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Full title: Affidavit filed by Creditor Craig Cheesman (RE: related document(s)549 Motion for relief from stay to Continue Prosecution of State Court Action Fee amount $188,). (Attachments: # 1 Exhibit 1. Complaint # 2 Exhibit 2 Case Summary) (Hersh, Susan)

Document posted on Mar 14, 2021 in the bankruptcy, 9 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

IN SUPPORT OF MOTION FOR RELIEF FROM AUTOMATIC STAY 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546) (“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX, LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC (1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVIII, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLVI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XLVIII, LLC (8601); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts LIII, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV, LLC (4699); Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363); Movie Grill Partners 6, LLC (3334); and MGC ManagementIN SUPPORT OF MOTION FOR RELIEF FROM AUTOMATIC STAY 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546) (“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793)

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Susan B. Hersh (SBN 09543925) Gregory M. Salvato (Cal. Bar No. 126285) SUSAN B. HERSH, P.C. SALVATO BOUFADEL, LLP 12770 Coit Road, Suite 1100 777 South Figueroa Street, Suite 2800 Dallas, Texas 75251 Los Angeles, California 90017-5826 Telephone: (972) 503-7070 Telephone: (213) 484-8400 Facsimile: (972) 503-7077 Applicant for admission Pro Hac Vice Attorneys for creditor CRAIG CHEESMAN UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: § Case No. 20-32633-SGJ § STUDIO MOVIE GRILL § Chapter 11 HOLDINGS, LLC, et al., § § Jointly Administered Debtors.1 § § Preliminary Hearing set for March 25, § 2021 at 1:30 p.m. AFFIDAVIT OF PAUL HIRSCH, ESQ. IN SUPPORT OF MOTION FOR RELIEF FROM AUTOMATIC STAY 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546) (“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX, LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC (1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVIII, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLVI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XLVIII, LLC (8601); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts LIII, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV, LLC (4699); Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363); Movie Grill Partners 6, LLC (3334); and MGC Management I, LLC (3224).

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Susan B. Hersh (SBN 09543925) Gregory M. Salvato (Cal. Bar No. 126285) SUSAN B. HERSH, P.C. Joseph Boufadel (Cal. Bar No. 267312) 12770 Coit Road, Suite 1100 SALVATO BOUFADEL LLP Dallas, Texas 75251 777 South Figueroa Street, Suite 2800 Telephone: (972) 503-7070 Los Angeles, California 90017-5826 Facsimile: (972) 503-7077 Telephone: (213) 484-8400 Applicant for admission Pro Hac Vice Attorneys for creditor CRAIG CHEESMAN UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: § Case No. 20-32633-SGJ § STUDIO MOVIE GRILL § Chapter 11 HOLDINGS, LLC, et al., § § Jointly Administered Debtors.1 § § Preliminary Hearing set for March 24, § 2021 at 1:30 p.m. AFFIDAVIT OF PAUL HIRSCH, ESQ. IN SUPPORT OF MOTION FOR RELIEF FROM AUTOMATIC STAY 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546) (“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX, LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC (1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVIII, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLVI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XLVIII, LLC (8601); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts LIII, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV, LLC (4699); Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363); Movie Grill Partners 6, LLC (3334); and MGC Management I, LLC (3224).

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AFFIDAVIT OF PAUL HIRSCH, ESQ. I, Paul Hirsch, being duly sworn under oath, and under penalty of perjury, states as follows: 1. I am an attorney licensed to practice law before all courts of the State of California. I am a partner at Brock & Gonzales, LLP, counsel for Plaintiff Craig Cheesman (“Movant” or “Cheesman”) in the California Superior Court employment action entitled, Craig Cheesman v. Movie Grill Concepts Trademark Holdings LLC, et al., Placer Superior Court Case No. S-CV-0045071, before the Superior Court of the State of California, County of Placer. I submit this affidavit in support of Cheesman’s Motion for Relief from the Automatic Stay to Continue Prosecution of State Court Action (the “Motion”). I have personal knowledge of the facts set forth in this declaration/affidavit and if called as a witness I could, and would, testify competently to such facts. 2. I am one of the custodians of the books, records and files of Movant as to those books, records and files that pertain to the State Court Action. I have personally worked on books, records and files, and as to the following facts, I know them to be true of my own knowledge or I have gained knowledge of them from the business records of Movant on behalf of Movant, which were made at or about the time of the events recorded, and which are maintained in the ordinary course of Movant’s business at or near the time of the acts, conditions or events to which they relate. Employment Action Pending in California Superior Court 3. Movant is the plaintiff in the pending pre-petition California Superior Court employment action against Debtor Movie Grill Concepts Trademark Holdings, LLC entitled, Craig Cheesman v. Movie Grill Concepts Trademark Holdings LLC, et al., Placer Superior Court

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Case No. S-CV-0045071, before the Superior Court of the State of California, County of Placer (the “State Court Action”). 4. The State Court Action commenced pre-petition on June 22, 2020. (Exhibits 1 & 2). 5. In the State Court Action, Movant has pleaded causes of action against Debtor Movie Grill Concepts Trademark Holdings LLC for (1) discrimination in violation of California’s Fair Employment Housing Act (FEHA); (2) failure to accommodate in violation of the FEHA; (3) failure to engage in the interactive process in violation of the FEHA; (4) retaliation in violation of the FEHA; (5) failure to prevent violation of the FEHA; and (6) wrongful termination in violation of California public policy. (Exhibit 1). 6. A true and correct copy of Movant’s Complaint filed on June 22, 2020 in the State Court Action against Debtor Movie Grill Concepts Trademark Holdings, LLC is appended to the concurrently filed appendix as Exhibit 1. 7. On September 11, 2020, Debtor filed its Answer in the State Court Action. Debtor also retained counsel Aaron H. Cole of Ogletree, Deakins, Nash, Smoak & Stewart, P.C. in Los Angeles, California as its employment defense counsel in the State Court Action. (Exhibit 2). I am informed and believe Ogletree, Deakins, Nash, Smoak & Stewart, P.C has been retained and approved by this Bankruptcy Court as an ordinary course professional to represent the Debtor in its employment litigation matters. (Doc. No. 332 at p. 6). 8. On or around January 15, 2021, I accessed the online “Case Access” docket for the Superior court of California, County of Placer at https://webportal.placerco.org/eCourtPublic/. Through the web portal, I was able to access the case docket summary for the State Court Action by searching for Case No. S-CV-0045071. A

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true and correct copy of the case docket summary in the State Court Action is appended to the concurrently filed appendix as Exhibit 2. 9. Numerous grounds exist to grant relief from the automatic stay: a. I seek to recover from and to the extent of applicable insurance coverage available. I am informed and believe that the Debtor is covered by an Employment Practices Liability insurance policy issued by Chubb. (Doc. No. 10 at p. 9, internal Exhibit A). b. Debtor’s participation in the State Court Action will not prejudice the Debtor nor will it diminish or dissipate the assets of the estate. To be clear, Movant seeks relief from the automatic stay for the limited purpose of permitting him to continue prosecution of the State Court Action to judgment and appeal, if necessary, in order to liquidate his claims. c. Movant seeks relief from the automatic stay only to obtain a judgment, not to enforce it against the property or estate of the Debtor. d. Debtor has retained employment defense counsel and has appeared in the State Court Action. I am informed and believe that Debtor’s employment litigation defense counsel—Ogletree Deakins—has already been approved by the Bankruptcy Court as an ordinary course professional. (Doc. No. 332 at p. 6). e. The employment claims pleaded in the State Court Action are based entirely on California state law. California Superior Court is the appropriate forum with the appropriate expertise in which to have those issues heard and resolved. f. Importantly, I have demanded a jury trial on behalf of Movant in the State Court Action. (Exhibit 1).

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ACKNOWLEDGMENT

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CERTIFICATE OF SERVICE The undersigned hereby certifies that a true and correct copy of the Affidavit of Paul Hirsch, Esq. in Support of Motion for Relief from the Automatic Stay to Continue Prosecution of State Court Action was served electronically via this Court’s CM/ECF System upon the parties entitled to such notice on this the _____ day of March, 2021. Susan B. Hersh