EXECUTIVE BOARD MINUTES
Tuesday, 29 September 2020 1:30 pm - 2:30 pm Eastern DRAFT Via Conference Call
Board Member Participants: Other Participants: Chairman Ellis Jacob Mike Bowers Vice Chairman Rolando Rodriguez Steve Zuehlke Treasurer Joe Masher Secretary Jeff Logan Staff Participants: Adam Aron Esther Baruh Robert Bagby Jackie Brenneman, General Counsel Bo Chambliss Kathy Conroy Eddy Duquenne Patrick Corcoran Don Fox John Fithian Mooky Greidinger Mitch Neuhauser Dan Harkins Matt Pollock Chris Johnson J.D. Loeks Ron Krueger Joe Paletta John Vincent David Wright Mark Zoradi
Chairman Ellis called the meeting to order to discuss the film release slate, opening/closing of theater markets, current state of federal programs and legislation, public messaging, the short and long term outlook, and the annual meetings of NATO.
Ms. Brenneman provided a brief overview of the antitrust statement.
Chairman Ellis and Mr. Fithian welcomed Don Fox on his election to the NATO Executive Board.
Public Messaging: The Board agreed to reduce the CinemaSafe national campaign remaining $1.2 Million to $500,000 concentrating on the New York and Los Angeles markets instead. The remaining $700,000 will be used in late November as needed.
Chairman Ellis noted there was no new business and the next meeting will be via Zoom on Wednesday, 7 October 2020 at 1:30 pm Eastern. It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
Page 1
EXECUTIVE BOARD MINUTES
Tuesday, 22 September 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Mike Bowers Vice Chairman Rolando Rodriguez Steve Zuehlke Treasurer Joe Masher Secretary Jeff Logan Staff Participants:
Adam Aron Esther Baruh Robert Bagby Jackie Brenneman, General Counsel Bo Chambliss Kathy Conroy Eddy Duquenne Patrick Corcoran Mooky Greidinger John Fithian Dan Harkins Mitch Neuhauser Chris Johnson Matt Pollock J.D. Loeks Ron Krueger Joe Paletta John Vincent David Wright Mark Zoradi
Chairman Ellis called the meeting to order to discuss NATO’s outreach to financial community, NRG Study on Consumer Awareness, health & safety messaging, film release slate, opening/closing of theater markets and federal programs & legislation.
Ms. Brenneman provided a brief overview of the antitrust statement.
NATO Outreach to Financial Community and Banks: Mr. Corcoran reported he is communicating with investors and analysts on Wall Street by online conferences and 1:1 meetings discussing windows, streaming and where the industry will be when it is fully back in business. Their outreach also extends to the banking sector.
NRG Study on Consumer Awareness: Mr. Corcoran reported on the recent NRG study on consumer awareness and attitudes during COVID about safety protocols and movie theaters. The new data suggests awareness rises when there is film product. NATO’s messaging to press and studios continue to be more film product and also helps market awareness of safety protocols and movie theaters openings.
2
Page 2
EXECUTIVE BOARD MINUTES
Health and Safety Messaging: Mr. Fithian continues his media tour discussing CinemaSafe and theater openings. The messaging and spending priorities have shifted to open markets. The new Aerosol Study on CDC website has been withdrawn. Ms. Brenneman discussed utilizing NATO’s epidemiologists on videos supporting CinemaSafe in addition to developing testimonial videos. Mr. Fithian noted Dr. Fauci’s email communication will only be used for lobbying purposes to get markets open.
Film Release Slate: Mr. Fithian stated there is no change from last week. The Board discussed the importance of New York movie theaters re-opening worldwide. More discussion on possible film slate delays due to rising COVID numbers in Europe
Opening and Closing of Theater Markets: Mr. Masher reported the theater tour with New York’s Health Department went well and believes there is a clear understanding of the protocols and the distinction between dining out and eating at movie theaters. There will be continued discussion on the HVAC system. Mr. Zoradi stated there were additional county openings and NATO of CA continues to lobby for California. Mr. Fithian reported the Governor offices for Michigan, North Carolina and New Mexico reported positive signs for reopening. NATO is utilizing epidimologists for lobbying in these states.
Federal Policy Update: Ms. Baruh reported on the 14-16 September Virtual Capitol Hill “Fly-in” meetings with the House & Senate offices for Congress to discuss struggling industries, pass legislation on relief funding and make the Main Street Lending program more accessible. NATO will continue to support the RESTART program and focus on making PPP programs available to more mid-size theaters. Ms. Brenneman reported the Feds and Treasury released changes to the Main Street Loan programs. NATO will host a webinar on these changes and discuss bankruptcy tools.
Chairman Ellis noted there was no new business and the next conference call will be held Tuesday, 29 September 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
3
Page 3
EXECUTIVE BOARD MINUTES
Tuesday, 15 September 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Vice Chairman Rolando Rodriguez Chairman Ellis Jacob Treasurer Joe Masher Secretary Jeff Logan Other Participants:
Adam Aron Mike Bowers Robert Bagby Steve Zuehlke Bo Chambliss Eddy Duquenne Staff Participants: Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy J.D. Loeks Patrick Corcoran Ron Krueger John Fithian Mike Spaeth (for Joe Paletta) Mitch Neuhauser John Vincent Matt Pollock David Wright
Mark Zoradi
Vice Chairman Rodriguez called the meeting to order to discuss the Executive Board election results, film weekend results, film release slate, CinemaSafe Continuing roll- out, opening/closing of theater markets, federal policy and NATO outreach to financial community.
Ms. Brenneman provided a brief overview of the antitrust statement.
Organizational Matters: Ms. Brenneman reported on the Executive Board election results. Mr. Chambliss, Mr. Loeks, Mr. Masher were re-elected from mid-size circuit category. Mr. Vincent was re-elected and Mr. Don Fox will join as a first-term member from the independent seat category. Attachment 1 reflects the composition of NATO Executive Board, 2020-2021 term. Mr. Fithian and Mr. Ellis will convene a Nominations Committee meeting to discuss officer nominations. Nominations will be considered at the end of the 7 October meeting. Ms. Conroy discussed the importance of Board members attending both the Advisory Board and Executive Board meetings on 7 October.
4
Page 4
EXECUTIVE BOARD MINUTES
Weekend Results: Mr. Corcoran provided worldwide weekend results for Tenet film at $37.3M with domestic at 6.7M. The overall worldwide numbers to date is $177M.
Film Release Slate: Mr. Fithian reported on various films removed from the September-October calendar noting the films remain theatrical releases for later dates. Disney is analyzing numbers and reviewing their film release dates. The Tenet release raised consumer awareness about the safety protocols and that theaters were open. There was discussion many independent theaters may close due to loss of product. The Board discussed remaining positive in the messaging and suggested cinema operators write to Governor Cuomo about the worldwide impact of theaters closed in New York.
The Opening of Theater Markets: Mr. Masher reported NY Dept. of Health has scheduled a theater tour to see how the protocols work. A safety protocol video was sent to NY Governor’s office and Dept. of Health. Mr. Fithian reported Michigan remains a problem and a local epidemiologist was hired to communicate with their Governor’s office. Mr. Zoradi noted California has made progress and the PR agency has been helpful to NATO of CA.
Federal Policy Update: Ms. Baruh reported the Virtual Capitol Hill “Fly-in” was in process with other trade associations to meet with House & Senate offices for Congress not to abandon struggling industries, pass legislation on relief funding and make the Main Street Lending program more accessible. She noted there is no movement on passing a bill and will probably not happen before the upcoming election.
CinemaSafe Roll-out: Mr. Corcoran reported 385 members to date signed up for CinemaSafe voluntary protocols. There are 6 and 15 second cut down videos available for ad campaigns and social media. There will be a 1 minute safety video available on Trailer mix for trailers. Consumer testimonials on cinema safety will be packaged for exhibitor use. There continues to be ongoing media outreach.
NATO Outreach to Financial Community: Mr. Corcoran reported NATO continues outreach to Wall Street Analysts. NATO will expand discussion on the message of NATOs long term health to the banking community.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 22 September 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
5
Page 5
EXECUTIVE BOARD MINUTES
Attachment 1
Composition of NATO Executive Board, 2020-2021 Term:
Eight Automatic Seats (listed by company’s domestic screen count):
1. Adam Aron, AMC Entertainment Inc. 2. Moshe Greidinger, Regal Entertainment Group 3. Mark Zoradi, Cinemark USA, Inc. 4. Ellis Jacob, Cineplex Entertainment LP 5. Rolando Rodriguez, Marcus Theatres Corp. 6. Dan Harkins, Harkins Theatres 7. Eddy Duquenne, Kinepolis/Landmark/MJR 8. Robert Bagby, B&B Theatres
Four Regional/Mid-Sized Circuit Seats (listed alphabetically by last name):
1. Bo Chambliss, Georgia Theatre Company 2. Ron Krueger, Southern Theatres, LLC 3. J.D. Loeks, Studio C 4. Joe Masher, Bow Tie Cinemas
Four Independent Seats (listed alphabetically by last name):
1. Donald Fox, Fox Theatres 2. Joe Paletta, Spotlight Theatres, Inc. 3. John Vincent, Wellfleet Cinemas 4. Dave Wright, Linway Plaza Cinemas (MCIC Inc.)
One Regional Associations Representative:
1. Chris Johnson, NATO of Illinois
6
Page 6
EXECUTIVE BOARD MINUTES
DRAFT Tuesday, 8 September 2020 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Eddy Duquenne Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants: Secretary Jeff Logan Mike Bowers Adam Aron Robert Bagby Staff Participants: Bo Chambliss Esther Baruh Mooky Greidinger Jackie Brenneman, General Counsel Dan Harkins Kathy Conroy Chris Johnson Patrick Corcoran J.D. Loeks John Fithian Ron Krueger Mitch Neuhauser Joe Paletta Matt Pollock John Vincent
David Wright
Steve Zuehlke (for Mark Zoradi)
Chairman Jacob called the meeting to order to discuss the Executive Board election results, film weekend results, film release slate, the CinemaSafe continuing roll-out, opening/closing of theater markets, and federal policy.
Mr. Fithian provided a brief overview of the antitrust statement.
Executive Board Election Update: Ms. Brenneman reported the election ends today and will announce results tomorrow. A Nominations Committee meeting to elect new officers will convene after the election results are announced.
Weekend Results: Mr. Corcoran reported the worldwide weekend results for Tenet film. Domestic numbers were low due to various U.S. markets not open and the reduced seating capacity. NATO & Warner Bros. will coordinate messaging that the soft numbers are due to impaired opening.
Film Release Slate: The Board noted disappointment by Tenet domestic numbers and discussed impact if Wonder Woman moved to 2021. Sony added two smaller movies to October slate. Disney is analyzing the numbers and assessing Black Widow release.
7
Page 7
EXECUTIVE BOARD MINUTES
CinemaSafe Launch: The CinemaSafe video was announced by press release and the video links were sent to members who signed onto CinemaSafe. There will also be 6 and 15 second cut down versions available and distributed through social media. NATO will message to local media about CinemaSafe protocols and reporting cinemas are open.
The Opening of Theater Markets: Mr. Fithian reported New Jersey opened statewide. Maryland and California opened in some counties with reduced seating capacity. New York, Michigan, North Carolina and New Mexico are not open yet. Mr. Masher scheduled a theater tour with New York Department of Health to discuss CinemaSafe protocols. There continue to be seating capacity challenges in some states.
Federal Policy Update: Ms. Baruh reported a Virtual Capitol Hill “Fly-in” is scheduled with other trade associations to meet with House & Senate offices on 14-16 September. It is a collective effort asking Congress not to abandon struggling industries and pass legislation on relief funding. Ms. Brenneman reported no movement on reform for Main Street Lending program.
Chairman Jacob noted there was no new business and the next conference call will be held Tuesday, 15 September 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
8
Page 8
EXECUTIVE BOARD MINUTES
Tuesday, 1 September 2020 1:30 pm - 2:30 pm Eastern DRAFT Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants: Secretary Jeff Logan Mike Bowers Robert Bagby Steve Zuehlke Bo Chambliss Eddy Duquenne Staff Participants: Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy J.D. Loeks Patrick Corcoran Ron Krueger John Fithian Mike Spaeth (for Joe Paletta) Mitch Neuhauser John Vincent Matt Pollock David Wright
Mark Zoradi
Chairman Jacob called the meeting to order to discuss the Annual NATO meetings/Fall Summit and an update on the film weekend results & film slate, the CinemaSafe launch, opening/closing of theater markets, and federal policy.
Ms. Brenneman provided a brief overview of the antitrust statement.
Annual NATO Meetings/Fall Summit: Ms. Conroy reported due to the COVID-19 pandemic, the annual NATO meetings will not be held in Los Angeles as planned. These meetings will be held virtually on 5-7 October 2020 with some committee meetings held the week prior. The final schedule will be sent after the Labor Day holiday. Mr. Neuhauser reported the NATO 2020 Summit event is postponed and alternative dates will be discussed as soon as possible.
It was moved and seconded to approve sending a memo to all NATO members reporting the 2020 Annual NATO Meetings and Summit revised details as described above. A vote was taken and the motion was approved.
9
Page 9
EXECUTIVE BOARD MINUTES
The Opening of Theater Markets: Mr. Fithian reported more progress with the opening of theater markets noting New Jersey, Maryland, Michigan and some California counties announced or will announce theater openings at 25% capacity expected for Labor Day weekend. North Carolina, New Mexico and New York have not made announcements yet. Treasurer Masher noted New York had four grass root press conferences and New State theater owners sent letters to the Governor supporting re- openings by 3 September.
Film Performance and Release Slate: Mr. Corcoran reported on domestic weekend performances with New Mutants, David Copperfield and Unhinged films. The Tenet film had strong international numbers and now preparing for domestic opening. Mr. Fithian reported Paramount and Disney moved some films to 2021 and he is working on keeping Candyman film for 16 October release.
CinemaSafe Launch: Mr. Pollock reported there were 370 companies that signed on to voluntarily comply with CinemaSafe. He sent reminder notices to companies about the digital assets and mailed the window clings. Mr. Corcoran noted the CinemaSafe press roll out started and he will discuss the importance of vigilance and guideline execution on the next NATO webinar. Ms. Brenneman discussed other CinemaSafe roll-out steps and media outreach.
Federal Policy Update: Ms. Baruh reported there is no progress to report on loans or liability protection. There will be a virtual fly-in meeting in mid-September to continue to raise voices since no legislation has been passed. Ms. Brenneman reported no movement on the forgiveness application or reform for Main Street Lending program
Chairman Jacob noted there was no new business and the next conference call will be held Tuesday, 8 September 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
10
Page 10
EXECUTIVE BOARD MINUTES
Tuesday, 25 August 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Eddy Duquenne Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants: Secretary Jeff Logan Mike Bowers Adam Aron Steve Zuehlke Robert Bagby Bo Chambliss Staff Participants: Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman General Counsel Chris Johnson Kathy Conroy J.D. Loeks Patrick Corcoran Ron Krueger John Fithian Joe Paletta Mitch Neuhauser John Vincent Matt Pollock David Wright
Mark Zoradi
Chairman Jacob called the meeting to order for an update on the opening weekend results, film release slate, the CinemaSafe launch, opening/closing of theater markets and federal policy.
Ms. Brenneman provided a brief overview of the antitrust statement.
Opening Weekend Results: Board members provided input on weekend opening results for their international territories, Canada and the U.S. Mr. Logan commented that restrictions made it hard for independent theaters. The Board discussed new Hollywood product was needed for stronger numbers.
Film Release Slate: Mr. Fithian noted attention will continue focusing on box office numbers and state re-openings for next few weeks. There was discussion whether 2020 releases would move back to 2020 from 2021 if theaters show good numbers.
CinemaSafe Launch: Mr. Pollock reported the CinemaSafe launch has 340 U.S. members signed on to date. Mr. Corcoran noted the CinemaSafe website was live. The press conference launch was distributed to press and social media outlets and he described additional roll-out steps planned. Mr. Zoradi discussed the importance of the CinemaSafe rollout and the need to get message out at regional local events.
11
Page 11
EXECUTIVE BOARD MINUTES
The Opening & Closing of Theater Markets: Mr. Fithian noted no significant movement in key states to date. Mr. Masher reported New York Governor stated movie theaters were next on opening list and guidance is expected soon. AMC will fund an additional New York lobbyist. Mr. Zoradi discussed NATO partnering with NATO of CA providing additional resources and a new reopening strategy. Mr. Greidinger will have his PR firm available to assist. Mr. Loeks noted the possibility of Michigan Governor making an announcement about reopening effective Labor Day weekend. Mr. Bowers noted Harkins Theaters plan to reopen 28 August where allowed.
Federal Policy Update: Ms. Baruh reported there are no policy updates with Congress in recess. She noted the IRS issued guidance on the payroll tax payroll.
Chairman Jacob noted there was no new business and the next conference call will be held Tuesday, 1 September 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
12
Page 12
EXECUTIVE BOARD MINUTES
Tuesday, 18 August 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Vice Chairman Rolando Rodriguez Chairman Ellis Jacob Treasurer Joe Masher Secretary Jeff Logan Other Participants:
Mike Bowers Adam Aron Steve Zuehlke Robert Bagby
Bo Chambliss Staff Participants: Eddy Duquenne Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy J.D. Loeks Patrick Corcoran Ron Krueger John Fithian Joe Paletta Mitch Neuhauser John Vincent Matt Pollock David Wright Mark Zoradi
Vice Chairman Rodriguez called the meeting to order for an update on the proposed health and safety guidelines, opening/closing of theater markets, federal policy and August/September film releases.
Ms. Brenneman provided a brief overview of the antitrust statement.
Proposed Health and Safety Guidelines: Ms. Conroy reported the safety guidelines were sent to all US exhibitors with 215 companies to date supporting NATO’s baseline protocols. Mr. Corcoran reported the next NATO webinar will expand discussion on the protocols and discuss the CinemaSafe campaign launching on 21 August. The launch will include a planned press conference with John Fithian moderating a NATO member panel along with two epidemiologists. NATO will create separate videos with epidemiologist and celebrity influencers on social media promoting CinemaSafe campaign. A digital media rollout in coordination of Warner Bros will be developed with Google.
The Opening & Closing of Theater Markets: Mr. Fithian reported no change in opened or closed theaters since last report, but there continues to be capacity level challenges. Mr. Masher reported NATO of NY will have press conference tomorrow
13
Page 13
EXECUTIVE BOARD MINUTES
with state theater operations, state legislators and local officials urging the reopening of movie theaters in NY with stringent safety protocols and guidelines.
Mr. Fithian reported NATO lost the New Jersey lawsuit noting the judge found a ruling for the State. He discussed the legal options moving forward. The Board agreed to hold out on appealing and use as leverage with discussions with NJ government team about reopening theaters.
The Board discussed alternate PR efforts are needed for California and New York re- openings and big circuits should get directly involved with possible new lobbyist.
Federal Policy Update: Ms. Baruh reported Congress is in recess and there are no policy updates. The #SaveYourCinema campaign has created a lot of attention with just under 300,000 letters sent to Congress. Main Street Lending Program flaws have the attention of Republicans to improve and make more accessible to exhibitors.
August/September Film Release Status: Mr. Fithian reported no new updates noting 21 August 2020 is “opening” day for new film releases in the U.S. Mr. Duquenne and Mr. Greidinger both reported slow ticket sales for Tenet release on international side, but hoping for improvement next week.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 25 August 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
14
Page 14
EXECUTIVE BOARD MINUTES
Tuesday, 11 August 2020 1:30 pm - 2:30 pm Eastern DRAFT Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Mike Bowers Vice Chairman Rolando Rodriguez Steve Zuehlke Treasurer Joe Masher Secretary Jeff Logan Staff Participants: Adam Aron Robert Bagby Esther Baruh Bo Chambliss Jackie Brenneman, General Counsel Eddy Duquenne Kathy Conroy Mooky Greidinger Patrick Corcoran Dan Harkins John Fithian Chris Johnson Mitch Neuhauser J.D. Loeks Matt Pollock Ron Krueger Joe Paletta John Vincent David Wright Mark Zoradi
Vice Chairman Rodriguez called the meeting to order for an update on the reopening of cinemas, August/September film releases, PR Studio Theme, Paramount Consent Decrees, epidemiologist status on protocols and federal policy update for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Epidemiologist Uniform Safety Operational Protocols (Attachment 1): Ms. Conroy reported Dr. Daniel Uslan approved the Board’s minor edits for the CinemaSafe Voluntary Health & Safety Guidelines. Since the safety protocols were previously approved, Attachment 1 is ready to roll out to membership and use for lobbying and media relation efforts.
Mr. Corcoran reported the roll out plan entails sending protocols to membership to voluntarily agree to use as their baseline protocols. A website will be developed displaying a list of members abiding to the protocols along with graphics and a video. Press strategies include targeted media interviews with NATO member circuits, Dr. Uslan and celebrities to endorse the safety protocols. Paid media rollouts will be developed as well as vendor partners lending their social media support. The Board discussed the necessary funds for a successful media rollout.
15
Page 15
EXECUTIVE BOARD MINUTES
It was moved and seconded to approve up to $3M for the media roll out regarding NATO’s Uniform Safety Operational Protocols as described above. The committed funds for the roll out are $1.75M. The roll out will be monitored with additional funds of $1.25M to use if necessary. A vote was taken and the motion was approved.
Paramount Consent Decree: Ms. Brenneman reported a federal judge repealed the Paramount Consent Decree with two notable points: (1) the ruling reiterated that existing antitrust laws still apply and (2) there would be a two-year sunset on block blooking and circuit dealingwith two caveats – the existing antitrust laws was emphasized in opinion and there is two-year sunset on block booking and circuit dealing. The impact on ASCAP/BMI is slowed down. The NATO press strategy was limited to a press statement issued.
Federal Policy Update: Ms. Brenneman reported no new updates on the existing loan programs other than two exhibitors received loans from Main Street Lending Program. She noted the PPP loans are closed and more guidance is needed on forgiveness.
Ms. Baruh reported there is no consensus on new legislation due to Congress recess. NATO continues to work with lobbyists on RESTART program and pushing Main Street Lending reform. The #SaveYourCinema campaign generated over 280,000 letters to Congress and the campaign is having an impact.
August/September Film Release Status: Mr. Fithian reported there were no significant changes since last week noting some September releases may change.
The Opening & Closing of Theater Markets: State opening updates were provided on CA, MD, AZ, NC and MI. Mr. Masher noted a letter will be sent to New York Governor asking for a meeting to reopen theaters at the end of August. Mr. Fithian discussed status of New Jersey litigation.
PR and Studio Theme Now: Mr. Corcoran reported the PR efforts to studios regarding the theme to release films where you can is going well. The studios support it. He noted the Global Cinema Federation sent letter to studios describing the same theme.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 18 August 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
16
Page 16
Attachment 1
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Owners
21 August 2020
NATO Executive Board
Adam M. Aron, CEO, AMC Entertainment Inc. Robert E. Bagby, President & CEO, B & B Theatres Joseph Masher, COO, Bow Tie Cinemas J.D. Loeks, President, Celebration Cinema by Studio C Mark Zoradi, CEO, Cinemark USA, Inc. Ellis Jacob, President & CEO, Cineplex Entertainment Limited Partnership Moshe J. Greidinger, CEO, Cineworld Group PLC Chris Johnson, CEO, Classic Cinemas Bo Chambliss, President, Georgia Theatre Company Daniel E. Harkins, Owner & Executive Chairman, Harkins Theatres Eddy Duquenne, CEO, Kinepolis Group N.V. David O. Wright, Owner, Linway Plaza Cinemas Jeff Logan, Owner/President, Logan Luxury Theatres Corp./Huron Theatres Corp. Rolando B. Rodriguez, President & CEO, Marcus Theatres Corp. Joseph Paletta, III, President & CEO, Spotlight Theatres, Inc. Ronald P. Krueger, II, President & COO, VSS - Southern Theatres, LLC John G. Vincent, Jr., Owner & President, Wellfleet Cinemas
Medical Consultants
Dr. Lisa Saiman, MD, MPH, FSHEA Professor of Pediatrics, Division of Pediatric Infectious Diseases, Columbia University Medical Center
Dr. Daniel Z. Uslan, MD, MS, MBA, FIDSA, FSHEA Co-Chief Infection Prevention Officer, UCLA Health
Page 17
EXECUTIVE BOARD MINUTES
CinemaSafe
Voluntary Health & Safety Guidelines for United States Movie Theater Owners
Developed by the National Association of Theatre Owners in consultation with medical and industry experts
INTRODUCTION
The following is intended to provide guidance related to reopening of movie theaters during the COVID-19 pandemic. Given the rapidly evolving situation with COVID-19, the following recommendations are likely to be subject to change. Moreover, certain changes are expected based on the phased reopening guidance issued by the Centers for Disease Control and Prevention (CDC). THIS DOCUMENT IS NOT LEGAL ADVICE. Local and state public health guidance should be followed as relates to timing of reopening, specific protocols, and modifications to this guidance. This will depend on the state and region’s phased reopening plan. Consult with local counsel to ensure that your reopening plans are consistent with all federal, state and/or local guidance. Exhibitors committing to meet or exceed the CinemaSafe protocols may display the CinemaSafe badge on their website and physical locations.
THIS GUIDANCE IS BASED ON PROTOCOLS DEVELOPED BY THE CDC, OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA), DEPARTMENT OF LABOR, AND WORLD HEALTH ORGANIZATION (WHO). IN PARTICULAR, THIS DOCUMENT IS INTENDED TO FOLLOW THE CDC PHASE BASED GUIDELINES FOR OPENING UP AMERICA AGAIN.
PROTECTING EMPLOYEE HEALTH
PERSONAL PROTECTIVE EQUIPMENT (PPE)
1. All employees will be trained on the proper way to wear face coverings and required to wear a face covering or mask. Face coverings or masks should be provided to the employee at no cost to them. The face covering must be worn at all times when interacting with the public or other employees.
2. If washable, employees will be instructed to wash their face covering daily.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 18 Owners
EXECUTIVE BOARD MINUTES
3. Gloves should be provided and available to employees. They should be used when contact with potentially contaminated surfaces is unavoidable. Gloves do not substitute for hand hygiene and may provide a false sense of security. Hand hygiene should be performed after removing (doffing) gloves.
4. PPE should never be shared between employees.
HAND HYGIENE
1. Employees should avoid touching their eyes, nose, and mouth with unwashed hands.
2. Handwashing facilities with running water, soap, and paper towels (dispensed using a non-touch system when available) should be easily accessible.
3. Handwashing facilities should be kept clean and well-stocked.
4. Hand sanitizer with at least 60% alcohol (EPA approved ethanol or isopropyl) should be strategically placed around work areas and easily accessible, especially in ticket booths or other enclosed spaces.
5. Supplies of soap, paper towels, and hand sanitizer should be stocked and maintained to ensure they do not run out.
6. Employees who work in areas without ready access to handwashing facilities or hand sanitizer stations should be provided with pocket-sized hand sanitizer.
7. All employees should be trained on hand hygiene practices (20 seconds of duration, scrubbing all surfaces).
8. Hands should be washed or sanitized: o Upon arriving at work. o After blowing one’s nose, coughing, or sneezing. o After using the restroom. o Before eating or drinking. o After handling equipment or objects that may carry COVID-19. o After cleaning or disinfecting equipment, tools, or workspaces; and o At other appropriate times throughout the workday.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 19 Owners
EXECUTIVE BOARD MINUTES
9. Signage should be posted prominently with instructions on how to stop the spread of COVID-19, including hand hygiene and PPE instructions.
WORKPLACE POLICIES
1. All employees should be trained on the signs and symptoms of COVID-19 as well as local theatre policies and procedures. Training should be mandatory for all employees as a condition of employment.
2. Employees should be instructed to self-monitor for fever or other symptoms of COVID and not to come to work if sick or if they have been in close contact with someone with COVID-19. This should be part of training and reinforced with posted signage and frequent reminders.
3. The workplace should have a plan in place for what to do in case of an employee who develops symptoms while working as well as an employee who tests positive for COVID- 19. This must include the employee isolating themselves at home. Any other employees who had a close contact workplace exposure will need to self-quarantine. All employees should be familiar with this plan, and it should be part of training.
4. Symptom checks should be performed prior to employees entering the workplace. This should, at a minimum, include questions about cough, shortness of breath, diarrhea, loss of smell, loss of taste, and fever. This check can be done in person or remotely (such as electronic survey). If feasible, temperature checks should also be done upon arrival to work.
5. Employees should be given breaks to wash their hands. Stagger break times to ensure appropriate physical distancing can be maintained in employee restrooms and breakrooms. Employees should not congregate in break rooms.
6. Vulnerable employees, for example those over age 65 or with certain chronic health conditions, should discuss any concerns with their physician.
PROTECTING PATRON HEALTH
PPE
1. Patrons must wear a face covering at all times, except as noted by the CDC and herein. Those who are unwilling to wear a face covering will be denied entry.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 20 Owners
EXECUTIVE BOARD MINUTES
2. Signage should be prominently posted at entrances notifying patrons of this requirement, as well as signs and symptoms of COVID-19. Patrons should be notified of this requirement prior to arrival, such as on the theatre website during ticket purchasing.
3. Theatres should develop protocols to handle non-compliant patrons, and all employees who interact with patrons should receive training on this protocol.
4. Patrons should be asked to bring a face covering with them to the theatre. Individual theatres should decide whether they will provide disposable face coverings if a patron arrives without one.
5. With limited exceptions, patrons must wear a face covering at all times while in the auditorium and common areas of the theatre. Exceptions to this policy include those unable to wear face coverings such as children under 2 years of age and individuals with certain medical/physical conditions that inhibit their ability to safely wear face coverings. In addition, face coverings may be removed for the limited purpose and limited time period necessary to consume food and beverages, if approved by state or local health authorities. If so approved, no food or beverages will be consumed in any area that does not provide sufficient space to ensure physical distancing can be maintained.
HAND HYGIENE
1. Hand sanitizer with at least 60% alcohol (EPA approved ethanol or isopropyl) will be liberally placed in easily accessible public areas and patrons will be encouraged by staff and appropriately placed signage to practice hand hygiene.
2. Ensure public restrooms are clean, well-stocked, and have adequate supplies for hand washing. Touchless faucets, soap, and paper towel dispensers should be used when available.
POLICIES
1. Explore novel options to minimize the number of patrons in an auditorium, for example allowing families or those that attend together to rent out an entire auditorium.
2. Appropriate physical distancing must be maintained at all times between patrons, except members of the same household or those that attend together.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 21 Owners
EXECUTIVE BOARD MINUTES
3. With limited exceptions, patrons must wear a face covering at all times while in the auditoriums and common areas of the theatre. Exceptions to this policy include children under 2 years of age and individuals with certain medical/physical conditions that inhibit their ability to safely wear face coverings. In addition, face coverings may be removed for the limited purpose and limited time period necessary to consume food and beverages, if approved by state or local health authorities. If so approved, no food or beverages will be consumed in any area that does not provide sufficient space to ensure physical distancing can be maintained.
4. Provide ample announcements of the theatre’s policies to patrons. Options could include instructions on the theatre’s website and social media, prominent signage, floor markings, and on-screen announcements prior to screening.
GENERAL INFECTION PREVENTION ISSUES
DISINFECTION AND MAINTENANCE
1. High-touch surfaces should be wiped down periodically with EPA-registered disinfectant, following the manufacturer’s instructions (e.g., safety requirements, protective equipment, contact time). Examples of high-touch surfaces are countertops, doorknobs, faucets, etc. These surfaces should be wiped down at frequent intervals during operating hours.
2. Manufacturer’s instructions for cleaning should be followed for sensitive electronic equipment (e.g. ticket machines, projectors).
3. Appropriately trained employees will be assigned to perform high touch wipe down, with an emphasis on shared spaces and equipment. Surfaces should be disinfected on a predetermined schedule and monitored by management to ensure compliance.
4. Auditoriums should be carefully disinfected between movie screenings. Seat maps of patrons can be used after a screening to help target this activity. This enhanced cleaning will necessitate increased intervals between screenings.
5. If employees are required to wear equipment such as radios, headsets, or earpieces, these should be designated for a particular employee and not shared between multiple employees. If sharing this equipment is unavoidable, protocols will be developed to ensure they are cleaned between each employee use as per manufacturer’s suggested cleaning instructions.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 22 Owners
EXECUTIVE BOARD MINUTES
6. Alternatives to paper tickets should be used whenever feasible. If paper tickets are used, the staff person collecting them should wear appropriate personal protective equipment (face covering) and disposable gloves. Hand hygiene should be performed after doffing gloves.
7. If items are handed out to patrons, such as 3D glasses, these should either be single use or protocols established to ensure disinfection between uses. Assisted audio devices should be thoroughly disinfected between uses according to manufacturer’s suggested cleaning instructions.
8. Minimize personal items left in commons areas such as employee breakrooms.
9. Theatres that have been closed should be thoroughly disinfected prior to reopening to the public. If a theatre has had a prolonged shutdown, hot and cold-water fixtures should be flushed per CDC guidelines to ensure water systems are safe to use.
FOOD AND BEVERAGES
1. With limited exceptions, patrons must wear a face covering at all times while in the auditoriums and common areas of the theatre. Exceptions to this policy include children under 2 years of age and individuals with certain medical/physical conditions that inhibit their ability to safely wear face coverings. In addition, face coverings may be removed for the limited purpose and limited time period necessary to consume food and beverages, if approved by state or local health authorities. If so approved, no food or beverages will be consumed in any area that does not provide sufficient space to ensure physical distancing can be maintained. Consider identifying additional designated areas for eating/drinking outside of auditoriums that have adequate space to permit appropriate physical distance.
2. Those responsible for preparing and distributing food must clean their hands with soap and water or hand sanitizer prior to beginning food preparation or distribution and regularly thereafter.
3. All local public health regulations regarding preparing and distributing food must be followed, including use of appropriate food service PPE (hairnets, gloves), safe food temperatures, etc.
4. Minimize the number of people involved in preparing and distributing food.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 23 Owners
EXECUTIVE BOARD MINUTES
5. Communal food, condiments, condiment caddies, straws, napkins etc., that require shared serving utensils or equipment should be eliminated, offered via touchless technology or provided by appropriately trained employees. Examples include popcorn butter dispensers, saltshakers, popcorn flavoring, straws, etc.
6. Consider options for patrons to place orders ahead of time, such as mobile ordering, to minimize the amount of time they must wait in line.
7. If patrons must wait in line to place orders or receive their food, they must maintain appropriate physical distancing. Visual reminders should be prominently placed to assist.
8. Handwashing facilities and/or hand sanitizer dispensers should be readily accessible at the entrance of any designated eating area and should be used when entering and leaving the area.
9. Consider addition of plexiglass (or similar) barriers between cashiers and patrons.
10. Minimize cash transactions and encourage credit cards or contactless payments whenever possible.
PHYSICAL DISTANCING
1. Ticket lines should be configured to ensure appropriate physical distancing is maintained at all times. Options include visible markers, barriers, tape, etc.
2. Tickets sales should be available online or via phone whenever feasible to reduce the need to stand in line for tickets.
3. Lines to enter a theatre should be minimized whenever possible. If lines are unavoidable, appropriate physical distancing must be maintained.
4. Adequate numbers of employees should be available to direct patron traffic and enforce physical distancing in lines.
5. Ensure that, at a minimum, the amount of physical distance defined in all applicable federal, state, and local guidance is maintained in all directions inside auditoriums, except for members of a household or those that attend together. Configure ticket sales systems to facilitate appropriate physical distancing. Occupancy will need to be individualized based on state and local public health guidance and the phased reopening plan.
CinemaSafe Voluntary Health & Safety Guidelines for United States Movie Theater Page 24 Owners
6. Limit and stagger screening times to reduce overcrowding between screenings, particularly in common areas, restrooms, and concession areas.
7. To the extent possible, reconfigure restrooms, for example by blocking stalls or urinals, to ensure appropriate physical distancing can be maintained at all times. As patrons may need to line up to enter restrooms, use visual indicators such as tape to identify appropriate physical distancing.
8. Use of employee breakrooms should be limited. As face coverings cannot be worn during eating/drinking, limit the number of employees in a breakroom at any one time to ensure distancing can be maintained. Clean countertops and tables between uses.
9. If there is an elevator, capacity should be limited to four (4) individuals at a time, families or others that attend together only.
10. Unless permitted and protocols in place consistent with local and state public health guidance consistent with each state and region’s phased reopening plan, close any on- site lounges, play areas, or other areas where people may congregate.
HVAC
1. All HVAC systems should be in working order with increased ventilation whenever possible.
2. Upgrade the building’s air filters consistent with CDC, state and local health guidance to the extent possible.
3. Whenever possible, increase the quantity of outside air.
4. Consider use of portable high-efficiency air cleaners.
5. Considering hiring an HVAC expert, such as an industrial hygienist, to assess and optimize airflow and air exchange.
Page 25
EXECUTIVE BOARD MINUTES
Tuesday, 4 August 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Vice Chairman Rolando Rodriguez Chairman Ellis Jacob Treasurer Joe Masher J.D. Loeks Secretary Jeff Logan Other Participants: Adam Aron Robert Bagby Mike Bowers Bo Chambliss Renana Teperberg Eddy Duquenne Steve Zuehlke Mooky Greidinger Dan Harkins Staff Participants:
Chris Johnson Esther Baruh Ron Krueger Jackie Brenneman, General Counsel Joe Paletta Kathy Conroy John Vincent Patrick Corcoran David Wright John Fithian Mark Zoradi Mitch Neuhauser
Matt Pollock
Vice Chairman Rodriguez called the meeting to order for an update regarding reopening of cinemas, August/September film releases, PR Studio Theme, epidemiologist update and federal policy update for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Epidemiologist Uniform Safety Operational Protocols: Ms. Conroy reported Dr. Uslan approved the language changes suggested from the Reopening Operations Working Group. The Board discussed the document and agreed to submit any minor changes to Ms. Conroy within 24 hours for inclusion into the final document. The next step will be reaching out to US exhibitors to voluntarily support the safety protocols. Protocols will be used for lobbying and media relation efforts. It was noted the protocols are essential to gather consumer confidence as an industry.
It was moved and seconded to approve the Proposed Health & Safety Guidelines as NATO’S Uniform Safety Operational Protocols endorsed by Dr. Daniel Uslan and final document will include minor changes submitted within 24 hours. A vote was taken and the Uniform Safety Operational Protocols were approved.
11
Page 26
EXECUTIVE BOARD MINUTES
Federal Policy Update: Ms. Brenneman reported no new updates on the existing loan programs other than two exhibitors received loans from Main Street Lending Program.
Ms. Baruh provided status on the HEALS Act noting NATO advocates creating a new loan program with RESTART Act, expand PPP and Recovery Sector Loans, enact temporary safe harbor, support tax credits, enact a mortgage & rent tax benefit and reforming Main Street Lending Programs. She reported #SaveYourCinema campaign generated over 250,000 letters to Congress and the campaign is having an impact.
Ms. Brenneman reported that she participated on a DOJ panel workshop on music license consent decrees. She noted the BMI agreed with NATO’s exemption and is protected by case law. She felt the DOJ will probably not change the status of music licensing in theaters.
August/September Film Release Status: Mr. Fithian reported there were no significant changes since last week.
The Opening & Closing of Theater Markets: Mr. Masher noted the New York Governor has not approved guidelines for theaters to reopen. Mr. Fithian reported South Carolina reopened. Some states are moving backwards in capacity limits as COVID numbers rise. NATO has filed a reply brief in the New Jersey litigation and requested an expedited hearing. If successful, there will be a precedent that theaters cannot be differentiated from churches in reopening phases.
PR and Studio Theme Now: Mr. Corcoran reported theaters have received negative press for opening and reopening. NATO is lobbying with studios to release movies wherever theaters are open. Mr. Fithian conducted media interviews discussing same theme. The GCF leadership will circulate letter urging studios to adopt same release pattern to open wherever is open and safe, to open key films on a regional basis and consider changing release dates that were moved to 2021 back to 2020.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 11 August 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
12
Page 27
EXECUTIVE BOARD MINUTES
Tuesday, 28 July 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants: Secretary Jeff Logan Mike Bowers Robert Bagby Renana Teperberg Bo Chambliss Steve Zuehlke Eddy Duquenne Mooky Greidinger Staff Participants: Dan Harkins Esther Baruh Chris Johnson Kathy Conroy J.D. Loeks Patrick Corcoran Ron Krueger John Fithian Joe Paletta Mitch Neuhauser John Vincent Matt Pollock David Wright
Mark Zoradi
Chairman Jacob called the meeting to order for an update regarding the New Jersey law suit, reopening of cinemas, August film releases, PR Studio Theme, epidemiologist update and federal policy update for the industry.
Mr. Fithian provided a brief overview of the antitrust statement.
August/September Film Release Status: Mr. Fithian provided an update on the changing August/September film releases noting Warner Bros. and Disney are keeping releases in 2020 for now. Universal, Sony and Paramount have moved their big releases to 2021.
The Opening & Closing of Theater Markets: Mr. Fithian reported New Jersey litigation is moving forward. NATO filed a preliminary injunction and requested expedited argument. If New Jersey lawsuit is successful, NATO will consider litigation in Maryland and Michigan. He provided opening and closing updates on other states and countries. Mr. Masher reported there is no change on New York’s reopening status. Chairman Ellis, Mr. Duquenne and Mr. Greidinger provided updated reports for their territories.
13
Page 28
EXECUTIVE BOARD MINUTES
PR and Studio Theme Now: Mr. Corcoran stated the shift in the Warner Bros. release pattern for the Tenet movie to open in the theaters wherever open instead of waiting for all regions to open simultaneously will be good for exhibition. NATO will also make a marketing push on the NATO unified health protocols once approved. Unified protocols will be essential for changing the attitude and confidence of the consumer.
Federal Policy Update: Ms. Baruh reported NATO advocates for exhibition for the HEALS Act and for the RESTART loans to be included. There is a growing effort to push the Treasury and Feds to reform Main Street Lending programs and push for more liquidity. The #SaveYourCinema campaign has generated approximately 220,000 letters to Congress raising awareness of movie theaters relief needed.
Epidemiologist Uniform Safety Operational Protocols: Ms. Conroy reported the Reopening Operations Working Group reviewed Dr. Uslan’s draft of the Proposed Health & Safety Guidelines. The Working Group requested preferable language in some areas for Dr. Uslan to consider for final document. The next draft from Dr. Uslan will be shared with Executive Board for approval.
Chairman Ellis noted there was no new business and the next conference call will be held Tuesday, 4 August 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
14
Page 29
EXECUTIVE BOARD MINUTES
Tuesday, 21 July 2020 DRAFT 1:00 pm - 2:00 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Eddy Duquenne Treasurer Joe Masher Secretary Jeff Logan Other Participants:
Robert Bagby Steve Zuehlke Mike Bowers (for Dan Harkins) Bo Chambliss Staff Participants: Mooky Greidinger Esther Baruh Chris Johnson Jackie Brenneman, General Counsel J.D. Loeks Kathy Conroy Ron Krueger Patrick Corcoran Joe Paletta John Fithian John Vincent Mitch Neuhauser David Wright Matt Pollock Mark Zoradi
Chairman Jacob called the meeting to order for an update regarding the New Jersey law suit, reopening of cinemas, August film releases, public messaging task force, operational reopening working group and federal policy update for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
August Film Release Status: Mr. Fithian provided an update on the changing August film release status. Warner Bros. moved the August Tenet release to an undated release. Disney Mulan August release and other studio August releases may move as well. Studios are tracking state re-openings where COVID numbers are rising.
The Opening & Closing of Theater Markets: Ms. Brenneman reported the State of New Jersey is not willing to settle on NATO vs Murphy lawsuit. NATO will proceed with litigation. The legal team feel optimistic their argument will provide a good outcome that continued closure of movie theaters in New Jersey is unconstitutional. A positive result should persuade New York to reopen movie theaters and also provide transportable language for similar complaints in other states.
15
Page 30
EXECUTIVE BOARD MINUTES
Mr. Masher noted New York is reviewing guidelines for movie theaters and expects an announcement regarding re-openings this week. Mr. Fithian reported California may be looking at another shutdown for Los Angeles city. There are 42 states where movie theaters are or will be open by August. Six states not open - NJ, NY, MD, NC, NM & AZ.
Federal Policy Update: Ms. Brenneman reported NATO was invited by DOJ to participate on a panel regarding music licensing about movie theaters not requiring a blanket license for movies. Main Street Lending programs continue to have problems for exhibitors to get a loan. Ms. Baruh reported the first draft of new legislation will not include the RESTART loans, but may show aspects of it later. NATO is pressing Treasury to do more with CARES Act. NATO will support a Pandemic Insurance extension. The #SaveYourCinema grass roots campaign was launched with more than 100,000 letters sent to Congress.
The Challenge of PVOD: Mr. Zoradi recommended NATO conduct research on consumer attitudes and the true size of PVOD to inform NATO members. Mr. Corcoran will review and recommend a suitable research firm that studios also respect.
It was moved and seconded to approve $250,000 to be drawn from the NATO reserves to conduct market research on PVOD as outlined above. A vote was taken and the motion was approved.
Epidemiologist Uniform Safety Operational Protocols: Ms. Conroy reported Dr. Uslan sent a draft of theater protocols for review. Once a draft is approved by the Reopening Operations Working Group and Dr. Uslan, The draft was returned noting a few points regarding language changes. If Dr. Uslan approves, the Reopening Operations Working Group will send to appropriate committees and Board for review before distributing to members. The supported set of protocols will be used for lobbying efforts.
Chairman Ellis exited the conference call and Vice Chairman Rodriguez took the gavel.
Countering the “Unsafe” Media and Other PR issues: Mr. Corcoran reported final voluntary theater protocols will be sent to members to agree and abide by if they so choose. Member companies that agree will be posted on NATO website reflecting a united commitment to behavior on safety and health for its employees and patrons. Protocol guides will be posted on social media and clingy graphicsgraphic clings created for theaters.
It was noted protocols may include options for patrons to prepay. Mr. Logan observed smaller exhibitors are impacted by converting payments systems without renegotiations.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 28 July at 1:30 pm Eastern.
16
Page 31
EXECUTIVE BOARD MINUTES
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
17
Page 32
EXECUTIVE BOARD MINUTES
Tuesday, 14 July 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Chris Johnson Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants: Secretary Jeff Logan Mike Bowers
Renana Teperberg Adam Aron Steve Zuehlke Robert Bagby
Bo Chambliss Staff Participants: Eddy Duquenne Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel J.D. Loeks Kathy Conroy Ron Krueger Patrick Corcoran Joe Paletta John Fithian John Vincent Mitch Neuhauser David Wright Matt Pollock Mark Zoradi
Chairman Jacob called the meeting to order for an update regarding the New Jersey law suit filed, reopening of cinemas, August film releases, public messaging task force, operational reopening working group and federal policy update for the industry. Mr. Ellis welcomed Eddy Duquenne from Kinepolis as the newest Executive Board member. Mr. Duquenne replaces Jose Leonardo Marti from Cinemex Cinemas.
Ms. Brenneman provided a brief overview of the antitrust statement.
Moving Dates for NATO Summit and CinemaCon: Mr. Neuhauser discussed a proposed revision to the upcoming NATO & CinemaCon meeting schedule for 2020- 2021. The Board discussed possible downsides in announcing date changes at this time. The consensus is to revisit the discussion in four weeks after observing the status of the U.S. theatre re-openings.
Epidemiologist Uniform Voluntary Safety Operational Protocols: Ms. Conroy provided an update that the Reopening Operating Working Group is waiting for Dr. Daniel Uslan’s draft on voluntary baseline safety protocols to review. The voluntary protocols will be in compliance with based in part on guidance from the CDC and other key bodies. Additional medical experts from various geographic areas will weigh in to
18
Page 33
EXECUTIVE BOARD MINUTES
support the protocols. NATO will reach out to members to voluntarily agree to baseline protocols. This These will be used in part for lobbying and media relation efforts.
Countering the “Unsafe” Media and other PR Issues: Mr. Corcoran reported the approved baseline protocols will be sent to the NATO membership for public their support. Social media graphics and window clings will be created for theaters to display what they agree to for baseline voluntary protocols. Dr. Uslan will also be available for media interviews to discuss the protocols.
New Jersey Law Suit Filed: Ms. Brenneman reported a brief was also filed to the NATO vs Murphy complaint arguing that the regarding continued closure of movie theaters in New Jersey is unconstitutional. A hearing is expected shortly. She noted this case will could establish a legal precedent that will be transportable for similar complaints in other U.S. areas.
What Does California’s Recent Order Mean?: Mr. Fithian noted the recent COVID-19 spikes in California may result backwards to in California shutting down again. Currently indoor businesses are closed again. There is not a legal argument at this time to initiate a complaint similar to New Jersey complaint.
August Film Release Status: Mr. Fithian provided an update on the August film slate noting Warner Bros. and Disney are remaining steady for now. The current message to studios is not to wait for full theater re-openings for U.S. and other countries. NATO recommends releasing movies to theaters as they open.
Reopening of Cinemas: Mr. Masher reported he is optimistic that New York will re- open theaters this month. New York is reviewing guidelines for theaters and have aligned theater re-openings with shopping malls. Mr. Fithian noted there are other states that may not be open for August releases.
Federal Policy Update: Ms. Brenneman noted the Main Street Lending program is fully operational noting the lenders are public. Based on the loan terms, it will be difficult for exhibitors to participate in the program. The PPP loan extended their application to 8 August.
Ms. Baruh reported NATO continues to support the RESTART loan program for mid- size businesses. Concurrently, NATO has launched a grassroots campaign for the public addressing the message that communities need movie theaters. Exhibitors will engage their customers through email and loyalty programs regarding “#Save Your Cinema” petition.
Next Conference Call: The next conference call will be held Tuesday, 21 July 2020 at 1:00pm Eastern. It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
19
Page 34
EXECUTIVE BOARD MINUTES
Tuesday, 7 July 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Vice Chairman Rolando Rodriguez Chairman Ellis Jacob Treasurer Joe Masher Adam Aron Secretary Jeff Logan Other Participants: Robert Bagby Mike Bowers (for Dan Harkins) Steve Zuehlke Bo Chambliss Javier Ezquerra (for Jose Leonardo Marti) Staff Participants: Mooky Greidinger J.D. Loeks Esther Baruh Chris Johnson Jackie Brenneman, General Counsel Ron Krueger Kathy Conroy Joe Paletta Patrick Corcoran John Vincent John Fithian David Wright Matt Pollock Mark Zoradi
Vice Chairman Rodriguez called the meeting to order for an update regarding the New Jersey law suit filed, reopening of cinemas, August film releases, public messaging task force, operational reopening working group and federal policy update for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Approval of Advisory Board Eligible Members: Ms. Conroy asked for approval of a list of eligible members for the NATO Advisory Board 2020-2021. She noted that qualified Advisory Board members can run in the upcoming Executive Board election for the mid-size and independent category available seats.
It was moved and seconded to approve Attachment 1 as NATO’s Advisory Board Members for 2020-2021. A vote was taken and the motion was approved.
New Jersey Law Suit Filed: Ms. Brenneman reported the NATO vs Murphy complaint was filed on 6 July 2020 in New Jersey arguing that the continued closure of movie theaters in New Jersey is unconstitutional. NATO NJ’s and NATO’s members should
20
Page 35
EXECUTIVE BOARD MINUTES
be treated in the same manner as comparable entities under Defendants’ orders, and permitted to reopen as other comparable places of public assembly have been allowed.
Reopening of Cinemas: Mr. Fithian reported 44 states look good for re-openings, but may decrease due to rising COVID numbers. Five states have not reported reopening dates – NJ, NY, NC, NM & MD. Europe is open and operating. China signaled a possible reopening on 30 July (except Beijing). India and Latin America have reopening problems.
August Film Release Status: Mr. Fithian provided an update on the August film slate noting no change from last week. NY’s reopening is important to Warner Bros. regarding Tenet release. Disney is more encouraged by China’s reopening prospect and CA reopening is less important regarding Mulan release.
Public Messaging Task Force: Mr. Corcoran reported NATO hired Dr. Daniel Uslan, MD, MBA, and Co-Chief Infection Prevention Officer from UCLA to review, develop and endorse NATO’s voluntary safety protocols. NATO in conjunction with Dr. Uslan will recommend a list of baseline safety protocols for NATO members to voluntarily adapt as minimum protocols, along with any applicable federal, state and/or local requirements.. The purpose is to demonstrate prioritization of guest and employee safe and to support lobbying efforts and utilize in media relations to boost cinema confidence to return to the movies. The Executive Board agrees that buy in from NATO members adapting baseline voluntary safety protocols is a good message to pursue for lobbying and public relation efforts.
Reopening Operations Working Group: Ms. Conroy reported the working group will also hire other noted Epidemiologist to support Dr. Uslan’s deliverable for uniform safety operational protocols for movie theaters. The draft document will be shared with the Executive Board for feedback.
Federal Policy Update: Ms. Brenneman noted the Main Street Lending program is fully operational although there are no attractive loans for exhibitors. The PPP loan extended their application to 8 August.
Ms. Baruh discussed the launch of a grassroots engagement program to 1) support the RESTART loan program for midsize businesses, and 2) advocate the federal/treasury department to do more for shuttered businesses. The aim is for the public to weigh in on the message that communities need movie theaters. Exhibitors will engage their customers through email and loyalty programs. Ms. Baruh discussed using a portion of the Industry Promotion funds toward the grassroots engagement program. The Executive Board is in consensus with the grassroots outreach plan.
Vice Chairman Rodriguez noted there was no new business and the next conference call will be held Tuesday, 14 July 2020 at 1:30 pm Eastern.
21
Page 36
EXECUTIVE BOARD MINUTES
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
22
Page 37
ATTACHMENT 1 NATO ADVISORY BOARD 2020-2021
Full Name Title Company Eduardo Acuña Senior VP, Americas Cinépolis Mark T. Adam CEO Zyacorp Entertainment, LLC Zachary Adam Marketing and Events Manager Zyacorp Entertainment, LLC Russell Allen President Allen Theatres, Inc. Tom Arnold Vice President/Managing Director Fabian 8 Cinema (Community Theatres, LLC) Adam M. Aron CEO AMC Entertainment Inc. Javier Ashby COO Boffo Cinemas LLC (dba The Lot) Guy Austin Vice President of Operations CMX Cinemas Brock Bagby Executive Vice President B & B Theatres Robert E. Bagby President & CEO B & B Theatres Tori A. Baker President & CEO Salt Lake Film Society Colleen R. Barstow Vice President & CFO Main Street Theatres, Inc. Director of Analytics & Business Michael Barstow Development Main Street Theatres, Inc. William J. Barstow CEO Main Street Theatres, Inc. Jamie A. Benson Executive Vice President Cinergy Entertainment Group, Inc. Jeffrey P. Benson Founder & CEO Cinergy Entertainment Group, Inc. Byron Berkley Owner & President Foothills Entertainment Co. Joost Bert Chairman Kinepolis Group N.V. Martin Betz COO Goodrich Quality Theaters, Inc. Chelsea M. Black Vice President & GM Paradise Cinemas, Inc. Michael L. Bowers President & CEO Harkins Theatres Matt Breslin Associate NATO of Michigan Robert J. Bruchman VP, Government Affairs, Legal AMC Entertainment Inc. Orpheum Theatre, Inc. (dba Centennial Theater & Bill Campbell President/Treasurer Montana Theatre) Robert Carrady President, CEO - Puerto Rico, V.I. Caribbean Cinemas Bo Chambliss President Georgia Theatre Company Scott R. Cohen President & CEO R/C Theatres Management Corp. Stephen Colanero EVP & Chief Marketing Officer AMC Entertainment Inc. David Corwin President Metropolitan Theatres Corp. John A. Curry Senior Vice President of Food Service Regal Cinemas Richard Daughtridge President & CEO Warehouse Cinemas Senior VP of Operations and Dale Davison Development Metropolitan Theatres Corp. Gina Troutman DiSanto President Sky Vu Drive-In (TFLP) Eddy Duquenne CEO Kinepolis Group N.V. Regional Director Rocky Mountain NATO (CO, ID, MT, NM, UT, WY)
Page 38
EXECUTIVE BOARD MINUTES
Diane Eve Matthew Eyre COO Regal Cinemas Munir Falah President & CEO Cine Colombia S.A. Valmir Fernandes President Cinemark INTL, LLC Donald Fox President & CEO Fox Theatres EVP & Chief Content & Programming Elizabeth Frank Officer AMC Entertainment Inc. Julie Gabriel Vice President Fox Theatres Bruce Gardiner Executive Director Pacific NW Theatre Owners Jon Goldstein Owner & President Emagine Entertainment, Inc. Mark A. Gramz Executive Vice President Marcus Theatres Corp. Moshe J. Greidinger CEO Cineworld Group PLC Dwight Gunderson Dir. of Film Buying Cinema Entertainment Corp. Raymond K. Hallett Managing Member Hallett Cinemas LLC Todd R. Halstead Executive Director Theatre Owners of Mid America (AR, KS, LA, MO, OK, TX) Daniel E. Harkins Owner & Executive Chairman Harkins Theatres Don M. Harton SVP, Construction and Design Cinemark USA, Inc. Fred Heise Owner Melody Drive-In Theatre Keith Hester Director of IT & Facility Hometown Cinemas LLC Randall L. Hester President & CEO Hometown Cinemas LLC Stephanie Hill Owner Premiere Theaters, LLC Judith P. Huard Vice President & CFO Zyacorp Entertainment, LLC Ellis Jacob President & CEO Cineplex Entertainment Limited Partnership Senior Director of Content, Sponsorship, Jenny Jacobi and Events Alamo Drafthouse Cinemas, LLC Chris Johnson CEO Classic Cinemas (Tivoli Enterprises, Inc.) Belinda Judson Executive Director Heartland NATO (KY, OH, TN, WV) Executive Vice President, Filmed Michael Kennedy Entertainment Cineplex Entertainment Limited Partnership Dean L. Kerasotes Co-Chairman Kerasotes Showplace Theatres, LLC Deepak Keshani Chief Manager Bartlett Cinema LLC (dba Hollywood 20 Cinema) Jawed Khan Vice President of Operations Regal Cinemas Dan Klusmann Owner Village Centre Cinemas LLC Colonial Entertainment Group LLC (dba Family Drive-In James R. Kopp President Theatre) Ronald P. Krueger, II President & COO VSS - Southern Theatres, LLC Eric Kuiper Chief Creative Officer Celebration Cinema By Studio C Azriel LaMarca Vice President Sierra Cinemas, Inc. (dba Sierra Theaters) Michael LaMarca Vice President Sierra Cinemas, Inc. (dba Sierra Theaters) Mark Latimer Vice President, Sight and Sound AMC Entertainment Inc. Brian Lemens Director of Technology Marcus Theatres Corp. J.D. Loeks President Celebration Cinema By Studio C
24
Page 39
EXECUTIVE BOARD MINUTES
John D. Loeks CEO Celebration Cinema By Studio C Jeff Logan Owner/President Logan Luxury Theatres Corp./Huron Theatres Corp. Scott E. Lotter President & CEO Paradise Cinemas, Inc. Tracy Lotter Senior Vice President Paradise Cinemas, Inc. Chief Information Officer & Vice Kim Lueck President of Technology Marcus Theatres Corp.
Larry Mann Owner Park Plaza Cinema Lucie Mann Owner Park Plaza Cinema José Leonardo Martí CEO CMX Cinemas Joseph Masher COO Bow Tie Cinemas John D. McDonald Executive VP, AMC USA/CAN Operations AMC Entertainment Inc. Robert W. McHone President NATO of North & South Carolina Christian Meoli President, CEO |Owner Arena Cinelounge Vice President of Information Phil Meredith Technology Regal Cinemas Robin Miller Vice President of Operations Village Theatres, Inc. Gregory Mills COO Warehouse Cinemas Director of Design, Construction & Joe Miraglia Facilities Pacific Theatres/ArcLight Cinemas Elizabeth Miska Director of Marketing Showbiz Cinemas Kevin Mitchell President & CEO Showbiz Cinemas Mike Moraskie Head Film Buyer Caribbean Cinemas Milt Moritz President & CEO NATO of California/Nevada Shane Morrison Owner & President Morrison Theaters/Celebrity Theatres Doug Murdoch Executive Director Mid-Atlantic NATO (DC, MD, VA) & CATO Arthur D. Murtha SVP, Operations Cinemark USA, Inc. Richard Novak Owner & President Royal Cinemas Luis F. Olloqui CEO, United States Cinépolis USA Mark O'Meara President University Mall Theatres, Inc. & Cinema Arts Theatre Dawn Paletta Owner Spotlight Theatres, Inc. Joseph Paletta, III President & CEO Spotlight Theatres, Inc. Robert Piechota Owner NATO of New Jersey Cynthia Pierce Senior VP Facilities, Sight & Sound AMC Entertainment Inc. International Liaison & Business Gregory Quinn Development Caribbean Cinemas Michael J. Rembusch President Canary Creek Cinemas LLC (Syndicate Theatres) Miguel A. Rivera Vice President Film Programming Cinépolis Rolando B. Rodriguez President & CEO Marcus Theatres Corp. George Rouman Vice President Rouman Amusement Company, Inc. Damon Rubio President D'Place Entertainment A. Bruce Sanborn President Sanborn Theatres, Inc. (dba The Movie Experience) Stephen R. Schoaps President Strothers Twin Cinema (Seminole Theatres LLC) 25
Page 40
EXECUTIVE BOARD MINUTES
Glenn Solomon President & CEO Coyote Theaters, Inc. Michael Spaeth Owner Spotlight Theatres, Inc. Ann Stadler Vice President & CMO Marcus Theatres Corp. Sabrina Starr Director of Marketing, Film and Events CinemaWorld of FL, Inc. William J. Stembler Chairman Georgia Theatre Company Robert Sunshine Executive Director NATO of New York State Bruce Taffet Vice President Sky Vu Drive-In (TFLP) Renana Teperberg Chief Commerical Officer Cineworld Group PLC Tami Treutlein Owner & COO Spotlight Theater Steven Tubb Operations Manager Boffo Cinemas LLC (dba The Lot) Ilio A. Ulivi Managing Partner SilverSpot Cinema Paul Valerio Vice President, Operations National Amusements, Inc. Chris Van Snellenberg President Gallery Cinemas Inc. Salvatore Vermiglio Loss Prevention Manager Regal Cinemas Daniel Vieira President Northeast Cinemas LLC (dba West Nursery Cinemas) John G. Vincent, Jr. Owner & President Wellfleet Cinemas (Spring Brook Center Inc.) D. Edward Vogel Owner & President Bengies Drive-In Theatre (Blue Ink Ltd.) Vice President of Facilities & Projection Jack Wagner, Jr. Technology VSS - Southern Theatres, LLC Bill Walker CEO Landmark Cinemas of Canada Inc. Rob Warnes COO Showbiz Cinemas Racheal Wilson COO Harkins Theatres A.J. Witherspoon Vice President of Operations Galaxy Theatres, LLC David O. Wright Owner Linway Plaza Cinemas (MCIC, Inc.) Linda Wright Owner Linway Plaza Cinemas (MCIC, Inc.) Phil Zacheretti President & CEO Phoenix Theatres Entertainment, LLC Mark Zoradi CEO Cinemark USA, Inc. Steven D. Zuehlke EVP, Global Theatre Operations Cinemark USA, Inc.
26
Page 41
EXECUTIVE BOARD MINUTES
Tuesday, 30 June 2020 1:30 pm - 2:30 pm Eastern DRAFT Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Mike Bowers Vice Chairman Rolando Rodriguez Steve Zuehlke Treasurer Joe Masher Secretary Jeff Logan Staff Participants:
Adam Aron Esther Baruh Robert Bagby Jackie Brenneman, General Counsel Bo Chambliss Kathy Conroy Javier Ezquerra (for Jose Leonardo Marti) Patrick Corcoran Mooky Greidinger John Fithian J.D. Loeks Matt Pollock Dan Harkins Chris Johnson Ron Krueger Joe Paletta John Vincent David Wright Mark Zoradi
Chairman Jacob called the meeting to order for an update on reopening of cinemas- government actions, revised August movie releases, public messaging task force, and federal policy update for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
New Releases in July/August: Mr. Fithian reviewed the current release schedule observing all releases moved from July to August. The studios have signaled that any future date adjustments may result in a later release schedule.
Reopening of Cinemas – Governmental Action: Mr. Fithian reported that theaters in 43 states look good for re-openings, but may decrease due to rising COVID numbers. He discussed specific cities and states without theater opening dates.
Mr. Fithian discussed the possible reopening litigation threats with Maryland, New Mexico and New Jersey. He suggested holding off on lawsuits with Maryland and New Mexico for now. Treasurer Masher recommends moving forward with litigation in New
27
Page 42
EXECUTIVE BOARD MINUTES
Jersey. Discussions with New Jersey were not favorable arguing that movie theaters should be in same category as religious institutions. It was also discussed that both New Jersey and New York feel theater air conditioners can be an environmental health concern.
It was move and seconded to move forward with litigation with the State of New Jersey regarding the reopening of movie theaters. NATO will communicate the key distinction is the disparate treatment of movie theaters unable to reopen while similar businesses as categorized by the government and public heath sources are allowed to resume operations. A vote was taken and this motion was approved.
Federal Policy Update: Ms. Brenneman provided a CARES Act update and noted the last day apply for the PPP loan. She will prepare a detailed email and webinar on forgiveness for the members. The Main Street Lending Facility and loans have not opened yet.
Ms. Baruh reported NATO continues to support the RESTART loan program, the liability shield language against certain lawsuits, employee tax credits and new tax credit for PPE loans. Next week, she will start a member grassroots campaign push to write to Congress about movie theater relief.
Public Messaging Task Force: The process with the industry marketing campaign with studios has been slow due to the uncertainty of theater re-openings. The Task Force will prepare to move forward for the NATO members if the studios are not more engaged soon.
Chairman Jacob noted there was no new business and the next conference call will be held Tuesday, 7 July 2020 at 1:30 pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
28
Page 43
EXECUTIVE BOARD MINUTES
Tuesday, 23 June 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob J.D. Loeks Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants:
Secretary Jeff Logan Mike Bowers Renana Teperberg Adam Aron Steve Zuehlke Robert Bagby Bo Chambliss Staff Participants: Javier Ezquerra (for Jose Leonardo Marti) Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy Ron Krueger Patrick Corcoran Joe Paletta John Fithian John Vincent Mitch Neuhauser David Wright Matt Pollock Mark Zoradi
Chairman Jacob called the meeting to order for an update on reopening of cinemas- government actions, new July/August movie releases, state and local lobbying strike fund, public messaging task force, and federal policy for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
New Releases in July/August: Mr. Fithian discussed the revised July/August release schedule noting Paramount moved the Spongebob movie release to PVOD in early 2021. He is optimistic Mulan and Tenet movies will maintain their July 24 and 31 release dates.
Reopening of Cinemas – Governmental Action: Mr. Fithian reported theaters in 41 states and 86.8% of the global market of theaters should reopen by mid-July. There are ten domestic areas with shuttered theaters while religious institutions and other businesses are open. COVID cases continue to decline in Maryland, New Mexico and New Jersey.
It was moved and seconded to notify Maryland, New Mexico and New Jersey states authorizing movie theaters to threaten legal action to enforce and protect their rights. NATO will communicate the key distinction is the disparate treatment of movie theaters
29
Page 44
EXECUTIVE BOARD MINUTES
unable to reopen while similar businesses as categorized by the government and public heath sources are allowed to resume operations. A vote was taken and the motion was approved to notify these states of potential lawsuits
Federal Policy Update: Ms. Brenneman reported there continues to be no movement with the Main Street Lending Facility and the loans have not opened. Ms. Baruh discussed the next phase legislation will not happen until after 4 July recess. NATO continues to support the RESTART loan program, the liability shield language against certain lawsuits, employee tax credits and new tax credit for PPE loans. Congress is waiting to see what the data shows on re-openings before discussing supplementing the unemployment insurance.
Public Messaging Task Force: Mr. Corcoran updated there is no change with the with the studio theatrical teams regarding the industry marketing campaign. The Task Force will move forward with an ongoing broad message campaigning Only In Theaters. The launch time will be when theaters reopen with product and will l extend into next year.
NATO, NATOPAC and CinemaCon 2021 Budgets (Attachment 1): Ms. Conroy reported the 2021 budgets were distributed on 15 June 2020 via email to the Executive Board for approval and vote. A NATO Executive Board electronic vote was recorded confirming the NATO, NATOPAC and CinemaCon 2021 budgets were approved with 14 approval votes and 3 abstained votes.
Next Conference Call: The next conference call will be held Tuesday, 30 June 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
30
Page 45 NATIONAL ASSOCIATION OF THEATRE OWNERS Final Budget FY 2021 FY2019 FY2020 FY2020 FY2020 FY2021 FY2021 Budget Actual Approved Actual YTD Projected Proposed Final Variance 06/30/19 Annual Budget 01/31/20 06/30/20 Budget (Feb) Budget (Feb) FY2021 vs 2020 Operating Revenue Dues Membership Dues 1,774,582.54 1,750,000.00 1,017,212.94 1,757,000.00 - (1,750,000.00) Subtotal Membership Dues 1,774,582.54 1,750,000.00 1,017,212.94 1,757,000.00 - (1,750,000.00) Draw from Reserves One Time Draw from Reserves - - - - 1,800,000.00 1,800,000.00 1, 800,000.00 Subtotal Draw from Reserves - - - - 1,800,000.00 1,800,000.00 1, 800,000.00 Online Resources Encyclopedia Sales 2,550.00 1,000.00 1,500.00 1,500.00 1,500.00 1,500.00 500.00 Training Materials Sales 7,760.00 20,000.00 6,080.00 8,000.00 8,000.00 8,000.00 (12,000.00) Subtotal Online Resources 10,310.00 21,000.00 7,580.00 9,500.00 9,500.00 9,500.00 (11,500.00) Convention Proceeds CinemaCon Proceeds 1,900,000.00 2,075,000.00 1,037,500.00 2,075,000.00 2,160,000.00 574,420.00 (1,500,580.00) Subtotal Convention Proceeds 1,900,000.00 2,075,000.00 1,037,500.00 2,075,000.00 2,160,000.00 574, 420.00 (1,500,580.00) Event Revenue Annual Meeting Revenue 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 - Regional Summit 1,000.00 ------Subtotal Event Revenue 16,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 - Royalties Insurance Royalties 4,393.67 5,000.00 4,684.31 7,500.00 7,500.00 7,500.00 2,500.00 Credit Card Royalties 51,367.79 ------Subtotal Royalties 55,761.46 5,000.00 4,684.31 7,500.00 7,500.00 7,500.00 2,500.00
Total Operating Revenue 3,756,654.00 3,866,000.00 2, 081,977.25 3,864,000.00 3,992,000.00 2, 406,420.00 ( 1,459,580.00)
Page 46 NATIONAL ASSOCIATION OF THEATRE OWNERS Final Budget FY 2021 FY2019 FY2020 FY2020 FY2020 FY2021 FY2021 Budget Actual Approved Actual YTD Projected Proposed Final Variance 06/30/19 Annual Budget 01/31/20 06/30/20 Budget (Feb) Budget (Feb) FY2021 vs 2020 Operating Expenses Accounting Accounting 14,066.25 16,000.00 7,374.50 14,000.00 14,000.00 14,000.00 (2,000.00) Audit 16,107.50 16,600.00 16,450.00 16,450.00 17,000.00 17,000.00 400.00 Bank Charges 5,976.34 8,000.00 8,910.52 12,000.00 12,000.00 12,000.00 4,000.00 Subtotal Accounting 36,150.09 40,600.00 32,735.02 42,450.00 43,000.00 43,000.00 2,400.00 Business Promotion Business Promotion 2,213.99 5,000.00 7,330.83 9,000.00 10,000.00 10,000.00 5,000.00 Charitable Contribution 36,345.00 10,000.00 32,924.30 36,000.00 35,000.00 10,000.00 - Industry Promotion Campaign 6,497.72 280,000.00 89,811.10 250,000.00 280,000.00 280,000.00 - Entertainment & Meals 46,474.35 40,000.00 15,726.03 35,000.00 40,000.00 32,000.00 (8,000.00) Subtotal Business Promotion 91,531.06 335,000.00 145,792.26 330,000.00 365,000.00 332, 000.00 (3,000.00) Governance Annual Meeting 119,244.62 125,000.00 133,573.43 133,573.43 145,000.00 100,000.00 (25,000.00) Committee Expense 41,377.08 50,000.00 10,737.62 50,000.00 60,000.00 50,000.00 - Subtotal Governance 160,621.70 175,000.00 144,311.05 183,573.43 205,000.00 150, 000.00 (25,000.00) Program Expenses Hill Visits & Gov't Relations 3,426.35 20,000.00 8,023.02 15,000.00 20,000.00 20,000.00 - State & Local Gov't Relations 279,937.93 ------Global Expense 26,746.99 40,000.00 13,395.94 30,000.00 40,000.00 40,000.00 - Subtotal Program Expenses 310,111.27 60,000.00 21,418.96 45,000.00 60,000.00 60,000.00 - Legal Expense Legal Expense 42,611.88 55,000.00 2,941.83 10,000.00 50,000.00 50,000.00 (5,000.00) Subtotal Legal Expense 42,611.88 55,000.00 2,941.83 10,000.00 50,000.00 50,000.00 (5,000.00) Office Expenses Books & Subscriptions 31,902.83 40,000.00 19,810.90 33,300.00 35,000.00 35,000.00 (5,000.00) Leased Equipment 4,453.01 4,600.00 2,708.11 4,400.00 4,400.00 4,400.00 (200.00) Dues & Memberships 6,113.36 12,500.00 11,906.58 15,200.00 15,500.00 15,500.00 3,000.00 Database Expense 33,469.94 37,500.00 20,837.68 36,000.00 37,000.00 37,000.00 (500.00) Office Equipment Expense 2,757.40 4,000.00 1,952.81 2,700.00 4,000.00 4,000.00 - Delivery Charges 9,394.07 9,500.00 3,814.36 6,200.00 7,000.00 7,000.00 (2,500.00) Office Supplies 10,944.72 10,000.00 6,257.05 10,650.00 11,000.00 9,200.00 (800.00) Other Office Expense 3,415.74 3,200.00 2,414.67 3,500.00 3,200.00 3,200.00 - Postage 1,041.54 1,200.00 1,126.07 1,275.00 1,000.00 1,000.00 (200.00) Printing Charges 4,505.26 4,000.00 1,287.70 1,900.00 3,000.00 3,000.00 (1,000.00) Telephone 40,088.48 41,000.00 21,072.10 36,400.00 38,000.00 38,000.00 (3,000.00) Equipment Repairs 2,785.76 3,000.00 2,525.65 3,800.00 3,000.00 3,000.00 - Rent - LA: NATO 41,914.48 ------Subtotal General Office Expenses 192,786.59 170,500.00 95,713.68 155,325.00 162, 100.00 160, 300.00 (10,200.00)
Page 47 NATIONAL ASSOCIATION OF THEATRE OWNERS Final Budget FY 2021 FY2019 FY2020 FY2020 FY2020 FY2021 FY2021 Budget Actual Approved Actual YTD Projected Proposed Final Variance 06/30/19 Annual Budget 01/31/20 06/30/20 Budget (Feb) Budget (Feb) FY2021 vs 2020 DC Building Expenses Utilities 7,720.86 8,500.00 4,907.18 8,300.00 8,500.00 8,500.00 - Cleaning Services 14,183.82 14,000.00 7,389.22 14,000.00 15,000.00 15,000.00 1,000.00 Groundskeeping 1,569.80 1,800.00 1,415.00 2,100.00 2,200.00 2,200.00 400.00 Security 736.21 1,200.00 430.22 1,000.00 1,200.00 1,200.00 - Bldg Repairs & Maint 10,333.22 10,000.00 4,444.04 8,000.00 10,000.00 10,000.00 - Mortgage Interest 4,237.07 ------Real Estate Tax 35,275.10 38,000.00 17,301.32 38,000.00 38,000.00 38,000.00 - Total DC Building Expenses 74,056.08 73,500.00 35,886.98 71,400.00 74,900.00 74,900.00 1,400.00 LA Building Expenses Utilities 110.18 7,000.00 1,207.22 2,000.00 2,500.00 2,500.00 (4,500.00) Cleaning Services 708.10 6,500.00 2,265.00 4,000.00 4,000.00 4,000.00 (2,500.00) HOA 1,737.00 5,000.00 4,405.00 6,700.00 6,000.00 6,000.00 1,000.00 Security - 1,000.00 30.00 100.00 500.00 500.00 (500.00) Bldg Repairs & Maint - 5,000.00 - 1,000.00 1,000.00 1,000.00 (4,000.00) Real Estate Tax - 17,000.00 14,562.16 18,562.16 20,000.00 20,000.00 3,000.00 Total LA Building Expenses 2,555.28 41,500.00 22,469.38 32,362.16 34,000.00 34,000.00 (7,500.00) Subtotal Office Expenses 269,397.95 285,500.00 154,070.04 259,087.16 271,000.00 269,200.00 (16,300.00) Online Resources Encyclopedia Data 1,250.00 1,000.00 1,000.00 1,000.00 - - (1,000.00) Website 1,284.95 5,000.00 820.75 1,600.00 2,000.00 15,000.00 10,000.00 Subtotal Online Resources 2,534.95 6,000.00 1,820.75 2,600.00 2,000.00 15,000.00 9,000.00 Trade Show Registrations Regional Support 2,003.09 2,000.00 500.00 1,000.00 2,000.00 1,000.00 (1,000.00) ShowEast - 2,000.00 3,075.00 3,075.00 3,200.00 3,200.00 1,200.00 Other Meeting Expense 11,185.63 5,000.00 4,497.43 7,000.00 8,000.00 8,000.00 3,000.00 CineEurope 2,979.57 3,000.00 - 3,000.00 3,000.00 3,000.00 - Subtotal Trade Show Registrations 16,168.29 12,000.00 8,072.43 14,075.00 16,200.00 15,200.00 3,200.00 Travel Auto Expense 7,481.37 8,000.00 3,697.92 7,000.00 8,000.00 6,400.00 (1,600.00) Travel - President 52,389.83 65,000.00 31,351.05 55,000.00 60,000.00 48,000.00 (17,000.00) Travel - Chairman 6,625.43 8,000.00 904.12 6,000.00 8,000.00 6,400.00 (1,600.00) Travel - Vice Pres & COO 22,393.95 22,000.00 15,203.42 25,000.00 25,000.00 20,000.00 (2,000.00) Travel - General Counsel 15,358.99 15,000.00 24,768.31 40,000.00 40,000.00 32,000.00 17,000.00 Travel - VP & CCO 47,857.53 35,000.00 20,560.17 35,000.00 35,000.00 28,000.00 (7,000.00) Travel Other 65,724.00 90,000.00 30,273.69 60,000.00 70,000.00 56,000.00 (34,000.00) Subtotal Travel 217,831.10 243,000.00 126,758.68 228,000.00 246,000.00 196,800.00 (46,200.00)
Page 48 NATIONAL ASSOCIATION OF THEATRE OWNERS Final Budget FY 2021 FY2019 FY2020 FY2020 FY2020 FY2021 FY2021 Budget Actual Approved Actual YTD Projected Proposed Final Variance 06/30/19 Annual Budget 01/31/20 06/30/20 Budget (Feb) Budget (Feb) FY2021 vs 2020 Wages Wages - Staff 524,219.00 529,953.00 304,271.14 525,000.00 570,458.00 550,000.00 20,047.00 Wages - President 574,999.88 575,000.00 342,788.39 575,000.00 575,000.00 575,000.00 - Wages-Vice Pres & COO 219,307.55 220,000.00 130,461.49 220,000.00 227,288.00 212,000.00 (8,000.00) Wages-General Counsel 153,732.86 167,743.00 98,461.58 167,743.00 174,968.00 170,000.00 2,257.00 Wages-Vice Pres & CCO 156,792.38 159,552.00 92,307.69 153,000.00 163,077.00 157,500.00 (2,052.00) Temporary Staffing 3,052.50 - - - - Subtotal Wages 1,632,104.17 1,652,248.00 968,290.29 1,640,743.00 1,710,791.00 1,664,500.00 12,252.00 Insurance, Benefits & Taxes Payroll Charges 3,873.24 4,000.00 2,245.52 4,000.00 4,000.00 4,000.00 - Insurance - Business 21,819.82 25,000.00 15,982.53 27,500.00 29,000.00 32,860.00 7,860.00 Insurance - Medical 117,795.86 129,800.00 74,737.15 128,500.00 138,000.00 141,240.00 11,440.00 Insurance - Workers Comp 6,358.69 7,800.00 6,401.85 9,000.00 10,000.00 10,000.00 2,200.00 Insurance - Life 13,030.18 14,000.00 7,904.07 13,500.00 14,500.00 15,000.00 1,000.00 Misc. Employee Benefits 5,512.02 6,750.00 3,266.55 6,000.00 7,000.00 7,000.00 250.00 Payroll Taxes 96,200.37 90,102.00 52,295.09 96,702.00 102,300.00 97,720.00 7,618.00 Pension Plan Contributions 79,076.26 72,000.00 40,684.24 72,000.00 75,600.00 75,600.00 3,600.00 Pension Plan Administration 2,775.00 3,500.00 1,537.50 3,000.00 3,500.00 3,500.00 - Agency Placement Fee - 1,000.00 - - - - (1,000.00) Travel Allowance 5,498.45 6,000.00 2,949.15 5,100.00 5,800.00 4,800.00 (1,200.00) Training - Staff 12,982.07 17,000.00 2,820.00 13,000.00 13,500.00 13,500.00 (3,500.00) Subtotal Insurance, Benefits & Taxes 364,921.96 376,952.00 210,823.65 378,302.00 403,200.00 405,220.00 28,268.00 Business Taxes & Licenses Lobby Tax Expense 2,819.49 55,000.00 - 55,000.00 55,000.00 - (55,000.00) Corporate Tax & Licenses 5,264.79 800.00 (339.54) 500.00 1,500.00 1,500.00 700.00 Subtotal Business Taxes & Licenses 8,084.28 55,800.00 (339.54) 55,500.00 56,500.00 1,500.00 (54,300.00) Consultants Fees Technology Consultant 80,076.40 80,000.00 47,784.12 82,000.00 118,000.00 118,000.00 38,000.00 Codes Consultants 23,779.40 25,000.00 11,797.98 24,000.00 24,000.00 24,000.00 (1,000.00) Industry Research 70,927.71 75,000.00 31,069.98 60,000.00 60,000.00 120,000.00 45,000.00 Regional Consultant 56,527.52 62,000.00 31,858.83 58,000.00 29,000.00 29,000.00 (33,000.00) Program Consultant 38,891.24 40,000.00 23,180.91 40,000.00 21,000.00 21,000.00 (19,000.00) Lobbying Consultant - 15,000.00 - - - - (15,000.00) GR and Security Consultant 114,484.55 120,000.00 66,153.49 112,000.00 115,000.00 115,000.00 (5,000.00) Computer Services Provider 46,354.57 45,000.00 22,763.76 42,000.00 50,000.00 46,000.00 1,000.00 Subtotal Consultants Fees 431,041.39 462,000.00 234,609.07 418,000.00 417,000.00 473,000.00 11,000.00 Depreciation Depreciation 31,951.37 34,600.00 16,370.09 23,000.00 23,000.00 23,000.00 (11,600.00) DC & LA Building Depreciation 47,024.11 54,500.00 34,521.48 58,700.00 58,000.00 58,000.00 3,500.00 Subtotal Depreciation 78,975.48 89,100.00 50,891.57 81,700.00 81,000.00 81,000.00 (8,100.00) Total Operating Expenses 3,662,085.57 3,848,200.00 2,102,196.06 3,689,030.59 3,926,691.00 3,756,420.00 (91,780.00)
ExcessPage Revenue 49 Over Expense 94,568.43 17,800.00 (20,218.81) 174,969.41 65,309.00 (1,350,000.00) (1,367,800.00) NATO Political Action Committee Final FY2021
FY2019 FY2020 FY2020 FY2020 FY2021 Budget Actual Approved Actual YTD Projected Final Variance 06/30/19 Annual Budget 2/29/2020 06/30/20 Annual Budget FY2021 vs 2020
Revenue Contributions 1,000.00 10,000.00 2,000.00 4,000.00 5,000.00 (5,000.00)
Total Revenue 1,000.00 10,000.00 2,000.00 4,000.00 5,000.00 (5,000.00)
Expenses Contributions to Candidates 3,500.00 20,000.00 7,000.00 10,000.00 10,000.00 (10,000.00)
Total Expenses 3,500.00 20,000.00 7,000.00 10,000.00 10,000.00 (10,000.00)
Excess Revenue Over Expense ($2,500.00) ($10,000.00) ($5,000.00) ($6,000.00) ($5,000.00) $5,000.00
Page 50 CinemaCon Approved Budget 2021 FYE 2018 FYE 2019 FYE 2020 FYE 2020 FYE 2021 Budget 6/30/2018 6/30/2019 Projected Approved Approved Variance Item Actual Actual 6/30/2020 Budget Budget FYE2021-2020 Revenue Registrations$ 3,995,780.00 3,697,730.00 - 4,028,480.00 2,197,428.00 (1,831,052.00) Sponsorships$ 1,541,250.00 1,404,250.00 - 1,425,000.00 1,000,000.00 (425,000.00) Trade Show$ 2,735,100.00 2,844,100.00 - 2,970,000.00 2,509,992.00 (460,008.00) Advertising/Lightbox Sales$ 242,000.00 236,625.00 - 237,500.00 165,000.00 (72,500.00) Commissions & Credits$ 843,256.04 727,788.13 - 738,791.00 468,000.00 (270,791.00) Booth Cancellation Fees$ 15,800.00 7,500.00 7,750.00 7,500.00 5,000.00 (2,500.00) Gain from Insurance Recovery 4,252,125.00 - In Kind Revenue$ 1,035,701.00 1,075,821.00 - 932,308.00 932,308.00 - NATO Fall Summit Sponsors$ 83,500.00 125,843.75 143,121.00 140,000.00 124,500.00 (15,500.00) NATO Fall Summit Registrations - 4,900.00 - - Total Operating Revenue 10,492,387.04 10,119,657.88 4,407,896.00 10,479,579.00 7,402,228.00 (3,077,351.00)
Expenses Convention Production Expenses Facilities and Labor$ 1,781,276.13 1,654,179.75 49,684.70 1,718,791.00 1,583,000.00 (135,791.00) Production$ 147,281.48 115,941.00 - 118,975.00 122,975.00 4,000.00 Set Storage$ 13,123.00 9,433.00 9,576.00 7,000.00 9,500.00 2,500.00 Communications/Electrical Charges$ 1,650.00 2,310.00 - 2,400.00 2,400.00 - Hotel & Business Center$ 32,524.38 30,645.75 3,413.20 32,600.00 32,600.00 - Badge Expenses$ 11,450.70 8,805.17 11,662.50 10,000.00 - (10,000.00) Food & Beverage$ 1,931,257.14 1,949,872.73 35,525.00 2,210,000.00 1,580,000.00 (630,000.00) 10 Year Celebration/ COVID-19 Measures $ - - 39,870.00 125,000.00 50,000.00 (75,000.00) Will Rogers Pioneer Dinner$ 351,600.00 - - - - - Transportation, buses$ 1,575.00 1,642.50 - 1,750.00 1,750.00 - Trade Show Production$ 136,486.52 121,383.51 23,423.35 125,110.00 111,500.00 (13,610.00) Subtotal Convention Production$ 4,408,224.35 3,894,213.41 173,154.75 4,351,626.00 3,493,725.00 (857,901.00) Convention Program Expenses - Printing$ 76,056.00 76,612.50 7,500.00 79,050.00 62,500.00 (16,550.00) Seminar Speaker Fees$ 16,500.00 17,500.00 10,000.00 15,000.00 15,000.00 - Awards$ 181,437.88 183,763.80 99,675.00 191,150.00 112,500.00 (78,650.00) Transportation $ 20,468.43 14,959.64 - 20,000.00 20,000.00 -
6/23/2020Page 2:53 51 PM 1 of 3 CinemaCon Budget FYE21 Permits & Waivers$ 1,218.00 1,269.00 1,006.00 1,000.00 1,000.00 - Shipping$ 36,537.00 34,959.79 533.85 41,200.00 41,200.00 - Subtotal Convention Program Expenses$ 332,217.31 329,064.73 118,714.85 347,400.00 252,200.00 (95,200.00) Volunteer Expenses - Personnel $ 37,705.70 43,921.76 - 44,900.00 44,900.00 - Travel $ 7,050.14 6,811.14 5,179.18 10,000.00 7,500.00 (2,500.00) Subtotal Volunteer Expenses$ 44,755.84 50,732.90 5,179.18 54,900.00 52,400.00 (2,500.00) Office Expenses - Bank/Credit Card charges$ 120,082.25 110,771.43 67,981.17 125,000.00 90,000.00 (35,000.00) Business Taxes$ 300.00 300.00 304.80 300.00 300.00 - Computer expense$ 12,755.47 12,543.03 13,085.82 13,510.00 13,510.00 - Insurance$ 38,823.67 45,804.48 31,686.61 45,000.00 45,000.00 - Legal $ 284.80 294.40 - 300.00 300.00 - Office Rent$ 39,124.60 44,146.82 44,822.04 44,822.00 46,770.00 1,948.00 Office Utilities$ 12,607.95 14,376.01 13,541.76 14,800.00 15,100.00 300.00 Deliveries & Communication$ 9,377.43 10,058.20 5,361.65 10,750.00 10,750.00 - Supplies, general$ 8,768.96 9,008.55 6,696.56 9,500.00 9,500.00 - General Printing$ 12,720.00 15,398.31 4,311.00 15,400.00 14,000.00 (1,400.00) Subtotal Office Expenses$ 254,845.13 262,701.23 187,791.41 279,382.00 245,230.00 (34,152.00) Staff Travel & Meals - Meal & Entertainment$ 9,290.00 8,740.03 4,443.61 8,000.00 8,000.00 - Travel & Lodging$ 56,711.60 60,649.20 58,871.81 72,500.00 57,500.00 (15,000.00) Subtotal Staff Travel & Meals$ 66,001.60 69,389.23 63,315.42 80,500.00 65,500.00 (15,000.00) Marketing & Promotion - Charitable Contributions$ 1,550.00 5,650.00 7,380.00 4,000.00 4,000.00 - ICTA/NAC Commissions$ 320,015.00 334,490.00 - 353,240.00 278,402.00 (74,838.00) Marketing, General$ 18,596.20 20,722.39 40,002.86 22,000.00 22,000.00 - Public Relations, Contracted$ 73,611.67 72,678.31 55,909.46 60,000.00 60,000.00 - Video Retrospective$ 16,750.00 20,050.00 5,000.00 21,500.00 21,500.00 - Subtotal Marketing & Promotion$ 430,522.87 453,590.70 108,292.32 460,740.00 385,902.00 (74,838.00) Consultants & Contract Services - Accounting$ 6,509.41 6,645.38 4,987.25 7,300.00 7,300.00 - Audit$ 16,107.50 16,107.50 16,450.00 16,800.00 16,800.00 - Cleaning$ 34,495.50 34,500.00 - 36,225.00 32,500.00 (3,725.00) Photographer$ 11,500.00 12,000.00 - 13,000.00 13,000.00 - Registration services$ 51,421.80 51,486.49 44,373.88 55,000.00 47,500.00 (7,500.00) Security$ 113,225.09 139,567.46 19,664.40 125,500.00 125,500.00 -
6/23/2020Page 2:53 52 PM 2 of 3 CinemaCon Budget FYE21 Consultants, Event Production$ 79,788.12 94,055.42 69,287.82 97,500.00 95,000.00 (2,500.00) Website$ 65,227.82 66,714.46 72,229.48 70,436.00 73,944.00 3,508.00 Subtotal Consultants & Contract Svcs$ 378,275.24 421,076.71 226,992.83 421,761.00 411,544.00 (10,217.00) Personnel - Management :salaries/taxes/benefits $ 991,736.61 998,183.31 860,168.00 1,036,611.00 846,712.00 (189,899.00) Subtotal Personnel$ 991,736.61 998,183.31 860,168.00 1,036,611.00 846,712.00 (189,899.00) Miscellaneous - In Kind Expense$ 1,035,701.00 1,075,821.00 - 932,308.00 932,308.00 - Subtotal Miscellaneous Expenses$ 1,035,701.00 1,075,821.00 - 932,308.00 932,308.00 - Nato Fall Summit - Nato Fall Summit Expenses$ 101,084.93 177,104.22 195,173.43 184,315.00 132,287.00 (52,028.00) Depreciation $ 25,770.54 24,751.95 9,416.74 10,000.00 10,000.00 - Total Operating Expenses $ 8,069,135.42 7,756,629.39 1,948,198.93 8,159,543.00 6,827,808.00 (1,331,735.00) Net income 2,423,251.62 2,363,028.49 2,459,697.07 2,320,036.00 574,420.00 (1,745,616.00)
6/23/2020Page 2:53 53 PM 3 of 3 CinemaCon Budget FYE21
Tuesday, 16 June 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Jeff Logan, Secretary Vice Chairman Rolando Rodriguez Treasurer Joe Masher Other Participants:
Mike Bowers Adam Aron Renana Teperberg Robert Bagby Bo Chambliss Staff Participants: Javier Ezquerra (for Jose Leonardo Marti) Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy Ron Krueger Patrick Corcoran J.D. Loeks John Fithian Joe Paletta Mitch Neuhauser John Vincent Matt Pollock David Wright Mark Zoradi
Chairman Jacob called the meeting to order for an update on reopening of cinemas- government actions, new July movie releases, state and local lobbying strike fund, public messaging task force, and federal policy for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
New Releases in July/August – Mr. Fithian reviewed the current July/August release schedule noting some films such as Tenet moved to later dates. Studios remain concerned about re-openings in Los Angeles, New York City and Chicago.
Reopening of Cinemas – Governmental Action: Mr. Fithian reported there will be 40 states and 86.8% of the global market reopened by mid-July. He discussed the remaining states with shuttered theaters and the discrimination and disparity between church and movie theater re-openings. The Board agreed to hold off on filing lawsuits regarding reopening disparity and revisit discussion at next week’s meeting. NATO will continue to push aggressively for state re-openings.
State and Local Lobbying Strike Fund: Ms. Baruh provided an update on the state and local lobbing structure and activities. NATO overseeing the lobbyist improved
Page 54
EXECUTIVE BOARD MINUTES
cooperation between NATO and regional units for aligned messaging. Ms. Conroy provided input about legislative funds from the NATO’s reserve fund and asked for the Board’s consideration and vote on the proposed resolution.
PROPOSED RESOLUTION Continued Support of State and Local Government Relations Grant Program
WHEREAS NATO’s Executive Board supported the creation of a state government relations grants program in 2017 to support the work of state and regional associations, and
WHEREAS NATO’s grants program has supported $1,525,000 in grant funding to state and regional units since 2017, and
WHEREAS NATO has achieved significant expansion of government relations in several states to the benefit of the industry with hiring a Manager of State Government Relations, contracting key lobbyists, and improved coordination with state regional units, and
WHEREAS the motion picture exhibition industry is in the midst of an unprecedented economic and policy crisis requiring the full mobilization of all possible resources at the state and local level, and
WHEREAS the national association anticipates the need for support of state and regional associations to increase in 2020 and 2021, therefore
BE IT RESOLVED that the Executive Board hereby dedicates up to $1,000,000 from NATO’s Reserve Fund toward the remainder of the 2020 legislative year and the 2021 legislative year, with funds to be made available as soon as necessary, and
BE IT FURTHER RESOLVED that the total amount dedicated shall be apportioned approximately along these lines, subject to need: (1) up to $250,000 for operational expenses, including staff expenses and legislative tracking costs; (2) up to $750,000 for grants to state and regional associations to address legislative costs and particular legislative threats deemed to be of specific commercial impact on exhibitors, or for other legislative costs overseen directly by the national organization, and
BE IT FURTHER RESOLVED that the Executive Board will review the grant program annually during the budget process and will reassess use of NATO resources toward this program, and
34
Page 55
EXECUTIVE BOARD MINUTES
BE IT FURTHER RESOLVED that the direction of the grant program, its parameters, and oversight of the application process is conducted by the NATO Government Relations Committee.
It was moved and seconded to approve the proposed resolution for Continued Support of State and Local Government Relations Grant Program as written above. A vote was taken and the resolution was approved.
Public Messaging Task Force: Mr. Corcoran provided a status of the industry marketing campaign with the studio’s theatrical team. The Task Force will move forward with an ongoing campaign communicating the broad message - Only In Theaters. The launch time will be when theaters are open with product.
Federal Policy Update: Ms. Brenneman reported slow movement with Main Street Lending Facility and the loans have not opened. The PPP loan with adjustments has been signed by President. She noted there will be member education related to the forgiveness period.
Ms. Baruh discussed next phase legislation will not happen until after 4 July recess. NATO continues to support the RESTART loan program, the liability shield language against certain lawsuits and employee tax credits.
NATO, CinemaCon and NATOPAC 2021 Budgets – Ms. Conroy reviewed the process and timeline for the approval of the budgets. She will forward the proposed budgets via email to Board members requesting each member to return their email vote by 22 June 2020. She will report the outcome at next week’s Board call.
Next Conference Call: The next conference call will be held Tuesday, 23 June 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
35
Page 56
EXECUTIVE BOARD MINUTES
Tuesday, 9 June 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez J.D. Loeks Secretary Jeff Logan Treasurer Joe Masher Other Participants:
Renana Teperberg Robert Bagby Steve Zuehlke Mike Bowers (for Dan Harkins) Bo Chambliss Staff Participants: Javier Ezquerra (for Jose Leonardo Marti) Mary Ann Frank (for Chris Johnson) Esther Baruh Mooky Greidinger Jackie Brenneman, General Counsel Ron Krueger Kathy Conroy Michael Spaeth (for Joe Paletta) Patrick Corcoran John Vincent John Fithian David Wright Mitch Neuhauser Mark Zoradi Matt Pollock
Chairman Jacob called the meeting to order for an update on reopening of cinemas- government actions, new July movie releases, public messaging task force, and federal policy for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Reopening of Cinemas – Governmental Action:
Mr. Fithian reported California is recommending the state to reopen 12 June at 25% capacity and follow CDC guidance to move to 50% capacity after two weeks. Most cities (excluding Los Angeles) and counties will follow state’s sequencing. Potential litigation is on hold regarding State of California or City of San Francisco reopening schedule.
Members reported -- New York lobbyist is expecting dialogue regarding reopening date. New Jersey is looking at August reopen dates after dining and casinos. A New Jersey lobbyist call with State is scheduled to discuss reopening first week of July instead. Illinois plans to reopen theaters week of 26 June (Phase IIII), but does not include City of Chicago. The Board further discussed potential litigation for disparate schedules regarding dining and casinos opening ahead of moving theaters. 36
Page 57
EXECUTIVE BOARD MINUTES
Mr. Fithian reported 37 states will reopen by July. Global box office projects re-openings at 84% by mid-July. These numbers reflect theaters opened, partially opened and announced openings.
New Releases in July: Mr. Fithian reported Disney and Warner Bros. are maintaining their July releases dates and reported possible July movie release dates for Sony, A24 and STX studios.
Public Messaging Task Force: Mr. Corcoran reported the Task Force scheduled a meeting with the CAA and studio marketing teams to discuss context and deliverables for and industry promotion campaign. Mr. Corcoran asked the Board to consider and vote on the proposed resolution authorizing spending up to $1M.
PROPOSED RESOLUTION Industry Promotion Campaign for Theater Re-openings
WHEREAS COVID-19 has caused movie theaters around the world to close temporarily, and
WHEREAS the closing of theaters has resulted in an overwhelming majority of consumers watching movies only at home, and
WHEREAS the entertainment habits of consumers may change in unpredictable ways that will not be beneficial to the long-term strength of the exhibition industry, and
WHEREAS the reopening of theaters will need to be supported by marketing and communications efforts in order to boost consumer enthusiasm for returning to theaters; therefore,
BE IT RESOLVED that NATO’s Executive Board authorizes the spending of up to $1 million from NATO’s reserves in order to produce marketing content and generate press coverage with the goal of strengthening consumer sentiment related to moviegoing, and
BE IT FURTHER RESOLVED that this process shall include collaboration with third-party marketing agencies, studio partners, media partners, the creative community, and NATO member companies, and
BE IT FURTHER RESOLVED that on a weekly basis NATO staff members will report directly to the NATO Task Forces assembled to focus on this effort.
37
Page 58
EXECUTIVE BOARD MINUTES
It was moved and seconded to approve the proposed resolution on the Industry Promotion Campaign for Theater Re-openings as written above. A vote was taken and the resolution was approved.
Ms. Conroy provided an update on the status of the Executive Board-approved initiatives funded by Reserves. The NATO reserve fund available balance is $10,044,000 to date. (Attachment 1).
Federal Policy Update: Ms. Brenneman reported the Main Street Lending Facility is still not open and noted their EBITDA is not an ideal metric for movie theaters. The Senate passed the PPP loan with adjustments and is waiting for President’s signature. One adjustment noted is the loan forgiveness period was extended from 8 to 24 weeks.
Ms. Baruh discussed next phase legislation. NATO continues to support the RESTART loan program and the liability shield language against certain lawsuits. There are proposals to extend the employee tax credit and to allow some small businesses to apply for more than one PPP loan. Ms. Baruh is seeking the Board to extend lobbying funding with Mercury Strategies and Akin Gump lobbying firms.
It was moved and seconded to approve continued lobbying support for relief legislation with lobbying firms for up to $500,000. A vote was taken and the motion was approved.
Next Conference Call: The next conference call will be held Tuesday, 16 June 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
38
Page 59
EXECUTIVE BOARD MINUTES
Attachment 1
39
Page 60
EXECUTIVE BOARD MINUTES
Tuesday, 2 June 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Adam Aron
Vice Chairman Rolando Rodriguez Secretary Jeff Logan Other Participants: Treasurer Joe Masher Renana Teperberg Robert Bagby Steve Zuehlke
Mike Bowers (for Dan Harkins) Bo Chambliss Staff Participants: Javier Ezquerra (for Jose Leonardo Marti) Mooky Greidinger Esther Baruh Chris Johnson Jackie Brenneman, General Counsel Ron Krueger Kathy Conroy J.D. Loeks Patrick Corcoran Joe Paletta John Fithian John Vincent Mitch Neuhauser David Wright Matt Pollock Mark Zoradi
Chairman Jacob called the meeting to order for an update on reopening of cinemas- government actions, new July movie releases, operations reopening working group, public messaging task force, and federal policy for the industry. Mr. Rodriguez commented on the current social unrest in U.S. and the importance of continuing diversity and inclusion within the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Reopening of Cinemas – Governmental Action:
Mr. Fithian discussed potential litigation with City of San Francisco and State of California regarding the reopening schedule for theaters originally classified to open with religious institutions. State of California reclassified theaters to family entertainment centers and should reopen in late June. City of San Francisco is following lead of Governor for theater reopening in August (but not updated to June). The Executive Board will hold off litigation discussions for one week allowing NATO of CA to clarify theater classification and reopening dates for both State of California and City of San Francisco. Board members reported the following: City of Chicago is not following State of Illinois phase 3 theater reopening. New York lobbyist submitted safety protocol 40
Page 61
EXECUTIVE BOARD MINUTES
video to NY budget office to approve reopening. New York lobbyist will start advocating for New Jersey’s theater reopening. Connecticut reported to reopen on 20 June and Michigan by 4 July.
Mr. Fithian reported 35 states reopened and 78.8% of global box office is reopened. These numbers reflect theaters opened, partially opened and announced openings.
New Releases in July: Mr. Fithian reported there were no updates regarding new releases in July.
PVOD Analytical Reports: Mr. Corcoran discussed two analyst studies released 1 June 2020n presented by Credit Suisse and Moffett Nathanson. The studies address the PVOD attempts both during the pandemic and in the future. He discussed strategies on how NATO will engage with Wall Street analysts to counter the narrative story.
Public Messaging Task Force: Mr. Corcoran reported CAA & studio reps prefer to delay discussions about theater level messaging to the press due to current civil unrest. Mr. Corcoran will urge continued discussions ASAP with Task Force, studios and exhibitor marketing executives.
Federal Policy Update: Ms. Brenneman reported there has been no movement on CARES Act loan. The SBA issued new PPP forgiveness Guidance. NATO will host a webinar educating members on this guidance. Main Street Lending is not officially open, but paper work is open.
Ms. Baruh reported the House passed significant changes to the PPP loan program and the Senate is reviewing changes this week. She discussed the legislation for the RESTART loan program for mid-size employers who lost a percentage of their revenue. The loan will provide a higher loan cap and portions of the loan will be forgivable. NATO continues to push for the business recovery fund and liability shield.
Reopening Operations Working Group: Ms. Conroy reported the Working Group met last week to review the revised CDC guidance on surface cleaning. Their findings did not change NATO guidance posted on NATO website. She also noted there was no expressed displeasure regarding patrons wearing face mask policy.
Next Conference Call: The next conference call will be held Tuesday, 9 June 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
41
Page 62
EXECUTIVE BOARD MINUTES
NATO EXECUTIVE BOARD ELECTRONIC VOTE – 31 May 2020
By unanimous electronic vote, The NATO Executive Board approved to support the litigation strategy described in memo below regarding re-evaluation of the San Francisco Reopening Schedule.
1. Adam Aron 10. Jeff Logan 2. Bob Bagby 11. Jose Leonardo Marti 3. Bo Chambliss 12. Joe Masher 4. Mooky Greidinger 13. Joe Paletta 5. Dan Harkins 14. Rolando Rodriguez 6. Ellis Jacob 15. John Vincent 7. Chris Johnson 16. Dave Wright 8. Ron Krueger 17. Mark Zoradi 9. J.D. Loeks
29 May 2020
To: NATO Executive Board of Directors NATO of California/Nevada Board of Directors
Cc: NATO Committee of Counsel Jackie Brenneman, NATO General Counsel
From: John Fithian and Milt Moritz
Re: San Francisco Schedule for the Reopening of Movie Theaters
Question Presented
If political efforts do not succeed quickly in changing the San Francisco Mayor’s proposed schedule for reopening movie theaters, should NATO of California/Nevada and NATO jointly file suit in federal court next week seeking a preliminary injunction? BOARD MEMBERS OF BOTH ASSOCIATIONS SHOULD REPLY TO THIS EMAIL AS SOON AS POSSIBLE WITH YOUR VOTE.
42
Page 63
EXECUTIVE BOARD MINUTES
Yesterday the City of San Francisco announced a schedule for the reopening of various businesses and activities in the city. That schedule unfairly placed movie theaters in one of the latest phases for opening no earlier than August, even though religious institutions and restaurants were placed in earlier phases. That schedule is not consistent with the recommendations of the Governor of California, and doesn’t follow the recommendations of the CDC.
Though the scope of the market at stake is small (only the city of San Francisco, and not the surrounding areas with larger populations), the symbolism of such an important city’s actions could set a bad precedent for other high profile cities like Los Angeles and New York. And an August or later opening date in high profile cities could cause distributors to delay the release of their movies now planned for July (e.g., Tenet from Warners and Mulan from Disney). Indeed conversations today with both Warners and Disney reveal concern in those companies about the San Francisco action.
NATO of California is pursuing a political solution to this problem now. Efforts are being made to secure a meeting with Carmen Chu, S.F. City Assessor and co-Chair of the Economic Task Force. NATO of California will inform Ms. Chu of the protocols theaters have in place and compare the ability to mitigate risk favorably to religious institutions and other gathering places currently scheduled to open much earlier than theaters.
If those conversations do not succeed in a re-evaluation of the city’s proposed schedule, we recommend that our two associations pursue an injunction.
NATO of California has a strong relationship with the law firm of Davis Wright Tremaine LLP. Martin L. Fineman of the firm’s San Francisco office has been retained and will begin work on a draft filing this weekend. Fineman has consulted with Milt and Jackie, and our early assessment is that we would have a good chance of success in such litigation. We have requested a budget and propose that our two organizations split the costs.
We will also develop a public relations strategy to support the litigation. We want the exhibition industry to be viewed as seeking to open their businesses consistent with health guidelines at the same time as similarly situated institutions.
Please respond with your vote at your earliest convenience.
43
Page 64
EXECUTIVE BOARD MINUTES
Tuesday, 26 May 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Secretary Jeff Logan Staff Participants:
Treasurer Joe Masher Esther Baruh Robert Bagby Jackie Brenneman, General Counsel Mike Bowers (for Dan Harkins) Kathy Conroy Bo Chambliss Patrick Corcoran Javier Ezquerra (for Jose Leonardo Marti) John Fithian Mooky Greidinger Mitch Neuhauser Chris Johnson Matt Pollock Ron Krueger J.D. Loeks Art Murtha (for Mark Zoradi) Joe Paletta John Vincent Linda Wright (for David Wright)
Chairman Jacob called the meeting to order for an update on new July movie releases, reopening operations working group, public messaging task force, and legislation for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
New Releases - July 2020: Mr. Fithian reported that Warner Bros. and Disney are on target for July releases with no significant changes on new releases from last week.
Reopening of Cinemas – Governmental Action – The Board discussed statewide re-openings. Manhattan should reopen July 1 with theaters opening in phase IV. Chicago’s opening is delayed with theaters opening in phase IV. L.A. County is not open yet, but theaters will open in same phase as churches. The surrounding counties in NY, IL and CA have opened or will open in June/July. It was noted that 74% of global box office should be open by mid-July.
Reopening Operations Working Group: Ms. Conroy reported the Reopening Operations Working Group webinar held 20 May 2020 was well received by members. The Working Group will meet again to discuss the CDC revised guidance on security concerns related to attitudes regarding wearing face masks and updated details on the
44
Page 65
EXECUTIVE BOARD MINUTES
spread of the virus on surfaces. The Working Group will determine whether to revise NATO’s operations resource document or provide additional guidance.
Public Messaging Task Force: Mr. Corcoran noted the Task Force received positive member feedback for their 20 May 2020 webinar. He reported the studios resolved their have agreed on antitrust concerns and will meet with Task Force to discuss theater level messaging to the press. NRG Research will present the findings of their study on public attitudes for theater reopening considerations on NATO’s next State of the Industry webinar.
Federal Policy Update: Ms. Brenneman reported there has been no movement on Cares Act loan. The SBA Issued New PPP Forgiveness Guidance. NATO will host a webinar to educate members on this guidance.
Ms. Baruh reported on the push for legislation for the RESTART loan program for mid- size employers who lost a percentage of their revenue. The loan will provide a higher loan cap and portions of the loan will be forgivable. Ms. Baruh sent letters to shuttered business to sign for support. She has rallied members to send letters of support to their senators. NATO continues to push for the business recovery fund and liability shield.
NATO/CinemaCon Budget Proposal Schedule: Ms. Conroy reported the NATO and CinemaCon proposed budgets for fiscal year ending 2021 will initially be reviewed by the CinemaCon Board and then Treasurer Masher. A draft version will be sent to the Board for review and vote by the 16 June conference call.
Next Conference Call: The next conference call will be held Tuesday, 2 June 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
45
Page 66
EXECUTIVE BOARD MINUTES
Tuesday, 19 May 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Secretary Jeff Logan Other Participants:
Treasurer Joe Masher Steve Zuehlke
Robert Bagby Staff Participants: Mike Bowers (for Dan Harkins) Bo Chambliss Esther Baruh Javier Ezquerra (for Jose Leonardo Marti) Kathy Conroy Mooky Greidinger Patrick Corcoran Chris Johnson John Fithian Ron Krueger Mitch Neuhauser J.D. Loeks Matt Pollock Melanie Smith (for Joe Paletta) John Vincent David Wright Mark Zoradi
Chairman Jacob called the meeting to order for an update on July movie releases, reopening operations working group, public messaging, legislation, and employee relief fund for the industry.
Mr. Fithian provided a brief overview of the antitrust statement.
New Releases - July 2020: Chairman Jacob provided an update on possible July releases noting smaller studios have added releases to the schedule. Disney and Warner Bros. feel encouraged about more theater re-openings for July timeframe.
Reopening of Cinemas – Governmental Action: Mr. Fithian reported on NATO’s State by State Lobbying and Tracking report with updates on New York, California and Illinois re-openings. The Country by Country Lobbying and Tracking shows 58% of global market place with international openings should be by mid-July. The bulk of the global market (including US and Canada) should be 90% open by mid-July.
Reopening Operations Working Group: Ms. Conroy reported the CDC released an updated decision resource tool to guide the reopening of working places. NATO has distributed the document to members and posted on the website. The Working Group
46
Page 67
EXECUTIVE BOARD MINUTES
will present a second webinar on 20 May 2020 to discuss operational experiences from two theater chains recently opened in Texas.
Public Messaging Task Force: Mr. Corcoran reported the Marketing Reopening Task Force will meet with studio leadership to discuss an industry marketing relaunch campaign for patrons to come back to cinemas. The Task Force will present a webinar on 20 May 2020 to discuss data analysis on consumer attitudes and concerns regarding guidance from public health officials. Media talking points will be shared with members to use when communicating to consumers and press.
Federal Policy Update: Ms. Baruh reported the PPP program released their forgiveness application. A NATO webinar will be presented to discuss the rules. The Feds are still in the process of setting up the Main Street Lending program.
Ms. Baruh noted the House included some fixes to the PPP program for the next phase of legislation for the Senate’s next review. The new loan program for shuttered small and mid-sized business will be considered in next phase of legislation. NATO continues to support the Liability Coalition and Recovery Fund Coalition, but the latter fund is unlikely to be included in next phase. Ms. Baruh is tracking legislation on data privacy or contact tracing.
Employee Relief Fund Updates: Ms. Conroy reported over 1,000 applications were received to date for Phase II of Will Rogers Pioneers Assistance Fund. Applicants can receive up to $800.
The Canadian Pictures Pioneers special assistance program is posted on their website for currently laid-off employees from Canadian exhibition or distribution companies. They received more than 150 applications for 250 Canadian Dollar grants.
Next Conference Call: The next conference call will be held Tuesday, 26 May 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
47
Page 68
EXECUTIVE BOARD MINUTES
Tuesday, 12 May 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Vice Chairman Rolando Rodriguez Adam Aron Secretary Jeff Logan Chairman Ellis Jacob Treasurer Joe Masher Other Participants:
Robert Bagby Mike Bowers Bo Chambliss Steve Zuehlke Javier Ezquerra (for Jose Leonardo Marti) Mooky Greidinger OtherStaff Participants: Participants: Dan Harkins Mike Bowers Chris Johnson SteveEsther Zuehlke Baruh Ron Krueger Jackie Brenneman, General Counsel J.D. Loeks Kathy Conroy Joe Paletta Patrick Corcoran John Vincent John Fithian David Wright Mitch Neuhauser Mark Zoradi Matt Pollock
Vice Chairman Rodriguez called the meeting to order for an update on possible July movie releases, theatre re-openings, public messaging, legislation, and employee relief fund for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
New Releases - July 2020: Mr. Fithian reported studios remain concerned about the number of theater re-openings for July – especially the New York and California markets. Warner Bros. prefers global release vs regional release and now considering releasing Tenet in August. Disney hesitant on Mulan July release. STX Entertainment and Solstice Studios both have July releases to offer.
Reopening of Cinemas – Governmental Action: Mr. Fithian reported on NATO’s State by State lobbying and tracking efforts noting the regional units are aggressively lobbying their states to reopen. Updated reports for New York, California and Illinois were provided by Board members. The Country by Country tracking efforts reveal China should be open in June and parts of Europe by July.
Federal Policy Update: Ms. Brenneman provided the Cares Act update. The PPP program has been reinfused with additional funds but the provisions have not changed. Treasury guidance/forgiveness rules are expected next week for safe harbor for PPP
48
Page 69
EXECUTIVE BOARD MINUTES
loans. The Main Street Lending Facility has announced but not implemented loan terms. This loan does not appear to be good for shuttered businesses. NATO will host a webinar on 15 May 2020 for an analysis of the U.S. federal relief loan programs.
Ms. Baruh provided an update on legislation regarding PPP fixes and rent relief. There is another loan program for Phase IV consideration for shuttered small and mid-sized business which will provide funds and loan forgiveness against ongoing difficulties. The loan provides enhancements to the PPP program which also support restaurants and other deeply affected businesses. She also discussed the status of the Business Recovery Fund Coalition and the Liability Coalition.
Public Messaging on the Reopening of Cinemas: Mr. Corcoran reported the Marketing Reopening Task Force has two working groups focused on audience/ consumer research and media relations. The consumer research working group is focused on messages that resignate with customers. Customers want to be reassured and see what measures movie theaters are taking regarding public health. The media relations working group will work with the CAA and studio leadership on messaging to the public about movies and getting back to the movie theaters. This message will not include information on safety or protocols. The Task Force will host a webinar to members about what messages to put out to the media.
Reopening Operations Working Group: Ms. Conroy reported the Working Group is planning a second webinar to discuss the experiences from movie theaters that have already opened.
Employee Relief Fund Updates: Ms. Conroy reported Phase 1 of the Will Rogers Pioneers Assistance Fund is closed with $2.2 million funds awarded. Will Rogers will also accept applications up to $800 for Phase II for distressed employees with greater needs. The Lionsgate Live Program has generated $200,000 funds for Phase 2 and produced 2,000 new donors.
Next Conference Call: The next conference call will be held Tuesday, 19 May 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned. .
49
Page 70
EXECUTIVE BOARD MINUTES
Tuesday, 5 May 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Secretary Jeff Logan Other Participants:
Treasurer Joe Masher Mike Bowers
Renana Teperberg Robert Bagby
Bo Chambliss Staff Participants: Javier Ezquerra (for Jose Leonardo Marti) Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy Ron Krueger Patrick Corcoran J.D. Loeks John Fithian Melanie Smith (for Joe Paletta) Mitch Neuhauser John Vincent Matt Pollock David Wright Mark Zoradi
Chairman Jacob called the meeting to order for an update on theatre re-openings, legislation, Reopening Operations Working Group and employee relief fund for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Public Messaging on the Reopening of Cinemas: Mr. Corcoran reported the Marketing Reopening Task Force is working on creating a campaign to message about movie theater re-openings. The two working groups formed will focus on audience/consumer research and media relations. The Task Force has reached out to content providers, industry allies, studio leadership and the CAA to assist with campaigns.
New Releases - July 2020: Mr. Fithian provided update on the release dates for Warner Bros’ Tenet, Disney’s Mulan and Solstice Studios’ Unhinged film. All studios are concerned about number of states that will be open noting New York and California are questionable. The GCF will release memo to GCF members about what theaters are doing around the world for safe re-openings.
50
Page 71
EXECUTIVE BOARD MINUTES
Reopening of Cinemas – Governmental Action: Mr. Fithian reported on NATO’s State by State and Country by Country lobbying and tracking efforts. He noted the regional units are aggressively lobbying their states to reopen.
Reopening Operations Working Group: Ms. Conroy reported the Working Group is planning a second webinar to discuss the experiences from movie theaters that have already opened. An updated user friendly Operations Cinema Reopening document and checklists will be sent to members this week.
Federal Policy Update: Ms. Brenneman provided an update on the PPP loans. Main Street Lending announced loan terms expanding to larger businesses with more details to follow. Ms. Baruh provided an update on legislation regarding PPP fixes, rent relief and the legislative outlook and schedule. NATO has joined the Business Recovery Fund Coalition and the Liability Coalition.
Employee Relief Fund Updates: Ms. Conroy reported Phase 1 of the Will Rogers Pioneers Assistance Fund is closed with $2.2 million funds awarded. Will Rogers is accepting applications for Phase II for distressed employees with greater needs. It is expected the Lionsgate Live Program will generate over $100,000 funds for Phase II.
Next Conference Call: The next conference call will be held Tuesday, 12 May 2020 at 1:30pm Eastern.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
51
Page 72
EXECUTIVE BOARD MINUTES
Tuesday, 28 April 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Adam Aron Vice Chairman Rolando Rodriguez Jose Leonardo Marti Secretary Jeff Logan Treasurer Joe Masher Other Participants:
Mike Bowers Robert Bagby Steve Zuehlke Bo Chambliss
Mooky Greidinger Staff Participants: Dan Harkins Chris Johnson Esther Baruh Ron Krueger Jackie Brenneman, General Counsel J.D. Loeks Kathy Conroy Joe Paletta Phil Contrino John Vincent Patrick Corcoran David Wright John Fithian Mark Zoradi Mitch Neuhauser Matt Pollock
Chairman Jacob called the meeting to order for an update on theatre re-openings, legislation, window issues, and employee relief fund for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Windows Issues: Mr. Corcoran reported Warner Bros. revised their recent media statement by clarifying they will consider theatrical models for future movie releases. Universal has issued a statement to WSJ indicating their new releases will be simultaneous on multi platforms based on the Trolls movie financial success. Their second movie, King of Staten Island, will go straight to VOD.
The Board provided their input and agreed that Mr. Corcoran will message a statement addressing the analysis done on the potential financial loss to studios on worldwide theatrical movies and PVOD domestic revenues when the theatrical window is not applied.
Reopening of Cinemas: Mr. Fithian reported U.S. state re-openings will be based on state-by-state decisions. NATO regional associations are engaged with their governors to be treated fairly to allow movie theaters to open same time as restaurants. Most
52
Page 73
EXECUTIVE BOARD MINUTES
cinemas will open in June to ramp up for July movies. Canada will probably open end of June. Patrons will have to initially accept wearing masks and social distancing.
Reopening Operations Working Group: Ms. Conroy reported the Working Group created two operational documents to distribute to members. The first document is Cinema Reopening-Operations Talking Points and Considerations and a second document on Employment Compliance Issues for U.S. members.
The Board decided that NATO will not engage in PPE acquisitions at this time and will defer to the ICA or individual theaters for PPE purchases.
Federal Policy Updates: Ms. Baruh provided an update on the CARES Act noting the PPP program has appropriated more funds. Main Street Lending advised the loan terms will be announced. NATO reached out to Treasury Department to discuss Treasury’s upcoming plans with remaining funds. NATO continues multi-lobbying strategy. Ms. Baruh urged Board to participate when contacted.
Mr. Fithian discussed NATO joining the Reopen America Coalition for a policy related objective to secure legislation providing liability protection to businesses in response to the COVID-19 pandemic. It is a one-time $20,000 fee to join the Coalition. If successful, the managing firm will assess a $50,000 success fee to enact the law. The Board discussed the benefits and agreed that NATO should join the Coalition.
Industry Marketing: Mr. Corcoran reported the Industry Marketing Campaign Task Force are discussing various concepts for a campaign. They are reviewing research on consumer attitudes. The Task Force will work parallel with media messaging about creating conditions for any re-openings with guidelines. Initially, the Task Force will message about movie theaters re-openings preparedness and will later message about the magic of movies.
Employee Relief Fund Updates: Ms. Conroy provided a status on Phase 1 of the Will Rogers Pioneers Assistance Fund noting it is near completion. Will Rogers will soon start accepting applications for Phase II rewards for exhibitors and distressed employees with greater needs. The Lionsgate Studio limited free streaming movie night has generated $59,700 funds to date for Phase II.
Next Conference Call: The next conference call will be held Tuesday, 5 May 2020.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
53
Page 74
EXECUTIVE BOARD MINUTES
Tuesday, 21 April 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob Jose Leonardo Marti Vice Chairman Rolando Rodriguez Secretary Jeff Logan Other Participants: Treasurer Joe Masher Mike Bowers Adam Aron Renana Teperberg Robert Bagby Steve Zuehlke
Bo Chambliss Staff Participants: Chris Johnson Mooky Greidinger Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Ron Krueger Kathy Conroy J.D. Loeks Patrick Corcoran Joe Paletta John Fithian John Vincent Mitch Neuhauser David Wright Matt Pollock Mark Zoradi
Chairman Jacob called the meeting to order for an update on theatre re-openings, legislation, window issues, and employee relief fund for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Convention Insurance: Mr. Fithian reported that CinemaCon 2020 cancellation insurance was approved and NATO is waiting for its first refund payment.
Reopening of Cinemas: Mr. Fithian stated the White House and the CDC released a three-phase guideline document titled “Opening Up America Again”. Re-openings will be state-by-state decisions. Governors will assess gating requirements for their state prior to any of three described phases. .
Ms. Conroy reported the NATO Reopening Operations Working Group will create and distribute two resource documents to members. The first document will be an overview of options for consideration related to planning, staffing, insurance issues, training & supplies, how to implement social distance seating and ways to minimize touching at ticket counters and concessions. The second resource document will be distributed to domestic members regarding U.S. Employment Compliant issues.
54
Page 75
EXECUTIVE BOARD MINUTES
Mr. Fithian noted that theatre re-openings will be decided by individual companies. NATO regional association leaders will describe the industry’s reopening protocols to governor offices.
The Board discussed various state reopening dates and the need for theaters to open as a country before studios provide wide release products. The Board agreed that NATO should be on record about the relevance for this industry to have national product to move forward. By separate email vote, The Executive Board voted and approved the language for the following press statement:
“While some states and localities are beginning to authorize the opening of movie theaters under certain conditions, the movie theater industry is also a national one. Until the majority of markets in the U.S. are open, and major markets in particular, new wide release movies are unlikely to be available. As a result, some theaters in some areas that are authorized to open may be able economically to reopen with repertory product; however, many theaters will not be able to feasibly open.”
Federal Policy Update: Ms. Brenneman provided an update on the CARES Act implementation - Emergency Loans, PPP program, Main Street Lending program, and Treasury Department.
Ms. Baruh reported the NATO Phase IV proposal letter for severely distressed movie theaters was sent out. The lobbying strategy is to identify democrats and republicans in the House and Senate to become champions of exhibition
Chairman Ellis exited the meeting and passed the gavel to Vice Chairman Rodriguez.
Windows Issues: Mr. Corcoran discussed the release of the Ernst & Young report indicating it cost studios more to release movies in the home and the theatrical window is the main driver of revenue. The report will be distributed to studio leaders and he will continue to push the data out. He discussed Universal’s comments regarding their first week’s earnings on the Trolls movie released on PVOD. NATO has a draft statement prepared to message if necessary regarding their release and the windows model.
Employee Relief Fund Updates: Ms. Conroy discussed Phase 1 of the Will Rogers Pioneers Assistance Fund is near completion. Will Rogers is working on Phase II rewards for exhibitors and distressed employees with greater needs. She noted the Lionsgate Studio streaming movie night continues to generate funds.
Next Conference Call: The next conference call will be held Tuesday, 28 April 2020.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
55
Page 76
EXECUTIVE BOARD MINUTES
Tuesday 14 April 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Nancy Hagan Vice Chairman Rolando Rodriguez Steve Zuehlke Secretary Jeff Logan Treasurer Joe Masher Staff Participants:
Adam Aron Esther Baruh Robert Bagby Jackie Brenneman, General Counsel Mike Bowers (for Dan Harkins) Kathy Conroy Luis Castelazo (for Jose Leonardo Marti) Patrick Corcoran Bo Chambliss John Fithian Chris Johnson Mitch Neuhauser Mooky Greidinger Matt Pollock Ron Krueger J.D. Loeks Joe Paletta John Vincent David Wright Mark Zoradi
Vice Chairman Rodriguez called the meeting to order for an update on legislation, public relations, employee relief fund and theatre re-openings for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Legislation: Ms. Brenneman reported the CARES Act implementation process has been slow. She discussed the status of different loan programs – PPP program, Main Street Lending program, and loan guarantee programs backed by Treasury Department for distressed industries. NATO comments will be submitted to Treasury Department by April 16 deadline. The Treasury Dept. has not provided guidance on other programs.
Ms. Baruh discussed the Phase IV strategy will focus on expansion of loan guarantee programs, recovery fund/ISCS proposal, mortgage and rent forbearance and existing debt deferral. The Executive Board reviewed and approved the NATO Phase IV draft proposal letter (Attachment 1) to be sent to Congress regarding severely distressed movie theaters
56
Page 77
EXECUTIVE BOARD MINUTES
The strategy continues to be direct lobbying, grass roots, ally/coalition developments and public relations outreach. Mr. Rodriguez noted it would be useful for members to have a checklist of talking points and action items when communicating with their senators and congressmen.
Exhibition Re-Openings: Mr. Fithian noted that NATO is ramping up for exhibition to re-open in June with releases from Warner Bros and Disney in July 2020.
NATO Preparation: Ms. Conroy reported the Cinema Re-opening Operations Working Group are consulting with the CDC, health departments and federal/state and local officials. The mission is to help NATO members prepare operationally to reopen their cinemas in the U.S. and Canada with precaution in place to enhance guest/employees safety and to minimize unease as moviegoers return to the cinemas.
Mr. Corcoran reported the PR/Marketing Task Force will focus on theater re-opening by talking to studios to support timeline of movie re-openings and continue outreach to celebrities and filmmakers. The messaging will be a balance discussing theater re- opening safety and the magic of movies.
Business Models/Windows Changing: Mr. Corcoran described the pandemic shutdown as an unusual time for studios forcing some studios to release movies in the home. The Ernst & Young study to be released will show it cost studios more to release movies in the home and the theatrical window is the main driver of revenue. The PR Task Force will continue to aggressively lobby studios to delay movie releases as theatrical instead of home releases.
NATO Educating Members: Ms. Brenneman reported the NATO website materials are constantly updated. Member updates are frequently sent. A weekly state of the industry webinar has just started.
Employee Relief Fund Updates: Ms. Conroy provided a status Phase 1 of the Will Rogers Pioneers Assistance Fund noting funds are near depletion. Will Rogers is gearing up for Phase II rewards for distressed employees with greater needs. She noted that Lionsgate Studio is hosting a limited weekly free streaming movie night and donating all contributions to the Will Rogers fund.
Next Conference Call: The next conference call will be held Tuesday, 21 April 2020.
Chairman Jacob adjourned the meeting.
57
Page 78
Attachment 1 / Page 1
Page 79
Attachment 1 / Page 2
Page 80
Attachment 1 / Page 3
Page 81
Attachment 1 / Page 4
Page 82
EXECUTIVE BOARD MINUTES
Friday 3 April 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Elizabeth Frank Vice Chairman Rolando Rodriguez Renana Teperberg Secretary Jeff Logan Steve Zuehlke Treasurer Joe Masher Staff Participants: Adam Aron Robert Bagby Esther Baruh Mike Bowers (for Dan Harkins) Jackie Brenneman, General Counsel Bo Chambliss Kathy Conroy Chris Johnson Patrick Corcoran Mooky Greidinger John Fithian Ron Krueger J.D. Loeks Jose Leonardo Marti Joe Paletta John Vincent David Wright Mark Zoradi
Chairman Jacob called the meeting to order for an update on legislation, public relations, employee relief fund and theatre re-openings for the industry.
Ms. Brenneman provided a brief overview of the antitrust statement.
Legislation: Ms. Brenneman and Ms. Baruh provided updates on the implementation of phase III of the federal relief legislation from SBA noting the Department of Treasury’s formal guidance is forthcoming. NATO has provided member education on loan provisions through webinars and direct member communication.
A phase IV legislation is expected to focus on expansion of loan guarantee programs. NATO will lobby for less restrictive loan programs, rent relief and business interruption insurance.
Canada Report: Chairman Ellis reported similar loan and employee relief programs will be implemented in Canada and expected to start in a week.
62
Page 83
EXECUTIVE BOARD MINUTES
Film Companies, Theatrical Releases and Theater Re-openings: Mr. Fithian identified more theatrical releases postponing to late 2020 and 2021. There was concern of the symbolic appearance of a major studio film released to streaming. The Board discussed next steps for possible theater re-openings in late summer for limited social distancing seating.
A Working Group of operational experts will be assembled to focus on a common blueprint for patron confidence to return to the movie theater. The Working Group will collaborate with regional municipalities and concert venues. The Working Group will initially focus on a press narrative identifying common solutions that theaters are a safe place to go.
Public Relations/Industry Promotion: Mr. Corcoran discussed the ongoing press and filmmaker outreach during the shutdown period. The next messaging focus will be on theater re-openings. Depending on scope of the program and the timeline of the theater re-openings, there will be a funding request from NATO’s reserves for a Global Cinema Day Industry Promotion.
Employee Relief Fund Updates: Ms. Conroy reported the first phase of the Will Rogers Assistance Fund has started with 4,200 submitted applications to date. A fund of $300 will go to each furloughed industry employee with five years’ service or more. NATO staff are assisting Will Rogers with the verification process.
The Canadian Pictures Pioneers will launch a similar fund and will determine fund amount and length of service requirement.
The NATO of CA/NV will launch $1.25M program to theater employees in California and Nevada only with a six month length of service requirement.
Next Conference Call: The Board decided to continue the weekly calls for the time being. The next conference call will be held Tuesday, 14 April 2020.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
63
Page 84
EXECUTIVE BOARD MINUTES
Friday 27 March 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Bobbie Bagby Vice Chairman Rolando Rodriguez Brock Bagby Secretary Jeff Logan Brittany Bagby Baker Treasurer Joe Masher Mike Bowers Elizabeth Frank Adam Aron Mike Hagan Robert Bagby Renana Teperberg Bo Chambliss Steve Zuehlke Dan Harkins Chris Johnson Staff Participants: Mooky Greidinger Ron Krueger Esther Baruh Jackie Brenneman, General Counsel J.D. Loeks Jose Leonardo Marti Kathy Conroy Joe Paletta Patrick Corcoran John Vincent John Fithian
David Wright Mark Zoradi
Chairman Jacob called the meeting to order for continued discussions on the impact of COVID-19 on industry. He thanked NATO government relations for its strong service.
Ms. Brenneman provided a brief overview of the antitrust statement.
Legislation: Ms. Baruh reported the Senate passed Phase III COVID-19 legislation providing stimulus and financial assistance for business continuity and unemployment insurance. The legislation met the goals of the Executive Board and Government Relations Committee - 1) protect liquidity of members; 2) protect employees during the down time; and 3) support the health provision. Legislation guidance is forthcoming and NATO will provide member education. She noted there is an affiliation exemption in the PP loans for business with NAICS Code ;72 (restaurants). a Code 72 for FDA loans using a restaurant designation.
Ms. Baruh added there will be a Phase IV legislation in 8–10 weeks regarding expansion on paid leave, business interruption insurance and further assistance with
64
Page 85
EXECUTIVE BOARD MINUTES
mortgages. The Board agreed NATO should add an amendment to Code 72 to include movie theaters to next round of lobbying.
Public Relation Efforts: Mr. Corcoran reviewed current press strategies and noted PR will shift its press outreach to discussions of the stimulus relief package as a vital element in local economies. There will be more stories on local theaters and filmmakers supporting theater industry with strategy to help with gift cards. Press messaging will include preserving the theatrical windows. A Public Relations Task Force will be created with PR representatives from theaters, studios and noted filmmakers.
NATO Relief: Ms. Conroy reported that Will Rogers Motion Pictures Association Emergency Grant Program will roll out in two phases: 1) A flat amount per person to furloughed industry hourly and exempt employees with five years’ service in the industry; and 2) A comprehensive application process for individuals with greater needs. The Board noted the fund was vital to continue and NATO should ask for additional funds from regional organizations and other partners.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
65
Page 86
EXECUTIVE BOARD MINUTES
Friday 20 March 2020 DRAFT 1:30 pm - 2:30 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Chairman Ellis Jacob Mike Bowers Vice Chairman Rolando Rodriguez Elizabeth Frank Secretary Jeff Logan Mike Hagan Treasurer Joe Masher John McDonald
Adam Aron Staff Participants: Robert Bagby Bo Chambliss Esther Baruh Dan Harkins Jackie Brenneman, General Counsel Chris Johnson Kathy Conroy Mooky Greidinger Patrick Corcoran Ron Krueger John Fithian J.D. Loeks Jose Leonardi Marti Joe Paletta John Vincent David Wright Mark Zoradi
Chairman Jacob called the meeting to order for continued discussions on the COVID19 as it relates to Congress legislation, public relation efforts related to legislation and the NATO Relief Fund.
Ms. Brenneman provided a brief overview of the antitrust statement.
Legislation: Mr. Fithian is encouraged by phase III stimulus legislation to help individuals and businesses impacted by COVID-19 noting a massive lobbying fight may still happen. Ms. Baruh indicated there is a stage IV stimulus to come with more provisions. A member alert with link to contact members of Congress will be sent urging legislation to advocate for movie theaters in their communities in any relief package.
Public Relation Efforts: Mr. Corcoran will reach out to press noting support of legislation on the table.
66
Page 87
EXECUTIVE BOARD MINUTES
It was moved and seconded that the Executive Board support and approve press statements supporting the legislation. A vote was taken with no opposition and the motion was approved.
Mr. Corcoran added that Rogers & Cowan are expanding their relationship with the creative community for additional public relations. Christopher Nolan, filmmaker, will submit an article to press supporting the movie theater industry. NATO is enlisting support from studios and vendors for financial support for theaters owners. Some theater owners are submitting op-eds to local papers and others are conducting direct news interviews noting how essential it is to keep movie theater businesses viable.
NATO Relief: Ms. Conroy reported there has been positive response to the $1 Million contribution to assist the furloughed employees in exhibition. The Will Rogers Motion Pictures Pioneers Foundation will streamline the application process and set up the structure set up. There is consideration to waive the three year employee requirement to qualify. The goal is to roll out the program next week.
The Canadian Pictures Pioneer Trust Fund are setting up a similar relief program to announce next week. Since the WRMPP do not support Canada, it was recommended that NATO contribute $75,000 which is the proportionate amount by screen count.
It was moved and seconded for NATO to contribute $75,000 to the Canadian Pictures Pioneer Trust Fund as recommended. A vote was taken with no opposition and the contribution was approved.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
67
Page 88
EXECUTIVE BOARD MINUTES
NATO EXECUTIVE BOARD ELECTRONIC VOTE – 17 MARCH 2020
An Executive Board vote to approve a relief fund for industry employees was held on Wednesday, 17 March 2020. See email communication from John Fithian below.
Votes were received by email or phone on Wednesday, 17 March 2020 from the following Executive Board members:
1. Adam Aron 2. Bob Bagby 3. Bo Chambliss 4. Mooky Greidinger 5. Ellis Jacob 6. Chris Johnson 7. Ron Krueger 8. Jeff Logan 9. Jose Leonardo Marti 10. Joe Masher 11. Joe Paletta 12. Rolando Rodriguez 13. John Vincent 14. Dave Wright 15. Mark Zoradi
Votes were not received from the following Executive Board members: 16. Dan Harkins 17. J.D. Loeks
The proposed action to approve a relief fund for industry employees was approved.
68
Page 89
EXECUTIVE BOARD MINUTES
From: John Fithian
Hello Executive Board Members-
Some quick updates and request for your vote in support of one new action/draw from reserves authorization.
Shut Downs
Most domestic companies have or will soon shut down. We know you and your employees are going through hell right now. We are here to help in any way we can.
Executive Board Meetings/Calls
We cancelled yesterday’s call for important reasons. If you have questions, call Jackie at 707-815-7936.
For now the call on Friday at 1:30 pm eastern is on.
Ellis and I believe we should postpone the Executive Board meeting scheduled for March 30. We can consider budgets for NATO and CinemaCon in early June, as our fiscal year doesn’t start until July 1, and we will know a whole lot more in early June than on March 30.
69
Page 90
EXECUTIVE BOARD MINUTES
Legislative Relief Measures are our Priority Right Now
We are focused on legislative relief measures in Congress. You authorized a draw from reserves. We hired a strong law/lobbying form. Nine lobbyists at Akin Gump are working under Esther’s direction. Please respond on Esther’s Exec Board letter if you have not yet done so. Also please respond to targeted grass roots efforts as they go out.
Public Messaging
Patrick has a statement out to you. We will modify that draft to reference the closures. But if you haven’t signed off yet, please do so. We need to issue the statement today.
Relief Fund for Industry Employees
We are in conversations with the Will Rogers Institute about ways we can expand significantly their Bernie Myerson emergency grants for employee short term relief. We will be reaching out to the MPA and studios and perhaps Hollywood guild leaders about possible financial support for such an expanded fund. We believe NATO needs to lead the way on this. Though down significantly from its peak, our reserve fund currently stands at $15.8 million.
ELLIS AND I SEEK YOUR SUPPORT TO AUTHORIZE A DRAW FROM RESERVES OF $1 MILLION AS A PLEDGE TO SUPPORT SUCH AN EFFORT, WHICH WE WOULD THEN USE TO SEEK MATCHING CONTRIBUTIONS AND TO GENERATE MOMENTUM IN THE FUNDRAISING EFFORT. PLEASE RESPOND AS QUICKLY AS POSSIBLE AND LET ME KNOW IF YOU SUPPORT SUCH A MEASURE.
Thanks and stay safe.
John
John Fithian President & CEO National Association of Theatre Owners 1705 N St., N.W. Washington, D.C. 20036 USA +1 202 962 0054
3450 Cahuenga Boulevard West, Suite 410 Los Angeles, CA 90068 USA +1 818 506 1778
70
Page 91
EXECUTIVE BOARD MINUTES
Friday 13 March 2020 DRAFT 1:00 pm-2:00 pm Eastern Via Conference Call
Board Member Participants: Board Members Not Present:
Chairman Ellis Jacob Jose Leonardo Marti Vice Chairman Rolando Rodriguez Treasurer Joe Masher Secretary Jeff Logan
Robert Bagby Other Participants: Mike Bowers (for Dan Harkins) Bo Chambliss Renana Teperberg
Elizabeth Frank (for Adam Aron) Chris Johnson Staff Participants: Mooky Greidinger Ron Krueger Esther Baruh J.D. Loeks Jackie Brenneman, General Counsel Joe Paletta Kathy Conroy John Vincent Patrick Corcoran David Wright John Fithian Mark Zoradi
Chairman Jacob called the meeting to order to continue discussions on film supply and theater operations. The Board will also discuss NATO lobbying the Federal Government for economic relief during the COVID19.
Ms. Brenneman provided a brief overview of the antitrust statement.
Film Supply: Mr. Fithian reported that all studios have postponed major movie releases noting our members will probably lose wide releases through April for now.
Theater Operations: Mr. Greidinger provided an overview of the European cinema experience related to theater closures. Mr. Fithian noted that NATO is working with states and regional localities regarding disbursed seating and social distancing. The Board discussed the following options addressing theater closures: 1) continue to lobby for theaters to stay open; 2) stop advocating with government and educate members; or 3) actively suggest to government to shut down theaters. The Board’s consensus is to continue to follow local government mandates and not close theaters where possible.
71
Page 92
EXECUTIVE BOARD MINUTES
NATO Lobbying to Federal Government: Ms. Baruh is working with NATO’s Government Relations Committee on legislative relief measures in Congress. She reported on two stimulus packages related to employee assistance, payroll tax relief, paid emergency leave and sick leave currently under House review. The Board authorized $500,000 from reserves to enhance the lobby efforts. Ms. Baruh will continue to work with Akin Gump lobbying firm and an expanded team.
The Board agreed to have weekly update calls until otherwise noted.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
72
Page 93
EXECUTIVE BOARD MINUTES
Wednesday 11 March 2020 DRAFT 4:00 pm – 5:30 pm Eastern Via Conference Call
Board Member Participants: Board Member Not Present:
Chairman Ellis Jacob David Wright Vice Chairman Rolando Rodriguez Secretary Jeff Logan Other Participants:
Adam Aron Elizabeth Frank Robert Bagby John McDonald Mike Bowers (for Dan Harkins) Renana Teperberg Bo Chambliss Steve Zuehlke Javier Ezquerro (for Jose Leonardo Marti) Staff Participants: Mary Ann Frank (for Chris Johnson) Mooky Greidinger Kathy Conroy Ron Krueger John Fithian J.D. Loeks Mitch Neuhauser Joe Paletta Matt Pollock Ike Rivera (for Treasurer Joe Masher) John Vincent Mark Zoradi
Mr. Jacob called the meeting to order to continue discussions on film supply, theater operations and CinemaCon during the Coronavirus crisis.
Mr. Fithian provided a brief overview of the antitrust statement.
Film Supply: Mr. Jacob discussed the delay in both global releases of No Time to Die and Peter Rabbit 2: The Runaway movies. Major studio executives are getting pressure from their partners to move release dates. NATO is in touch with distributors encouraging a continued supply of movies, noting there is no need for simultaneous global releases. Mr. Rodriguez suggested it would be helpful for studios to communicate positive messaging on film supply.
Theater Operations: The World Health Organization (WHO) declared Coronavirus as pandemic. Mr. Fithian reported on theater markets with complete and partial closures and others with massive decline in business. To date, North America is not affected with closures. However, mass gathering prohibitions and state of emergencies will affect some cinema operations, but not all. Mr. Fithian reviewed NATO theater operational protocols in the U.S. Mr. Rodriguez discussed economic relief discussions 73
Page 94
EXECUTIVE BOARD MINUTES
in other territories and suggested a federal government relief package should be discussed for affected theater employees. The Board agreed this should be part of the government relations strategy.
CinemaCon Update - Mr. Fithian reported the convention received increased international registration and booth cancellations. Many studios decided to scale down their participation. At this point, the decisions for consideration are to 1) move forward, 2) cancel International Day or 3) postpone convention for a larger program at the NATO Fall Summit. Mr. Zoradi discussed potential cancellation risks such as negative public relations and more studios postponing release dates. The CinemaCon team will review all convention deadline dates including Caesars Palace cancellation insurance clause and the event insurance policy.. There was no decision and the Board will continue to deliberate and revisit on 13 March 2020.
It was moved and seconded to adjourn the meeting. A vote was taken and the meeting was adjourned.
74
Page 95
EXECUTIVE BOARD MINUTES
NATO EXECUTIVE BOARD ELECTRONIC VOTE – 11 March 2020
An Executive Board vote to cancel CinemaCon 2020, and to release a proposed statement, was held on Wednesday night, 11 March 2020. See email communication from John Fithian below.
Votes were received by email or phone on Wednesday, 11 March 2020 from the following Executive Board members: 1. Adam Aron 2. Ellis Jacob 3. Rolando Rodriguez 4. Mike Bowers (for Harkins Theatres) 5. Bob Bagby 6. Bo Chambliss 7. Ron Krueger 8. J.D. Loeks 9. Joe Masher 10. Jeff Logan 11. Dave Wright 12. Chris Johnson
Votes were received by email or phone on Thursday, 12 March 2020 from the following Executive Board members: 13. Mooky Greidinger 14. Mark Zoradi 15. Joe Paletta 16. John Vincent
No vote was received from: 17. Jose Leonardo Marti The proposed action to cancel CinemaCon 2020 and the proposed statement were approved.
75
Page 96
EXECUTIVE BOARD MINUTES
From: John Fithian
Hello Executive Board Members-
Thank you for participating in the call earlier today. Given the announcement by President Trump that all flights from Europe will be suspended soon, we believe we cannot wait until Friday to cancel CinemaCon. We are being flooded with calls and inquiries and given the President’s action, combined with the WHO pandemic declaration today, we believe we must act now.
Chairman Ellis Jacob and Vice Chairman Rolando Rodriguez recommend that we cancel as soon as possible. A proposed statement is below. Once we have the requisite number of votes affirming this decision, we will release the statement.
I implore you, please, do not try to wordsmith and edit the statement unless something is fundamentally wrong.
Here is the proposed statement:
“It is with great regret we are announcing the cancellation of CinemaCon 2020. Each spring, motion picture exhibitors, distributors and industry partners from around the world meet in Las Vegas to share information and celebrate the moviegoing experience. This year, due to the travel ban from the European Union, the unique travel difficulties in many other areas of the world and other challenges presented by the Coronavirus
76
Page 97
EXECUTIVE BOARD MINUTES
pandemic, a significant portion of the worldwide motion picture community is not able to attend CinemaCon. While local outbreaks vary widely in severity, the global circumstances make it impossible for us to mount the show that our attendees have come to expect. After consultation with our attendees, trade show exhibitors, sponsors, and studio presenters, NATO has decided therefore to cancel CinemaCon 2020. We look forward to continuing the 10-year tradition of presenting the largest movie theater convention in the world and joining our attendees in future celebrations of the moviegoing experience.
Please reply ASAP and let us know if you approve of this decision and this statement. John Fithian
77
Page 98
EXECUTIVE BOARD MINUTES
Wednesday 4 March 2020 DRAFT 12:30 pm – 1:00 pm Eastern Via Conference Call
Board Member Participants: Other Participants:
Adam Aron Paul Farnsworth Robert Bagby Anne Fitzgerald Mike Bowers (for Dan Harkins) Elizabeth Frank Mike Cavalier (for Mark Zoradi) Sean Gamble Bo Chambliss Emily Loeks Javier Ezquerro (for Jose Leonardo Marti) Michael Kennedy Chris Johnson Ryan Noonan Michael Kennedy (for Chairman Ellis Jacob) Ron Krueger J.D. Loeks Jeff Logan (Secretary) Staff Participants: Joe Masher (Treasurer) Joe Paletta Jackie Brenneman (General Counsel) Rolando Rodriguez (Vice Chairman) Phil Contrino Renana Teperberg (for Mooky Greidinger) Kathy Conroy John Vincent Patrick Corcoran David Wright John Fithian
John Fithian requested a meeting to discuss film distribution decisions, theater operations and public relations in the time of the CoronaVirus.
Mr. Fithian reported that MGM/UA will announce a delay in the global release of “No Time to Die” movie. NATO intends to release a statement regarding the delay after MGM’s official announcement. Mr. Corcoran will revise a NATO statement based on the
Board’s feedback addressing theater operations. The NATO statement will be provided to reporters that contact NATO.
CinemaCon Update - Mr. Fithian noted the CinemaCon team are in frequent contact with the major studios participating at CinemaCon. Warner Bros. may scale back attendance as their domestic travel has to be cleared. The 2020 registration numbers are in line with 2019 to date (noting low registrations are expected from Asian countries). As of today, the CDC announced the Coronavirus risk remains low for Americans.
78
Page 99
EXECUTIVE BOARD MINUTES
Thursday 27 February 2020 DRAFT 3:00 pm – 4:00pm Eastern Via Conference Call
Member Participants: Members Not Present:Robert Chairman Ellis Jacob Jose Leonardo Marti Vice Chairman Rolando Rodriguez David Wright Secretary Jeff Logan Treasurer Joe Masher NATO Committee of Counsel: Kevin Connor Robert Bagby Anne Fitzgerald Mike Bowers (for Dan Harkins) Josh Welsh (for Thomas Kissinger) Bo Chambliss Stephen Colanero & Frank Ybarro Staff Participants: (for Adam Aron) Jackie Brenneman (General Counsel) Mooky Greidinger Kathy Conroy Chris Johnson Patrick Corcoran Ron Krueger John Fithian J.D. Loeks Joe Paletta NATO Consultant John Vincent Randy Smith Mark Zoradi
Chairman’s Opening Remarks – Chairman Jacob called the meeting to order to discuss the effect of Coronavirus to date on exhibition operations around the world.
Antitrust Overview - Ms. Brenneman provided a brief overview of the antitrust statement.
CinemaCon Update - Mr. Fithian reported CinemaCon sent a memo on 26 February 2020 to its database regarding an update on CinemaCon 2020 and the Coronavirus confirming the convention will be held as planned. He noted that all participating studios have not objected. Registration and booth sales continue to sell.
Effect of the Coronavirus on Exhibition Operations -
Mr. Fithian discussed: NATO’s priorities continue to be the safety of guests and employees, protecting members against liability exposure and ticket sales, in that order. Encouraged and mandated theater closures in China, Korea and Italy and anticipated expansion of problems in other European territories. 79
Page 100
EXECUTIVE BOARD MINUTES
CDC in US reporting a need for substantial increase in cases before closures become a possibility. Various notices within health agencies as well as concerns from local health departments such as LA County Department of Public Health. Potential concern of supply of movie distribution for global versus local releases.
Reduce Liability and Maintain Ticket Sales -
Mr. Fithian reported that NATO: Distributed materials on Pandemic Preparedness to members on 31 January 2020 to address safety of patrons and employees. Remains in contact with CDC and health officials to maintain messaging on facts not fear. NATO will work with health officials to broaden messaging to avoid specific targets on exhibition. Follows government guidance - distribute government messaging as available. Encourages regional leaders to be in contact with local health offices. Responds to press inquiries only. Will work with studios to encourage continued film supply.
80
Page 101
EXECUTIVE BOARD MINUTES
Monday, 24 February 2020 DRAFT
Executive Board electronic consideration and vote re: CinemaCon 2020 Continuation Plan
On Monday, February 24, John Fithian distributed via email a draft plan (attached as exhibit A) to the Executive Board and Committee of Counsel members regarding the coronavirus and CinemaCon. The email responses of the Board members were as follows:
Support for the Plan Opposed to the Plan
Adam Aron (via Kevin Connor) None Bob Bagby Bo Chambliss Not Voting Mooky Greidinger Dan Harkins (via Mike Bowers) J.D. Loeks Ellis Jacob Jose Marti Chris Johnson Ron Krueger Jeff Logan Joe Masher Joe Paletta Rolando Rodriguez John Vincent David Wright Mark Zoradi (via Mike Cavalier)
Having received the support of 15 of 17 Board members by Wednesday, February 26, the NATO and CinemaCon teams began to execute the plan. A letter describing the plan (attached as Exhibit B) was distributed to all NATO members and to all industry contacts in the CinemaCon database from Convention Managing Director Mitch Neuhauser and NATO President John Fithian on February 26.
81
Page 102
EXECUTIVE BOARD MINUTES
Exhibit A
CONFIDENTIAL COMMUNICATION
24 February 2020
To: NATO Executive Board and Committee of Counsel Members From: John Fithian Re: CinemaCon and the Coronavirus
This memorandum provides an update on issues related to CinemaCon and the COVID-19 (“Coronavirus”) and recommends a course of action going forward. Specifically, the NATO and CinemaCon management team recommend that CinemaCon 2020 take place as planned, with the additional steps outlined below. PLEASE RESPOND ASAP WITH EITHER YOUR SUPPORT FOR THIS PROPOSED COURSE OF ACTION, OR WITH YOUR SUGGESTIONS FOR ANY CHANGES TO THE COURSE OF ACTION.
Recommended Course of Action - CinemaCon take place as planned on March 30 – April 2 unless substantially changed circumstances dictate otherwise
- CinemaCon and NATO management staff engage key convention supporters, such as the motion picture distributors, to inform them of this recommended course of action and seek their thoughts
- NATO and CinemaCon closely monitor COVID-19 and prepare to devote whatever resources may be necessary to ensure a safe and productive CinemaCon 2020 experience
- As part of that monitoring process, NATO and CinemaCon remain in close contact with the Centers for Diseases Control (CDC), the World Health Organization (WHO) and other relevant health and governmental organizations, and follow any guidance given
- NATO and CinemaCon remain in close contact with the Las Vegas Convention & Visitors Authority, Las Vegas health and safety officials, and Caesars Palace to coordinate any appropriate safety procedures for the show
82
Page 103
EXECUTIVE BOARD MINUTES
- NATO remain in contact with the American Society of Association Executives to monitor the plans and procedures of other trade associations hosting large conventions or conferences over the next few months
- CinemaCon communicate to convention and trade floor registrants that any individual or organization based in a country with travel restrictions due to the Coronavirus will receive a full refund and our best wishes to see them at CinemaCon 2021
- CinemaCon issue a public statement about certain key elements listed above, similar to the attached statement from the National Association of Broadcasters.
Background - COVID-19, more commonly called the Coronavirus, has been widely covered in the national and international media
- CinemaCon preparations for our convention on March 30 – April 2 are fully underway: registration numbers are similar to the same time last year; film studio and trade show participants are making plans for the show; and the program is almost fully established.
- Nonetheless, NATO and CinemaCon have received a small number of inquiries regarding the possible impact of the Coronavirus on the show. One NATO member from South America has recommended that NATO cancel the convention.
- NATO and CinemaCon have been closely monitoring the situation, including regular conference calls with the CDC and other health officials, as well our partners in Las Vegas.
- NATO and CinemaCon note that all other significant conventions or shows scheduled in Las Vegas over the next few months are still planning to hold their events, including the ConExpo construction convention on March 10 - 14, and the previously mentioned NAB convention on April 18 – 22.
- NATO and CinemaCon have also been in contact with our insurance providers in an abundance of caution, though we do not intend for costs to be a lead factor in the execution of the recommended plan described above. Safety and productivity of our convention participants will be the most important consideration.
83
Page 104
EXECUTIVE BOARD MINUTES
- NATO and CinemaCon management staff believe that our plans going forward should be based on logical risk assessments and advice from health officials, and not from fear.
- The management team also believes that a decision to cancel our convention based on fear and not logical risk assessments and advice from health officials would send a false and damaging message to the public about movie theater attendance as well.
- Nonetheless, NATO and CinemaCon would respect the decision of any potential attendee not to attend the convention, and we will extend the final registration cancellation date from March 2 to March 23. Attachment
NABShow.com | Newsroom | News Releases | @NABNewsroom
FOR IMMEDIATE RELEASE Ann Marie Cumming February 19, 2020 (202) 429-5350 @AnnMarieCumming
NAB Affirms 2020 NAB Show Is Set for April; Devotes Resources to Address Coronavirus Concerns
WASHINGTON, D.C. -- The National Association of Broadcasters (NAB), organizer of NAB Show, affirmed the 2020 NAB Show is set to take place as planned, April 18 – 22 in Las Vegas. The association is closely monitoring COVID-19, commonly known as coronavirus, and is prepared to devote whatever resources necessary to ensure a safe and productive NAB Show experience.
NAB Show is the premier event driving the evolution of media and entertainment. It is an engine for commerce and a critical launchpad for products and services expected to revolutionize the business. The convention’s 1,600 exhibitors and 90,000 attendees rely on the annual NAB Show to raise their profile and meet business goals.
84
Page 105
EXECUTIVE BOARD MINUTES
While the NAB stands firm in its commitment to hold the convention as planned, the health and safety of attendees and participants are NAB’s top priority. To that end, NAB is dedicated to providing rapid responses and assistance in support of the global NAB Show community’s participation plans. The event management team has launched a COVID-19 resource page on the NAB Show website, where updates will be provided.
Currently, NAB is:
Adhering to all guidance and recommended safety measures issued by the World Health Organization and the Centers for Disease Control and Prevention (CDC), as well as state and local health organizations. Working with the Las Vegas Convention Center, the airport authority, and area hotels and resorts to coordinate appropriate safety procedures. Following CDC recommendations and protocols for heightened levels of cleanliness at event facilities. Making accommodations and actively encouraging attendees to take common-sense precautions and follow CDC guidelines to prevent the spread of illness. Ensuring medical care is readily accessible to address immediate health concerns. Working with China-based exhibitors and registered attendees to evaluate options for those unable to attend due to travel restrictions. Of note, NAB Show attendance from China, although growing, represented less than 2 percent of total registered attendees in 2019.
NAB is taking COVID-19 very seriously and is fully invested and prepared to host a successful NAB Show in Las Vegas. The city of Las Vegas is maintaining rigorous cleanliness and safety standards throughout public spaces, resorts and meeting facilities, and hosts successful trade events daily. Meanwhile, NAB Show has experienced an uptick in exhibit sales, attendee registration and hotel bookings in recent weeks, and conference program speakers are confirmed daily.
For more information about NAB Show’s COVID-19 preparedness and updates, visit nabshow.com/coronavirus.
85
Page 106
EXECUTIVE BOARD MINUTES
About NAB Show
NAB Show, held April 18-22, 2020, in Las Vegas, NV, USA, is the world's largest and most comprehensive convention encompassing the convergence of media, entertainment and technology. With more than 90,000 attendees from 160 countries and 1,600+ exhibitors, NAB Show is the ultimate marketplace for solutions that transcend traditional broadcasting and fuel the digital storytelling economy. From creation to consumption, across multiple platforms and countless nationalities, NAB Show is where global visionaries convene to bring content to life in new and exciting ways. For complete details, visit www.nabshow.com.
About NAB
The National Association of Broadcasters is the premier advocacy association for America's broadcasters. NAB advances radio and television interests in legislative, regulatory and public affairs. Through advocacy, education and innovation, NAB enables broadcasters to best serve their communities, strengthen their businesses and seize new opportunities in the digital age. Learn more at www.nab.org.
86
Page 107
EXECUTIVE BOARD MINUTES
Exhibit B
To: NATO Members and All Other Participants in CinemaCon 2020 From: John Fithian (NATO) Mitch Neuhauser (CinemaCon) Re: CinemaCon 2020 and the Coronavirus Date: February 26, 2020
This memorandum provides an update on issues related to CinemaCon 2020 and the COVID-19 (“Coronavirus”).
We are closely monitoring the Coronavirus situation and want to confirm for you that CinemaCon 2020 will be held as planned and will be a great show. We also want to let you know that the safety and productivity of our attendees remains our highest priority.
The NATO and CinemaCon management teams have been in regular contact with the Centers for Disease Control (CDC) and other health officials. Based on those consultations and the CDC’s public reports we provided an extensive update earlier this week to the NATO Executive Board. With this information, and additional factors described below, the Executive Board decided that CinemaCon 2020 should go on as planned and that all appropriate measures will be taken to ensure the safety and productivity of our delegates and supporters. Team CinemaCon is hard at work putting together what we know is going to be a terrific show.
There are many factors in play as it concerns this decision, including:
NATO and CinemaCon believe that our plans going forward should be based on logical risk assessments and advice from health officials, and not from fear. At the same time, we want to be sensitive to the legitimate concerns of those people and companies that have been affected by the virus, most notably in Asia and a few other affected territories.
We fully respect the decision of any potential attendee not to attend the convention. Most of that impact will come from some international attendees. We have already seen this from those areas hardest hit in China. Nonetheless, our weekly registration numbers are tracking evenly with where we were at this time last year. On the trade floor, those Chinese companies who were to be on hand have all made a decision not to attend CinemaCon 2020, primarily because of travel bans that are in place. This amounts to approximately two dozen attendees. We know that some other delegates contemplating attending the show may choose not to attend or may not be able to. We want to assure those affected participants that any organization or individual based in a country with travel restrictions due to the Coronavirus will receive a full refund. 87
Page 108
EXECUTIVE BOARD MINUTES
Organization (WHO) and other relevant health and governmental organizations. We will follow their direction and guidance where appropriate.
We have been in close contact with the Las Vegas Convention & Visitors Authority, Las Vegas health and safety officials, and Caesars Palace to coordinate all appropriate safety procedures for the show. Indeed the CinemaCon management team are in Vegas this week holding those discussions.
An encouraging measure of the impact of Coronavirus is that the number of concerned emails or phone calls coming to us are minimal. We are, though, inundated with our normal number of emails and calls that are all about the planning of the convention.
From a programming standpoint, all of our Colosseum events from studios are now fully locked in place, as we have Disney, Focus Features, Lionsgate, NEON, Paramount, Universal (presentation and screening) and Warner Bros. (presentation and screening) all confirmed for nine total events. We have been in contact with our studio partners and they support our decision to move forward with the show as planned.
The trade show, even with the Chinese exhibitors not attending, is 99% sold out and the rest of our programming is right on par.
We are also in contact with the American Society of Association Executives to monitor the plans and procedures of other trade associations hosting large conventions or conferences over the next few months. For example, right here in Las Vegas, the two major conventions in the same time frame are moving forward with their plans - ConExpo (March 10 – 14) and the NAB Show (April 18 – 22). Indeed, we know of no convention in Las Vegas that has plans to cancel their event.
NATO and CinemaCon will continue to address this ongoing situation in as respectful and intelligent a fashion as possible. We have every expectation of a successful and well-attended CinemaCon 2020 celebrating the moviegoing experience.
On behalf of NATO and CinemaCon, we thank you for taking the time to review all of this and please, if you have thoughts or comments, we urge you to call us and to keep this dialogue going.
All the very best,
John Fithian Mitch Neuhauser 88
Page 109
EXECUTIVE BOARD MINUTES
89
Page 110