, and equipment, are carried at cost, less accumulated depreciation computed using both straight-line and accelerated methods. Land improvements are depreciated over an estimated useful life of 15 years. Buildings and improvements are depreciated over an estimated useful life of 39 years. Leasehold improvements are depreciated over the shorter of the lease term or economic life of the asset. Equipment is depreciated over an estimated useful life of five to seven years. Interest capitalized on Theatre-managed construction projects totaled $0 and $336,858 for the years ended December 31, 2009 and 2008.

Leases—A significant portion of the Theatres' operations are conducted in premises occupied under lease agreements with initial base terms ranging generally from 15 to 20 years, with certain leases containing options to extend for up to an additional 20 years. The Theatres do not believe that exercise

of the renewal options in its leases is reasonably assured at the inception of the lease agreements and therefore considers the initial base term the lease term. The leases provide for fixed and escalating rentals, contingent escalating rentals based on the consumer price index with a contractual floor and ceiling, and contingent rentals, including those that are based on revenues with a guaranteed minimum. As of December 31, 2009, all leases qualified as operating leases.

The Theatres record rent expense for their operating leases on a straight-line basis over the base term of the lease agreements, commencing with the date the Theatres have control and access to leased premises.

Occasionally, the Theatres are responsible for the construction of theatres subject to operating leases and receive reimbursement from the property developer for construction costs incurred. The Theatres evaluate these leases to determine who the accounting owner is during the construction period. For leases where the Theatres are determined to be the accounting owner during construction, they account for receipt of developer reimbursements under prevailing sale-leaseback accounting guidance. The Theatres have constructed four theatres subject to the circumstances described for which they have determined certain terms of the leases to be prohibited forms of continuing involvement. As a result, the Theatres have recorded developer reimbursement financing obligations of $17,046,863 and $14,849,587 in their statements of assets and liabilities as of December 31, 2009 and 2008, respectively, for operating leases related to these projects. The current portion of developer reimbursement financing obligations was $262,588 and $56,221, respectively, as of December 31, 2009 and 2008.

Business Combinations—The Theatres account for their acquisitions of theatres using the purchase method. The purchase method requires that the Theatres estimate the fair value of the individual assets and liabilities acquired. The allocation of purchase price is based on management's judgment, including valuation assessments.

Goodwill—The Theatres evaluate their goodwill for impairment annually during the fourth quarter, or more frequently, if events or changes in circumstances indicate that an asset might be impaired. The evaluation is performed using a two-step process. In the first step, the fair value of a reporting unit is compared with its carrying amount, including goodwill. If the estimated fair value of a reporting unit is less than its carrying amount, then a second step must be completed in order to determine the amount of the goodwill impairment that should be recorded. In the second step, the implied fair value of a reporting unit's goodwill is determined by allocating the reporting unit's fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets) in a manner similar to a business combination. The resulting implied fair value of the goodwill that results from the application of this second step is then compared to the carrying amount of the goodwill and an impairment charge is recorded for the difference if the implied goodwill is less than the carrying amount.

The assumptions used in the estimate of fair value are generally consistent with the past performance of a reporting unit and are also consistent with the projections and assumptions that are used in current operating plans. Such assumptions are subject to change as a result of changing economic and competitive conditions. The Theatres recorded no goodwill impairment during the years ended December 31, 2009, 2008, or 2007.

The changes in the carrying amount of goodwill during the fiscal years ended December 31, 2009 and 2008 are as follows:

Intangible Assets—As of December 31, 2009, definite-lived intangible assets were $25,963,411, net of accumulated amortization of $4,186,285. As of December 31, 2008, definite-lived intangible assets were $27,408,299, net of accumulated amortization of $2,741,397. These intangible assets consisted primarily of the intangible value associated with the operating leases that were acquired in the acquisitions discussed in Note 5. Amortization expense was $1,444,888, $1,902,252, and $839,145 for fiscal years 2009, 2008, and 2007, respectively, and is recorded in depreciation and amortization expense in the statements of income.

Other Assets—As of December 31, 2009, debt issuance costs were $1,858,065, net of accumulated amortization of $1,393,590. As of December 31, 2008, other assets include debt issuance costs $698,253, net of accumulated amortization of $644,899. Costs resulting from the issuance of debt are capitalized and amortized over the term of the related debt agreement. Amortization expense of $1,017,322, $531,677, and $922,721 for fiscal years 2009, 2008, and 2007, respectively, is recorded in interest expense in the statements of income.

Long-Lived Assets—The Theatres review the carrying value of their long-lived assets, including property and equipment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. To the extent the estimated future cash inflows attributable to the assets, less estimated future cash outflows, are less than the carrying amount, an impairment loss would be recognized. No impairment loss was recognized during the years ended December 31, 2009, 2008, and 2007.

Revenue Recognition—Revenues include box office receipts, sales of concessions merchandise, advertising revenues, and other miscellaneous revenues, primarily fees for theatre rentals. The Theatres recognize box office and concession revenues at the point of sale and other revenues when earned.

The Theatres sell gift certificates and gift cards both in the theatres and online. These receipts are excluded from revenues until the date the gift certificates and gift cards are redeemed. The Theatres recognize gift certificate breakage when its future performance obligation is determined to be remote. Gift certificate breakage was $777,298, $355,118, and $2,817,092, respectively, for the years ended December 31, 2009, 2008, and 2007. Gift certificate breakage is recorded as a component of other operating revenue in the statements of income.

Operating Expenses—Film rental costs are recorded as revenue is earned based upon the terms of the respective film license arrangements. Advertising costs are expensed as incurred. Other operating expenses are principally comprised of payroll and benefits costs, utilities, maintenance, repairs, and other general operating expenses. The balance of operating expenses incurred by the corporate function is classified as general and administrative expenses. Theatre occupancy costs include rent, property taxes, and other occupancy costs.

Vendor Allowances—The Theatres receive volume-based purchase rebates from vendors. These rebates are recorded as a reduction of inventories upon receipt and recognized as a reduction of the cost of concession sales when merchandise is sold.

Comprehensive Income—Comprehensive income equals net income for all periods presented.

As mentioned in Note 1, on December 9, 2009, the Parent agreed to sell certain theatre assets comprising a substantial majority of the Parent's theatres and transfer related liabilities to AMC; this sale closed on May 24, 2010. These theatres were sold for $275,000,000 in cash, subject to certain working capital and other purchase price adjustments finalized on the closing date.

The financial statements pertain to these theatres sold to AMC by the Parent. The financial statements have been prepared from the records maintained by the Parent and may not necessarily be indicative of the conditions that would have existed or the results of the operations if these theatres had been operated as an unaffiliated company. The majority of the assets, liabilities, income and expenses presented in these financial statements are specifically-identifiable to the theatres sold by the Parent to AMC. Portions of certain assets, liabilities, income and expenses represent allocations made from the Parent to these theatres that are applicable to the Parent as a whole where specific-identification of these balances to each theatre is not practicable. These allocations primarily relate to certain receivables, payables, accrued expenses, debt and operating expenses generated or incurred at the Parent and not directly related to an individual theatre; these allocations have been made based on the proportion of the number of theatre screens within the theatres sold to AMC as a percentage of the total number of theatre screens owned by the Parent prior to the Sale. In the opinion of management, these allocations are reasonable for the purposes of presenting the financial statements of the Theatres.

In June 2009, the Financial Accounting Standards Board (FASB) issued ASC 105, Generally Accepted Accounting Principles, as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernment entities. Generally, ASC 105 is not expected to change accounting principles generally accepted in the United States of America. The Theatres adopted ASC 105 for the year ended December 31, 2009, and any references to authoritative accounting literatures in the financial statements are referenced in accordance with the ASC, unless the literature has not been codified.

In December 2007, the FASB revised ASC 805 (formerly FASB Statement No. 141(R), Business Combinations). ASC 805 is effective for fiscal years beginning on or after December 15, 2008, with early adoption prohibited. The provisions of ASC 805 are applied prospectively from the date of adoption, except for adjustments to a previously acquired entity's deferred tax assets and uncertain tax position balances occurring outside the measurement period, which are recorded as a component of income tax expense in the period of adjustment, rather than goodwill. The Theatres adopted ASC 805 on January 1, 2009. The adoption of ASC 805 did not have a material impact the Theatres' financial position, results of operations, or cash flows.

On January 15, 2004, the Parent made a $4,740,145 minority investment in a new company, KCC. The Parent made this investment in conjunction with Providence Growth Entrepreneurs Fund, L.P.; Providence Growth Investors, L.P.; and the management team of KCC. Prior to the March 2, 2007 acquisition of the controlling interest in KCC (as discussed in Note 5), the Theatres owned 23.685% of KCC and did not have managerial control. Accordingly, this investment had been accounted for under the equity method and the financial statements included the Theatres' share of the results of operations from January 15, 2004 through March 1, 2007. For the period from January 1, 2007 to March 1, 2007, KCC had operating revenues of $6,185,285, operating loss of $(201,044), and a net loss of $(840,998).

On January 31, 2008, the Parent acquired the assets, property, and operations of six theatres located in Iowa and Wisconsin from AGT Enterprises, Inc., and Star-Iowa, LLC (the "Star acquisition") for $75,517,400. The Star acquisition added 81 screens to the Theatres' circuit. The purpose of the transaction was to increase the scale of the Theatres, diversify and expand the Theatres' customer base, and strengthen the Theatres' competitive position in the industry. In conjunction with this transaction, the Theatres consummated two separate sale-leaseback transactions. The proceeds of the sale-leaseback transactions were used to finance the Star acquisition, pay down debt, and pay taxes and fees associated with the deal. The results of theatre operations are included in the financial statements from the date of acquisition.

On March 2, 2007, the Parent acquired the remaining 76.315% interest they did not previously own in their investment in KCC for a purchase price of $52,754,184, net of cash acquired ($424,773). The purchase price was subject to the terms of an escrow arrangement that was finalized in 2008 with a payment of $817,305 to the Parent, which reduced the total purchase price for the acquisition to

$51,936,879. This acquisition added 11 theatres and 125 screens to the overall circuit and gave the Theatres a presence in the state of Colorado. The acquisition was financed with cash on hand and additional debt. The results of theatre operations are included in the financial statements from the date of acquisition.

On March 2, 2007, the Parent also acquired the assets, properties, and operations of two existing theatres near Chicago, Illinois for a purchase price of $12,652,954. The acquisition of these theatres added 28 screens to the overall circuit and enhanced the Theatres' presence in the Chicago area market. The acquisition was financed with cash on hand and additional debt. The results of theatre operations are included in the financial statements from the date of acquisition.

The Theatres have allocated the purchase price to the theatre assets acquired at estimated fair values. The excess of fair value of the net assets acquired compared to the amount paid as of the acquisition date has been reflected as goodwill. The Theatres completed the purchase price allocations for the 2007 acquisitions during 2008, reflecting finalization of consideration paid in the KCC acquisition (pursuant to the terms of the escrow arrangement in the transaction) and the finalization of other allocations for both transactions based on all available evidence subsequent to the transaction. The purchase price allocation was completed for the Star acquisition during 2008. The following table summarizes the estimated fair values of the assets acquired at the dates of acquisition:

			2008 Acquisition of Star Cinemas			2007 Acquisition of 76.315% Interest in KCC			2007 Acquisition of Chicago-Area Theatres

Cash purchase price—net of cash acquired			$	73,821,240		$	21,852,097		$	12,582,000
Debt assumed and repaid				—			29,278,933			—
Transaction fees				1,696,160			805,849			70,954

Total cash paid			$	75,517,400		$	51,936,879		$	12,652,954

Allocation of purchase price:
	Other current assets		$	69,335		$	602,202		$	—
	Property and equipment			66,227,891			36,496,153			906,388
	Goodwill			9,823,793			2,760,152			115,000
	Intangible assets			—			18,019,179			11,746,566

		Total assets acquired		76,121,019			57,877,686			12,767,954

Current liabilities				(318,165	)		(2,179,139	)		—
Deferred revenue				(285,454	)		(357,190	)		(115,000	)
Other long-term liabilities				—			(3,404,478	)		—

		Total liabilities assumed		(603,619	)		(5,940,807	)		(115,000	)

Net assets acquired			$	75,517,400		$	51,936,879		$	12,652,954

As a result of the 2007 acquisition of 76.315% interest in KCC included above, the previously owned 23.685% interest in KCC was consolidated into the Theatres' financial statements on a historical-cost basis. The amounts consolidated were as follows: cash of $131,834; other current assets of $175,056; property and equipment, net of $12,336,370; goodwill of $1,596,089; other assets of $161,670; current liabilities of $841,524; long-term debt of $8,870,033; and other long-term liabilities of $486,364.

These financial statements include an allocation of the amounts outstanding on the Parent's bank debt, and also the related debt issuance costs. The Parent's outstanding debt facilities consisted of a revolving line of credit ("Revolver") and Term B notes. These outstanding Parent debt balances were secured by substantially all of the Parent's assets, which included the assets of the Theatres. The Parent's bank debt was repaid in full as of the closing date of the Sale.

Allocated debt and developer reimbursement financing obligations at December 31, 2009 and 2008 consisted of the following:

The contractual terms of the Parent's Term B debt required quarterly installments of $166,403 from December 31, 2009, until December 31, 2010. Three quarterly installments of $15,974,687 were required from March 31, 2011, with the final payment due October 28, 2011. Draws and repayment on the revolving line are at the discretion of the Parent, and the Parent uses distributions from the Theatres to fund any debt repayments. At December 31, 2009 and 2008, the aggregate available borrowing capacity on this facility was $50,000,000 and $27,300,000, respectively.

Interest on the Parent's Term B and Revolver debt was at variable rates based on the prime rate or the Eurodollar rate, adjusted for the Parent's consolidated economic performance, as specified in the agreement. During the year ended December 31, 2009, interest rates ranged from 4.81% to 5.56%. During the year ended December 31, 2008, interest rates ranged from 2.5% to 7.75%.

The carrying value of the Parent's long-term debt approximated its fair value as of December 31, 2009, since the Parent's long-term debt has interest rates that fluctuate based on published market rates. The fair value of the Parent's long-term debt was $104,947,507 as of December 31, 2008. The fair value of the Parent's long-term debt as of December 31, 2008, was determined as the net present value

of the future cash flows at the prevailing balance sheet rate, discounted at the renegotiated market rate received in the amendment to the Parent's credit facility.

The Theatres conduct their operations in facilities and using equipment leased under noncancelable operating leases expiring at various dates through 2029. At the end of the lease terms, most of the leases are renewable at the fair rental value for periods of 5 to 20 years. The rental payments for some facilities are based on a minimum annual rent plus a percentage of receipts in excess of a specified amount. Refer to Note 1 for discussion of the Theatres' financing leases.

Rental expense for noncancelable operating leases for the years ended December 31, 2009, 2008, and 2007, consists of the following:

The minimum rental commitments related to noncancelable operating leases and developer reimbursement financing leases at December 31, 2009, are as follows:

		Minimum Lease Payments

Year Ending December 31		Financing			Operating
2010		$	1,085,953		$	49,607,208
2011			1,085,953			49,530,348
2012			1,085,953			49,109,526
2013			1,099,956			49,358,392
2014			1,169,968			49,250,480
Thereafter			27,749,433			499,068,004

	Total		33,277,216		$	745,923,958

Less interest			(16,230,353	)

	Developer reimbursement financing obligations	$	17,046,863

Less current portion of developer reimbursement financing obligations			(262,588	)

Long-term developer reimbursement financing obligations		$	16,784,275

The Parent is a limited liability company, and is not subject to the payment of federal or state income taxes, as the components of its income and expenses flow directly to the Parent's members. Accordingly, the Parent is not liable for any federal or state income tax, except for minor taxes imposed by some of the states in which the Parent does business. These financial statements include an allocation of these taxes incurred and paid by the Parent on behalf of the Theatres. These taxes were $(3,882), $14,404, and $0 for the years ended December 31, 2009, 2008, and 2007, respectively.

The Theatres have contributed to the Parent's 401(k) profit-sharing plan for all managers, assistant managers, trainees, and administrative employees who have reached the age of 21. Employees may contribute up to 60% of their pay, not exceeding $16,500 ($22,000 for employees over age 50). Following one year of employment, the Theatres will match 100% of the first 3% of contribution and 50% on the next 2% of contribution. Matching contributions are immediately vested.

The Theatres fund the matching contributions as they accrue. These contributions were $372,328, $394,353, and $371,970 for the years ended December 31, 2009, 2008, and 2007, respectively.

The Theatres are not a separate legal entity, and were operated by the Parent during the periods presented. As discussed in Note 2, the financial statements have been prepared from the records maintained by the Parent and may not necessarily be indicative of the conditions that would have existed or the results of the operations if these theatres had been operated as an unaffiliated company. Portions of certain assets, liabilities, income and expenses represent allocations made from the Parent to these theatres that are applicable to the Parent as a whole. The Parent maintains and manages the cash generated by the Theatres, including the transfer of cash deposits from Theatres' operations to the Parent's bank accounts; these funds are used to finance the operations and capital expenditures of the Theatres. The outstanding amounts owed by the Parent to the Theatres are presented as "Due from Parent" in the Statements of Assets and Liabilities.

Total rental expense payable to related-parties of the Theatres amounted to $14,400 for the each of the years ended December 31, 2009, 2008, and 2007. Amounts payable to related-parties at December 31, 2009, 2008, and 2007, were $183,553, $169,153, and $154,753, respectively.

Amounts paid to an advertising agency owned by a close relative of one of the Parent's shareholders were $82,632, $31,414, and $0 for 2009, 2008, and 2007, respectively.

On January 31, 2008, the Theatres entered into two separate sale-leaseback transactions, whereby the Theatres sold eight of their fee-owned theatres for a sale price of $97,560,246, net of closing costs of $430,317. The Theatres leased back the sold theatres subject to 20-year triple net operating leases (with renewal terms of either three five-year options or one 10-year option and one five-year option). The gain of $19,017,834 has been deferred and is being recognized ratably over the life of the leases.

The proceeds from the transaction were used to pay down debt, with the remaining proceeds used to pay taxes and fees associated with the deal. The balance was retained to fund future capital expenditures.

On September 19, 2007, the Theatres entered into a sale-leaseback transaction, whereby the Theatres sold 11 of their fee-owned theatres with a book value of $78,112,826 for $99,720,206, net of closing costs of $638,171 and leased back the same buildings for a period of 20 years with three five-year options for each of the sold properties. The resulting leases are classified as being accounted for as operating leases. The gain of $25,594,136 has been deferred and is being recognized ratably over the life of the leases. Losses of $3,986,755 were immediately recognized in earnings. The proceeds from the transaction were used to pay down debt, with the remaining proceeds used to pay an owner distribution, taxes, and fees associated with the deal. The balance was retained to fund future capital expenditures.

On September 30, 2005, the Theatres entered into a sale-leaseback transaction, whereby the Theatres sold 17 of their fee-owned theatres with a book value of $94,759,887 for $200,000,000 and leased back the same buildings for a period of 20 years with three five-year options for each of the sold properties. The resulting leases are classified as operating leases. The gain of $102,340,355 has been deferred and is being recognized ratably over the life of the leases. The proceeds from the transaction were used to pay down debt, with the remaining proceeds used to pay an owner distribution, taxes, and fees associated with the deal. The balance was retained to fund future capital expenditures.

Management has evaluated subsequent events through July 13, 2010, which is the date the financial statements were issued.

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

UNAUDITED CONDENSED STATEMENTS OF ASSETS AND LIABILITIES

As of March 31, 2010 and December 31, 2009

			March 31, 2010		December 31, 2009

Assets
Current Assets:
	Due from Parent		$	26,684,867	$	30,233,158
	Accounts receivable			4,032,833		4,227,816
	Inventories			1,603,051		1,550,867
	Other current assets			7,486,135		5,737,930

		Total current assets		39,806,886		41,749,771

		Property and equipment—net		132,035,369		136,686,136

Other Assets:
	Goodwill			24,153,064		24,153,064
	Intangible and other assets—net			26,357,192		26,651,173

		Total other assets		50,510,256		50,804,237

Total			$	222,352,511	$	229,240,144

Liabilities and Net Assets
Current Liabilities:
	Accounts payable		$	7,124,618	$	4,356,479
	Accrued payroll and payroll taxes			4,416,835		4,851,429
	Accrued property taxes			11,897,572		10,938,383
	Other accrued expenses			7,939,998		13,879,500
	Other accrued taxes			891,541		1,221,388
	Deferred revenue and other liabilities			4,847,632		6,060,329
	Current portion of developer reimbursements			263,895		262,588
	Current portion of long-term debt to Parent			665,613		665,613
	Current portion of deferred gain			7,347,616		7,347,616

		Total current liabilities		45,395,320		49,583,325
Long-term Liabilities:
	Developer reimbursements			16,717,804		16,784,275
	Long-term debt to Parent			19,942,171		24,849,121
	Deferred gain from sale-leaseback transactions			111,211,954		113,048,858
	Deferred rent and other long-term liabilities			7,338,795		7,364,737

		Total liabilities		200,606,044		211,630,316
Commitments and Contingencies				—		—
Net assets				21,746,467		17,609,828

Total			$	222,352,511	$	229,240,144

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

UNAUDITED CONDENSED STATEMENTS OF INCOME

For the Quarterly Periods Ended March 31, 2010 and 2009

			Three Months Ended

			March 31, 2010			March 31, 2009
Revenues:
	Box office revenue		$	51,046,633		$	50,074,621
	Concession revenue			23,279,896			23,327,533
	Other operating revenue			5,396,288			2,880,437

		Total revenues		79,722,817			76,282,591

Operating Expenses:
	Film expense and advertising costs			29,078,389			26,759,638
	Cost of concession sales			2,688,490			2,719,832
	General and administrative expenses			3,973,215			4,017,098
	Theatre occupancy costs			16,803,336			17,267,930
	Depreciation and amortization			4,627,864			5,252,133
	Other operating expenses			18,848,447			16,852,893
	Amortization of deferred gain			(1,836,904	)		(1,836,904	)

		Total operating expenses		74,182,837			71,032,620

Income from Operations				5,539,980			5,249,971

Other Expenses
	Interest expense to Parent			(744,316	)		(1,042,513	)
	Other income and expenses—net			(569,103	)		(714,787	)

		Total other expenses		(1,313,419	)		(1,757,300	)

Net income			$	4,226,561		$	3,492,671

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

For the Quarterly Periods Ended March 31, 2010 and 2009

					Three Months Ended

					March 31, 2010			March 31, 2009
Cash flows from operating activities:
	Net income				$	4,226,561		$	3,492,671
	Adjustments to reconcile net income to net cash flows from operating activities:
		Depreciation and amortization				4,627,864			5,252,133
		Noncash interest expense				283,138			477,116
		Loss on disposal of property				38,532			(22,806	)
		Amortization of deferred gain				(1,836,904	)		(1,836,904	)
		Changes in:
			Accounts receivable			194,983			706,943
			Inventories			(52,184	)		33,142
			Other assets			(1,748,206	)		(1,601,233	)
			Accounts payable			2,958,343			4,535,158
			Other current liabilities			(6,956,419	)		(1,154,026	)
			Deferred rent and other long-term liabilities			(25,941	)		161,900

				Net cash flows from operating activities		1,709,767			10,044,094

Cash flows from investing activities:
	Capital expenditures					(289,944	)		(5,707,699	)
	Proceeds from sales of property					4,000			38,345

				Net cash flows from investing activities		(285,944	)		(5,669,354	)

Cash flows from financing activities:
	Principal payments on borrowings from Parent					(4,906,950	)		(43,705,260	)
	Due from Parent					3,548,291			39,519,164
	Principal payments on developer reimbursement financing obligations					(65,164	)		(54,153	)
	Payment of debt issuance costs					—			(1,359,491	)
	Proceeds from developer reimbursements for construction costs					—			1,225,000

				Net cash flows from financing activities		(1,423,823	)		(4,374,740	)

Net change in cash						—			—
Cash—beginning of period						—			—

Cash—end of period					$	—		$	—

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION—Cash paid during the quarter for:
	Interest—net of amount capitalized				$	430,558		$	880,537

SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES:
Amounts reflected in accounts payable and fixed assets at period-end					$	—		$	—

Amounts reflected in accrued expenses and fixed assets at period-end					$	—		$	—

Kerasotes Showplace Theatres Sold to AMC Entertainment Inc.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

As of and for the Quarters Ended March 31, 2010 and 2009

The principal business of the Kerasotes Showplace Theatres Sold to AMC Entertainment Inc (such theatres are hereafter referred to as the "Theatres") is the operation of motion picture theatres. Box office admission and concession sales are the Theatres' primary sources of revenue. The Theatres' operations are primarily located throughout the Midwest in the states of Illinois, Indiana, Iowa, Missouri, Minnesota, and Ohio. Over the years, the Theatres have grown through the construction and acquisition of theatres, most recently in the states of Colorado, Wisconsin, and California.

These unaudited condensed financial statements have been prepared in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 270, Interim Reporting. Accordingly, they do not include all of the information and footnotes required in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (which consist of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. These interim financial statements and related notes should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2009.

As mentioned in Note 1, on December 9, 2009, the Parent agreed to sell certain theatre assets comprising a substantial majority of the Parent's theatres and transfer-related liabilities to AMC; this sale closed on May 24, 2010. These theatres were sold for $275,000,000 in cash, subject to certain working capital and other purchase price adjustments finalized on the closing date.

The unaudited condensed financial statements pertain to these theatres sold to AMC by the Parent. The financial statements have been prepared from the records maintained by the Parent and may not necessarily be indicative of the conditions that would have existed or the results of the operations if these theatres had been operated as an unaffiliated company. The majority of the assets, liabilities, income and expenses presented in these financial statements are specifically-identifiable to the theatres sold by the Parent to AMC. Portions of certain assets, liabilities, income and expenses represent allocations made from the Parent to these theatres that are applicable to the Parent as a whole where specific-identification of these balances to each theatre is not practicable. These allocations primarily relate to certain receivables, payables, accrued expenses, debt, and operating expenses generated or incurred at the Parent and not directly related to an individual theatre; these allocations have been made based on the proportion of the number of theatre screens within the theatres sold to AMC as a percentage of the total number of theatre screens owned by the Parent prior to the Sale. In the opinion of management, these allocations are reasonable for the purposes of presenting the unaudited condensed interim financial information of the Theatres.

Total rental expense payable to related-parties of the Theatres amounted to $3,600 and $3,600 for the quarterly-periods ended March 31, 2010 and 2009, respectively. Amounts payable to related-parties at March 31, 2010 and December 31, 2009 were $187,153 and $183,553, respectively.

Amounts paid to an advertising agency owned by a close relative of one of the Parent's shareholders were $0 and $22,087 for the quarterly-periods ended March 31, 2010 and 2009, respectively.

Management has evaluated subsequent events through July 13, 2010, which is the date the unaudited condensed financial statements were issued.

We derived the following unaudited pro forma condensed financial information by applying pro forma adjustments attributable to the Kerasotes Acquisition to our historical consolidated financial statements and the Kerasotes financial statements included in this Form 8-K. The unaudited pro forma balance sheet gives pro forma effect to the Kerasotes Acquisition as if it had occurred on April 1, 2010. The unaudited pro forma condensed statement of operations data for the 52 weeks ended April 1, 2010 gives effect to the Kerasotes Acquisition as if it had occurred on April 3, 2009. We describe the assumptions underlying the pro forma adjustments in the accompanying notes, which should be read in conjunction with the unaudited pro forma condensed financial information.

The unaudited pro forma condensed financial information is for illustrative and informational purposes only and should not be considered indicative of the results that would have been achieved had the transactions been consummated on the dates or for the periods indicated and do not purport to represent consolidated balance sheet data or statement of operations data or other financial data as of any future date or any future period.

The unaudited pro forma condensed financial information should be read in conjunction with the information contained in "Selected Historical Financial and Operating Data," "Management's Discussion and Analysis of Financial Condition and Results of Operations," our consolidated financial statements and accompanying notes appearing elsewhere in our Annual Report on Form 10-K for the period ended April 1, 2010 and the Kerasotes financial statements included in this Form 8-K.

AMC ENTERTAINMENT INC.

UNAUDITED CONDENSED CONSOLIDATED PRO FORMA BALANCE SHEET
AS OF APRIL 1, 2010
(dollars in thousands)

							As of April 1, 2010

		AMCE Historical as of April 1, 2010			Kerasotes Historical as of March 31, 2010		Purchase Price Pro Forma Adjustments(a)			Pro Forma Adjustments(b)			AMCE Pro Forma Kerasotes Acquisition
Assets
Cash and equivalents		$	495,343		$	—	$	(271,421)	(1)	$	(6,047)	(1)	$	217,875
Current assets			98,857			39,807		(26,685)	(2)		—			111,979
Property, net			863,532			132,035		93,495	(2)		(41,151)	(3)		1,047,911
Intangible assets, net			148,432			26,357		21,643	(2)		(350)	(3)		196,082
Goodwill			1,814,738			24,153		60,397	(2)		—			1,899,288
Other long-term assets			232,275			—		—			—			232,275

Total assets		$	3,653,177		$	222,352	$	(122,571	)	$	(47,548	)	$	3,705,410

Liabilities and Stockholder's Equity
Current liabilities		$	451,028		$	45,395	$	(8,961)	(2)	$	—		$	487,462
Corporate borrowings:
	8% Senior Subordinated Notes due 2014		299,227			—		—			—			299,227
	11% Senior Subordinated Notes due 2016		325,000			—		—			—			325,000
	8.75% Senior Notes due 2019		586,252			—		—			—			586,252
	Senior Secured Term Loan Facility due 2013		615,875			—		—			—			615,875
	Capital and financing lease obligations		53,323			16,718		(4,171)	(2)		—			65,870
	Other long-term liabilities		561,913			138,493		(87,693)	(2)		(14,781)	(3)		597,932

Total liabilities			2,892,618			200,606		(100,825	)		(14,781	)		2,977,618
Stockholder's Equity:
Common Stock			—			—		—			—			—
Additional paid-in capital			828,687			—		—			—			828,687
Accumulated other comprehensive loss			(3,176	)		—		—			—			(3,176	)
Accumulated earnings (deficit)			(64,952	)		21,746		(21,746)	(2)		(32,767)	(2)		(97,719	)

Stockholder's equity (deficit)			760,559			21,746		(21,746	)		(32,767	)		727,792

Total liabilities and Stockholder's Equity		$	3,653,177		$	222,352	$	(122,571	)	$	(47,548	)	$	3,705,410

AMC ENTERTAINMENT INC.

UNAUDITED CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS
FIFTY-TWO WEEKS ENDED APRIL 1, 2010
(dollars in thousands)

	Fifty-two weeks ended April 1, 2010

	AMCE 52 Weeks Ended April 1, 2010 Historical			Kerasotes Year Ended Dec. 31, 2009 Historical		Kerasotes Three Months Ended Mar. 31, 2010 Historical		Kerasotes Three Months Ended Mar. 31, 2009 Historical		Kerasotes Twelve Months Ended Mar. 31, 2010 Historical		Kerasotes Acquisition Pro Forma Adjustments			AMCE Pro Forma Kerasotes Acquisition
Revenues	$	2,417,739		$	325,964	$	79,723	$	76,283	$	329,404	$	(62,611)	(3)	$	2,684,532
Cost of operations		1,612,260			210,990		53,942		50,428		214,504		(41,684)	(3)		1,785,080
Rent		440,664			45,212		11,640		11,336		45,516		(11,365)	(3)		478,090
													3,275	(4)
General and administrative:
M&A costs		2,280			—		—		—		—		—			2,280
Management fee		5,000			—		—		—		—		—			5,000
Other		57,858			17,011		3,973		4,017		16,967		—			74,825
Depreciation and amortization		188,342			21,894		4,628		5,252		21,270		(1,540)	(3)		215,762
													7,690	(4)
Impairment of long-lived assets		3,765			—		—		—		—		—			3,765

Total costs and expenses		2,310,169			295,107		74,183		71,033		298,257		(43,624	)		2,564,802
Other expense		(2,559	)		—		—		—		—		—			(2,559	)
Interest expense		132,110			4,150		744		1,042		3,852		(3,852)	(4)		132,110
Equity in earnings of non-consolidated entities		(30,300	)		—		—		—		—		—			(30,300	)
Investment (income) expense		(205	)		3,291		569		715		3,145		(2,947)	(4)		(7	)

Total other expense		99,046			7,441		1,313		1,757		6,997		(6,799	)		99,244

Earnings (loss) from continuing operations before income taxes		8,524			23,416		4,227		3,493		24,150		(12,188	)		20,486
Income tax provision (benefit)		(68,800	)		—		—		—		—		4,500	(5)		(64,300	)

Earnings from continuing operations	$	77,324		$	23,416	$	4,227	$	3,493	$	24,150	$	(16,688	)	$	84,786

AMC ENTERTAINMENT INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

Source of Funds	Amount		Users of Funds	Amount

	(thousands of dollars)			(thousands of dollars)
Company Cash	$	277,468	Closing date payment amount	$	176,086	(a)
			Total payoff amount-Kerasotes lender		74,710	(a)
			Escrow payment		20,625	(a)
			Estimated transaction costs		3,631	(b)
			Swap termination costs		1,798	(b)
			Eligible seller employee bonus amount		618	(b)

	$	277,468		$	277,468

	52 weeks ended April 1, 2010				Balance Sheet Classification

	(thousands of dollars)
Depreciation and Amortization:
Remove Kerasotes historical amount	$	(21,270	)
Buildings, FF&E and leasehold improvements		25,200		7	Property, net
Favorable leases		2,300		15	Intangibles, net
Non-compete agreements		1,460		5	Intangibles, net
Tradename		—		Indefinite	Intangibles, net
Goodwill		—		Indefinite	Goodwill

	$	7,690

Rent:
Kerasotes amortization of deferred gain on sale-leaseback transactions	$	7,275
Unfavorable leases		(4,000	)

	$	3,275

Interest Expense:
Interest expense to Kerasotes Showplace Theatres, LLC	$	(3,852	)

	$	(3,852	)

Investment Income:
Kerasotes expense related to interest rate swap	$	(2,947	)

	$	(2,947	)

Information regarding market share, market position and industry data pertaining to our business contained in this exhibit consists of our estimates based on data and reports compiled by industry professional organizations, including the Motion Picture Association of America, the National Association of Theatre Owners ("NATO"), Nielsen Media Research, Rentrak Corporation ("Rentrak"), industry analysts and our management's knowledge of our business and markets. Unless otherwise noted in this exhibit, all information provided by the Motion Picture Association of America is for the 2009 calendar year, all information provided by NATO is for the 2009 calendar year and all information provided by Rentrak is as of April 1, 2010.

Although we believe that the sources are reliable, we have not independently verified market industry data provided by third parties or by industry or general publications. Similarly, while we believe our internal estimates with respect to our industry are reliable, our estimates have not been verified by any independent sources. While we are not aware of any misstatements regarding any industry data presented in this exhibit, our estimates involve risks and uncertainties and are subject to changes based on various factors, including those discussed under "Risk Factors" in this exhibit.

In addition to historical information, this exhibit contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words "forecast," "estimate," "project," "intend," "expect," "should," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including those discussed in "Risk Factors" which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative but not exhaustive. In addition, new risks and uncertainties may arise from time to time. Accordingly, all forward-looking statements should be evaluated with an understanding of their inherent uncertainty.

Except as required by law, we assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

AMC Entertainment Holdings, Inc. ("Parent"), an entity created on June 6, 2007, is the sole stockholder of Marquee Holdings Inc. ("Holdings"). Holdings is a holding company with no operations of its own and has one direct subsidiary, AMC Entertainment Inc. ("AMCE"). Upon completion of the initial public offering of Parent, AMCE will be merged with and into Holdings, with Holdings continuing as the surviving entity and then Holdings will be merged with and into Parent, with Parent continuing as the surviving entity (the "Mergers"). Parent will change its name to AMC Entertainment Inc. As used in this exhibit, unless the context otherwise requires, references to "we," "us," "our," the "Company" or "AMC Entertainment" refer to Parent and its subsidiaries after giving effect to the Mergers.

As used in this exhibit, the term "pro forma" refers to, in the case of pro forma financial information, such information after giving pro forma effect to (i) the Mergers, (ii) the Kerasotes Acquisition (as described under "Recent Developments") and (iii) the initial public offering of Parent and related transactions (collectively, the "Transactions"). Except as stated otherwise herein, the share data set forth in this exhibit reflects the reclassification of Parent's capital stock as described below under "The Reclassification."

Parent has a 52-week or 53-week fiscal year ending on the Thursday closest to March 31. Fiscal years 2006, 2007, 2009 and 2010 contained 52 weeks. Fiscal year 2008 contained 53 weeks.

We are one of the world's leading theatrical exhibition companies. As of April 1, 2010, on a pro forma basis, we owned, operated or held interests in 380 theatres with a total of 5,325 screens, approximately 99% of which were located in the United States and Canada. Our theatres are primarily located in major metropolitan markets, which we believe offer strategic, operational and financial advantages. We also have a modern, highly productive theatre circuit that leads the industry in key asset quality and performance metrics, such as screens per theatre and per theatre productivity measures. Our industry leading performance is largely driven by the quality of our theatre sites, our operating practices, which focus on delivering the best customer experience, and, most recently, our implementation of premium sight and sound formats, which we believe will be key components of the future movie-going experience. As of April 1, 2010, on a pro forma basis, we are the largest IMAX exhibitor in the world with a 43% market share in the United States and more than twice the screen count of the second largest U.S. IMAX exhibitor. For the fiscal year ended April 1, 2010, we generated pro forma revenues of approximately $2.7 billion, Pro Forma Adjusted EBITDA (as defined on page 17) of $388.4 million and pro forma earnings from continuing operations of $71.0 million.

The following table provides detail with respect to digital delivery, 3D projection, large screen formats, such as IMAX and our proprietary ETX, and deployment of our enhanced food and beverage offerings as deployed throughout our circuit on April 1, 2010, on a pro forma basis.

The following table provides detail with respect to the geographic location of our Theatrical Exhibition circuit as of April 1, 2010, on a pro forma basis:

We were founded in 1920 and since then have pioneered many of the industry's most important innovations, including the multiplex theatre format in the early 1960s and the North American megaplex theatre format in the mid-1990s. In addition, we have acquired some of the most respected companies in the theatrical exhibition industry, including Loews, General Cinema and, more recently, Kerasotes. We have a demonstrated track record of successfully integrating these companies through timely conversion to our operating procedures, consolidation of corporate functions and adoption of best practices.

The following table sets forth our historical information, on a continuing operations basis, concerning new builds (including expansions), acquisitions and dispositions and end-of-period operated theatres and screens through April 1, 2010:

Subsequent to April 1, 2010, we completed our acquisition of Kerasotes, which increased our theatre and screen count by 83 and 812, respectively.

We have also created and invested in a number of allied businesses and strategic initiatives that have created differentiated viewing formats and experiences, greater variety in food and beverage options and value appreciation for our company. We believe these initiatives will continue to generate incremental value for our company in the future. For example:

We believe our leadership in major metropolitan markets, superior asset quality and continuous focus on innovation and the guest experience have positioned us well to capitalize disproportionately on trends providing momentum to the theatrical exhibition industry as a whole, particularly the mass adoption of digital and 3D technologies. We also believe our management team is uniquely equipped to

execute our strategy to realize this opportunity, making us a particularly effective competitor in our industry and positioning us well for future growth. Our competitive strengths include:

Major Market Leader. We maintain the leading market share within our markets. As of April 1, 2010, on a pro forma basis, we operated in 24 of the top 25 DMAs and had the number one or two market share in each of the top 15 DMAs, including New York City, Los Angeles, Chicago, Philadelphia, San Francisco, Dallas and Boston. In addition, 75% of our screens were located in the top 25 DMAs and 89% were located in the top 50 DMAs. Our strong presence in the top DMAs makes our theatres more visible and therefore strategically more important to content providers who rely on these markets for a disproportionately large share of box office receipts. According to Rentrak, during our fiscal 2010, 59% of all U.S. box office receipts were derived from the top 25 DMAs and 75% were derived from the top 50 DMAs. In certain of our densely populated major metropolitan markets, we believe a scarcity of attractive retail real estate opportunities enhances the strategic value of our existing theatres. We also believe the complexity inherent in operating in these major metropolitan markets is a deterrent to other less sophisticated competitors, protecting our market share position.

We believe that customers in our major metropolitan markets are generally more affluent and culturally diverse than those in smaller markets. Traditionally, our strong presence in these markets has created a greater opportunity to exhibit a broad array of programming and premium formats, which we believe drives higher levels of attendance at our theatres. This has allowed us to generate higher per screen and per theatre operating metrics. For example, our pro forma average ticket price in the United States was $8.39 for our fiscal 2010, as compared to $7.64 for the industry as a whole for the 12 months ended March 31, 2010.

Modern, Highly Productive Theatre Circuit. We believe the combination of our strong major market presence, focus on a superior guest experience and core operating strategies enables us to deliver industry-leading theatre level operating metrics. On a pro forma basis, our circuit averages 14 screens per theatre, which is more than twice the National Association of Theatre Owners average of 6.9 for calendar year 2009 and higher than any of our peers. For the fiscal year ended April 1, 2010, on a pro forma basis, our theatre exhibition circuit generated attendance per average theatre of 596,000 (higher than any of our peers) revenues per average theatre of $7.1 million (approximately 31% higher than our closest peer) and operating cash flows before rent (defined as Adjusted EBITDA before rent and G&A-Other) per average theatre of $2.4 million (approximately 19% higher than our closest peer). Over the past five fiscal years, we invested an average of $131.3 million per year to improve and expand our theatre circuit, contributing to the modern portfolio of theatres we operate today.

Leader in Deployment of Premium Formats. We also believe our strong major market presence and our highly productive theatre circuit allow us to take greater advantage of incremental revenue-generating opportunities associated with the premium services that will define the future of the theatrical business, including digital delivery, 3D projection, large screen formats, such as IMAX and our proprietary ETX offering, and alternative programming. As the industry's digital conversion accelerates, we believe we have established a differentiated leadership position in premium formats. For example, we are the world's largest IMAX exhibitor with 84 screens as of April 1, 2010, on a pro forma basis, and we expect to increase our IMAX screen count to 115 by the end of fiscal year 2012. We are able to charge a premium price for the IMAX experience, which, in combination with higher attendance levels, produces average weekly box office per print that is 300% greater than standard 2D versions of the same movie.

Innovative Growth Initiatives in Food and Beverage. We believe our theatre circuit is better positioned than our peer competitors' to generate additional revenue from broader and more diverse food and beverage offerings, in part due to our markets' larger, more diverse and more affluent customer base and our management's extensive experience in guest services, specifically within the food

and beverage industry. To capitalize on this opportunity, we have introduced proprietary food and beverage offerings in eight theatres as of April 1, 2010, and we intend to deploy these offerings across our theatre circuit based on the needs and specific circumstances of each theatre. Our wide range of food and beverage offerings feature expanded menus, enhanced concession formats and unique in-theatre dining options, which we believe appeals to a larger cross section of potential customers. For example, in fiscal 2009 we converted a small, six-screen theatre in Atlanta, Georgia to an in-theatre dining facility with a separate bar and lounge area. From fiscal 2008 to fiscal 2010, this theatre's attendance increased over 60%, revenues more than doubled, and operating cash flow and margins increased significantly. We plan to continue to invest in enhanced food and beverage offerings across 125 to 150 theatres over the next three years.

Strong Cash Flow Generation. We believe that our major market focus and highly productive theatre circuit have enabled us to generate significant and stable cash flow provided by operating activities. For the fiscal year ended April 1, 2010, on a pro forma basis, our net cash provided by operating activities totaled $252.9 million. This strong cash flow will enable us to continue our deployment of premium formats and services and to finance planned capital expenditures without relying on the capital markets for funding. In addition, in future years, we expect to continue to generate cash flow sufficient to allow us to grow our revenues, maintain our facilities, service our indebtedness and make dividend payments to our stockholders.

Proven Management Team Uniquely Positioned to Execute. Our management team has a unique combination of industry experiences and skill-sets, equipping them to effectively execute our strategies. Our CEO's broad experience in a number of consumer packaged goods and entertainment-related businesses expands our growth perspectives beyond traditional theatrical exhibition and has increased our focus on providing more value to our guests. Recent additions, including a Chief Marketing Officer and heads of Food and Beverage, Programming and Development/Real Estate, augment our deep bench of industry experience. The expanded breadth of our management team complements the established team that is already known for operational excellence, innovation and successful industry consolidation.

Our strategy is to use our modern theatre circuit and major market position to lead the industry in innovation and financial operating metrics. The use of emerging premium formats and our focus on the guest experience give us a unique opportunity to leverage our theatre circuit and major market position across our platform. Our goal is to maintain our company's and the industry's social relevance and to provide our guests with a superior movie-going experience.

Capitalize on Premium Formats. We believe operating a digital theatre circuit, when combined with our major markets' customer base, will enhance our capacity utilization and dynamic pricing capabilities, enable us to achieve higher ticket prices for premium formats, and provide incremental revenue from the exhibition of alternative content such as live concerts, sporting events, Broadway shows, opera and other non-traditional programming. We have already seen success from the Metropolitan Opera, with respect to which, during fiscal 2010, we programmed 23 performances in 75 theatres and charged an average ticket price of $18. Within each of our major markets, we are able to charge a premium for these services relative to our smaller markets. We will continue to broaden our content offerings through the installation of additional IMAX, ETX and RealD systems and the presentation of attractive alternative content. For example:

Broaden and Enhance Food and Beverage Offerings. To address consumer trends, we are expanding our menu of premium food and beverage products to include alcohol, healthy items, made-to-order items, customized coffee, hot food items and other gourmet products. We plan to invest across a spectrum of enhanced food and beverage formats, from simple, less capital-intensive concession design improvements to the development of new in-theatre dining options. We have successfully implemented our in-theatre dining offerings to rejuvenate theatres approaching the end of their useful lives as traditional movie theatres and, in some of our larger theatres to more efficiently leverage their additional capacity. The costs of these conversions in some cases are partially covered by investments from the theatre landlord. We plan to continue to invest in enhanced food and beverage offerings across 125 to 150 theatres over the next three years, including approximately 30 theatres that will offer one of our in-theatre dining options.

Disciplined Approach to Theatre Portfolio Management. We evaluate the potential for new theatres and, where appropriate, replace underperforming theatres with newer, more modern theatres that offer amenities consistent with our portfolio. We also intend to selectively pursue acquisitions where the characteristics of the location, overall market and facilities further enhance the quality of our theatre portfolio. Historically, we have demonstrated a successful track record of integrating acquisitions such as Loews, General Cinema and Kerasotes. For example, our January 2006 acquisition of Loews combined two leading theatrical exhibition companies, each with a long history of operating in the industry, thereby increasing the number of screens we operated by 47%.

Maximize Guest Engagement and Loyalty. In addition to differentiating the AMC Entertainment movie-going experience by deploying new sight and sound formats, as well as food and beverage offerings, we are also focused on creating differentiation through guest marketing. We are already the most recognized theatre exhibition brand, with almost 60% brand awareness in the United States. We are actively marketing our own "AMC experience" message to our customers. We have also refocused our marketing to drive active engagement with our customers through a redesigned website, Facebook, Twitter and push email campaigns. As of July 12, 2010, we had approximately 160,000 friends on

Facebook, and we engaged directly with our guests via close to 32 million emails in fiscal 2010. In addition, our frequent moviegoer loyalty program is scheduled to re-launch during 2011 with a new, more robust fee-based program. Our loyalty program currently has approximately 1.5 million active members. Additional marketing initiatives include:

Continue to Achieve Operating Efficiencies. We believe that the size of our theatre circuit, our major market concentration and the breadth of our operations will allow us to continue to achieve economies of scale and drive further improve operating margins. Our operating strategies are focused in the following areas:

We predominantly license "first-run" motion pictures from distributors owned by major film production companies and from independent distributors. We license films on a film-by-film and theatre-by-theatre basis. We obtain these licenses based on several factors, including number of seats and screens available for a particular picture, revenue potential and the location and condition of our theatres. We pay rental fees on a negotiated basis.

During the period from 1990 to 2009, the annual number of first-run motion pictures released by distributors in the United States ranged from a low of 370 in 1995 to a high of 633 in 2008, according to the Motion Picture Association 2009 Theatrical Market Statistics.

North American film distributors typically establish geographic film licensing zones and generally allocate available film to one theatre within each zone. Film zones generally encompass a radius of three to five miles in metropolitan and suburban markets, depending primarily upon population density. In film zones where we are the sole exhibitor, we obtain film licenses by selecting a film from among those offered and negotiating directly with the distributor. As of April 1, 2010, approximately 88% of our screens in the United States and Canada were located in film licensing zones where we are the sole exhibitor.

Our licenses typically state that rental fees are based on either aggregate terms established prior to the opening of the picture or on a mutually agreed settlement upon the conclusion of the picture run. Under an aggregate terms formula, we pay the distributor a specified percentage of box office receipts or pay based on a scale of percentages tied to different amounts of box office gross. The settlement process allows for negotiation based upon how a film actually performs.

There are several distributors which provide a substantial portion of quality first-run motion pictures to the exhibition industry. These include Paramount Pictures, Twentieth Century Fox, Warner Bros. Distribution, Buena Vista Pictures (Disney), Sony Pictures Releasing, and Universal Pictures. Films licensed from these distributors accounted for approximately 84% of our U.S. and Canadian admissions revenues during fiscal 2010. Our revenues attributable to individual distributors may vary significantly from year to year depending upon the commercial success of each distributor's motion pictures in any given year. In fiscal 2010, no single distributor accounted for more than 20% of our box office admissions.

Concessions sales are our second largest source of revenue after box office admissions. Concessions items include popcorn, soft drinks, candy, hot dogs and other products. Different varieties of candy and soft drinks are offered at our theatres based on preferences in that particular geographic region. We have also implemented "combo-meals", which offer a pre-selected assortment of concessions products and offer co-branded and private label products that are unique to us.

Our strategy emphasizes prominent and appealing concessions counters designed for rapid service and efficiency. We design our megaplex theatres to have more concessions capacity to make it easier to serve larger numbers of customers. Strategic placement of large concessions stands within theatres increases their visibility, aids in reducing the length of lines, allows flexibility to introduce new concepts and improves traffic flow around the concessions stands.

We negotiate prices for our concessions products and supplies directly with concessions vendors on a national or regional basis to obtain high volume discounts or bulk rates and marketing incentives.

Our entertainment and dining experience at certain theatres features casual and premium upscale in-theatre dining options as well as bar and lounge areas.

The following table sets forth the general character and ownership classification of our theatre circuit, excluding unconsolidated joint ventures and managed theatres, as of April 1, 2010, on a pro forma basis:

Our theatre leases generally have initial terms ranging from 15 to 20 years, with options to extend the leases for up to 20 additional years. The leases typically require escalating minimum annual rent payments and additional rent payments based on a percentage of the leased theatre's revenue above a base amount and require us to pay for property taxes, maintenance, insurance and certain other property-related expenses. In some instances, our escalating minimum annual rent payments are contingent upon increases in the consumer price index. In some cases, our rights as tenant are subject and subordinate to the mortgage loans of lenders to our lessors, so that if a mortgage were to be foreclosed, we could lose our lease. Historically, this has never occurred.

Currently, the majority of the concessions, projection, seating and other equipment required for each of our theatres are owned. In the future, we expect the majority of our digital projection equipment to be leased from DCIP.

As of April 1, 2010, on a pro forma basis, we employed approximately 1,100 full-time and 19,500 part-time employees. Approximately 39% of our U.S. theatre associates were paid the minimum wage.

Fewer than 2% of our U.S. employees, consisting primarily of motion picture projectionists, are represented by a union, the International Alliance of Theatrical Stagehand Employees and Motion Picture Machine Operators (and affiliated local unions). We believe that our relationship with this union is satisfactory. We consider our employee relations to be good.

Theatrical exhibition is the primary initial distribution channel for new motion picture releases, and we believe that the theatrical success of a motion picture is often the most important factor in establishing the film's value in the other parts of the product life cycle (DVD, cable television and other ancillary markets).

Theatrical exhibition has demonstrated long-term steady growth. U.S. and Canadian box office revenues increased by a 3.8% CAGR over the last 20 years, driven by increases in both ticket prices and attendance. Ticket prices have grown steadily over the past 20 years, at a 3.2% CAGR. In calendar 2009, industry box office revenues for the United States and Canada were $10.6 billion, an increase of 10% from calendar 2008.

The following table represents information about the exhibition industry obtained from the National Association of Theatre Owners ("NATO").

There are approximately 816 companies competing in the North American theatrical exhibition industry, approximately 442 of which operate four or more screens. Industry participants vary substantially in size, from small independent operators to large international chains. Based on information obtained from Rentrak, we believe that the four largest exhibitors (in terms of box office revenue) generated approximately 54% of the box office revenues in 2009. This statistic is up from 33% in 2000 and is evidence that the theatrical exhibition business in the United States and Canada has been consolidating. According to NATO, average screens per theatre have increased from 6.5 in 2005 to 6.9 in 2009, which we believe is indicative of the industry's development of megaplex theatres.

Our theatres are subject to varying degrees of competition in the geographic areas in which they operate. Competition is often intense with respect to attracting patrons, licensing motion pictures and finding new theatre sites. Where real estate is readily available, there are few barriers preventing another company from opening a theatre near one of our theatres, which may adversely affect operations at our theatre. However, in certain of our densely populated major metropolitan markets, we believe a scarcity of attractive retail real estate opportunities enhances the strategic value of our existing theatres. We also believe the complexity inherent in operating in these major metropolitan markets is a deterrent to other less sophisticated competitors, protecting our market share position.

The theatrical exhibition industry faces competition from other forms of out-of-home entertainment, such as concerts, amusement parks and sporting events, and from other distribution channels for filmed entertainment, such as cable television, pay per view and home video systems, as well as from all other forms of entertainment.

We believe the theatrical exhibition industry will continue to be attractive for a number of key reasons, including:

Adoption of Digital Technology. The theatrical exhibition industry is in the initial stages of converting from film-based to digital projection technology. Digital projection results in a premium visual experience for patrons, and digital content gives the theatre operator greater flexibility in programming. The industry will benefit from the conversion to digital delivery, alternative content, 3D formats and dynamic pricing models. As theatre exhibitors have adopted digital technology, the theatre circuits have shown enhanced productivity, profitability and efficiency. Digital technology has increased attendance and average ticket prices. Digital technology also facilitates live and pre-recorded networked and single-site meetings and corporate events in movie theatres and will allow for the distribution of live and pre-recorded entertainment content and the sale of associated sponsorships.

Long History of Steady Growth. The theatrical exhibition industry has produced steady growth in revenues over the past several decades. In recent years, net new build activity has slowed, and screen count has rationalized and is expected to decline in the near term before stabilizing, thereby increasing revenue per screen for existing theatres. The combination of the popularity of movie-going, its steady long-term growth characteristics and consolidation and the industry's relative maturity makes theatrical exhibition a high cash flow generating business today. Box office revenues in the United States and

Canada have increased at a 3.8% CAGR over the last 20 years, driven by increases in both ticket prices and attendance across multiple economic cycles. The industry has also demonstrated its resilience to economic downturns; during four of the last six recessions, attendance and box office revenues grew an average of 8.1% and 12.3%, respectively.

A Highly Popular and Affordable Out-of-Home Entertainment Experience. Going to the movies has been one of the most popular and affordable out-of-home entertainment options for decades. The estimated average price of a movie ticket was $7.50 in calendar 2009, considerably less than other out-of-home entertainment alternatives such as concerts and sporting events. In calendar 2009, attendance at indoor movie theatres in the United States and Canada was 1.4 billion. This contrasts to the 119 million combined annual attendance generated by professional baseball, basketball and football over the same time period.

Importance to Content Providers. We believe that the theatrical success of a motion picture is often the key determinant in establishing the film's value in the other parts of the product life cycle, such as DVD, cable television, merchandising and other ancillary markets. For each $1 of theatrical box office receipts, an average of $1.33 of additional revenue is generated in the remainder of a film's product life cycle. As a result, we believe motion picture studios will continue to work cooperatively with theatrical exhibitors to ensure the continued value of the theatrical window.

On December 9, 2009, we entered into a definitive agreement with Kerasotes Showplace Theatres, LLC ("Kerasotes") pursuant to which we acquired substantially all of the assets of Kerasotes (the "Kerasotes Acquisition"). Kerasotes operated 95 theatres and 972 screens in mid-sized, suburban and metropolitan markets, primarily in the Midwest. More than three quarters of the Kerasotes theatres feature stadium seating and almost 90% were built after 1994. On May 24, 2010, we completed the acquisition. The Kerasotes Acquisition increased our theatre and screen count by 83 and 812, respectively. The purchase price for the Kerasotes theatres paid in cash at closing was $275 million and is subject to working capital and other purchase price adjustments.

We are a founding member of National CineMedia ("NCM"), a digital cinema screen advertising venture, which we took public in February 2007. NCM operates an in-theatre digital network in the United States. The digital network consists of projectors used to display advertising and other non-film events. As of April 1, 2010, we had an 18.23% interest in NCM through the units we hold in National CineMedia, LLC ("NCM LLC"). All of the Kerasotes theatres and substantially all of the screens we acquired in the Kerasotes Acquisition, which since January 2008 have been included in a network affiliate agreement with NCM that terminated as part of the Kerasotes Acquisition, became part of our long-term Exhibitor Services Agreement with NCM. Accordingly, the Kerasotes Acquisition triggered the adjustment of our membership units pursuant to the Common Unit Adjustment Agreement (the "CSU Agreement") we have with NCM, NCM LLC and the other founding members of NCM LLC as a result of an increase of extraordinary attendance by approximately 4.5%. Pursuant to the terms of the CSU Agreement, we received an additional 6,510,209 units in NCM LLC, which increased our total ownership to 25,458,613 units, representing a 23.05% interest in NCM. All of our NCM LLC membership units are redeemable for cash or, at the option of NCM, shares of NCM common stock on a share-for-share basis. In connection with the termination of the NCM/Kerasotes network affiliate agreement, we are required to reimburse NCM approximately $2.9 million for the current net book value of NCM's capital expenditures invested in digital network technology within the acquired Kerasotes theatres prior to the Kerasotes Acquisition date.

Prior to consummating the initial public offering of Parent, we intend to reclassify each share of the Company's existing Class A common stock, Class N common stock and Class L common stock. Pursuant to the reclassification, each holder of shares of Class A common stock, Class N common stock and Class L common stock will receive shares of common stock for one share of Class A common stock, Class L common stock or Class N common stock. The transactions described in this paragraph are referred to in this exhibit as the "Reclassification."

Currently, investment vehicles affiliated with J.P. Morgan Partners, LLC (collectively, "JPMP"), Apollo Investment Fund V, L.P. and certain related investment funds (collectively, "Apollo"), JPMP's and Apollo's co-investors, funds associated with Bain Capital Partners, LLC ("Bain"), affiliates of The Carlyle Group (collectively, "Carlyle"), affiliates of Spectrum Equity Investors (collectively, "Spectrum"), and management hold 100% of our outstanding common stock. JPMP, Apollo, Bain, Carlyle and Spectrum are collectively referred to in this exhibit as the "Sponsors." After giving effect to the Reclassification and the initial public offering of Parent, the Sponsors will hold shares of our common stock, representing approximately % of our outstanding common stock, and will have the power to control our affairs and policies including with respect to the election of directors (and through the election of directors the appointment of management), the entering into of mergers, sales of substantially all of our assets and other extraordinary transactions. The governance agreements will provide that, initially, the Sponsors will collectively have the right to designate eight directors (out of a total of 10 initial board members) and that each will vote for the others' nominees. The number of Sponsor-designated directors will be reduced as the Sponsors' ownership percentage reduces, such that the Sponsors will not have the ability to nominate a majority of the board of directors once their collective ownership (together with the share ownership held by the JPMP and Apollo co-investors) becomes less than 50.1%. However, because our board of directors will be divided into three staggered classes, the Sponsors may be able to influence or control our affairs and policies even after they cease to own 50.1% of our outstanding common stock during the period in which the Sponsors' nominees finish their terms as members of our board but in any event no longer than would be permitted under applicable law and national securities exchange listing requirements. Pursuant to the Fee Agreement as described in Item 13 of the AMCE Annual Report on Form 10-K for the fiscal year ended April 1, 2010, upon consummation of the initial public offering of Parent, the Sponsors will receive an automatic fee equal to the net present value of the aggregate annual management fee that would have been payable to the Sponsors during the remainder of the term of the fee agreement and our obligation to pay annual management fees will terminate. We estimate that our aggregate payment to the Sponsors would have been $29.2 million had the offering occurred on April 1, 2010.

The following summary historical financial data sets forth our historical financial and operating data for the fiscal years ended April 1, 2010, April 2, 2009 and April 3, 2008 and have been derived from the Company's audited consolidated financial statements and related notes for such periods.

The following summary unaudited pro forma financial and operating data sets forth our unaudited pro forma combined balance sheet as of April 1, 2010 and unaudited pro forma combined statement of operations for the 52 weeks ended April 1, 2010. The pro forma financial data has been derived from the Company's historical consolidated financial information, including the notes thereto, and the Kerasotes historical financial information, including the notes thereto, and has been prepared based on the Company's historical consolidated financial statements and the Kerasotes historical financial statements. The unaudited pro forma combined balance sheet gives pro forma effect to the Transactions as if they had occurred on April 1, 2010. The unaudited pro forma combined statement of operations data gives pro forma effect to the Transactions as if they had occurred on April 3, 2009. The summary unaudited pro forma financial and operating data is based on certain assumptions and adjustments and does not purport to present what the Company's actual results of operations would have been had the Transactions and events reflected by them in fact occurred on the dates specified, nor is it necessarily indicative of the results of operations that may be achieved in the future.

			Years Ended(1)(2)

			Pro Forma 52 Weeks Ended April 1, 2010		52 Weeks Ended April 1, 2010		52 Weeks Ended April 2, 2009		53 Weeks Ended April 3, 2008
			(in thousands, except per share and operating data)
Statement of Operations Data:
Total revenues			$	2,684,532	$	2,417,739	$	2,265,487	$	2,333,044

Costs and Expenses:
	Cost of operations			1,785,080		1,612,260		1,486,457		1,502,578
	Rent			478,090		440,664		448,803		439,389
	General and administrative:
		Merger, acquisition and transactions costs		2,578		2,578		1,481		7,310
		Management fee		—		5,000		5,000		5,000
		Other		75,241		58,274		53,800		39,084
	Depreciation and amortization			215,762		188,342		201,413		222,111
	Impairment of long-lived assets			3,765		3,765		73,547		8,933

		Total costs and expenses		2,560,516		2,310,883		2,270,501		2,224,405

		Years Ended(1)(2)

		Pro Forma 52 Weeks Ended April 1, 2010			52 Weeks Ended April 1, 2010			52 Weeks Ended April 2, 2009			53 Weeks Ended April 3, 2008
		(in thousands, except per share and operating data)
Other income		$	(2,559	)	$	(87,793	)	$	(14,139	)	$	(12,932	)
Interest expense			132,110			174,091			188,681			204,226
Equity in earnings of non-consolidated entities(3)			(30,300	)		(30,300	)		(24,823	)		(43,019	)
Investment income(4)			(89	)		(287	)		(1,759	)		(24,013	)

	Earnings (loss) from continuing operations before income taxes		24,854			51,145			(152,974	)		(15,623	)
	Income tax provision (benefit)		(46,100	)		(36,300	)		5,800			(7,580	)

	Earnings (loss) from continuing operations	$	70,954		$	87,445		$	(158,774	)	$	(8,043	)

	Basic earnings (loss) from continuing operations per share				$	68.38		$	(123.93	)	$	(6.27	)
	Diluted earnings (loss) from continuing operations per share					68.24			(123.93	)		(6.27	)
Average shares outstanding:
	Basic					1,278.82			1,281.20			1,282.65
	Diluted					1,281.42			1,281.20			1,282.65
Balance Sheet Data (at period end):
Cash and equivalents		$	268,362		$	611,593		$	539,597		$	111,820
Corporate borrowings, including current portion			1,832,854			2,271,914			2,394,586			2,287,521
Other long-term liabilities			345,610			309,591			308,702			350,250
Capital and financing lease obligations, including current portion			69,833			57,286			60,709			69,983
Stockholders' equity			776,750			439,542			378,484			506,731
	Total assets		3,754,388			3,774,912			3,774,894			3,899,128
Other Data:
Adjusted EBITDA(5)					$	327,859		$	294,705		$	347,638
Pro Forma Adjusted EBITDA(5)		$	388,439
Net cash provided by operating activities			252,904			198,936			167,249			201,209
Capital expenditures			(99,109	)		(97,011	)		(121,456	)		(171,100	)
Proceeds from sale/leasebacks			6,570			6,570			—			—
Operating Data (at period end):
Screen additions			6			6			83			136
Screen dispositions			105			105			77			196
Average screens—continuing operations(6)			5,297			4,485			4,545			4,561
Number of screens operated			5,325			4,513			4,612			4,606
Number of theatres operated			380			297			307			309
Screens per theatre			14.0			15.2			15.0			14.9
Attendance (in thousands)—continuing operations(6)			225,651			200,285			196,184			207,603

(3): During fiscal 2010, fiscal 2009 and fiscal 2008, equity in earnings including cash distributions from NCM were $34.4 million, $27.7 million and $22.2 million, respectively. During fiscal 2008, equity in (earnings) losses of non-consolidated entities includes a gain of $18.8 million from the sale of Hoyts General Cinema South America.
(4): Includes gain of $16.0 million for the 53 weeks ended April 3, 2008 from the sale of our investment in Fandango, Inc. ("Fandango").
(5): We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as earnings (loss) from continuing operations plus (i) income tax provisions (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance. These further adjustments are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Set forth below is a reconciliation of Adjusted EBITDA to earnings (loss) from continuing operations, our most comparable GAAP measure:

			Pro Forma 52 Weeks Ended April 1, 2010			52 Weeks Ended April 1, 2010			52 Weeks Ended April 2, 2009			53 Weeks Ended April 3, 2008

			(in thousands)
Earnings (loss) from continuing operations			$	70,954		$	87,445		$	(158,774	)	$	(8,043	)
Plus:
	Income tax provision (benefit)			(46,100	)		(36,300	)		5,800			(7,580	)
	Interest expense			132,110			174,091			188,681			204,226
	Depreciation and amortization			215,762			188,342			201,413			222,111
	Impairment of long-lived assets			3,765			3,765			73,547			8,933
	Certain operating expenses(a)			6,099			6,099			1,517			(16,248	)
	Equity in earnings of non-consolidated entities			(30,300	)		(30,300	)		(24,823	)		(43,019	)
	Investment income			(89	)		(287	)		(1,759	)		(24,013	)
	Other (income) expense(b)			11,276			(73,958	)		—			(1,246	)
	General and administrative expense:
		Merger, acquisition and transaction costs		2,578			2,578			1,481			7,310
		Management fee		—			5,000			5,000			5,000
		Stock-based compensation expense		1,384			1,384			2,622			207

Adjusted EBITDA						$	327,859		$	294,705		$	347,638

Additional Adjustments:
	IMAX and RealD(c)			8,500
	Synergies(d)			12,500

Pro Forma Adjusted EBITDA			$	388,439

(b): Other expense for fiscal 2010, on a pro forma basis, is comprised of the loss on extinguishment of indebtedness related to the cash tender offer and remaining redemption with respect to our 8⁵/8% senior notes due 2012. Other expense for fiscal 2010, on a historical basis, includes a gain on extinguishment of indebtedness of $85.2 million related to the Parent's term loan facility partially offset by the loss on extinguishment of indebtedness related to the cash tender offer and remaining redemption with respect to our 8⁵/8% senior notes due 2012. Other income for fiscal 2008 is comprised of recoveries for property loss related to Hurricane Katrina.
(c): Reflects a pro forma reduction in costs relating to modifications made to our RealD and IMAX agreements in fiscal 2011.
(d): Reflects anticipated synergies and cost savings related to the Kerasotes Acquisition that we expect to derive from increased ticket and concession revenues at the former Kerasotes locations as a result of moving to our operating practices, decreased costs for newspaper advertising and concessions for those locations, and general and administrative expense savings, particularly with respect to the consolidation of corporate overhead functions and elimination of redundancies.

Adjusted EBITDA and Pro Forma Adjusted EBITDA are non-GAAP financial measures commonly used in our industry and should not be construed as an alternative to net earnings (loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA and Pro Forma Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA and Pro Forma Adjusted EBITDA because we believe they provide management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. In addition, we use Adjusted EBITDA for incentive compensation purposes.

Adjusted EBITDA and Pro Forma Adjusted EBITDA have important limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under U.S. GAAP. For example, Adjusted EBITDA:

•: does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;
•: does not reflect changes in, or cash requirements for, our working capital needs;
•: does not reflect the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt;
•: excludes tax payments that represent a reduction in cash available to us;
•: does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; and
•: does not reflect management fees that may be paid to our sponsors.

Pro Forma Adjusted EBITDA includes further adjustments for a pro forma reduction in costs relating to modifications to our RealD and IMAX agreements in fiscal 2011, as well as anticipated synergies and cost savings related to the Kerasotes Acquisition. No assurance can be given that such synergies or cost reductions will occur.

(6): Includes consolidated theatres only.

We have no control over distributors of the films and our business may be adversely affected if our access to motion pictures is limited or delayed.

We rely on distributors of motion pictures, over whom we have no control, for the films that we exhibit. Major motion picture distributors are required by law to offer and license film to exhibitors, including us, on a film-by-film and theatre-by-theatre basis. Consequently, we cannot assure ourselves of a supply of motion pictures by entering into long-term arrangements with major distributors, but must compete for our licenses on a film-by-film and theatre-by-theatre basis. Our business depends on maintaining good relations with these distributors, as this affects our ability to negotiate commercially favorable licensing terms for first-run films or to obtain licenses at all. Our business may be adversely affected if our access to motion pictures is limited or delayed because of deterioration in our relationships with one or more distributors or for some other reason. To the extent that we are unable to license a popular film for exhibition in our theatres, our operating results may be adversely affected.

Our ability to operate successfully depends upon the availability, diversity and appeal of motion pictures, our ability to license motion pictures and the performance of such motion pictures in our markets. We license first-run motion pictures, the success of which has increasingly depended on the marketing efforts of the major motion picture studios. Poor performance of, or any disruption in the production of these motion pictures (including by reason of a strike or lack of adequate financing), or a reduction in the marketing efforts of the major motion picture studios, could hurt our business and results of operations. Conversely, the successful performance of these motion pictures, particularly the sustained success of any one motion picture, or an increase in effective marketing efforts of the major motion picture studios, may generate positive results for our business and operations in a specific fiscal quarter or year that may not necessarily be indicative of, or comparable to, future results of operations. In addition, a change in the type and breadth of movies offered by motion picture studios may adversely affect the demographic base of moviegoers.

Our theatres are subject to varying degrees of competition in the geographic areas in which we operate. Competitors may be national circuits, regional circuits or smaller independent exhibitors. Competition among theatre exhibition companies is often intense with respect to the following factors:

The theatrical exhibition industry also faces competition from other forms of out-of-home entertainment, such as concerts, amusement parks and sporting events and from other distribution channels for filmed entertainment, such as cable television, pay per view and home video systems and from other forms of in-home entertainment.

Industry-wide screen growth has affected and may continue to affect the performance of some of our theatres.

In recent years, theatrical exhibition companies have emphasized the development of large megaplexes, some of which have as many as 30 screens in a single theatre. The industry-wide strategy of aggressively building megaplexes generated significant competition and rendered many older, multiplex theatres obsolete more rapidly than expected. Many of these theatres are under long-term lease commitments that make closing them financially burdensome, and some companies have elected to continue operating them notwithstanding their lack of profitability. In other instances, because theatres are typically limited use design facilities, or for other reasons, landlords have been willing to make rent concessions to keep them open. In recent years, many older theatres that had closed are being reopened by small theatre operators and in some instances by sole proprietors that are able to negotiate significant rent and other concessions from landlords. As a result, there has been growth in the number of screens in the U.S. and Canadian exhibition industry from 2005 to 2008. This has affected and may continue to affect the performance of some of our theatres. The number of screens in the U.S. and Canadian exhibition industry slightly declined from 2008 to 2009.

An increase in the use of alternative film delivery methods or other forms of entertainment may drive down our attendance and limit our ticket prices.

We compete with other film delivery methods, including network, syndicated cable and satellite television, DVDs and video cassettes, as well as video-on-demand, pay-per-view services and downloads via the Internet. We also compete for the public's leisure time and disposable income with other forms of entertainment, including sporting events, amusement parks, live music concerts, live theatre and restaurants. An increase in the popularity of these alternative film delivery methods and other forms of entertainment could reduce attendance at our theatres, limit the prices we can charge for admission and materially adversely affect our business and results of operations.

Our results of operations may be impacted by shrinking video release windows.

Over the last decade, the average video release window, which represents the time that elapses from the date of a film's theatrical release to the date a film is available on DVD, an important downstream market, has decreased from approximately six months to approximately three to four months. If patrons choose to wait for a DVD release rather than attend a theatre for viewing the film, it may adversely impact our business and results of operations, financial condition and cash flows. Film studios are currently considering a premium video on demand product which could also cause the release window to shrink further. We cannot assure you that this release window, which is determined by the film studios, will not shrink further or be eliminated altogether, which could have an adverse impact on our business and results of operations.

The industry is in the process of converting film-based media to digital-based media. We, along with some of our competitors, have commenced a roll-out of digital equipment for exhibiting feature films and plan to continue the roll-out through our joint venture DCIP. However, significant obstacles exist that impact such a roll-out plan, including the cost of digital projectors, and the supply of projectors by manufacturers. During fiscal 2010, DCIP completed its formation and $660 million funding to facilitate the financing and deployment of digital technology in our theatres. We cannot assure you that DCIP will be able to obtain sufficient additional financing to be able to purchase and

lease to us the number of digital projectors ultimately needed for our roll-out or that the manufacturers will be able to supply the volume of projectors needed for our roll-out. As a result, our roll-out of digital equipment could be delayed or not completed at all.

General political, social and economic conditions can reduce our attendance.

Our success depends on general political, social and economic conditions and the willingness of consumers to spend money at movie theatres. If going to motion pictures becomes less popular or consumers spend less on concessions, which accounted for 27% of our revenues in fiscal 2010, our operations could be adversely affected. In addition, our operations could be adversely affected if consumers' discretionary income falls as a result of an economic downturn. Political events, such as terrorist attacks, could cause people to avoid our theatres or other public places where large crowds are in attendance.

Our substantial debt could adversely affect our operations and prevent us from satisfying those debt obligations.

We have a significant amount of debt. As of April 1, 2010, on a pro forma basis, we had $1.9 billion of outstanding indebtedness, and our subsidiaries had approximately $4.6 billion of undiscounted rental payments under operating leases (with initial base terms of between 15 and 20 years).

The amount of our indebtedness and lease and other financial obligations could have important consequences to you. For example, it could:

If we fail to make any required payment under our senior secured credit facility or to comply with any of the financial and operating covenants contained therein, we would be in default. Lenders under our senior secured credit facility could then vote to accelerate the maturity of the indebtedness under the senior secured credit facility and foreclose upon the stock and personal property of our subsidiaries that is pledged to secure the senior secured credit facility. Other creditors might then accelerate other indebtedness. If the lenders under the senior secured credit facility accelerate the maturity of the indebtedness thereunder, we might not have sufficient assets to satisfy our obligations under the senior secured credit facility or our other indebtedness.

Our indebtedness under our senior secured credit facility bears interest at rates that fluctuate with changes in certain prevailing interest rates (although, subject to certain conditions, such rates may be fixed for certain periods). If interest rates increase, we may be unable to meet our debt service obligations under our senior secured credit facility and other indebtedness.

The agreements governing our indebtedness contain covenants that may limit our ability to take advantage of certain business opportunities advantageous to us.

The agreements governing our indebtedness contain various covenants that limit our ability to, among other things:

These restrictions could limit our ability to obtain future financing, make acquisitions or needed capital expenditures, withstand economic downturns in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise.

Although the indentures for our notes contain a fixed charge coverage test that limits our ability to incur indebtedness, this limitation is subject to a number of significant exceptions and qualifications. Moreover, the indentures do not impose any limitation on our incurrence of capital or finance lease obligations or liabilities that are not considered "Indebtedness" under the indentures (such as operating leases), nor do they impose any limitation on the amount of liabilities incurred by subsidiaries, if any, that might be designated as "unrestricted subsidiaries," which are subsidiaries that we designate, that are not subject to the restrictive covenants contained in the indentures governing our notes. Furthermore, there are no restrictions in the indentures on our ability to invest in other entities (including unaffiliated entities) and no restrictions on the ability of our subsidiaries to enter into agreements restricting their ability to pay dividends or otherwise transfer funds to us. Also, although the indentures limit our ability to make restricted payments, these restrictions are subject to significant exceptions and qualifications.

We may not generate sufficient cash flow from our theatre acquisitions to service our indebtedness.

In any acquisition, we expect to benefit from cost savings through, for example, the reduction of overhead and theatre level costs, and from revenue enhancements resulting from the acquisition. However, there can be no assurance that we will be able to generate sufficient cash flow from these acquisitions to service any indebtedness incurred to finance such acquisitions or realize any other anticipated benefits. Nor can there be any assurance that our profitability will be improved by any one or more acquisitions. Any acquisition may involve operating risks, such as:

If our cash flows prove inadequate to service our debt and provide for our other obligations, we may be required to refinance all or a portion of our existing debt or future debt at terms unfavorable to us.

Our ability to make payments on and refinance our debt and other financial obligations and to fund our capital expenditures and acquisitions will depend on our ability to generate substantial operating cash flow. This will depend on our future performance, which will be subject to prevailing economic conditions and to financial, business and other factors beyond our control. As of August 16, 2007, Holdings began paying cash interest on its 12% senior discount notes due 2014 and made its first semi-annual cash interest payment on February 15, 2008. Holdings' ability to service the 12% senior discount notes due 2014 is subject to the restrictions on distributions from AMCE contained in its senior secured credit facility and the indentures governing AMCE's debt securities. The maximum

amount we would be permitted to distribute in compliance with our senior secured credit facility and the indentures governing our debt securities, on a pro forma basis, was approximately $309.8 million as of April 1, 2010.

In addition, our notes require us to repay or refinance those notes when they come due. If our cash flows were to prove inadequate to meet our debt service, rental and other obligations in the future, we may be required to refinance all or a portion of our existing or future debt, on or before maturity, to sell assets or to obtain additional financing. We cannot assure you that we will be able to refinance any of our indebtedness, including our senior secured credit facility, sell any such assets or obtain additional financing on commercially reasonable terms or at all.

The terms of the agreements governing our indebtedness restrict, but do not prohibit us from incurring additional indebtedness. If we are in compliance with the financial covenants set forth in the senior secured credit facility and our other outstanding debt instruments, we may be able to incur substantial additional indebtedness. If we incur additional indebtedness, the related risks that we face may intensify.

We face significant competition for new theatre sites, and we may not be able to build or acquire theatres on terms favorable to us.

We anticipate significant competition from other exhibition companies and financial buyers when trying to acquire theatres, and there can be no assurance that we will be able to acquire such theatres at reasonable prices or on favorable terms. Moreover, some of these possible buyers may be stronger financially than we are. In addition, given our size and market share, as well as our recent experiences with the Antitrust Division of the United States Department of Justice in connection with the acquisition of Kerasotes and prior acquisitions, we may be required to dispose of theatres in connection with future acquisitions that we make. As a result of the foregoing, we may not succeed in acquiring theatres or may have to pay more than we would prefer to make an acquisition.

Acquiring or expanding existing circuits and theatres may require additional financing, and we cannot be certain that we will be able to obtain new financing on favorable terms, or at all.

On a pro forma basis, our net capital expenditures aggregated approximately $99.1 million for fiscal 2010. We estimate that our planned capital expenditures will be between $120.0 million and $150.0 million in fiscal 2011 and will continue at this level or higher over the next three years. Actual capital expenditures in fiscal 2011 may differ materially from our estimates. We may have to seek additional financing or issue additional securities to fully implement our growth strategy. We cannot be certain that we will be able to obtain new financing on favorable terms, or at all. In addition, covenants under our existing indebtedness limit our ability to incur additional indebtedness, and the performance of any additional theatres may not be sufficient to service the related indebtedness that we are permitted to incur.

We may be reviewed by antitrust authorities in connection with acquisition opportunities that would increase our number of theatres in markets where we have a leading market share.

Given our size and market share, pursuit of acquisition opportunities that would increase the number of our theatres in markets where we have a leading market share would likely result in significant review by the Antitrust Division of the United States Department of Justice, and we may be required to dispose of theatres in order to complete such acquisition opportunities. For example, in connection with the acquisition of Kerasotes, we are required to dispose of 11 theatres located in various markets across the United States, including Chicago, Denver and Indianapolis. As a result, we may not be able to succeed in acquiring other exhibition companies or we may have to dispose of a significant number of theatres in key markets in order to complete such acquisitions.

Our theatres must comply with Title III of the Americans with Disabilities Act of 1990, or ADA. Compliance with the ADA requires that public accommodations "reasonably accommodate" individuals with disabilities and that new construction or alterations made to "commercial facilities" conform to accessibility guidelines unless "structurally impracticable" for new construction or technically infeasible for alterations. Non-compliance with the ADA could result in the imposition of injunctive relief, fines, and an award of damages to private litigants or additional capital expenditures to remedy such noncompliance.

On January 29, 1999, the Civil Rights Division of the Department of Justice, or the Department, filed suit alleging that our stadium-style theatres violated the ADA and related regulations. On December 5, 2003, the trial court entered a consent order and final judgment on non-line-of-sight issues under which AMCE agreed to remedy certain violations at its stadium-style theatres and at certain theatres it may open in the future. Currently we estimate that betterments related to non-line of sight remedies will be required at approximately 140 stadium-style theatres. We estimate that the total cost of these betterments will be approximately $54 million and through April 1, 2010 we have incurred approximately $33.4 million of these costs.

We are subject to a number of legal proceedings and claims that arise in the ordinary course of our business. We cannot be assured that we will succeed in defending any claims, that judgments will not be entered against us with respect to any litigation or that reserves we may set aside will be adequate to cover any such judgments. If any of these actions or proceedings against us is successful, we may be subject to significant damages awards.

We own and operate facilities throughout the United States and manage or own facilities in several foreign countries and are subject to the environmental laws and regulations of those jurisdictions, particularly laws governing the cleanup of hazardous materials and the management of properties. We might in the future be required to participate in the cleanup of a property that we own or lease, or at which we have been alleged to have disposed of hazardous materials from one of our facilities. In certain circumstances, we might be solely responsible for any such liability under environmental laws, and such claims could be material.

We intend to continue to pursue ancillary revenue opportunities such as advertising, promotions and alternative uses of our theatres during non-peak hours. Our ability to achieve our business objectives may depend in part on our success in increasing these revenue streams. Some of our U.S. and Canadian competitors have stated that they intend to make significant capital investments in digital advertising delivery, and the success of this delivery system could make it more difficult for us to compete for advertising revenue. In addition, in March 2005 we contributed our cinema screen advertising business to NCM. As such, although we retain board seats and an ownership interest in NCM, we do not control this business, and therefore do not control our revenues attributable to cinema screen advertising. We cannot assure you that we will be able to effectively generate additional ancillary revenue and our inability to do so could have an adverse effect on our business and results of operations.

Although Holdings and AMCE already file certain periodic reports with the Securities and Exchange Commission, becoming a public company will increase our expenses and administrative burden, in particular to bring our company into compliance with certain provisions of the Sarbanes Oxley Act of 2002 to which we are not currently subject.

As a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. In addition, our administrative staff will be required to perform additional tasks. For example, in anticipation of becoming a public company, we will need to create or revise the roles and duties of our board committees, adopt additional internal controls and disclosure controls and procedures, retain a transfer agent and adopt an insider trading policy in compliance with our obligations under the securities laws.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 and related regulations implemented by the Securities and Exchange Commission and the applicable national securities exchange, are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time consuming. We are currently evaluating and monitoring developments with respect to new and proposed rules and cannot predict or estimate the amount of the additional costs we may incur or the timing of such costs. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory authorities may initiate legal proceedings against us and our business may be harmed. We also expect that being a public company and these new rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee, and qualified executive officers.

Our current and future performance depends to a significant degree upon the retention of our senior management team and other key personnel. The loss or unavailability to us of any member of our senior management team or a key employee could have a material adverse effect on our business, financial condition and results of operations. We cannot assure you that we would be able to locate or employ qualified replacements for senior management or key employees on acceptable terms.

Prior to fiscal 2007, AMCE had reported net losses in each of the prior nine fiscal years totaling approximately $510.1 million. For fiscal 2007, we reported net earnings of $116.9 million. For fiscal 2008 and 2009, we reported net losses of $6.2 million and $149.0 million, respectively. We reported net earnings of $79.9 million in fiscal 2010. If we experience losses in the future, we may be unable to meet our payment obligations while attempting to expand our theatre circuit and withstand competitive pressures or adverse economic conditions.

Our investment in and revenues from NCM may be negatively impacted by the competitive environment in which NCM operates.

We have maintained an investment in NCM. NCM's in-theatre advertising operations compete with other cinema advertising companies and other advertising mediums including, most notably, television, newspaper, radio and the Internet. There can be no guarantee that in-theatre advertising will continue to attract major advertisers or that NCM's in-theatre advertising format will be favorably received by the theatre-going public. If NCM is unable to generate expected sales of advertising, it may not maintain the level of profitability we hope to achieve, its results of operations and cash flows may be adversely affected and our investment in and revenues and dividends from NCM may be adversely impacted.

The opening of large megaplexes by us and certain of our competitors has drawn audiences away from some of our older, multiplex theatres. In addition, demographic changes and competitive pressures have caused some of our theatres to become unprofitable. As a result, we may have to close certain theatres or recognize impairment losses related to the decrease in value of particular theatres. We review long-lived assets, including intangibles, for impairment as part of our annual budgeting process and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. We recognized non-cash impairment losses in 1996 and in each fiscal year thereafter except for 2005. AMCE's impairment losses from continuing operations over this period aggregated to $285.0 million. Beginning fiscal 1999 through April 1, 2010, we also incurred theatre and other closure expenses, including theatre lease termination charges aggregating approximately $56.2 million. Deterioration in the performance of our theatres could require us to recognize additional impairment losses and close additional theatres, which could have an adverse effect on the results of our operations.

We derived the following unaudited pro forma condensed financial information by applying pro forma adjustments attributable to the Kerasotes Acquisition, the initial public offering of Parent and the Transactions to our historical consolidated financial statements and the Kerasotes financial statements included in this exhibit. The unaudited pro forma balance sheet gives pro forma effect to the Transactions as if they had occurred on April 1, 2010. The unaudited pro forma condensed statement of operations data for the 52 weeks ended April 1, 2010 gives effect to the Transactions as if they had occurred on April 3, 2009. We describe the assumptions underlying the pro forma adjustments in the accompanying notes, which should be read in conjunction with the unaudited pro forma condensed financial information.

We intend to use the net proceeds from the initial public offering of Parent, together with cash on hand, to: first, repay all $198.3 million of the loans outstanding under the Parent's term loan facility plus accrued and unpaid interest; second, to retire all $240.8 million of our outstanding 12% senior discount notes due 2014 plus accrued and unpaid interest; and third, to pay a $29.2 million lump sum payment to the Sponsors pursuant to the Fee Agreement with our Sponsors.

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED PRO FORMA BALANCE SHEET
AS OF APRIL 1, 2010
(dollars in thousands)

							As of April 1, 2010

		Parent Historical as of April 1, 2010			Kerasotes Historical as of March 31, 2010		Purchase Price Pro Forma Adjustments(a)			Pro Forma Adjustments(b)			Parent Pro Forma Kerasotes Acquisition			Offering Transactions Pro Forma Adjustments			Parent Pro Forma
Assets
Cash and equivalents		$	611,593		$	—	$	(271,421)	(1)	$	(6,047)	(1)	$	334,125		$	416,500	(6)	$	268,362
																	(482,263)	(6)
Current assets			99,129			39,807		(26,685)	(2)		—			112,251			—			112,251
Property, net			863,532			132,035		93,495	(2)		(41,151)	(3)		1,047,911			—			1,047,911
Intangible assets, net			148,432			26,357		21,643	(2)		(350)	(3)		196,082			—			196,082
Goodwill			1,844,757			24,153		60,397	(2)		—			1,929,307			—			1,929,307
Other long-term assets			207,469			—		—			—			207,469			(6,994)	(6a)		200,475

Total assets		$	3,774,912		$	222,352	$	(122,571	)	$	(47,548	)	$	3,827,145		$	(72,757	)	$	3,754,388

Liabilities and Stockholders' Equity
Current liabilities		$	454,720		$	45,395	$	(8,961)	(2)	$	—		$	491,154		$	(3,672)	(6)	$	487,482
Corporate borrowings:
	Parent term loan facility		198,265			—		—			—			198,265			(198,265)	(6)		—
	12% Senior Discount Notes due 2014		240,795			—		—			—			240,795			(240,795)	(6)		—
	8% Senior Subordinated Notes due 2014		299,227			—		—			—			299,227			—			299,227
	11% Senior Subordinated Notes due 2016		325,000			—		—			—			325,000			—			325,000
	8.75% Senior Notes due 2019		586,252			—		—			—			586,252			—			586,252
	Senior Secured Term Loan Facility due 2013		615,875			—		—			—			615,875			—			615,875
	Capital and financing lease obligations		53,323			16,718		(4,171)	(2)		—			65,870			—			65,870
	Other long-term liabilities		561,913			138,493		(87,693)	(2)		(14,781)	(3)		597,932			—			597,932

Total liabilities			3,335,370			200,606		(100,825	)		(14,781	)		3,420,370			(442,732	)		2,977,638
Stockholders' Equity:
Common Stock			14			—		—			—			14			—			14
Additional paid-in capital			669,837			—		—			—			669,837			416,500	(6)		1,086,337
Treasury stock			(2,596	)		—		—			—			(2,596	)		—			(2,596	)
Accumulated other comprehensive loss			(3,176	)		—		—			—			(3,176	)		—			(3,176	)
Accumulated earnings (deficit)			(224,537	)		21,746		(21,746)	(2)		(32,767)	(2)		(257,304	)		(46,525)	(6a)		(303,829	)

Stockholders' equity (deficit)			439,542			21,746		(21,746	)		(32,767	)		406,775			369,975			776,750

Total liabilities and Stockholders' Equity		$	3,774,912		$	222,352	$	(122,571	)	$	(47,548	)	$	3,827,145		$	(72,757	)	$	3,754,388

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS
FIFTY-TWO WEEKS ENDED APRIL 1, 2010
(dollars in thousands, except for per share data)

	Fifty-two weeks ended April 1, 2010

	Parent 52 Weeks Ended April 1, 2010 Historical			Kerasotes Year Ended Dec. 31, 2009 Historical		Kerasotes Three Months Ended Mar. 31, 2010 Historical		Kerasotes Three Months Ended Mar. 31, 2009 Historical		Kerasotes Twelve Months Ended Mar. 31, 2010 Historical		Kerasotes Acquisition Pro Forma Adjustments			Parent Pro Forma Kerasotes Acquisition			Offering Transactions Pro Forma Adjustments			Parent Pro Forma
Revenues	$	2,417,739		$	325,964	$	79,723	$	76,283	$	329,404	$	(62,611)	(3)	$	2,684,532		$	—		$	2,684,532
Cost of operations		1,612,260			210,990		53,942		50,428		214,504		(41,684)	(3)		1,785,080			—			1,785,080
Rent		440,664			45,212		11,640		11,336		45,516		(11,365)	(3)		478,090			—			478,090
													3,275	(4)					—			—
General and administrative:
M&A costs		2,578			—		—		—		—		—			2,578			—			2,578
Management fee		5,000			—		—		—		—		—			5,000			(5,000)	(9)		—
Other		58,274			17,011		3,973		4,017		16,967		—			75,241			—			75,241
Depreciation and amortization		188,342			21,894		4,628		5,252		21,270		(1,540)	(3)		215,762			—			215,762
													7,690	(4)
Impairment of long-lived assets		3,765			—		—		—		—		—			3,765			—			3,765

Total costs and expenses		2,310,883			295,107		74,183		71,033		298,257		(43,624	)		2,565,516			(5,000	)		2,560,516
Other expense		(87,793	)		—		—		—		—		—			(87,793	)		85,234	(8)		(2,559	)
Interest expense		174,091			4,150		744		1,042		3,852		(3,852)	(4)		174,091			(41,981)	(7)		132,110
Equity in earnings of non-consolidated entities		(30,300	)		—		—		—		—		—			(30,300	)		—			(30,300	)
Investment (income) expense		(287	)		3,291		569		715		3,145		(2,947)	(4)		(89	)		—			(89	)

Total other expense		55,711			7,441		1,313		1,757		6,997		(6,799	)		55,909			43,253			99,162

Earnings (loss) from continuing operations before income taxes		51,145			23,416		4,227		3,493		24,150		(12,188	)		63,107			(38,253	)		24,854
Income tax provision (benefit)		(36,300	)		—		—		—		—		4,500	(5)		(31,800	)		(14,300)	(10)		(46,100	)

Earnings from continuing operations	$	87,445		$	23,416	$	4,227	$	3,493	$	24,150	$	(16,688	)	$	94,907		$	(23,953	)	$	70,954

Basic earnings per share from continuing operations	$	68.38																			$

Weighted average shares outstanding—Basic		1,278.82
Diluted earnings per share from continuing operations	$	68.24																			$

Weighted average shares outstanding—Diluted		1,281.42

AMC ENTERTAINMENT HOLDINGS, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

Source of Funds	Amount		Users of Funds	Amount

	(thousands of dollars)			(thousands of dollars)
Company Cash	$	277,468	Closing date payment amount	$	176,086	(a)
			Total payoff amount-Kerasotes lender		74,710	(a)
			Escrow payment		20,625	(a)
			Estimated transaction costs		3,631	(b)
			Swap termination costs		1,798	(b)
			Eligible seller employee bonus amount		618	(b)

	$	277,468		$	277,468

	52 weeks ended April 1, 2010				Balance Sheet Classification

	(thousands of dollars)
Depreciation and Amortization:
Remove Kerasotes historical amount	$	(21,270	)
Buildings, FF&E and leasehold improvements		25,200		7	Property, net
Favorable leases		2,300		15	Intangibles, net
Non-compete agreements		1,460		5	Intangibles, net
Tradename		—		Indefinite	Intangibles, net
Goodwill		—		Indefinite	Goodwill

	$	7,690

Rent:
Kerasotes amortization of deferred gain on sale-leaseback transactions	$	7,275
Unfavorable leases		(4,000	)

	$	3,275

Interest Expense:
Interest expense to Kerasotes Showplace Theatres, LLC	$	(3,852	)

	$	(3,852	)

Investment Income:
Kerasotes expense related to interest rate swap	$	(2,947	)

	$	(2,947	)

Sources of Funds	Amount		Uses of Funds	Amount

	(thousands of dollars)			(thousands of dollars)
Net proceeds from the sale of common stock	$	416,500	Repayment of principal Parent term loan facility	$	161,047
Company cash		65,763	Repayment of PIK interest
			Parent term loan facility		37,927
			Repayment of principal 12% senior discount notes due 2014		240,795
			Premium on repayment of 12% senior discount notes due 2014		9,632
			Repayment of accrued interest on 12% senior discount notes due 2014		3,672
			Lump sum payment under management fee agreement		29,190

	$	482,263		$	482,263

Minimum annual cash payments required under existing capital and financing lease obligations, maturities of corporate borrowings, future minimum rental payments under existing operating leases, FF&E and leasehold purchase provisions, entry into a definitive agreement for the acquisition of Kerasotes, ADA related betterments and pension funding that have initial or remaining non-cancelable terms in excess of one year on a pro forma basis as of April 1, 2010 are as follows:

(In thousands)	Minimum Capital and Financing Lease Payments		Principal Amount of Corporate Borrowings(1)		Interest Payments on Corporate Borrowings(2)		Minimum Operating Lease Payments		Acquisitions and Capital Related Betterments(3)		Pension Funding(4)		Total Commitments

2011	$	10,096	$	6,500	$	124,625	$	436,448	$	18,234	$	5,753	$	601,656
2012		8,894		6,500		124,495		438,158		10,323		976		589,346
2013		7,926		609,375		122,354		425,731		—		—		1,165,386
2014		7,612		300,000		110,250		399,275		—		—		817,137
2015		7,683		—		88,250		395,984		—		—		491,917
Thereafter		76,304		925,000		252,917		2,500,207		—		—		3,754,428

Total	$	118,515	$	1,847,375	$	822,891	$	4,595,803	$	28,557	$	6,729	$	7,419,870

As discussed in note 9 to the audited consolidated financial statements included in the AMCE Annual Report on Form 10-K for the fiscal year ended April 1, 2010, we adopted accounting for uncertainty in income taxes per the guidance in ASC 740. At April 1, 2010, we have recognized an obligation for unrecognized benefits of $34.5 million. There are currently unrecognized tax benefits which we anticipate will be resolved in the next 12 months; however, we are unable at this time to estimate what the impact on our effective tax rate will be. Any amounts related to these items are not included in the table above.


	AMC ENTERTAINMENT INC.
Date: July 14, 2010	By:	/s/ CRAIG R. RAMSEY Craig R. Ramsey Executive Vice President and Chief Financial Officer


Exhibit A		Reference Working Capital Statement and Deferred Revenue Components
Exhibit B		Form of Escrow Agreement


KERASOTES SHOWPLACE THEATRES HOLDINGS, LLC
By:	/s/ ANTHONY KERASOTES
	Name:	Anthony Kerasotes
	Title:	Chairman and Chief Executive Officer
KERASOTES SHOWPLACE THEATRES, LLC
By:	/s/ ANTHONY KERASOTES
	Name:	Anthony Kerasotes
	Title:	Chairman and Chief Executive Officer
SHOWPLACE THEATRES HOLDING COMPANY, LLC
By:	/s/ ANTHONY KERASOTES
	Name:	Anthony Kerasotes
	Title:	Chairman and Chief Executive Officer
AMC SHOWPLACE THEATRES, INC.
By:	/s/ GERARDO I. LOPEZ
	Name:	Gerardo I. Lopez
	Title:	President and Chief Executive Officer
AMERICAN MULTI-CINEMA, INC.
By:	/s/ GERARDO I. LOPEZ
	Name:	Gerardo I. Lopez
	Title:	President and Chief Executive Officer


Date of Grant:
Number of Shares as to which the Option is exercised
("Optioned Shares"):
Certificates to be issued in name of:
Total exercise price:		$
Cash Exercise
Cash payment delivered herewith:		$


Balance—January 1, 2008		$	12,810,797
	Purchase price adjustment—KCC acquisition		(817,305	)
	Finalization of purchase accounting		2,335,779
	Star acquisition		9,823,793

Balance—December 31, 2008			24,153,064

Balance—December 31, 2009		$	24,153,064


Delaware (State of Incorporation)		1-8747 (Commission File Number)		43-1304369 (IRS Employer Identification Number)

Exhibit Number			Title

	2.1		Unit Purchase Agreement Among Kerasotes Showplace Theatres Holdings, LLC, Kerasotes Showplace Theatres, LLC, Showplace Theatres Holding Company, LLC, AMC Showplace Theatres, Inc. and American Multi-Cinema, Inc.
	10.1		AMC Entertainment Holdings, Inc. 2010 Equity Incentive Plan
	10.2		AMC Entertainment Holdings, Inc. Nonqualified Stock Option Award Agreement
	10.3		AMC Entertainment Holdings, Inc. Restricted Stock Award Agreement (Time Vesting)
	10.4		AMC Entertainment Holdings, Inc. Restricted Stock Award Agreement (Performance Vesting)
	99.1		Consolidated financial statements of Kerasotes Showplace Theatres, LLC
	99.2		Pro-forma unaudited financial statements
	99.3		Disclosure regarding AMC Entertainment Inc. in connection with the filing of the Registration Statement on Form S-1 by AMC Entertainment Holdings, Inc. on July 14, 2010



	Section 11.3	Effect of Termination; Remedies	53
ARTICLE XII		GENERAL PROVISIONS	54
	Section 12.1	Survival of Representations, Warranties and Covenants	54
	Section 12.2	No Public Announcement	54
	Section 12.3	Notices	55
	Section 12.4	Successors and Assigns	56
	Section 12.5	Access to Records after Closing	56
	Section 12.6	Entire Agreement; Amendments	56
	Section 12.7	Interpretation	56
	Section 12.8	Waivers	57
	Section 12.9	Expenses	57
	Section 12.10	Partial Invalidity	57
	Section 12.11	Execution in Counterparts	57
	Section 12.12	Further Assurances	57
	Section 12.13	Disclaimer of Warranties	58
	Section 12.14	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	59
	Section 12.15	Binding Effect	59


Instructions:		Please do not fill in any blanks other than the signature line and printed name and mailing address. Please print your name exactly as you would like your name to appear on the issued stock certificate(s). The purpose of this assignment is to enable the forfeiture of the shares without requiring additional signatures on your part.

Years Ending December 31	Amount

2010	$	1,514,507
2011		1,514,507
2012		1,514,507
2013		1,514,507
2014		1,514,507
Thereafter		18,390,876

Total	$	25,963,411

		2009			2008

Debt to Parent		$	25,514,734		$	95,203,621
Developer reimbursement financing obligations			17,046,863			14,849,587

	Total debt to Parent and developer reimbursement financing obligations		42,561,597			110,053,208
Less current portion			(928,201	)		(40,721,833	)

Long-term debt to Parent and developer reimbursement financing obligations		$	41,633,396		$	69,331,375

	2009		2008		2007

Minimum	$	49,086,692	$	47,818,774	$	32,967,017
Contingent		488,768		230,623		273,282

Total	$	49,575,460	$	48,049,397	$	33,240,299

	Pro Forma Adjustments (thousands of dollars)

Divestitures	$	(26,720)	(a)
Acquisition-related transaction expenses		(6,047	)

	$	(32,767	)

	Amounts

	(thousands of dollars)
Current assets	$	13,122
Property, net		225,530
Intangible assets, net		48,000
Goodwill		84,550
Current liabilities		(36,434	)
Capital and financing lease obligations		(12,547	)
Other long-term liabilities		(50,800	)

Total estimated purchase price	$	271,421

	52 Weeks Ended April 1, 2010

	(thousands of dollars)
Revenues	$	62,611
Cost of operations		41,684
Rent		11,365
Depreciation & amortization		1,540


PARTICIPANT


Attn:		Date of Exercise:


		Very truly yours,


		(social security number)


PARTICIPANT

	As of April 1, 2010

	(thousands of dollars)
Property, net	$	41,151
Intangible assets, net		350
Other long-term liabilities		(14,781	)

Net Assets	$	26,720

Format

Digital	297	647	1,150 - 1,250
3D	285	516	550 - 650
IMAX	84	84	25 - 30
ETX	4	4	20 - 25
In-theatre dining	3	20	40 - 60

Theatrical Exhibition

California	44	683
Illinois	49	520
Texas	22	437
Florida	21	368
New Jersey	23	304
Indiana	26	286
New York	25	267
Michigan	11	194
Arizona	9	183
Georgia	11	177
Colorado	13	173
Missouri	14	143
Pennsylvania	12	142
Washington	13	141
Massachusetts	10	129
Maryland	12	127
Virginia	7	113
Minnesota	7	111
Ohio	7	104
Louisiana	5	68
Wisconsin	4	63
North Carolina	3	60
Oklahoma	3	60
Kansas	2	48
Connecticut	2	36
Iowa	3	34
Nebraska	1	24
District of Columbia	3	22
Kentucky	1	20
Utah	2	19
Arkansas	1	16
South Carolina	1	14
Canada	8	184
China (Hong Kong)(2)	2	13

Theatrical Exhibition

France		1	14
United Kingdom		2	28

	Total Theatrical Exhibition	380	5,325

	New Builds				Acquisitions				Closures/Dispositions				Total Theatres

Fiscal Year	Number of Theatres		Number of Screens		Number of Theatres		Number of Screens		Number of Theatres		Number of Screens		Number of Theatres		Number of Screens
2006		7		106		116		1,363		7		60		335		4,770
2007		7		107		2		32		26		243		318		4,666
2008		9		136		—		—		18		196		309		4,606
2009		6		83		—		—		8		77		307		4,612
2010		1		6		—		—		11		105		297		4,513

		30		438		118		1,395		70		681

Property Holding Classification

Owned		34	228
Leased pursuant to ground leases		6	73
Leased pursuant to building leases		332	4,941

	Total	372	5,242

Calendar Year	Box Office Revenues (in millions)			Average Ticket Price

2009	$	10,600	1,414	$	7.50	5,561	38,605	6.9
2008		9,634	1,341		7.18	5,403	38,934	7.2
2007		9,632	1,400		6.88	5,545	38,159	6.9
2006		9,170	1,401		6.55	5,543	37,776	6.8
2005		8,820	1,376		6.41	5,713	37,092	6.5


Write off of discount on Parent term loan facility	$	709
Write off of deferred charges on Parent term loan facility		1,966
Write off of deferred charges on 12% senior discount notes due 2014		5,028
Premium paid on 12% senior discount notes due 2014		9,632
Lump sum payment under management fee agreement		29,190

	$	46,525


Parent term loan facility due 2012 PIK interest	$	10,572
Parent term loan facility due 2012 discount amortization		360
Parent term loan facility due 2012 deferred charge amortization		1,087
12% senior discount notes due 2014 interest		28,816
12% senior discount notes due 2014 deferred charge amortization		1,146

	$	41,981