LANDMARK THEATRES RESUME FOR Business Plan Requirements Establishments with Beverage Alcohol

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Page 1 of 9 LANDMARK THEATRES RESUME FOR Business Plan Requirements Establishments with Beverage Alcohol Landmark Theatres is the nation's largest theatre chain dedicated to exhibiting and marketing independent films. Landmark is a recognized leader in the industry for providing consistently diverse and entertaining film product in upscale environments with restaurant and full bar service directed toward a sophisticated, adult patron. Since its inception in 1974, Landmark has grown to 57 theatres in 24 markets. It is at the forefront of exhibition, providing customers with a number of amenities including the latest in film, digital and sound technology, the widest selection of concession items; complete restaurant food service and alcoholic beverage sales, as well as Landmark's signature brand of customer service. Landmark provides its patrons with a unique cinema experience, a night out where they can enjoy dinner, drinks and a high quality movie. Across the country in 13 different markets Landmark operates upscale café bars that allow the theatres to remain economically viable. Cinemas operate on a very tight profit margin and many have failed in the past decade, mostly due to changes in the structure and pricing of film distribution. To be economically viable, cinemas depend heavily on the profit from concessions. The addition of full service restaurants and bars has allowed Landmark to continue to operate and bring sophisticated, independent films to audiences in areas where theatres otherwise would have closed. This reconsideration of the movie going experience has breathed new life into this important cultural resource for communities across the country. Without the café and bar sales, the necessary economic benefits could not reasonably be achieved. Landmark s cinema operations across the country have been able to continue to operate and contribute to the economic health of the cities they are located in because of this additional amenity and rethinking of the movie going experience.

Page 2 of 9 Landmark Theatres Liquor Service Business Plan 1. Food Service - See the attached menu - See attached Food Plan Review 2. Alcohol Server Training Plan and Operations Plan - Staff training will take place before alcohol sales begin by a State of California ABC approved trainer. - In house training will be on-going in addition to regularly scheduled training sessions by a California ABC approved trainer. - Staff will be required to sign acknowledgement of training and the understanding of the liquor laws and company alcoholic beverage policies. - The policy for carding is that everyone purchasing an alcoholic beverage will be required to produce a valid ID for review by staff. Only one drink per valid ID will be served at a time. All alcoholic beverages will be served in special, easily recognizable containers. - Once in the auditorium, staff will monitor those carrying/holding an alcoholic beverage by looking for the specific alcoholic beverage containers and confirming that the guest holding it appears of age. If they do not appear of age, staff will approach and ask to see their I.D. for confirmation. Our staff members will be especially diligent in patrolling the theatre in order to prevent underage guests from consuming alcohol on the premises. - There will be a reward program in place for staff passing a compliance check, both internally and by city enforcement. - Management will perform internal compliance checks on a monthly basis. 3. Security Plan - See attached Security Plan 4. Applicant s Experience and Background with Liquor, Restaurant or Retail Sales - See attached description and list of theatre locations holding liquor licenses 5. Hours of Operation - Daily 11 AM 2 AM - Inside only

Page 3 of 9 6. Entertainment - Landmark Theatres will always be primarily a movie theatre. - Shows occur daily from 11 AM 2 AM - Clientele tends to be more sophisticated and well behaved and typically over 21. - Special Events: Periodically we may have "Special Events" where alcohol might be requested. A Special Event is usually defined as a corporate rental, distributor rental, private party or premier and is usually run in place of our normal theatre presentation. These events usually occur Monday Thursday in the evening during regular operating hours, but may also happen on the weekends during regular operating hours if approved by our Film Department. These Special Events will be handled in the same fashion as described above to control all alcohol sales. 7. Community Impact Plan - Landmark Theatres provides an upscale one-of-a-kind experience where guests can enjoy a scrumptious meal, alcoholic beverage and riveting movie while sitting in comfortable seating, all under one roof. - There are no outdoor speakers and sound is contained within the auditorium. - Staff will clean litter within a 100 foot radius of the theatre twice daily. - No team sponsorship 8. Charitable Gambling Activities - None

Page 4 of 9 Landmark Theatres Alcohol Operations Plan The following apply to the control and consumption of alcohol for all Landmark Theatres and Restaurants. *Control begins at the point of sale. Our servers are all licensed bartenders and certified servers. *Everyone purchasing an alcoholic beverage is required to produce a valid ID for review by staff who closely scrutinize said I.D s to ascertain that they are valid and authentic. Legal forms of identification are required from anyone who appears under 50 years of age, so that their birthdate can be validated. An electronic I.D. scanner is used for questionable identifications. *Only one drink per valid ID is served at a time. *All alcoholic beverages are served in a special, easily recognizable container. *Restaurant and theatre staff monitor those carrying/holding an alcoholic beverage by looking for the specific alcoholic beverage containers and confirming that the patron holding it appears of age. If they do not appear of age, staff approach and ask to see their I.D. for confirmation. *Our staff members are especially diligent in patrolling, in order to prevent underage customers from consuming alcohol on the premises. *All servers of alcoholic beverages have attended training classes as required by the Department of Alcoholic Beverage Control before being hired as servers and are asked to attend again on an as needed basis. Landmark Theatres is the largest movie theater chain in the world dedicated to exhibiting Art and Independent movies and will always be a movie theatre chain that caters to a clientele that tends to be more sophisticated and well behaved, security has never been as issue, even with the addition of alcohol.

Page 5 of 9 Appropriate precautions as outlined here have been taken and have proven to be successful. We have never had a complaint against any of the liquor licenses that we hold at any of our theatres across the country. We are always very cautious and attentive when it comes to customer care and security and are open to adding additional precautions, if they are ever needed.

Page 6 of 9 Landmark Theatres Alcohol Sales Policy & Service Employee Agreement This employee alcohol service agreement is required in order for employees of the Landmark Theatres to sell alcohol. Employees must review all parts of this agreement, execute and return it and complete the required Alcohol Service Training course, prior to serving alcohol. 1. All managers and employees of the Landmark Theatres will not sell alcohol to anyone who is under 21 years of age. 2. You are required to obey all federal, state and local laws. Attached you will find a summary of the laws regarding alcohol sales. Please read and familiarize yourself with all of these laws. 3. All Landmark Theatres employees are required to sign this agreement stating that they understand the law regarding alcohol sales to minors and that it is the Landmark Theatre s policy to never sell alcohol to minors. 4. Alcohol sales to minors will not be tolerated under any circumstance and will result in disciplinary action and penalties. 5. Employees must request photo identification from anyone buying an alcoholic beverage who is not obviously over (50) years of age. It is Landmark Theatre s policy to refuse to sell to anyone without legal proof of age. When reviewing the identification you must: a. Compare picture on ID with the customer b. Check birthday c. Examine the card for signs of falsification or tampering d. Use of an electronic ID card reading device/scanner e. Check the US Driver License Booklet if unsure. It is stored under the counter. 6. All employees should carefully read birth dates, as demonstrated during your training. to determine if a person is 21 or over. Review the posted signs near the Point of Sale as a reminder. "Sales of alcohol allowed only to those born on or before today s date, 1991."

7. Your signature below indicates that you received training in the ways to check customers ID s and how to refuse sales to those under the age of 21. 8. Direct those without I.D s or under age, that want to purchase alcohol to the posted signs on the bar walls stating that it is illegal to sell alcohol to people under the age of 21. 9. Signing below indicates that you have received instruction about the health and safety risks associated with alcohol use. 10. It is Landmark Theatre s policy to refuse service to patrons who appear inebriated/over-intoxicated. 11. If you see a customer that is obviously intoxicated, volunteer to call them a cab, or to call a friend or loved one. Make a reasonable effort to prevent them from driving home. 12. It is Landmark Theatres Policy that employees are not allowed to drink on the premises at any time. 13. All Alcohol sales are to stop at 1:00 a.m., no exceptions. 14. Management will support employee s decisions to refuse sale to individuals who are overly intoxicated, under the age of 21, or intended for someone underage 15. Management will conduct Youth Alcohol Compliance Checks/Self Audits monthly 16.All employees that serve alcohol are required to attend, complete and be certified in Alcohol Service Training, before serving any alcohol. An approved list of the services available for this training is attached. If you have not already done so, please contact, register and obtain certification immediately. You will also need to renew your training and be certified annually. In addition, regular training will be provided during monthly staff meetings. 12. Recent problem situations will be discussed during staff meetings, but you can also go to the facility Manager anytime to discuss any situations or problems you ve had. 13. The Uptown theatre will spot check your compliance and employees who show exceptional performance as responsible alcohol beverage sellers will be rewarded. ATTACHMENT 3 Page 7 of 9

Safe Alcohol Sales and Service Techniques 1. Be polite but firm. Explain that you will get into serious trouble if you do not check everyone s ID. 2. Know how to read birth dates to determine if a person is 21 or older. 3. Make sure the picture on the ID matches the person. 4. Don t fall for any excuses such as, "I forgot my license at home." 5. Help your co-workers. Remind each other. Back each other up. 6. If persons over the age of 21 attempt to share their alcoholic drinks with minors, ask them to stop or leave your property, including outdoor areas and parking lots. 7. If a customer gives you a hard time, offer to let them speak to the owner or manager. 8. If you are confused about your policy or come across a difficult situation, ask your supervisor to explain what is expected or how to handle the situation. 9. If in doubt, refuse to sell. 10. If uncomfortable, find a supervisor. ATTACHMENT 3 Page 8 of 9

See Attached Alcohol Service Training Resources List ATTACHMENT 3 Page 9 of 9