FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Deadline FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Two Issues To Be Decided
Issue 1
Are AMC Network Entertainment LLC (AMC Network) and "affiliated?" Film Holdings AMC %aF LLC (AMC Studios) /
Deadline
8(0 II ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
AMC's Answer Admits: AMC Network Entertainment LLC
And AMC Film Holdin•s LLC Are Affiliated
"" " SUPREME COURT OF THE STATE OF NEW YORK "./W"L %‡f.", -- COUNTY OF NEW Y ORK ------X FRANK DARABONT, FERENC, INC., DARKWOODS : Index No. 654328/2013 .."=h%ª"Á™ " PRODUCTIONS, INC., and CREATIVE ARTISTS : -- ==-= - AGENCY, LLC, : uSCmnmW+VCmaniLCI IIIVIDEW&ili, AWCNETWORENTIAPGENTilC.WC=IILW1EG411790OUCT,01 n:"E"""^''" 58CTU Plaintiffs, : ANSWER OF DEFENDANTS AMC NETWORK ENTERTAINMENT v. : LLC, AMC FILM HOLDINGS LLC, : AMC NETWORKS INC., AND STU .. AMC NETWORK ENTERTAINMENT LLC, AMC FILM : SEGALL PRODUCTIONS, INC. TO ...... -----. PLAINTIFFS' HOLDINGS LLC, AMC NETWORKS INC., STU : SECOND AMENDED , , . SEGALL PRODUCTIONS, INC., and DOES 1 : COMPLAINT ------"- THROUGH 10, : ii i I~i Illtd Defendants. - x
s
Entertainment" Defendants AMC Network Entertainment LLC ("AMC Entertainment"), AMC Film Networks" Holdings LLC ("AMC Studios"), AMC Networks Inc. ("AMC Networks"), and Stu Segall Productions" "Defendants" Productions, Inc. ("Segall and, together, "Defendants"), by and through their
undersigned attorneys, Kasowitz, Benson, Torres & Friedman LLP, hereby answer the Second
Amended Complaint filed by plaintiffs Frank Darabont ("Darabont"), Ferenc, Inc. ("Ferenc"), ("CAA" DeadlineArtists LLC Darkwoods Productions, Inc. ("Darkwoods"), and Creative Agency, and, 'Plaintiffs" together, "Plaintiffs"), as follows: Bernstein Aff. Ex. 2
8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
AMC's Answer Admits: AMC Network Entertainment LLC
And AMC Film Holdin•s LLC Are Affiliated
I'h ~IIOFN'HlDI'7 LtTU 0I
[I 18. Defendants admit that defendants AMC Entertainment, AMC Studios, and AMC
paragraph Networks are or were affiliated with one another and deny the remaining allegations in
18. 1 .-.------..-.-...... -...... _.-... Deadline
Bemstein Aff. Ex. 2
8 II ~ ~~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Two Issues To Be Decided
Issue 1
Are AMC Network Entertainment LLC (AMC Network) and "affiliated?" Film AMC Holdings LLC (AMC Studios) /
Issue 2
"transaction" Was there a between AMC Network
Entertainment LLC (AMC Network) and AMC Film Holdings LLC {AMC Studios}?
r e ~ ~ ~ Deadline ~ r r
I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Arm's Length License Fee Between Network And Studio
License Fee Profit Participants
Showrunner
' BMC LIIONSGATIE MAGR
NETWORK Other Talent
' DMEN Deadline License And Rights
8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Vertical e Integration er With Imputed License Fee
THE
WIINNSWAlNINS QMIQEAQ Profit Participants
AMC Networks Inc. iffy' aMC aMC e -0 NETWORK STUDIOS
AMC Network AMC Film creativeArtistsAgency Entertainment LLC Holdings LLC Deadline Other Talent
8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Vertical Integration rr With Imputed License Fee
WAlNIN6WAlNINS SEAS Profit Participants
AMC Networks Inc.
~ ~ e ~ ~ ~ SMC aMC e -On NETWORK STUDIOS
Creatt:weArreativeAr testsAgency Deadline Other Talent
8crI ~ ~ ~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Vertical e Integration e With Imputed License Fee
Profit Participants aMC e d Rights
- ~ 'WILIINBIIEAQ
~ e e ~ ~ aMC CAA ~ ~ CreativeArtistsAgency I MAGR I ~ ~ ~ ~ k ~ ~ ~' ~ Deadline ~ ~ ~ '... ~ ' ~ ~
8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
The August 7, 2010 Agreement
si-
StuStuScgal'IScgai.Prmtuctiors,Ptodurnrons,IncInc LTsRoadRoad SanDireaCalifamia9717LI611 - _
Re: "THE WALKING DEAD"/FRANK DARABONT FrankFrrnrbDarebontDarabonl eraBruceosBlursVnokourrrurbourVi CreativeArtistsAgency 2000AvenuethaStainof ka Asg.tsDA00007 Dear Bruce: Re: TE WALKINGDFAI DearBrsaa: ThiswillcongrtsthatStuSaga ~ i ~ ("CCCompany" ll This will confirm that Stu Segall Productions, Inc., a WGA signatory ("Company"), as
successor-in-interest to LRF Development Inc. has reached the wnhlhcono.hctwtelevisionp Company, ("LRF"), "Agreement" (" ("Lender (Fed. ID 95- following agreement (the "Agreement") with FERENC, INC. #1") ("(" 95- . a and DARKWOODS INC. ("Lender #2") (Fed. ID CompanyamiAntist,Lender/ 4163706) PRODUCTIONS, ("(" Artist"Artist" both Lender #1 and Lender #2 f/s/o Frank Darabont in connection alt~ilofsardofssidscrviecs.talurcts. 4840127), ("Artist"), Dead" ...... ,-.I with the one-hour television pilot and series currently entitled "The Walking ("(" Project"Project" Material"Material" ("Project"), based on the graphic novel series (the "Underlying Material") of the same (" Author"Author" title written Robert Kirkman ("Author"), as follows: Assgnrncsl r«cculedbyLends by csccuboncsccuhonofoiasCernnestcCcnrficsleofofAiAr whichirs~herebyacknowledged) Irirriiiills isan\ Deadline v't
Bernstein Aff. Ex. 3
88 0g~ ~~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
The August 7, 2010 Agreement
ro;eivesrole"createdby"credi prnduocrcreditahullappearrtx 55ñE,E¼ 13. Contingent Participation Amctcrenderingexecutivepr credhtchaithedctermtncdbydr
=rrhE Provided that Lender and Artist are not in material uncured breach hereunder, (" Participation" Lender #1 shall be entitled to a contingent participation ("Contingent Participation") as
let imnaulutt mainorendut (asdelcAElu smallerthan)anyothercensut£ by" (a) Participation: If Artist receives sole "created credit on the
Series (subject to Paragraph 17 Lender#1 shall be entitled to 10% of 100% of the raxuaInrtnadvcr.enrfatlurehyt below), Modified Adjusted Gross Receipts ("MAGR"), reducible dollar-for-dollar by " by" credit participations payable to other writers sharing "created to a floor of 5% of by" . 100% of the MAGR if Artist is entitled to shared "created credit; provided, by" . that Artist's sole "created credit participation shall be increased to Series(SubjecttoParBraph17I however, -' of of the for all episodes on which Artist renders executive 100%of theMAGRif Artisg 12.5% 100% MAGR by" producer/showrunner services. If Artist does not receive any "created credit, Artist shallnotbc titledto yconti1 shall not be entitled to any contingent participation. talcn lux Io Deadline 'v
Bernstein Aff. Ex. 3
0 8 0 ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
The August 7, 2010 Agreement
fb) Cbsrlos
and paid to Leader gñEiny (d) Defmition: MAOR shall be defined, computed, ~c ~,a ~ #1 as follows: of MAGRpsyebieloEpbel MAGRnrbjeerlotbeeesbes reecnrrooshouboonspenpes
i. If the Series is produced with a third-party supplying
and in accordance --.ag Producer/deficit financier, MAGR shall be defined, computed, paid producer/deficit 53 with the standard definition thereof used by the third party supplying and =;:-Jr‡ financier, subject to good faith negotiation (including as to distribution fee overhead) ----" == consistent with within the usual parameters of such supplying producer/deficit financier shall home video/DVD and =-,:.r¼d Artist's stature; provided, however, that (A) MAGR include or fees charged thereon merchandising; (B) there shall be no sales, distribution similar by handles distribution or Company unless Company (or an affiliated company) actually be to the licensing, in which case Company (or such affiliated company) will entitled
same distribution fees and overhead charge as those charged by the third-party supplying
fee producer/deficit financier; (C) there shall be no network sales charged regarding
initial license and MAGR participation payable to Company's Deadlinefee; (D) any Company shall not be deducted off thetop in computing Artist's MAGR participation.
Bernstein Aff. Ex. 3
8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
The August 7, 2010 Agreement: ¶ 13(d)(ii)
ii. If the Series is produced without any third-party supplying producer/deficit MAGR shall be computed and paid American ("Eglee")mayreceiveanadditional1%of financier, defined, by Movie Classics LLC in accordance with AMC's MAGR definition withCompany,thenLenderl'sshareofl Company ("AMC")
(which shall be furnished to Lender #1), which definition shall specify an imputed license
fee in connection with AMC's license and rights to exhibit the Series on AMC and its MAGRundersubparagraph --,.fund-R- 13(a)above, Receipts" related services to be included in the calculation of "Gross receipts in AMC's MAGR (c) Vesnag;Continge, the Gross :"===r;°=n definition, but no television distribution fee shall be charged with respect to
Receipts attributed to such imputed license fee. In addition, for purposes of the shall· calculation of Artist's participation hereunder, AMC's MAGR definition shall be
modified to provide the following: AMC's television distribution fee shall be capped pmducer/detidtfinancier.MAGRshanb (A) =t"‡:=== at ten percent and shall be inclusive of all sub-distributor, barter and sales fees (but withm±c ust.alparametesofsunsuppr (10%) charged on provided there st=‡ specifically excluding any advertising agency fees barter),
322 shall be no television distribution fee on the sale to the initial broadcaster, including all pInducedefic:tf-nanaer;[C)thcItshall . extensions and administrative overhead fee shall be capped =e====;: renewals thereof; (B) AMC's ii. If theSenes *** affiliated calculated at the midpoint of each production period; (F) all transactions with ~li"~lysi" the imputed license fee will entities will be subject to subparagraph jjjgjjjj below; (G) Deadlineapplicable other be no less favorable than the imputed license fee to any MAGR
participant with respect to the Series; the upfront portion of any agency package ' I' '.',' (H) Bernstein' t.I >. I' Aff. ! ' I Ex. 3
8 I ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Affiliate Transaction Provision: The ¶ 13(d)(iii)
=ct:rare: iii. Each of Lender and Artist acknowledges that AMC is part modifiedtopmvidethefollowing:(A)
==2===:: of international company(ies , whose affiliates include, or shallbenotelevisiondismbutionfeeo diversified, multi-faceted, may ::2:™"°‡â"TWS in the future include, among others, exhibitors, television "platforms", networks, stations supemsoryfeeshanbechargedbyAN internet and programming services, video device distributors, record companies, "E. —— publishers and and companies,-- -r — - — ~--so called Commerce companies",-g -- ) r (literary electronic) / "Affiliated or wholesale and retail outlets (individually or collectively, Company Companies"Companies' Companies"). Each of Lender and Artist further acknowledges that AMC informed Onrt nsc. nnkseancepacksnccomm use of Affiliated Companies in connection percentagesof contingentcompensatic Lender and Artist that AMC intends to make
with its distribution and exploitation of the Series episodes (including the Pilot), as, when initla!accounnniisha11barcndoredto4 and where AMC deems it appropriate to do so. Each of Lender and Artist expressly IIINIIIILCCOIWllggS,cgccplthslAMCt waives right to object to such distribution and exploitation of any Series episode accuantingperiodifLendershallnobe any oft that should have the Pilot) (or aspects or assert claim AMC ofdiversified,multi-faceted,internation (including thereof) any ""*‡°"T=C n offered the applicable distribution/exploitation rights to unaffiliated third parties (in lieu companies,socalled"E Commercecox consideration =;ae artet or in addition to, the same to Affiliated Companies). In LendeandArtistthatAMCintendsto of, offering C' cad:=-dr thereof AMC agrees that AMC's transactions with Affiliated Companies will be on monetary terms comoarableDeadlineto the terms on which the Affiliated Company enters into similar transactions with unrelated third distributors for comparable programs. pprty
Bemsmin Aff. Ex. 3
C! I ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
S The Imputed License Fee Is The Monetary Term Of A Transaction~ d Between AMC Studios And AMC Network
Agreement, ¶ 13(d)(ii) February 22, 2011 MAGR Definition
ii. If the Series is produced without any third-party supplying EXHIBIT A producer/deficit financier, MAGR shall be defined, computed and paid by American Movie Classics LLC in accordance with AMC's MAGR definition Company ("AMC") MODIFIED AD,1USTED GROSS RECEIPTS FOR SCRIPTED SERIES (which shall be furnished to Lender #1), which definition shall specify an imputed license ' "Agreement" fee in connection with AMC's license and rights to exhibit the Series on AMC and its Agreement (the "Agreement dated as 2010, Receipts" Exhibit A to that certain ) of, "Gross in AMC's MAGR related services to be included in the calculation of between AMC Film Holdings LLC ("AMC") as successor to definition, but no television distribution fee shall be charged with respect to the Gross and " tt ("'Participant"Participant" ' entitled events' rewrite- ("Participant"), with respect to the television series followingevents;(i)deliverytoCompanyofPilotrewrite;fili deliveryofFilot,provided Program" ("Program").(" fllppllgllglf tl%44Nhlt~ppCLpRICld4$%IVIISN Agreement, ¶ 13(d)(iii)
iii. Each of Lender and Artist acknowledges that AMC is part Receipts" "Gross Receipts of diversified, multi-faceted, international company(ics), whose affiliates include, or may i.-. in the future include, among others, exhibitors, television "platforms", networks, stations Receipts shall mean the aggregate of: and programming services, video device distributors, record companies, internet (a) Gross companies, so called "E. Commerce companies", publishers (literary and electronic) and payable for the right to broadcast the wholesale and retail outlets (individually or collectively, "Affiliated Company or (1) As the license fee Companies" Television in the in Companies"). Each of Lender and Artist further acknowledges that AMC informed ~prn ram by means of Non-Standard Territory Lender and Artist that AMC intends to make use of Affiliated Companies in connection over services of AMC or an AMC ' ' ' ' perpetuity any programming with its distribution and exploitationofthe Series episodes (including the Pias,w en (the Affiliate, AMC shall be deemed to have received an amount and where AMC deemscems it appropnate to do so. Each of er and ist expressly "Imputed License Fee") waives any right to object to such distribution and exploitation of any Series episode (including the Pilot) (or aspects thereof) or assert any claim that AMC should have offered the applicable distribution/exploitation rights to unaffiliated third parties (in lieu of, or in addition to, otTering the same to Affiliated Companies). In consideration . AMC agrees that AMC's transactions with Affiliated CompaniesDeadline will be on thereof, monetary terms comparable to the terms on which the Affiliated Company enters into similar transactions with unrelated third party distributors for comparable programs. Bemstein Aff. Ex. 3; Bemstein Aff. Ex. 4
pa I ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
S The Imputed License Fee Is The Monetary e Term Of A Transaction Between AMC Studios And AMC Network
I.
Fllcpecapcl (a) GrossRecapsshallcopeaggregateof: AleeTepeefeepacafefelJeepalI VeFee CICTRRI~IdTCICIkllelIpeTCells&I I 'VFell LeTI IIc Receipts" L. "Gross PI I"I Ie Ll ClI 'll CTT I Receipts shall mean the aggregate of: (a) Gross eI
the the license fee payable for the right to broadcast (i) As means of Non-Standard Television in the in ~Pm ram by Territory over services of AMC or an AMC perpetuity any programming be deemed to have received an amount the Affiliate, AMC shall
"Imputed License Fee") Ce'FDgi Deadline 'e
Bernstein Aff. Ex. 4
8 I ~ ~ ' le FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018
Studios' R AMC ~~ ~~ Participation ro Statements Attribute The Imputed License Fee To AMC Network
AMCFILMliOLDINGSLl.C AMCFTIMHOLDLNGSLLC T(k ITitliNC,TNC..(WrlIssfProdmer)Dea#' To:.tttynrtynd.tEXLSAQFt(CY (NATjyF.ARTISTSAGENCY SHDWIITLS:"T WanIne . SHQWTITL~tlhtsnatcss(tl.F2DiMEPREd"..Ilhlhstapas(L PARTICtPATiQATEM1iNTFORTI{EFERIODEl D: ga§ 11 ~ l I'VK' (Foraj PAN'HC1MDUNdMFMt|NTHWhihPlWLNWJ: Sf .!.! rt10IlletgfecmgrMdensaserAugust7.29%sm:rdedonJanaly10.2010 MQD71iDADJUSTFR9E03$.tlttrtccrs MCEWFIFn4011It'TFDGRriSSRFCFIPTS Roper)0RofnnnI Dork IIOLDINGS AMC FILM LLC .ANC.ajtfr.FILM HOLDINDS LLC la FEREINC,INC.(Wrlier/Producer) TO2 F.ARTlffs AÇjMG SHOWTETl.It"TheWatkineDeacÇ" DEATjyTITUA.*1'he3l' PART1CIPATIONSTATEMENTFORTHEPEIUOD(INDED: 9/30J2013 SHOWTrTtk,TIT(k, ~.:9.'dtIlsti&~;.9'.g}l'.~g.t)IR4."...ingRad.?.j)dtt(S"- .9/30m (Persuant totheagreementdatedasofAugust7,2010,amendedonJanuarylD,201I) PAK'EICIPKnONSTATEMENTMRTHEIJERIl}DENDED. bfQL')}KJLD~A' " MRDIE D ADJUS'llf19EÛ$1%[iÇWRTS MODIFIFDADHISTEDGROSSRECE1PTS Ropen# ) D.igringian.Èmi INCEIm0N Report53 DhtrihIllonFees (NCFTTION QllQSII,BI!'.I" A"5' >N''' ~GA'I' trRQRP'.IrFN}" 90 AMOVM. CURI5NT TODATE AMOUNT CURRENT TODATB I k(IRONSl <08 aI ~~ ~~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless First Defense entered into transaction First, Plaintiffs cannot show that AMC Studios any licensing with AMC Network in connection with the Series because no such transaction ever happened. AX'1C' Indeed, all of the individuals at AMC who would have possessed knowledge of such a transaction testified at deposition that it did not occur. Deadline Defendants' Plaintiffs' Opposition to Motion for Partial Summary Judgment 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 + AMC Admits: The "License And Rights AMC" To Exhibit The Series On Is A Transactionee ee Mrr ra 'pwt~ ttlr . 7( . (rl KASOWIT2, BENSON, TORREs & FRIEDMAN LLP ... .. DROADWAY I633 ATLANTA HOUSTON -- NEWYORK, NEWYORK IOO19-6 799 M|AMI a~cuusmuuur MARCE KA5OWITZ DIEFCTDIA-F12.506~ -1710 PI2-506.-MOM-g700 NEWARK ''' ..', WKASOWITZPKAGOWTZCDM SANFRANCISCO FACS:MILE: 212-50c-1000 5 LICCNVALLEY May 16, 2104 EE~T - BY HAND AND ELECTRONIC FILING 1he Honorable Eileen Bransten Supreme Court of New York 60 Centre Street, Room 521 New York, New York 10007 Re: Darabont v AMC Networks Entertainment LLC, Index No. 654328/2013 DeadlineDear Justice Bransten: Bemstein Reply Aff. Ex. 32 8 ~I ~ ~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC Admits: The "License And Rights AMC" To Exhibit The Series On Is A Transaction»» 1 ~ NENTCRKC>tlFPI Cj 4 Where Plaintiffs are is that mistaken, however, while this provision applies to gggg[g transactions between AMC affiliates, it does not apply to the licensi by AMC Studios to Parties' AMC Channel of the right to telecast initial runs of the Series because the rights and obligations in connection with that transaction are instead covered by the imputed license fee. nw»are» ~lr4 P»»k llkL4I j»»4 t »4»» M I» lg»~4 7: D»:~»»»»4 ~1» I » 1r~ ~Q I with respect to one subset of related- transactions - the licensin of the However, related-party right to telecast initial runs of the Series on AMC Channel - the Partles a to an alternative fee." to the above default Affiliated Company provision: an "imputed license Plaintiffs' B. Facts Concerning Claims. Plaintiffs' "self-dealing" alleged claim focuses on a single transaction - the licensing by AMC Studios of the right to telecast original Deadlineepisodes of The Walking Deadon cable channel AMC Channel. Bernstein Reply Aff. Ex. 32 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 "All" Affiliate Transaction cp Provision Applies To "Certain" Transactions Not w Transactions,r w As AMC Claimsw s (b) Unaries0 ee_MAURMAI.IA(R 'bacon. N twithstandingthe fertgomg.solong. asLc_-der# i 1s.entitledto12.5%i of. 10051ofhL''MAUR.Leader-crer #1 ' Charles agreestorelinquishitsem.:;eineu&tune'.cuir.rto ladsof 100%of.I MAGR..su that Ev,ce I"Eglec")may' receiveanadditionall b of:0(R(r'iy ofMAGR(ie.,red±.ugLenda// I'I s VAGRenmcmentto ' 3%of :C0%.P)'of' MAGR);imddedhowever.thatM in le ~- ce shareofMAGRdoesnot vest. puranrtothetermsofhisagreement Fg fully ''.' ot-withCompany.then preI'ssnareef. MAGRshillnotberedu^edbyanypercentage ofI MA(25.~payabletoEglcethatdoes.1c6s pumvestv"i' 0c.,Art:s‡shallicansuchur..-csted MAORsubjectItp,I'tothe' vesting iui: paragraph1J10. below,andpermdedsuh retennan..'i shallbeon4pa"...npassu te.suwith- otherparutpass..Ie thathaveagreedtoreduce c...... -c...... r queumewmesmemmc ~ ~r . '' . calculated at the midpoint of each production period; (F) t actions with affiliated Where Plaintiffs are mistaken, however, is that while this provision applies to certain .. . entities will be subject to subparagraph 13(c)(iii) below, (G) t e impute )cense ce wi transactions between AMC affiliates, it does not to the AMC StudiW . apply licensing by apphcable other MAGR . ... Parties' Lyee no less favorable than the imputed license fee to any AMC Channel of the right to telecast mitial runs of the Series because the rights and ·· participant with respect to the Series; (H) the upfront portion of any agency package obligations in connection with that transaction are instead covered by the imputed license fee. In consideration thereof, AMC agrees that AMC's transactions with Affiliated Companies will be on monetary terms comparable to the terms on which the Affiliated Company enters into similar transactions with unrelated third party distributors for comparable programs. -_..,-.--...--..... - -- ..,....-....,.....- IUUL-ef ,.-:I.2.REC'el;'. 1 .'14"'-e1 b: GrJn Of ~im CCd.a rc .-din »'Ca:r.pan s ira:.al.derwers«efee;ar. (D)anyMAGRparo¤patic:ipayab.etoCompam ambededuc·edufTihe:epincomps..24.vmp A.tist'sMAGRpir.xipauan ii lf 'hegenesisproducedwithoutmythird-partysupplyir.g prod..ccrdencefmanc:cr,VAGRshallbedeñr.cc.ccetiputedardpaidhy Ame-ican MovieClasmcsCompanyIlf L"Aide"("AMC")inaccordancewithAMC'sMAGRdefininon prim's' 6allto, ushedto[A2csVI),whicl.definitior.shallspecifyanimputedlicanas feeinconrecumiwithAMCs.: tenseandnghtsmexhibittheScricson.".AMCandis relnedservicestoheinc'udedin.",thecalculadonof"GrosaReceips"inAMC'sMAGR deñnition,ber.0relevinondirnbatsonfeestallhechargedw'threspedtotheGross Deadlinesv' Urt I? Bernstein Reply Aff. Ex. 32; Bernstein Aff. Ex. 3 0I 8 0 ~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC Again Admits: The "License And Rights AMC" To Exhibit The Series On Is A Transactionr r ' FILED: NENYORKCOUNTYCLERK TATI'FIC:, . 11 K F' "'"" R'- F. '." 1 '.'l7 I 11 MR. KASOWITZ: There is -- your Honor referred to 12 one of the defendants, namely the studio, and, in fact, 13 there are at least two separate defendants. One is the 14 network, AMC Network, and the other is the AMC Studio. And 15 I think that that's an important distinction. I'll do this 1- at 1ha at maa 16 very, very quickly, your Honor. ll : :. 7 The studio created the program and it was 8 Deadlinelicensed to the network for exhibition, but the network's Bernstein Reply Aff. Ex. 33 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless First Defense enter into transaction with in AMC Studios did not a licensing AMC Network connection with the Series AMC hase admitted e that AMC Studios licensed the Series to AMC "transaction," Network, and that the license wasea r r e which is consistent with the plain language i of ¶ 13 (d)(ii)-(iii). Deadline 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless Second Defense transaction Second, even if AMC Studios had licensed the Series to AMC Network in a — it did not-the Affiliate Transaction Provision would still not involving monetary terms-and apply. On its face, the Affiliate Transaction Provision applies only to transactions where "AMC" — — Agreement as Network-distributes the Series is expressly defined in the AMC AN'IC' to a licensee. Plaintiffs allege that AMC Network acted as the licensee broadcaster of the Here, Deadline Defendants' Plaintiffs' Opposition to Motion for Partial Summary Judgment 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's MAGR Exhibit To The Agreement "AMC" Corrects The Definition Of (b) ChulesEgleeMAORContgibution:Notwithstandingthe foresping,solongasLeader# 1isentitledto12,5%of100%ofMAGR,Leader# 1 trn.xo: trrieyear cotnrrrcr.marus/ 13p01 01:18ani agreestosulinquishitsentitlementto 1%of 100%ofMAORsoths CharlesEgles x- - ("Eglee")mayreceiveanadditional1%of100%ofMAGR(Le.,reducingLeader# I's MAGRentitlegacntto1L5%of 100%ofMAGR);provided,bowever,that(i) in the eventEglee'sshareofMAGRdoesnotfullyvestpursuanttothetermsofhisagreement withCompany,thenLeader#l'sshareofMAGRshallnotbereducedbyanyperceritage of MAOR to cethatdoesnotvest Artistshallrenamsuchunvested ii. If the Series is produced any third-party supplying gj g EXHIBIT A producer/deficit financier, MAGR shall be defined, computed and paid by ~gag, Movie C1namics Comnany IJC ("AMC") in accordance with AMC's MAGR definition MODIFIED AD,IUSTED GROSS RECEIPTS FOR SCRIPTED SERIES (which shan be furniahed to Lander #11 , which definition shall specify an imputed license ' '' ' ' ' ' ' fee and its Exhibit A to that certain Agreement (the "Agreement") dated as of , 2010, Receipts" a •- related services to be included in the calculation of "Gross in AMC's MAGR between ANjC Film Ifoldings LLC ( AMC ), as successor-in-interest to distribution be with respect to the Gross definition, but no television fee shall charged , and " (" Participant" " ("Participant"), with respect to the television series entitled ("Program"). ma..m,.sm-,,,,----.-....-.- w-em••---•r------r e.-ma a.ta=- for*= " ''' CompanyunlessCompany(oranafAllmedcompany)aduallyhandlesdistributenar neu *h.e enttiedto licensing,inwhichcaseCompany(orsuchaffiliatedcompany)willbe the .a eameatS samedistributionfeesandoverheadchaseasthosechargedbythethind-partysupplying ±.. o aeenecean:ner===thi producer/deficitfmancacr;(C)thereshallbenonetworksalesfeechargedregardmg Company'sinitiallicensefee,and(D)anyMAORparticipationpayabletoCompany .cameownexaer k a=×a shaBnotbedeductedoffthetopincornputingArtist'sMAORparticipation. 3 •M.n±-unsseaçammerdstelsRighf unemDepocalm ar •'h P .. w ,a.mgxwn.ge-exasce steeby O (fa gmmtmtmnhmedMtbnrdmytMMdmtYSupplyng r serñoWL:hL:CIR4.. f9883f1 jlsodmoer/doGcitfinancier,MAGRshallbede8ned,composedandpaidbyAmerican MovieClasalesCompanyLIf ("AMC")laaccordancewithAMC'sMAORdefmition (whichshallbefamishedgoLander#1),whichdefinitionshallspecifyanimputedlicenac feeinconnectionwithAMC'slicenseandrigbgstosudatuttheSeriesonAMCandits relatedservicestobeincludedinthecalculationof"OtoseReceipts"inAMC'sMAGR deanaion.benoieievimlistrib.e. feeshallbechargedwithaspedtomeavo- astsrutas 12 Deadline wtlnlosrtt Bernstein Aff. Ex. 3; Bernstein Aff. Ex. 4 8 g ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 4 Compare Agreement With Its MAGR Exhibit Receiptsattributedlo suchimputedliccosefee. In addition.for purposesof the calculationof Artist'sparticipadon AMC'sMAGRdefinitionshallbe hereunder, u E modifiedtoprovidethefollowing:(A)AMC'stelevisiondistributionfeeshallbecapped L attenpercent(10%)andshallbeinclusiveofallsub-distributor,barterandsalesfees(but- 8Pecificallyexcludinganyadvertisingagencyfeeschargedonbaster),providedthere shallbenotelevisiondistributionfeeonthesaletotheinitialbroadcaster,includingall extensionsandrenewalsthereof;(B)AMC'sadministrativeoverheadfeeshallbecapped gX IT A at twelveandone-halfpercent(12.5%)onthecostof production(andnostudio MODIFIED ADJUSTED GROSS RECEIPTS FOR SCRIPTED SERIES "Agreement" d ~ Exhibit A to that certain Agreement (the "Agreement") dated as 2010, F' ' of, between AMC Film Holdings LLC ("AMC"), as successor-in-interest to and is part , ' " iii. Each of Lender and Artist acknowledges that AMC ("(" Participant" ' titled" " ("Participant"), with respect to the television series entitled of diversified, multi-faceted, international company(ies), whose affiliates include, or may Program" ("("Program '). in the future include, among others, exhibitors, television "platforms", networks, stations and video device record internet ...... programming services, distributors, companies, '""""""'"'"""" """""""" and companies, so called "E. Commerce companies", publishers (literary and electronic) I or .and..mtait,antjata..(individugBy..st.mRgp;jy.9]y,,,.".Wiggl...Co.gany,, . acknowledges that has infamied Patticipant that AMC, AMC A f d/ th Companies" Company Companies'). Each of Lender and Artist further acknowledges that AMC inform with the distributor(s) of the Series intend to make use of Affiliated Companies in connection connection Lender and Artist that AMC intends to make use of Affiliated Companies in distribution and exploitation of the Program episodes, as, when and where AMC, AMC Affiliates cf' withits distribution and exploitation ofthe Senes episodes the Pilot), as, wh deem it appropriate to do so. Participant of'(including d/or the distributor(s) of the Program expressly and"where deems at appropnate to do so. Each öf Lenser anH XHist express ,g·,-3-g·ggjg--gg---(g·ya-æ·m--aiid·aptuitutoruf-thrPmrati·tormsprehsBbutloh"Nd"D>lt8NM'tY'thb'Iyfdg~'(bY'ittgtdQisfiBiuUoii'phd"%$1KthYtM'Vf'thh"PNgK5I'(bY ftt)UC 12 y w~ve'swaiies aiiyary exploitation of Series episode the of the Series waives any right to object to such distribution and any thereof) or assert any claim that AMC, AMC Affiliates and/or distributor(s) the (or aspects or assert claim that AMC should have euld-heve-efforod.tkoapplicabledistébution/explaitadon.dgba.to.unaffiliated.third.mtt,ira (including Pilot) thereof) any '' 4he.applicable.distdbnitina/exploitation.xights.to.nnafmiatedlhird.parties(in- or in addition the same to Afñliated Companies). In consideration thereof, lieu of, to, offering distributor(s)' Affiliates' and/or the of the Program transactions of, or in addition to, offering the same to Affiliated .Companies).Companies). In consideration AMC agrees that AMC's, AMC Affiljaced will be on terms comparable to the terms on which the thereof, , AMC agrees that AMC's transactions with Affiliated Companies will be ohon with an Company monetary Affiliated enters into similar transactions with unrelated third party distributors for monetary terms comparable to the·terms on which the Affiliated Company enters into Company comparable programs. similar transactions with unrelated third party distributors for comparableDeadlineprograms IXlInstancel4kt0~ m922ala 13 Bernstein Aff. Ex. 3; Bernstein Aff. Ex. 4 88 II~ ~~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC Studios, Not AMC Network, Is Performing The Agreement AMC Studios furnishes the MAGR definition to Plaintiffs {¶ 13(d)(ii)) AMC Studios provides the imputed license fee 2 (¶ 13(d)(ii)) AMC Studios charges the distribution fee 3 ~ (¶ 13(d)(ii)(A)) AMC Studios charges the overhead fee 4 ~ (¶ 13(d)(ii)(B)) AMC accounts for andDeadlinepays profit participation 5 ~ (¶ 13(d)(ii)) 8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC Admits That AMC Studios Is The Distributor Of The Series - Not AMC Network r I. at Ir n t: ' I' ' rl »I AFFIDAVIT OF MARCI 2. Since March 2010, I have been employed as Head of Business Affairs at WISEMAN IN SUPPORT OF DEFENDANTS' ORDER TO defendant AMC Network Entertainment LLC. One of my many job responsibilities in this SHOW CAUSE TO COMPEL DISCOVERY OF PLAINTIFF capacity has been to oversee the negotiations of writer, producer, and director agreements for CREATIVE ARTISTS AGENCY, OR ALTERNATIVELY TO LLC; productions which were or would be owned, financed, and/or distributed by AMC Film Holdings PRECLUDE CLAIMS AND ALLEGATIONS. LLC ("AMCFH"). '~ 4. As Head of Business Affairs, I represented AMCFH's interests as owner, h *4 I MN ' ~ --.--...... -.. ..---.--... h I Deadin connection with the negotiations r:r2C:2 financier, and distributor of The Walking concerning Amendment" - Season 2 between defendant Stu Segall drr=2:rrn "'The Walking Dead'/Frank Darahont plaintiffs' Inc. and Darkwoods 525-22.. DeadlineProductions, Inc. ("Segall"), on the one hand, and Ferenc, other hand (the "2011 Amendment"). Productions, Inc. (collectively "Darabont"), on the Bemstein Aff. Ex. 7 8 I ~ ~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 i ~ ~ ~ r ~ ~~ ~ ~ ~ e r ~ ~ I tici' w' '' 'IC> li > ~.I+c,'1'.'. iI))ptltc(lll c(',' liccl)scI Ice.''. fcc.CC 1>)@dcIll''Ll'c 'II)y;Ictti;IL'll'r'v ilc,ll,tl l lccl" +ln (1(l. 'f~ 13, L ().) II Lie.1c p;11',~,ll, 'll.'Ill'l ccti)ci)tc<'nlcn, to tive;Ill ll':g liccnsil)g • ' 11i i .i i occtll' ',' cxlilL''.,1i~ni tl;lllsiKIIolls..',tl'»;t,'.!i~:'.itill (LV l'l ll Acts'cell'wI';l,'. C.".lAX'I( .K ~ Vi(,!. 11/fili;Itc»l I;llailll;,Il.'i llllll llew,'..IIE 1111~'lit !'.:l.'! I ..>,',".'.I Ivllllll.'',: I'cspcctci',~",, loo A.V1(.k %1(» s cxlllbltioll» ofi»;.',c tllc Plaii1titfi' ' <.' ' 111<' i!' i.l,c,l.'„..'Ii.' Mh(il<.' Sel~ci. ic»tci i11'.".: tlicll:c LJ,S.t 1,..~.:,.'.~I, ii tclcv;111ti,i'.i; lotli". ptitposcsL>'.."',>iiiciof i >'. c;ILctll;Itiil< ! 'l,nnll l! ~ 41 3( > Li. (I(I,( I«, 16.) >. ' (~';le' . A, d IreC! I ailsik'tioti between A.'XXI( IC.)1LILIIi>i;111(I Sttidi s and one 01 its international networks wotild t'1' hDWevel he subject 10 Illls agreed stthptiragritpl1 (l') i P us Deadline Defendants' Memorandum of Law in Support of their Motion for Summary Judgment 8 I ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Opposition Contradicts . Its Own Motion For Summary r Judgment I" PILEDFLLLtNEN IIEWYORK" FFCOUNTYCLERK 'II)t-' LEFEO" F IFI F ' ' = IIII"I,FPF I" I ~ 'I' 'll t.' II Lc ratc I'. t Plaintiffs' AMC's Memorandum of Law In Support of their Motion AMC's Opposition Motion to Motion for Partial for Summary Judgment (Mot. Seq. No. 13) Summary Judgment (Mot. Seq. No. 12) ' ' llccI'lh'' lice»slnjt«LI' .Ih,h ', ~ .' . ' .. I .' ' 'I, . ' .' Transnclion. . i .I.' I,I)' ProvisionI'I'II i n,ippl appliesci "il; a'herci~I in' I/(/.!i, ' ~ I13.~,I,l(l. l Ii, ht'!11!II;i,.II('s Ii'Ic('»Ie»l! r.,iiitii, lo11 us('!111111!l'lufc(li: i i I i.t!.ilI.,: .. . IccI.L »I'I(lc;ulyI!.I;.: I:ILIiclulll ..!.i,! I SCI1('ll'I.'II .. in;I .ieellonII!.0 ..ht.', the Afliliale only i' I XI'(IIII)/ ....ts' ~ I ~ i 111,..... I I 'vLPII ilI, II I 1. ge'I'..RI'.)I- ll'r,I I, F I!' ).It . F.I C' .'.i" >,"n ' 1 bIi ','«'.".ii;; AiLII':.K 6( ' tTII;ll Iu i;li.'i illu.n,it ii.'. i' hiil i'rc u,i «uh:, ni. i,'- ii.","t u'i' .LollK alt .;.Lhibis until,loni~Ot. Illuii: AIICIL"rI/( ta, IICdiruibI,. IW iltCI,'...",I AIT, '' i'i'.' »1(ik('i'',i...' .;i,' ' L,' ' 'i>nni' .i.' i.' i' alcuhrin.r<' I (I(l)1»il ) iiilIl I ~(,(.(Il('i'i I( I»le»(ls'Ji IIo! uhc iol rhtlilliaIC(j4f n .'i: 'i,( 11»lp'in!ehnf'l iln Inli'i Con'.Iecllon~'ni i: »~i n'iI!hln,''.IIfs n I.":i(Ilsi!'I'iul!Vn yeries in c i S ine e a:n or pt.rpI' l~, s s f il, .!:ii'.',:I'l.lPh:i:1 if 1\( R .6-1 'I'.' ' cplso(lcs" .' , e .p I .IitIti n Of. +.'r.hcrlch.'Ii'initci Ode I. t ) Orcover. rhtht(.:ANK Netwo:a 111 1d strih e the Ner.e o ' L'nr.' riA d.:ect..' ansaction betwee.ii L.. AMC Stud:os a»d.nid one o I. its in:cmational';;., networks would however hc Iuhjcct lo i!tie:I I eeecesuLIPf,!paragraph ':; "ni i'i. (!I. IL It Deadline Plaintiffs' AMC s Memorandum of Law in Support of their Motion for Summary Judgment (10/28/16) AMC's Opposition Motion to Plaintiffs Motion for Partial Summary Judgment (12/2/16) ClI ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless Second Defense Even if AMC Studios licensed the Series to AMC Network, the Affiliate Transaction Provision only applies when AMC Network distributes the Series to its a licensee AMC's last-minuter attemptr to manufacture an ambiguity cannotr of Transactione ~ Provision nullify the protections Deadlinethe Affiliate I 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless Third Defense plaintiffs' nlonetal'y' term of Third, I lalntl f fs assertion that the imputed license fee is "the monetary [a] Network" olhel' transaction between AMC Studios and AMC NetiE'ol'k cannot be reconciled with other p;Ii.ties'parties' provisions of the agreements. For example, the agreements promise Darabont the most favorable imputed license fee "applicable to any other MAGR participant with respect to the Series." If an imputed license fee is, as Plaintiffs assert, the monetary term of an actual transaction between a studio and network, then that clause would be meaningless, because it would be impossible for different Series participants to negotiate different imputed license fees with AMC Studios. Deadline Defendants' Plaintiffs' Opposition to Motion for Partial Summary Judgment 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 The Most Favored~ Nationr. Provision Is An Additional . Protection That Does Not Conflict With The Affiliate ~ Transactiono e Provision k (M Charlesbgice. MAGR 'on. 6towithstan&ty,' the fcregomg.soIong.engasLeader# i isentitledto12.5%of'.I1UC°b.' atMAUR.Lcodcr-ew:ern»cr4 ! agreestole.Lagishitset:;ementto 1%of100%utMAGRso14tCharlesEu,ce t Eg]ee")maytwelveanadditional1%of100%ofMAGR(i.':s e.,reds.ngLender.' ;/ I'Us I The imputed license fee is the MAGRencment 1' ' of "— in ic Fs' to 5%of ;Q0% MAGR);pm·ddedhowever.thr.c) .Ic everaEglec'snu ofM GRrtnesnmf.Myvestpumant:o±etermsofhisigrcommt term of the ii. If the Senes is produced without any third-party supplying monetary licensing producer/deficit financier, .'vlAGRMAGR shall be defined, computed and paid by American but not an actual Movie Classics Cornpany LLC ("AMC") in accordance with AMC's MAGR definition transaction, (which shall be furnished to Lender #1), which definition shall specify an imputed(ellis(IILAIlicenseIIL I Ildh fee in connection with AMC's license and rights to exhibit the Series on AMC and its Receipts" related services to be included in the calculation of "Gross in AMC's MAGR definition, but no television distribution fee shall be charged with respect to the Gross In for purposes of the Receipts attributed to such imputed license fee. addition, 1 The imputed license fee could calculation of Artist's participation hereunder, AMC's MAGR definition shall be modified to provide the following: (A) AMC's television distribution fee shall be capped from participant to at ten percent (10%) and shall be inclusive of all sub-distributor, barter and sales fees (but vary specifically excluding any advertising agency fees charged on barter), provided there shall be no television distribution fee On the sale to the initial broadcaster, including all participant extensions and renewals thereof; (B) AMC's administrative overhead fee shall be capped calculated at the midpoint of each production period; (F) all transactions with affiliated ' ' I Therefore the Most Favored entities will be subject to subparagraph 13(c)[iii) below; Mi the imputed license fee will y be no less favorable than the imputed license fee apphcable to any other MAUK participant with respect to tbe Serics; (N) the upiTOnl portion O any agency paCbage Nation Provision has value t t WhwhshallbcfwrtifneddoLe-.der- #1),which&ñnitwnskullI' Bernstein Aff. Ex. 3 (B I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless Third Defense Applying the Affiliate Transaction Provision to the imputed license fee would render Nation" the "Most Favored provision meaningless The Most Favored Nation~Deadline Provision ande the Affiliate Transaction Provision are~ complementary, not in conflict 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless Fourth Defense <' ' Fourth, f a.'t n10untain of evi'X idence aboul custoln and praClice 'C in the televisiOn industr,1 and ',11~' 1I'i'"..;l',:t!!' ' 1 Ii' thrt)uglk)).ll :1Cg0llillÏ01)S COIlllrllls the l!llptlied 100 li not hchaviOr ot the parljes that I license c'I' i pall of .Ia transaction between.~<'I',', ~'~'Il A\lC affiliates. in contract negotiations, l)ardhonl's lawyer 0 1'len l1(.' i' refelTed<'I'I to the IlllpuiCd license('t ÏCe i','I>as .I il lerll) ot an ilgreClllent to he HCguliated between DilrithD!ll (.' and AllC.-X Studios (not of a transaction between ANIC affiliates), s0ught 10 preserve Darabunt's l(ll(.' engaged in A.X.(I(. IC Nel VOrk's) rights 10 neg0liate this iinpuled license fee :erm.icl111. and ill(.' Ileg0llillÎ0lls ilgilillst A\lf Studios.)I(l(ll()i Deadlineill>()ttiaboul the amOunt Of the ilHpUledil(.'(.'Ilia ÏÏCenSC fCC. Defendants' Plaintiffs' Defendants'OppositiontoPlaintiffs MotionforPartialSummaryJudgment 8 I ~~~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless ~- Fourth Defense Imputed license fees are negotiated Deadlinebetween talent and studios, not between networks and studios 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Defenses Are Meritless First Defense enter into transaction with in AMC Studios did not a licensing AMC Network connection with the Series Second Defense Even if AMC Studios licensed the Series to AMC Network, the Affiliate Transaction Provision only applies when AMC Network distributes the Series to a licensee Third Defense Applying the Affiliate Transaction Provision to the imputed license fee would render Nation" the "Most Favored provision meaningless Fourth Defense / Imputed license fees are negotiated Deadlinebetween talent and studios, not between networks and studios 8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Violation . Of So-Ordered Stipulation e 12/17/2013 Darabont/CAA Complaint filed 10/17/2016 - So-Ordered Stipulation: = No alterations or revisions to motion papers under any circumstances without agreement - 2015 Scott Gimple documents produced by AMC Deadline 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 October 17, 2016 So-Ordered Stipulation . ~l IIII' It I EFLEDASDCC NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned counsel of record, that Plaintiffs and Defendants will adhere to the parties' following deadlines and procedures as to the motions for sununary judgment or partial summary judgment and motions to seal: 1 a Deadline Bernstein Supp. Reply Aff. Ex. S-1 8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 October 17, 2016 So-Ordered Stipulation . IIII' Ittt EFLEDA$D*CtC2.âJ . 2. On October 28, 2016, at or before 5:00 p.m. Eastern Time, Plaintiffs and Defendants will privately exchange between themselves any affidavits, affirmations, exhibits, Rule 19-a and memoranda of law in of their statements, support respective motions for summary ~ ~~ I judgment or partial summary judgment. Plaintiffs and Defendants agree that, between the date of I I'%. the private exchange ¬,_ of documents and the date that the documents are ultimately filed with the 4 I XIII I III I W IA 4 4 I~ ~ no alterations or revisions will Court, be made to their motion papers under any circumstances rm I except by mutualDeadline consent. Bernstein Supp. Reply Aff. Ex. S-1 8 I~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 October 17, 2016 So-Ordered Stipulation . ....LME,.M.5- UWJ,-LtdLL,1ha-'It aiL4M ~ 2. OnOctober28,2016.ator before5:00p.m.EasternTime.Plaintiffsand Defendantswill privatelyexchangebetweenthemselvesanyaffidavits,affirmations,exhibits, " "' '" . WNGOWf EFLEDA$DCc)0111 Rule19-astatements,andmemorandaof lawin supportoftheirrespectivemotionsforsummary .-- judgmentorpartialsummaryjudgment.PlaintiffsandDefendantsagreethat,betweenthedateof . theprivateexchangeof documentsandthedatethatthedocumentsareultimatelyfiledwiththe . Court,noalterationsor revisionswill bemadetotheirmotionpapersunderanycircumstances, exceptbymutualconsent. ~I~ . ...- .. 3. OnDecember2,2016,atorbefore5:00p.m.EastemTime,Plaintiffsand Defendantswill privatelyexchangebetweenthemselvesanyaffidavits,affirmations,exhibits, ...... ---,,-,.-..--.. . counterRule19-astatements,andmemorandaoflawin oppositiontoeachparties'les'motionfor ,B'.15Ang,,35,HIE..B,ar.TIM4AlapAND444IE58epr. I.... ~ ~ -.u....omm..iou....u-..u summaryjudgmentorpartialsummaryjudgment.PlaintiffsandDefendantsagreethat,between ...... -,,.--...... -.---.,,-.,.- --**- thedateoftheprivateexchangeof documentsandthedatethatthedocumentsareultimately '~ filedwiththeCourt,noalterationsor revisionswill bemadetotheiroppositionmotionpapers tug»t I uw n,r...w..aAu I .....-w,•.. .-.- under except mutualconsent. LkuI I I anyCircutnStances, by ~ ~ dk Jkk4ul luff tu w l~ ,- 4. OnDecember23,20I6.atorbefore5:00p.m.EasternTime,Plaintiffsand "r N Defendantswill privatelyexchangebetweenthemselvesanyaffidavits,affirmations,exhibits, ~Qp %M I sm.-.--..... 4 -•.a,.. I* ...... ,,., w, seplyRule19-astatements,andmemorandaof lawInreply.PlaintiffsandDefendantsagreethat, Deadlinebetweenthedateoftheprivateexchangeof documentsandthedatethatthedocumentsare filedwiththe noalterationsor revisions ultimately Court, will bemadetotheirreplymotion papersunderanycircumstances.exceptbymutualconsent. Bernstein Supp. Reply Aff. Ex. S-1 'e tp s ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 Stipulation file in electronically 750 &egall rulings NetworkHoldings & Suite90067 TORRES 10019o BRANSTENZ II Stu III Court's 8 East,a/Califomia, I- Vice AMCFilmand IJI each York506-I700 288-7900 2nc., the BENSON, Kasowitz BerlinskiPark Hac DefendantsAMC will MarksBroadwayNew Frazier J.S.C. with CenturyAngeles,Pro UC,Networks IS O parties LLP York,(212) (424) inc. ORDERED:EILEENZ IJJ consistent H. Admritred O IIJ KASOWITZ,F- V.Candace Entertainment ~ Aaron Tel.: for Pmductions, the FRIEDMANMarc1633Tel.: John2029Los CC S New AMC seal, m Attorneys So-Ordered above, HUll: I.LC to SO motion 2-4 Inc.. paragraphsZÅ0 any Darabont,h Pmductions, on seal, 10174 rules ISER UC in 90401 Avenue Courtdescribedto TamboneBuildingYork LLP Floor i',FrankAgency. —; motionsYork - 885-5000WEITZMAN , D.‰mstein California Darkwoods ® 2016 and VicePlaintIs the New ALDISERT3rd New LLP ChryslerLexington 566.9800 Artists documents J_, R. York, FitzgeraldBlvd. After any York, (212) Hac ROME Nicholas KinsellaLiskinMonica, with October Attorneysforinc., Tel.: KINSELLA WilshirePro Creative JerryThe405New (310) New & C. Admitted 6. connectio BLANK F. R. Ferenc. ownc .57 ~g KUMP Aaron Dated: DaleChad SantaTel.: their 808 and 2016 17, Deadline October r--·" ...... ":7., ®® na S-1 Cl03.13 .-..e-- u..on "'""" a :";.." Ex. a--... 7 D .- me FLEDA$ n ' Aff. a E ...g.,...... -. )ck. 1-k a,. ,,' Reply _U L4 ".'..™4"ea CL L}j_J.M -- _LL CL { Supp. LLRd CLCL . Cl.CL ft. W_LkU 1 V)M _bA•3 j BernsteinC N CC U F L 6) (2 FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Violation .. Of So-Ordered Stipulation ee 1 -n 12/17/2013 -n 12/23/2016 1 O Darabont/CAA O Exchange of MSJ papers completed Complaint filed per so-ordered stipulation -n 2/9/2017 OO Sealing motions fully submitted 6/23/2017 * - 10/17/2016 AMC discloses new Stipulation: = e So-Ordered Nicotero imputed license fee No alterations or revisions to motion papers under any 6/2017 - circumstances without agreement New Nicotero deal executed 6/9/2017 ~~ Final on 2_- 2015 hearing Q~J Scott Gimple sealing motions documents + Produced Date for public filing of I by AMC DeadlineMSJ papers set for 7/13 I I = I I . I 8 ~I ~~ ~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 June 2017 Nicotero Deal I- EI ~I For the Imputed License Fee for purposes clarity, foregoing of calculating 4 ~ ~ ~ Participant's Modified Adjusted Gross Receipts participation is the result of an arms-length negotiation between AMC and Participant, is binding, not subject to any further negotiation, modification or adjustment, and will not be deemed a transaction between Affiliated Companies (as that term is used herein); I —- Deadline OlshanskyOlshansky Opp.Opp.Aff.Aff.Ex.Ex. CC 8 II ~~ ~~ '' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Violation . Of So-Ordered Stipulation e - - 1 12/17/2013 12/23/2016 -- - Darabont/CAA O Exchange of MSJ papers completed Complaint filed per so-ordered stipulation 6/28/2017, 7/10/2017 AMC discloses altered aMC 2/9/2017 . papers to Plaintiffs, adding Sealing motions 2015 Gimple documents and fully submitted June 2017 new Nicotero deal 6/23/2017 e - 10/17/2016 AMC discloses new Stipulation: = a So-Ordered Nicotero imputed license fee No alterations or revisions to motion papers under any 6/2017 - circumstances without agreement New Nicotero deal executed 6/9/2017 ~~ Final on --- 2015 hearing Q~J Scott Gimple sealing motions documents 9 Produced Date for public filing of I by AMC DeadlineMSJ papers set for 7/13 I I ~ I 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 m - -S at. - ~ex e e- 4 4 e s g 8t s .s 2= 3 ~ a a- g e4 a a e g 2 . . 3 - a g r g a - z g 3 4--s - . •- Î ! ® a (f) C O V T 2 7 j c 6 O a a 3 O d = a 2 .. C r„ g O 4 I . I IS I I 2 8 j f . 5 ~ ~ c _ < 1 -- s y 3 . T t 5 0 G 4 0 = o c 4 '4 * t 2 2 2 4 j a . j j j y = W < 4 g 2 C .' C C t lt .t - , = - - 4 a 1 1' 4 Deadlinej F ~ ~ cN I CO .t J3 !_ ? I n! ..C X LLI p:1 t i" '~ CL j '- 6) CL ' '-C j C a m W:,7. -- . C 2 6) FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 AMC's Violation . Of So-Ordered Stipulation e 1 _ 12/17/2013 12/23/2016 7/13/2017 ;-- - - Darabont/CAA O Exchange of MSJ papers completed MSJ papers publicly filed Complaint filed per so-ordered stipulation 6/28/2017, 7/10/2017 AMC discloses altered aMC 2/9/2017 . papers to Plaintiffs, adding Sealing motions 2015 Gimple documents and fully submitted June 2017 new Nicotero deal 6/23/2017 e - 10/17/2016 AMC discloses new Stipulation: = a So-Ordered Nicotero imputed license fee No alterations or revisions to motion papers under any 6/2017 - circumstances without agreement New Nicotero deal executed 6/9/2017 ~~ Final on - 2015 hearing Q~J Scott Gimple sealing motions documents + Produced Date for public filing of I by AMC DeadlineMSJ papers set for 7/13 I I ~ I 8 I ~~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 Season 6 License Fees Per Episode $3,692,308 $3M - $2,272,385 $2M - After Nicotero Deal I o I $1M $0M Deadline WÅLMINADEAB MADMEN Bernstein Aff. Exs. 4, 23; Olshansky Opp. Aff. Ex. C 8 I ~ ~ ' FILED: NEW YORK COUNTY CLERK 03/22/2018 12:01 AM INDEX NO. 654328/2013 NYSCEF DOC. NO. 634 RECEIVED NYSCEF: 03/22/2018 Faire Marketr Comparison ~ Season 4 C3 C mm rcial) Ratings Season 6 Per Episode License Fees - 7 6.47 $3,692,308 - 6 $3M - 5 A$2,272,385$2,272,385 4 - . $2M - ~ e 3 2 $1M - 1 0.67 $0M Deadline0 WÅLRINODEAD MADMEN WÅLRINODEAD MADMEN Bernstein Aff. Exs. 4, 21, 22, 23; Olshansky Opp. Aff. Ex. C 8 I ~ ~ '