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Management Stockholders Agreement

 

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Title:

Management Stockholders Agreement

Entities:

Methuen Cinemas, LLC; Dewey Ballantine LLP

Date:

2005

Size:

95KB total

Price:

$48

ID:

#2296418

 

 

► Corporate ► Holder ► Stockholder ► Management Stockholders Agreements
► Services ► Legal

 

 

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MANAGEMENT STOCKHOLDERS AGREEMENT

 

among

 

LCE Holdings, Inc.

 

LCE Intermediate Holdings, Inc.

 

LCE Holdco LLC

 

Loews Cineplex Entertainment Corporation

and

 

Certain Stockholders and Management Optionholders and Stockholders of

LCE Holdings, Inc. and LCE Intermediate Holdings, Inc.

from time to time party hereto.

 

Dated as of January 12, 2005

 



TABLE OF CONTENTS

 

1. DEFINITIONS

   2

1.1. Definitions

   2

2. RESTRICTED ACTIONS

   2

2.1. CEO Director

   2

2.2. Significant Transactions

   2

2.3. Consent to Amendment

   2

2.4. The Company and Midco

   2

2.5. Period

   3

3. TRANSFER RESTRICTIONS

   3

3.1. Transfers Allowed

   3

3.1.1 Permitted Transferees

   3

3.1.2 Tag Along and Drag Along

   3

3.2. Certain Transferees to Become Parties

   3

3.3. Impermissible Transfer

   3

3.4. Notice of Transfer

   3

3.5. Period

   3

4. TAG ALONG AND DRAG ALONG RIGHTS

   4

4.1. Tag Along

   4

4.1.1 Notice

   4

4.1.2 Exercise

   4

4.1.3 Irrevocable Offer

   5

4.1.4 Reduction of Shares Sold

   5

4.1.5 Additional Compliance

   5

4.2. Drag Along

   6

4.2.1 Exercise

   6

4.3. Miscellaneous

   7

4.3.1 Certain Legal Requirements

   7

4.3.2 Further Assurances

   7

4.3.3 Sale Process

   8

4.3.4 Treatment of Options, Warrants and Convertible Securities

   8

4.3.5 Expenses

   8

4.3.6 Closure

   8

4.3.7 Termination of Rights

   9

5. CALL OPTIONS

   9

5.1. Termination

   9

5.1.2 Notices; Investors Rights, Etc.

   10

5.2. Cash Payments

   10

5.3. Closing

   10

5.4. Acknowledgment

   11

5.5. Period

   11

6. RIGHT OF PARTICIPATION

   11

6.1. Right of Participation

   11

6.1.1 Offer

   11

6.1.2 Exercise

   12

 

-i-


6.1.3 Other Securities

   13

6.1.4 Certain Legal Requirements

   13

6.1.5 Further Assurances

   13

6.1.6 Expenses

   14

6.1.7 Closing

   14

6.2. Post-Issuance Notice

   14

6.3. Excluded Transactions

   15

6.4. Certain Provisions Applicable to Options, Warrants and Convertible Securities

   15

6.5. Acquired Shares

   16

6.6. Period

   16

7. REMEDIES

   16

7.1. Generally

   16

7.2. Deposit

   16

8. LEGENDS

   17

8.1. Restrictive Legend

   17

8.2. 1933 Act Legends

   17

8.3. Stop Transfer Instruction

   17

8.4. Termination of 1933 Act Legend

   17

9. AMENDMENT, TERMINATION, ETC.

   18

9.1. Oral Modifications

   18

9.2. Written Modifications

   18

9.3. Effect of Termination

   18

10. DEFINITIONS

   18

10.1. Certain Matters of Construction

   18

10.2. Definitions

   18

11. MISCELLANEOUS

   26

11.1. Authority: Effect

   26

11.2. Notices

   26

11.3. Binding Effect, Etc.

   28

11.4. Descriptive Heading

   28

11.5. Counterparts

   28

11.6. Severability

   28

11.7. No Recourse

   29

11.8. Obligations of Company, Midco, Holdco and Acquisition

   29

12. GOVERNING LAW

   29

12.1. Governing Law

   29

12.2. Consent to Jurisdiction

   29

12.3. WAIVER OF JURY TRIAL

   30

12.4. Exercise of Rights and Remedies

   30

 

-ii-


MANAGEMENT STOCKHOLDERS AGREEMENT

 

This Management Stockholders Agreement (the Agreement) is made as of January     , 2005 by and among:

 

  (i) LCE Holdings, Inc., a Delaware corporation (together with its successors and permitted assigns, the Company);

 

  (ii) LCE Intermediate Holdings, Inc., a Delaware corporation (together with its successors and permitted assigns, Midco);

 

  (iii) LCE Holdco LLC, a Delaware limited liability company (together with its successors and permitted assigns, Holdco);

 

  (iv) Loews Cineplex Entertainment Corporation, a Delaware corporation (together with its successors and permitted assigns, Loews);

 

  (v) each person executing this Agreement or the Investor Stockholders Agreement and listed as an Investor on the signature pages hereto or thereto (collectively with their Permitted Transferees, the Investors); and

 

  (vi) Each optionholder and stockholder of the Company and Midco listed on the signature pages hereto and that from time to time become party hereto (collectively with their Permitted Transferees, the Management Stockholders or Managers).

 

RECITALS

 

WHEREAS, the Company was formed for the purpose of acquiring (the Acquisition), indirectly through one or more subsidiaries, pursuant to a Stock Purchase Agreement, dated as of June 18, 2004 (the Acquisition Agreement), among the Company, Loews and the other persons identified therein, all outstanding shares of Loews;

 

WHEREAS, certain managers of the Company and its subsidiaries now desire to purchase, and the Company desires to sell to such managers, shares of Common Stock and Preferred Stock;

 

WHEREAS, Options (as defined below) are being, and may continue to be, issued to managers pursuant to the Companys and Midcos 2004 Management Stock Option Plan;

 

WHEREAS, in connection with the purchase of such securities and the issuance of Options, the Company, Midco, Holdco, Loews, the Investors and the Managers named herein desire to enter into this Agreement; and

 

WHEREAS, the parties believe that it is in the best interests of the Company, Midco, Loews, the Mangers and the Investors to set forth their agreements on certain matters.


AGREEMENT

 

Therefore, the parties hereto hereby agree as follows:

 

1. DEFINITIONS.

 

1.1. Definitions. Certain terms are used in this Agreement as specifically defined herein. These definitions are set forth or referred to in Section 11 hereof.

 

2. RESTRICTED ACTIONS.

 

2.1. CEO Director. Each Management Stockholder agrees to cast all votes to which such Management Stockholder is entitled in respect of the Shares, whether at any annual or special meeting, by written consent or otherwise, (a) to elect the Chief Executive Officer of Loews to the Board of the Company pursuant to Section 4.5.2 of the Companys certificate of incorporation (the CEO Director) and (b) to remove the CEO Director if at any time the person serving as CEO Director ceases to be the Chief Executive Officer of Loews.

 

2.2. Significant Transactions. Each Management Stockholder agrees to cast all votes to which such Management Stockholder is entitled in respect of the Shares, whether at any annual or special meeting, by written consent or otherwise, in such manner as the Requisite Stockholder Majority may instruct by written notice to approve any sale, recapitalization, merger, consolidation, reorganization or any other transaction or series of transactions involving the Company or its subsidiaries (or all or any portion of their respective assets) in connection with, or in furtherance of, the exercise by the Requisite Stockholder Majority of their rights under Section 4.2. Each Management Stockholder hereby grants to the Company an irrevocable proxy coupled with an interest to vote, including in any action by written consent, such Management Stockholders Shares in accordance with such Management Stockholders agreements contained in this Section 2.2, which proxy shall be valid and remain in effect until the provisions of this Section 2.2 expire pursuant to Section 2.5.

 

2.3. Consent to Amendment. Each Management Stockholder agrees to cast all votes to which such Management Stockholder is entitled in respect of the Company Shares, whether at any annual or special meeting, by written consent or otherwise, in such manner as the Requisite Stockholder Majority may instruct by written notice to increase the number of authorized shares of Class A-4 Common Stock to the extent necessary to permit the Company to comply with the provisions of its certificate of incorporation with respect to the conversion of shares of Class A-1 Common Stock, Class A-2 Common Stock, Class A-3 Common Stock and Class L Common Stock into shares of Class A-4 Common Stock. Each Management Stockholder hereby grants to each member of such Requisite Stockholder Majority an irrevocable proxy coupled with an interest to vote, including in any action by written consent, such Management Stockholders Shares in accordance with such Management Stockholders agreements contained in this Section 2.3, which proxy shall be valid and remain in effect until the provisions of this Section 2.3 expire pursuant to Section 2.5.

 

2.4. The Company and Midco. The Company and Midco will not give effect to any action by any Management Stockholder or any other Person which is in contravention of this Section 2.


 

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