
                                                                  Exhibit 99.4

                                             Family Settlement Agreement Escrow

                                ESCROW AGREEMENT

     This Escrow  Agreement is entered into on August 15, 1997, by and among (i)
Stanley H.  Durwood,  individually,  and as trustee  of the 1992  Durwood,  Inc.
Voting Trust dated  December  12, 1992 (the "1992  Trust") and as trustee of the
Trust created  pursuant to the Stanley H. Durwood Trust  Agreement  dated August
14, 1989 (the "1989 Trust"),  Carol D. Journagan,  Edward D. Durwood,  Thomas A.
Durwood,  Elissa D.  Grodin,  Brian H. Durwood and Peter J. Durwood (all persons
and  entities  listed in this clause (ii) are referred to herein as the "Durwood
Parties") and (ii) Mercantile  Bank of Kansas City, a state banking  corporation
chartered in Missouri (the "Escrow Agent").

     WHEREAS,  the Durwood  Parties are parties to a Durwood  Family  Settlement
Agreement dated as of January 22, 1996 as amended (the  "Settlement  Agreement")
and,  together  with  AMC  Entertainment  Inc.   ("AMCE"),   are  parties  to  a
Registration   Agreement  dated  as  of  August  15,  1995  (the   "Registration
Agreement"); and

     WHEREAS,  pursuant to the  Registration  Agreement the Durwood Parties have
agreed to sell at least 3,000,000 shares of Registerable  Securities (as therein
defined) in a registered  secondary  offering to occur after six months from the
date hereof but prior to the  expiration of twelve months after the date hereof,
and pursuant to Section 7(a) of the Settlement  Agreement,  the Durwood  Parties
have agreed to deposit in escrow the shares to be offered by them in a secondary
offering; and

     WHEREAS,  the Escrow Agent is willing to establish an escrow account on the
terms and subject to the conditions hereinafter set forth;

     NOW,  THEREFORE,  in  consideration  of the premises  and mutual  covenants
herein contained, the parties hereto agree as follows:

     1. The Escrow Agent hereby acknowledges receipt of one or more certificates
representing the shares of AMCE Common Stock and Class B Stock listed on Exhibit
A hereto (the  "Shares") and one or more related stock powers  executed in blank
with signatures  guaranteed ("Stock Power") from the Durwood Party whose name is
set forth next to such  Shares on Exhibit A, in escrow,  pursuant to this Escrow
Agreement.  The  Durwood  Party  placing  Shares  and Stock  Powers in escrow is
referred to herein as the "Owner" of such  Shares and of all  Additional  Shares
(as defined below) issued or paid as dividends or other distributions thereon or
with respect thereto.  The Escrow Agent agrees to hold and dispose of the Shares
and Stock Powers and any Additional  Shares and Stock Powers in accordance  with
the terms and conditions of this Escrow Agreement.

                                        1

<PAGE>

     2. The Escrow  Agent shall hold the Shares and all shares of capital  stock
of AMCE or other securities  issued or paid as dividends or other  distributions
on the Shares,  any shares  issued upon  conversion  of the Shares  ("Additional
Shares") and all Stock Powers  delivered  hereunder and release them only as set
forth in Section 3 below.

     All dividends and other  distributions  (other than  Additional  Shares) on
Shares received by the Escrow Agent will be immediately distributed to the Owner
of such Shares by mailing the same to his or her respective address specified in
or in the manner provided in Section 9. Each Durwood Party  severally  agrees to
immediately  forward to the Escrow  Agent for  deposit in escrow all  Additional
Shares  received by such Durwood  Party and related Stock Powers with respect to
Shares remaining in escrow hereunder.

     The Escrow Agent shall maintain a ledger setting forth the number of Shares
placed in escrow by each  Durwood  Party  and all  Additional  Shares  issued in
respect of such Shares and deposited in escrow.

     3. The Escrow  Agent shall  distribute  the Shares,  Additional  Shares and
related Stock Powers as follows:

     (a) Shares of Class B Stock and the related Stock Powers may be surrendered
to AMCE in exchange for shares of Common Stock issued to the Owner  thereof upon
conversion of the Class B Stock by such Owner and a related Stock Power.

     (b) Subject to paragraphs (c) and (d) below, all Shares,  Additional Shares
and related  Stock Powers shall be released from escrow and  distributed  to the
Durwood  Party  that is the  Owner  thereof  by  mailing  the same to his or her
respective  address specified in or in the manner provided in Section 9 promptly
following the first anniversary of the date hereof.

     (c) Shares,  Additional  Shares and related  Stock Powers shall be released
from  escrow,  in whole or in part,  (i) to the managing  underwriters  selected
under the  Registration  Agreement  upon the Escrow  Agent's  receipt of a joint
written notice from a majority of the Durwood  Parties,  in accordance with such
notice,  and (ii) from time to time upon the Escrow  Agent's  receipt of a joint
written notice from all the Durwood Parties, in accordance with such notice. For
purpose of clause  (i),  each  Durwood  Party  shall  have one vote,  Stanley H.
Durwood,  the 1992 Trust and the 1989 Trust shall be considered a single Durwood
Party, Thomas A. Durwood and the Investment  Partnership,  as defined in Section
3(d),  if it becomes  subject to this  Agreement  as provided  in Section  3(d),
together with any and all of their  Permitted  Assignees  who become  subject to
this Agreement as provided in Section 3(d), shall be considered a single Durwood
Party,  and each other Durwood Party and any and all of its Permitted  Assignees
who  become  subject to this  Agreement  as  provided  in Section 3 (d) shall be
considered a single Durwood Party.

                                        2

<PAGE>

     (d) Shares,  Additional  Shares and related Stock Powers may be released to
one or more Durwood  Parties if a like number of Shares and related Stock Powers
are deposited by one or more other Durwood  Parties or by a Permitted  Assignee,
as defined in the Registration Agreement,  or, in the case of Thomas A. Durwood,
by The  Thomas A. and  Barbara  F.  Durwood  Family  Investment  Partnership,  a
California Limited  Partnership (the "Investment  Partnership") and such Durwood
Party,  Permitted Assignee or Investment Partnership executes an addendum in the
form set forth as Exhibit B hereto  acknowledging  that they and such Shares are
subject to this  Agreement.  Upon the execution of such addendum and the deposit
of Shares and related  Stock  Powers by a Permitted  Assignee or the  Investment
Partnership,  the Permitted Assignee or the Investment Partnership,  as the case
may be, will be deemed a Durwood Party for purposes of this  Agreement,  subject
to Section 3 (c).  The Escrow  Agent may rely on a joint  letter from  Lathrop &
Gage L.C. and either of Schiff,  Hardin & Waite,  of Chicago,  Illinois,  or New
York, New York, or Kopple & Klinger, LLP, of Los Angeles,  California, as to the
status of a person as a Permitted Assignee.

     (e) If the Escrow  Agent is  notified  of a claim  against or in respect of
Shares,  Additional  Shares or Stock  Powers or if a claim is made  against  the
Escrow Agent in respect of Shares,  Additional  Shares,  or Stock  Powers,  such
Shares,  Additional  Shares and Stock Powers shall  continue to be held, and not
released from escrow,  except  pursuant to the final  unappealable  order (or an
order for which the time to appeal has  expired  without an appeal  having  been
made) of a court of competent jurisdiction.

     4. It is  understood  and agreed  that the  duties of the Escrow  Agent are
purely ministerial in nature. It is further agreed that:

     (a) the Escrow Agent may conclusively rely and shall be protected in acting
or  refraining   from  acting  upon  any  document,   instrument,   certificate,
instruction  or signature  believed by it to be genuine and may assume and shall
be  protected  in  assuming  that any  person  purporting  to give any notice or
instructions in accordance with this Escrow  Agreement or in connection with any
transaction to which this Escrow  Agreement  relates has been duly authorized to
do so. The Escrow  Agent  shall not be  obligated  to make any inquiry as to the
authority,  capacity,  existence  or identity of any person  purporting  to have
executed  any such  document or  instrument  or have made any such  signature or
purporting to give any such notice or instructions;

     (b) in the event that the Escrow  Agent shall be uncertain as to its duties
or rights  hereunder or shall receive  instructions  with respect to the Shares,
Additional  Shares or Stock Powers which,  in its sole opinion,  are in conflict
with either  other  instructions  received by it or any  provision of the Escrow
Agreement,  it shall,  without  liability  of any kind,  be entitled to hold the
Shares,  Additional  Shares and Stock  Powers  pending  the  resolution  of such
uncertainty to the Escrow Agent's sole satisfaction, by final judgment

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<PAGE>

of a court or courts of  competent  jurisdiction  or  otherwise,  or the  Escrow
Agent,  at its  option,  may,  in final  satisfaction  of its duties  hereunder,
deposit the relevant Shares,  Additional  Shares and Stock Powers with the clerk
of any other court of competent jurisdiction;

     (c) the  Escrow  Agent  undertakes  to  perform  only  such  duties  as are
expressly  set forth  herein and shall not be bound in any way by any  agreement
among the  Durwood  Parties  (whether  or not the  Escrow  Agent  has  knowledge
thereof);

     (d) the Escrow Agent shall not be liable for any action taken by it in good
faith  and  believed  by it to be  authorized  or  within  the  rights or powers
conferred upon it by this Escrow Agreement (provided that the Escrow Agent shall
be liable for its gross negligence and willful misconduct), and may consult with
counsel of its own choice and shall  have full and  complete  authorization  and
protection for any action taken or suffered by it hereunder in good faith and in
accordance with the opinion of such counsel; and

     (e) the Escrow Agent shall not assume any  responsibility  or liability for
any transactions among the Durwood Parties.

     5. The Durwood  Parties,  jointly and  severally,  agree to  indemnify  the
Escrow Agent, its directors,  officers,  agents and employees and any person who
"controls"  the Escrow Agent within the meaning of Section 15 of the  Securities
Act of 1933, as amended  (collectively the "Indemnified  Parties") against,  and
hold them harmless from, any and all loss, liability,  cost, damage and expense,
including,  without  limitation,  costs of investigation and reasonable  counsel
fees and expenses,  which any of the Indemnified  Parties may suffer or incur by
reason of any action, claim or proceeding brought against any of the Indemnified
Parties,  arising out of or relating in any way to this Escrow  Agreement or any
transaction to which this Escrow Agreement relates, other than any action, claim
or  proceeding  to the extent  resulting  from the gross  negligence  or willful
misconduct of such  Indemnified  Party.  The provisions of this paragraph  shall
survive the termination of this Escrow Agreement.

     6. This Escrow  Agreement may be altered,  amended or terminated  only with
the written  consent of the Durwood  Parties  and the Escrow  Agent.  Should the
Durwood  Parties  attempt to change this Escrow  Agreement in a manner which, in
the Escrow Agent's sole opinion, is undesirable,  the Escrow Agent may resign as
Escrow Agent upon two weeks' written notice to the Durwood  Parties;  otherwise,
notwithstanding  any provision  hereof to the contrary,  it may resign as Escrow
Agent at any time upon 60 days' written  notice to the Durwood  Parties.  In the
case of the  Escrow  Agent's  resignation,  its only  duty  shall be to hold and
dispose of the Shares, Additional Shares and Stock Powers in accordance with the
original  provisions  of this Escrow  Agreement  until a successor  escrow agent
shall be appointed by the Durwood  Parties acting by majority vote determined as
set forth in Section 3(c) and a written notice of the name and address of

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<PAGE>

such  successor  escrow  agent shall be given to the Escrow Agent by the Durwood
Parties,  whereupon  the Escrow  Agent's  only duty  shall be to turn  over,  in
accordance  with  the  written  instructions  of  the  Durwood  Parties,  to the
successor  escrow agent the Shares,  Additional  Shares and Stock Powers and any
documentation  related thereto. In the event that a successor escrow agent shall
not have been  appointed  and the Escrow Agent shall not have turned over to the
successor escrow agent the Shares, Additional Shares and Stock Powers within the
time  periods   specified  above,  or  the  Escrow  Agent's  written  notice  of
resignation,  as the case may be,  the  Escrow  Agent may  deposit  the  Shares,
Additional  Shares  and  Stock  Powers  with  the  clerk of any  other  court of
competent jurisdiction,  at which time the Escrow Agent's duties hereunder shall
terminate.

     7. The Escrow Agent shall be entitled to a $125  initiation  fee and a $750
annual escrow fee. The fees will be payable ratably by the Durwood Parties.

     8. THIS ESCROW AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF MISSOURI  WITHOUT  APPLICATION  TO THE PRINCIPLES OF
CONFLICTS  OF LAWS.  This  Escrow  Agreement  shall be binding  upon the parties
hereto and their respective successors and assigns; provided,  however, that any
assignment  or transfer by any party of its rights  under this Escrow  Agreement
shall be void (as against the Escrow Agent or otherwise) unless:

     (a)  written  notice  thereof  shall be given to the  Escrow  Agent and the
Durwood Parties; and

     (b) the Escrow  Agent and the  Durwood  Parties  shall have  consented,  in
writing, to such assignment or transfer.

     9. All notices,  requests,  demands and other communications to be given in
connection with this Escrow Agreement shall be in writing, shall be delivered by
hand, overnight delivery service or by facsimile  transmission,  shall be deemed
given when  received  and shall be  addressed to the Escrow Agent at the address
listed below or to the Durwood Parties at the respective addresses listed on the
signature  pages or to such other addresses as they shall designate from time to
time in writing, forwarded in like manner; provided, however, that if any notice
given by telecopy is received  other than during the regular  business  hours of
the recipient,  it shall be deemed to have been given on the opening of business
on the next business day of the recipient:

         If to the Escrow Agent:

                                 Mercantile Bank of Kansas City
                                 1101 Walnut, 2nd Floor
                                 Kansas City, Missouri 64106

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                                 Attention: Carolyn Hargis
                                 Telecopier No.: 816-871-2279

     Information copies of all notices given a Durwood Party (other than Stanley
H. Durwood, the 1992 Trust or the 1989 Trust) shall be given to:

                             Robert C. Kopple, Esq.
                             Kopple & Klinger
                             2029 Century Park East
                             Suite 1040
                             Los Angeles, A 90067


                             Glenn Kurlander, Esq.
                             Schiff Hardin & Waite
                             150 East 52nd Street
                             Suite 2900
                             New York, New York 10022

         Information copies of all notices given to Stanley H. Durwood, the 1992
Trust or the 1989 Trust should be given to:

                             Raymond F. Beagle, Jr., Esq.
                             Lathrop & Gage L.C.
                             2345 Grand Boulevard, 24th Floor
                             Kansas City, Missouri 64108-2684


     10. If any provision of this Escrow Agreement or the application thereof to
any person or circumstance  shall be determined to be invalid or  unenforceable,
the remaining  provisions of this Escrow  Agreement or the  application  of such
provision  to  persons  or  circumstances  other  than those to which it is held
invalid or  unenforceable  shard not be affected  thereby and shall be valid and
enforceable to the fullest extent permitted by law.

     11. This Escrow  Agreement  may be executed in several  counterparts  or by
separate  instruments,  and  all  of  such  counterparts  or  instruments  shall
constitute one agreement, binding on all the parties hereto.

     12. All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural as the context may require.

     IN WITNESS WHEREOF,  the undersigned have executed this Escrow Agreement as
of the day and year first above written.

                                        6

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                                                 Mercantile Bank of Kansas City

                                                 By: /s/Ted L. Randall
                                                    -------------------
                                                 Name: Ted L. Randall
                                                Title: Vice President

Suite 1700
Power & Light Building
106 West 14th Street
P.O. Box 419615                                  /s/Stanley H. Durwood
                                                 ---------------------
Kansas City, Missouri 64141-6615                 Stanley H. Durwood


1323 Granite Creek Drive                         /s/Carol D. Journagan
                                                    -------------------
Blue Springs, MO 64015                           Carol D. Journagan


3001 West 68th Street                            /s/Edward D. Durwood
                                                 ----------------------
Shawnee Mission, KS 66208                        Edward D. Durwood

P.O. Box 7208                                    /s/Thomas A. Durwood
                                                    --------------------
Rancho Santa Fe. CA 92067                        Thomas A. Durwood


187 Chestnut Hill Road                           /s/Elissa D. Grodin
                                                    -------------------
Wilton, CT 06897                                 Elissa D.Grodin


655 N.W. Altishan Place                          /s/Brian H. Durwood
                                                    ------------------
Beaverton, OR 97006                              Brian H. Durwood


666 West End Avenue                              /s/Peter J. Durwood
                                                    ------------------
New York, NY 10025                               Peter J. Durwood


Suite 1700
Power & Light Building
106 West 14th Street                           /s/ Stanley H. Durwood
                                               ----------------------
P.O. Box 419615                                Stanley H. Durwood, as trustee of
Kansas City, Missouri 64141-6615               the 1992 Trust

                                        7

<PAGE>



Suite 1700
Power & Light Building
106 West 14th Street                          /s/Stanley H. Durwood
                                                 ---------------------
P.O. Box 419615                               Stanley H. Durwood, as trustee of
Kansas City, Missouri 64141-6615              the 1989 Trust

                                        8

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                                    Exhibit A
                       Family Settlement Agreement Escrow


1992 Durwood, Inc. Voting Trust             500,000 Shares of AMCE
                                            Class B Stock

Carol D. Journagan                          416,667 Shares of AMCE Common
                                            Stock

Edward D. Durwood                           416,667 Shares of AMCE Common
                                            Stock

Thomas A. Durwood                           416,667 Shares of AMCE Common
                                            Stock

Elissa D. Grodin                            416,667 Shares of AMCE Common
                                            Stock

Brian H. Durwood                            416,667 Shares of AMCE Common
                                            Stock

Peter J. Durwood                            416,667 Shares of AMCE Common
                                            Stock

                                        9

<PAGE>


                                    Exhibit B


                          ADDENDUM TO ESCROW AGREEMENT


     The  undersigned  hereby  deposits  ________  shares of Common Stock of AMC
Entertainment  Inc. and related stock powers  executed in blank with  Mercantile
Bank of Kansas City,  as Escrow  Agent,  to be held in escrow by Escrow Agent in
accordance  with that certain Escrow  Agreement  dated as of August 15, 1997, by
and among Escrow Agent, Stanley H. Durwood,  individually, and as trustee of the
1992 Durwood,  Inc.  Voting Trust dated  December 12, 1992 and as trustee of the
Trust created  pursuant to the Stanley H. Durwood Trust  Agreement  dated August
14, 1989, Carol D. Journagan,  Edward D. Durwood,  Thomas A. Durwood,  Elissa D.
Grodin,  Brian H. Durwood and Peter J. Durwood. If the undersigned is not one of
the above named original parties to the Escrow Agreement, the undersigned agrees
that it shall be bound by said  Escrow  Agreement  as though it were an original
party  thereto  and that such  shares and stock  powers  shall be disposed of in
accordance with such Escrow  Agreement.  For purposes of Section 9 of the Escrow
Agreement,        the        undersigned's        notice        address       is
------------------------------------------------------------------------.

                                           -------------------------------
     Date:_________________________



Accepted

Mercantile Bank of Kansas City



By_____________________________            Date:______________________

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