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HOLLYWOOD CHAMBER OF COMMERCE REACHES AGREEMENT WITH THE ATTORNEY GENERAL'S OFFICE AND THE CITY OF LOS ANGELES

 HOLLYWOOD CHAMBER OF COMMERCE REACHES AGREEMENT
 WITH THE ATTORNEY GENERAL'S OFFICE AND THE CITY OF LOS ANGELES
 HOLLYWOOD, Calif., March 11 /PRNewswire/ -- The following is being released by the Hollywood Chamber of Commerce:
 The Hollywood Chamber of Commerce is pleased to announce that following months of negotiations, it has successfully reached an agreement with the California Attorney General and the City of Los Angeles concerning the two trusts established to maintain the Hollywood Sign and The Walk of Fame -- two of Hollywood's best-known landmarks. The Chamber had set up these trusts following its successful effort to rebuild the Hollywood Sign in 1978, as it saw a need to have a consistent source of funds to repair and maintain these landmarks.
 "Instead of a lawsuit that could have depleted the Chamber's resources for other community projects, we have a 'win-win-win' result for the city, the Chamber and the state," said Brooke Knapp, president of the Chamber. "This settlement strengthens the financial condition of the trusts which the Chamber has established to support these historic landmarks and begins a new partnership between the Chamber and the city."
 On Nov. 1 of last year, Attorney General Lungren had filed a lawsuit alleging that in the mid 1980s the Chamber and several individuals had failed to pay the proper interest on a loan made by the trusts to the Chamber and had misallocated funds which should have been contributed to the trusts. The city subsequently sought to intervene in that lawsuit.
 The Chamber took the position that it had properly accounted for the monies to which the trusts were entitled and that the claims were not the result of any intentional misconduct but honest differences of opinion, according to Bill Wegner of Gibson, Dunn & Crutcher, attorneys for the Chamber. Indeed, approximately $98,000 of the amount in the dispute was attributable to the Chamber's paying simple, instead of compound, interest on a loan which the Chamber had repaid to the trusts. Other amounts in dispute concerned whether the Chamber or the trusts were entitled to royalties from the licensing of the Chamber's registered trademarks on the Hollywood Sign and the Walk of Fame.
 The Hollywood Chamber of Commerce, City and Attorney General always agreed that the Hollywood Chamber of Commerce was greatly responsible for the existence of both the Hollywood Sign and Walk of Fame and that all the parties had but one shared interest in bringing the lawsuit and settling it -- the preservation of these great landmarks and the financial security of the Hollywood Sign and Walk of Fame Trusts.
 With that in mind, the parties agreed that:
 1. The Hollywood Chamber of Commerce will pay the trusts $224,464 -- a full amount that the Attorney General's office had concluded was due to the trusts;
 2. The Hollywood Chamber of Commerce will resign as the sole trustee on the trusts and, in the future, appoint seven of nine trustees on each of the trusts;
 3. The city will appoint a city official or employee as the remaining two trustees for each trust;
 4. The Hollywood Chamber of Commerce remains the exclusive holder of the trademarks on the Hollywood Sign and the Walk of Fame while granting special permission for the city to use the trademarks for official, non-commercial purposes;
 5. The Chamber has agreed to a formula which will enhance the trusts' financial condition even after the Chamber completes its payment obligations negotiated by the Attorney General. The Chamber will pay 30 percent of its net revenues from its trademarks to the trusts whenever the trusts' balances fall below a specified minimum amount, and the trusts will share in 10 percent of any net revenues in excess of $100,000 in any year in which the Chamber is not otherwise making net royalty revenue payments to the trusts;
 6. The Attorney General's office will dismiss the complaint against the Hollywood Chamber of Commerce and the other individuals named in the complaint; and,
 7. The settlement expressly acknowledges that the Hollywood Chamber of Commerce does and always maintained that there was no wrongdoing on its part.
 The transactions that gave rise to this complaint took place years ago. The Hollywood Chamber of Commerce is now under new leadership and considers the resolution of this lawsuit a new beginning.
 "We at the Hollywood Chamber of Commerce are thrilled to have come to this agreement with the Attorney General and with the city. With the help of Gibson, Dunn & Crutcher, we have cleared the Chamber's good name and reputation. It is now time to move forward. It is time to sharpen our focus on the quality of life and business in our community and it is time to advance our objective of maintaining Hollywood as the entertainment capital of the world," stated Knapp, president of the Hollywood Chamber of Commerce.
 -0- 3/11/92
 /CONTACT: Ana Martinez-Holler of the Hollywood Chamber of Commerce, 213-469-8311/ CO: Hollywood Chamber of Commerce ST: California IN: ENT SU:


DM-JL -- LA031 -- 7588 03/11/92 20:50 EST
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Date:Mar 11, 1992
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