FOURTH AMENDMENT TO LEASE (Newark)
EXHIBIT
10.20(e)
Execution Version
FOURTH AMENDMENT TO LEASE
(Newark)
(Newark)
THIS FOURTH AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is entered into as of August 7,
2006 to be effective as of the Effective Date (as defined hereinbelow) by and between SYUFY
ENTERPRISES, L.P., a California limited partnership (“Landlord”), and CENTURY THEATRES, INC., a
California corporation (“Tenant”).
R E C I
T A L S:
A. Landlord (then known as Syufy Enterprises, a California limited partnership (“Original
Landlord”)) and Century Theatres of California, Inc., a California corporation (“Original Tenant”),
entered into a certain Lease dated as of September 30, 1995 (the “Original Lease”), for certain
premises located in Newark, California.
B. The Original Lease has been previously amended by (i) that certain First Amendment to Lease
dated as of September 1, 2000 (the “First Amendment”), (ii) that certain Second Amendment to Lease
dated as of April 15, 2005 (the “Second Amendment”), and (iii) that certain Third Amendment to
Lease dated as of September 29, 2005 (the “Third Amendment”; the Original Lease as
heretofore amended is referred to herein as the “Lease”).
C. Tenant has succeeded to the interests and assumed the obligations of Original Tenant as the
lessee under the Lease.
D. Landlord has succeeded to the interests and assumed the obligation of Original Landlord as
the lessor under the Lease.
E. Landlord and Tenant now desire to further amend the Amended Lease, upon the terms and
conditions set forth in this Amendment.
NOW THEREFORE, for good and valuable consideration, the receipt, adequacy and sufficiency of
which are hereby acknowledged, the Lease is hereby modified and amended, and Landlord and Tenant
hereby agree, as follows:
1. Recitals Incorporated; Certain Defined Terms. The Recitals set forth above are
incorporated into this Amendment and shall be deemed terms and provisions hereof, the same as if
fully set forth in this Paragraph 1. Capitalized terms that are used but not otherwise defined
herein shall have the respective meanings ascribed to such terms in the Lease.
2. Effectiveness. The parties are entering into this Amendment in connection with
the contemplated acquisition of all the outstanding capital stock of Century Theatres, Inc. by
Cinemark Holdings, Inc. and Cinemark USA, Inc. (the “Acquisition”) pursuant to a Stock Purchase
Agreement dated as of the date hereof (the “Stock Purchase Agreement”). This Amendment shall
become automatically effective upon, and only upon, the closing of the Acquisition (the “Effective
Date”). In the event the Acquisition is not consummated and the Stock Purchase Agreement is
terminated, this Agreement shall become void ab initio and of no force and effect.
3. Initial Term of Lease and Extension Options. Notwithstanding anything to the
contrary in the Lease, the Initial Term of the Lease is hereby
extended to and shall expire on September 30, 2016,
but subject to the provisions of the Lease applicable to the exercise and validity of such Renewal
Terms, and rather than two (2) Renewal Terms of five (5) years each (as provided in the Lease), Tenant
shall have the option to extend the Initial Term for four (4)
consecutive Renewal Terms of five (5) each,
followed by one (1) additional and final
Renewal Term of four (4) years.
4. Annual Rent. Annual Base Rent for the remainder of the Initial Term of the Lease
shall be fixed at six hundred eight hundred forty dollars ($608,840.00) per annum, payable monthly as set forth in the Lease.
5. Landlord’s Recapture Right. If, at any time during the term of the Lease, Tenant
fails to satisfy the Operating Condition (defined below), for reasons other than Excused Closure
(defined below), and such failure continues for six (6) consecutive months or more, then upon
notice from Landlord to Tenant at any time thereafter (provided that the Operating Condition
remains unsatisfied), Landlord shall have the right to terminate the Lease and to recapture the
Leased Premises, without payment to Tenant, effective upon the date set forth in Landlord’s
termination notice (but not sooner than 30 days after the date of the termination notice).
The term “Operating Condition” shall mean and require that the entire Leased Premises is being
continuously operated and regularly open for business to the general public as a motion picture
theater complex in accordance with the Lease, at least on such days and at such times that a
majority of Century’s and Cinemark’s other motion picture theater complexes in the County of
Alameda typically are open and operating. The term “Excused Closure” shall mean (i) periods of
construction, alterations, renovation, remodeling and repair of the Leased Premises undertaken in
accordance with this Lease (including repairs and restoration following damage or destruction due
to fire or other casualty) provided that Tenant (A) prosecutes such work to completion with
reasonable diligence, (B) exercises its reasonable efforts to minimize the length of time of such
closure, and (C) exercises its reasonable efforts to limit the number of motion picture screens at
the Premises that are not operated due to such closure; (ii) periods when Tenant cannot practicably
operate its business in the Premises as a consequence of force majeure; and (iii) additional
periods, not to exceed four (4) days in any Lease Year, when Tenant in its sole discretion elects
not to operate its business in the Leased Premises.
6. Self-Insurance of Property/Casualty Risks. Notwithstanding anything to the
contrary set forth in the Lease, during any period in which Tenant maintains a Net Worth (as
defined below) of at least One Hundred Million Dollars ($100,000,000.00), Tenant may self insure
the so-called “physical property damage insurance” otherwise required to be maintained by Tenant
pursuant to the Lease. As used herein, the “Net Worth” of Tenant at any given time shall mean an
amount equal to the sum of (A) the product of (1) Tenant’s so-called EBITDA (i.e., earnings before
interest, income taxes, depreciation and amortization), calculated in accordance with commercially
reasonable past practice preceding the Effective Date by Tenant’s parent corporation, over the
12-month period immediately preceding the time of measurement, multiplied by (2) eight (8), plus
(B) the amount of cash and cash equivalents held
by Tenant on the most recent anniversary of Tenant’s annual insurance renewal date, minus (C) the
amount of outstanding funded debt of Tenant on such determination date.
7. Damage and Destruction — Repairs by Tenant. Notwithstanding anything to the
contrary contained in the Lease, the following shall apply to repairs and restoration upon damage
or destruction:
(a) Tenant’s Obligation to Repair. If the Leases Premises are damaged or
destroyed by any peril after the Commencement Date of this Lease, then Tenant shall repair
the damage and restore the Leased Premises in accordance with this Section, except as
provided in subsection (b) below. Unless Tenant is not required to effect the repairs and
restoration pursuant to subsection (b) below, Tenant shall promptly apply for and diligently
seek to obtain all necessary governmental permits and approvals for the repair and
restoration of the Leased Premises and, upon issuance of such governmental permits and
approvals, promptly commence and diligently prosecute the completion of the repairs and
restoration of the Leased Premises (to the extent permitted by applicable law) to
substantially the same condition in which the Leased Premises were immediately prior to such
damage or destruction (subject to any alterations which Tenant would be permitted to make to
the Leased Premises pursuant to this Lease).
(b) Damage in Excess of 20%. If the Leased Premises are damaged or destroyed
by fire or other casualty which occurs after the Effective Date hereof, and if the cost to
repair such damage or to restore the Leased Premises as required in subsection (a) exceeds
twenty percent (20%) of the replacement cost of the Leased Premises (as determined by an
independent architect selected by Tenant and approved by Landlord in Landlord’s reasonable
discretion) and such damage makes it impracticable to operate the Leased Premises in the
reasonable business judgment of Tenant, then (i) Tenant shall have the option, upon notice to
Landlord not later than one hundred eighty (180) days following the occurrence of the
applicable casualty, not to undertake the repairs and restoration of the Leased Premises, and
(ii) if Tenant so elects not to undertake the repairs and restoration, then Tenant
nevertheless shall raze Tenant’s Building and remove from the Leased Premises all building
materials and debris and all underground installations that serve only the Leased Premises
(including the footings and foundations of Tenant’s Building and the utility lines serving
Tenant’s Building) and restore the surface of the Premises to a graded and landscaped
surface.
8. Permitted Assignments and Release. Notwithstanding anything in the Lease to the
contrary, the following shall apply and control:
Subject to the next sentence, Tenant may sublet or assign this Lease only upon receipt of
Landlord’s written consent which consent Landlord agrees shall not be unreasonably
withheld, delayed or conditioned. Notwithstanding anything in this Lease to the contrary,
it is agreed that at any time during the term of this Lease, Tenant may, without Landlord’s
consent or approval (but only upon prior written notice to Landlord), assign this Lease or
sublet the Leased Premises to: (i) any wholly-owned subsidiary of Tenant, and (ii) any
corporation, trust, partnership or individual that owns fifty percent (50%) or more of the
issued and outstanding stock of Tenant. A change in control of Tenant shall
not constitute an assignment of this Lease requiring Landlord’s consent or approval,
provided, however, that if any assignee under clause (i) above ceases to be a wholly owned
subsidiary of Tenant, then the same shall be deemed to constitute an assignment which is
prohibited without Landlord’s approval under Article XI of the Lease. No assignment,
subletting or other transfer of the Lease or the Leased Premises shall relieve or release
Tenant from any liabilities or obligations arising under the Lease.
9. Leasehold
Financing. Notwithstanding anything to the contrary contained in the
Lease, Tenant shall have the right, without Landlord’s consent to encumber the leasehold estate
created under the Lease and/or to grant a security interest in Tenant’s removable trade fixtures,
furnishings and equipment located within the Leased Premises (but not to encumber Landlord’s fee
interest in the Premises), to secure financing provided to Tenant by any bank, thrift institution,
insurance company or other institutional lender. Tenant agrees to notify Landlord of any such
encumbrance. With respect to any such leasehold financing (and provided that Tenant is not in
default under the Lease beyond any applicable notice or cure period), upon thirty (30) days’ prior
written request from Tenant, Landlord will execute and deliver to the secured lender a “Landlord’s
Agreement” in the form attached hereto as Exhibit “A-l”.
10. Memorandum
of Lease. On the Effective Date, Landlord and Tenant will enter into
and record a short form memorandum of the Lease, in the form of Exhibit “A-2” attached
hereto or otherwise in proper form for recording. Tenant shall be solely responsible for the cost
of recording the memorandum, including (if applicable) any transfer taxes that may be due and
payable in connection with the Lease.
11. Gross
Sales. Notwithstanding anything in the Lease to the contrary the definition
of Gross Sales shall be as follows:
“Gross Sales” shall mean the total amount of all revenues (whether in cash or
credit) generated or derived from the conduct of any business at the Leased Premises,
including (without limitation) all box office receipts of or at the Leased Premises
(including receipts from tickets or gift certificates redeemed at the Leased Premises
regardless of the point of sale), as well as any and all receipts from the sale of
goods, services, merchandise, beverages, food, vending machines and video games at
the Leased Premises; provided, however, that the following shall be excluded
from “Gross Sales” (i) credits and refunds made with respect to admissions or other
sales otherwise included in Gross Sales, (ii) all federal, state, county and city
admission taxes, sales and use taxes, entertainment taxes, royalty taxes, gross
receipt taxes and other similar taxes now or hereafter imposed and owing to the
taxing authority by Tenant (whether such taxes are collected from customers
separately from the selling price of admission tickets or absorbed by Tenant); (iii)
receipts from the sale of gift certificates or tickets sold but not redeemed at the
Leased Premises; (iv) with respect to any tickets or admissions ordered or paid for
over the internet and redeemed at the Leased Premises, the portion (if any) of the
sale price that exceeds Tenant’s actual box-office ticket price; (v) sales price for
merchandise returned, (vi) amounts retained by credit card issuers, (vii) sales
outside of the ordinary course of business, (viii) amount of credit card sales deemed
uncollectible, (ix) advertising revenues including without
limitation media, sponsorship, and promotional advertising of any kind, and (x) the
receipts of or from so-called “four-wall deals” with a party that is not affiliated
with Tenant, except that the portion thereof or other amounts paid to Tenant in
connection with such “four-wall deals” shall be included in “Gross Sales” under this
Lease. Commissions or surcharges paid to agencies or other third parties not
affiliated with Tenant for selling tickets or processing credit card transactions,
and any sums paid to third parties not affiliated with Tenant for the use or rental
of vending machines, pay telephones, amusement machines and other similar devices
shall be deducted from “Gross Sales” (if and to the extent previously included in
“Gross Sales”).
12. Taxes. Notwithstanding any other provision of the Lease or this Amendment to the
contrary, if during the ten (10) year period immediately following the Effective Date, any sale
or change in ownership of the Premises (or against the Entire Premises, if the Premises are not
separately assessed) is consummated by Landlord and, as a result, all or part of the Premises (or
Entire Premises, if applicable) are reassessed (a “Reassessment”) for real property tax purposes
by the appropriate governmental authority under the terms of Proposition 13 (as adopted by the
voters of the State of California in the June 1978 election) or the terms of Article XIIIA of the
Constitution of the State of California, then the terms of this Section shall apply. For purposes
of this Section, the term “Tax Increase” shall mean that portion of the annual real estate taxes
assessed against the Premises (or the Entire Premises, if applicable), as calculated immediately
following the Reassessment, that is attributable solely to the Reassessment. Accordingly, a Tax
Increase shall not include any portion of the real estate taxes, as calculated immediately
following the Reassessment, that is:
| (i) | Attributable to the assessment of the value of the Premises (or Entire Premises, if applicable) prior to the Effective Date; | ||
| (ii) | Attributable to the annual inflationary increases in real estate taxes; or | ||
| (iii) | Attributable to the sale of Landlord’s ownership interest in Tenant to on or about the Effective Date, or attributable to the execution of this Amendment or any extension of the Term of this Lease on the Effective Date or thereafter. |
During the five (5) year period immediately following the Effective Date, Tenant shall not be
obligated to pay any portion of any Tax Increase relating to a Reassessment.
Commencing on the fifth (5th anniversary of the Effective Date, and continuing until the tenth
(10th) anniversary of the Effective Date, Tenant shall be obligated to pay annually only the
portion of a Tax Increase relating to a Reassessment that is equal to (or less than) an increase of
four percent (4%) per annum, compounded annually, from the Effective Date, in the annual amount
owed by Tenant for real estate taxes under the terms of the Lease, from the annual amount owed by
Tenant for real estate taxes under the terms of the Lease in calendar 2006.
The terms and provisions of this Section shall not apply to any increase in real estate taxes
which results from or is attributable to any occurrence, fact or circumstance other than a sale by
Landlord of Landlord’s interest in the Premises or a transfer effected by Landlord which is
treated as a sale by the local taxing authorities under Proposition 13 (excluding those matters
identified in clause (iii) above). This Section shall not apply from and after the tenth (10th)
anniversary of the Effective Date.
13. Alterations by Tenant.
Notwithstanding anything in the Lease to the contrary, the following shall apply and control:
Tenant shall have the right from time to time, at its sole cost and expense, to make interior
alterations, improvements, or changes in the Leased Premises as Tenant shall deem necessary or
beneficial in Tenant’s use of the Leased Premises as a motion picture theatre complex, including
(without limitation) the conversion to stadium seating of the auditoria (if any) in the Leased
Premises. Tenant shall fully and completely indemnify Landlord against any mechanics’ or other
liens in connection with the making of such alterations and changes, and shall pay all costs,
expenses, and charges thereof. Any alterations, improvements or changes by Tenant must be
consistent with the use and operation of the Leased Premises as a motion picture theatre complex.
Tenant shall be required to complete all alterations, improvements and changes undertaken by
Tenant. Alterations, changes and improvements shall be performed in a first-class manner and must
comply with all laws, zoning regulations and ordinances, and any conditions on permits issued
pursuant thereto. If it is necessary in Tenant’s reasonable judgment to close any of the motion
picture screens during the period in which any of Tenant’s work permitted hereunder is performed,
said closure(s) shall be effected only in accordance with the provisions governing an “Excused
Closure”, as that term is defined in Section 5 of this Amendment.
14. Rooftop Equipment and Access. Tenant shall have the exclusive right to install,
operate, repair, replace and maintain satellite dishes and/or other communication transmission
devices (collectively “Rooftop Equipment”) on the roof of the theatre necessary or appropriate to
accept any transmission of signals to the theatre for all permitted uses, including without
limitation, for movies, advertising, concerts, telecasts, corporate meetings or communications and
the like; but Tenant shall be prohibited from entering into any leases or licenses with any third
parties for retransmission from such Rooftop Equipment, and Tenant shall not retransmit such
signals to a third party outside of the Leased Premises. Landlord shall not use, or permit any
person or entity (other than Tenant), to use the roof or exterior walls of the theatre for any
purpose whatsoever, and Landlord agrees not to enter into any leases or licenses with third
parties for the use of the theater rooftop. Landlord shall be responsible for any damage to the
rooftop caused by the Landlord or a third party that enters onto the theatre rooftop with
Landlord’s permission, and Landlord shall indemnify and hold Tenant harmless from all loss, cost,
damage or expense which Tenant incurs as a result of the acts or omissions of said third party or
their agents or employer. Tenant hereby indemnifies and agrees to hold Landlord and Landlord’s
successors and assigns harmless from all loss, cost, damage or expense which Landlord incurs as a
result of the actions of Tenant, or its agents or employees in installing and utilizing Rooftop
Equipment as permitted hereunder.
15. Alterations and Development by Landlord. Landlord agrees that with respect to the
Entire Premises, the following restrictions shall apply to Landlord’s usage and improvement
thereof:
| (i) | Any alterations or new construction to the Entire Premises or contiguous property owned or controlled by Landlord or its affiliates as of the Effective Date (the “Contiguous Property”) may be made without Tenant’s consent only if such alterations or new construction do not materially and adversely affect Tenant’s operations (including, without limitation, parking, access, ingress and egress to the theatre building and visibility of the theatre building and/or on-building theatre signage). Any such alterations or new construction on the Entire Premises and any cross parking or cross access arrangements between the Entire Premises and the Contiguous Property will first be submitted to Tenant for approval, not to be unreasonably withheld or delayed, and Tenant shall be required to identify the manner in which Tenant’s operations are so affected. If Landlord and Tenant are unable to agree on whether such alteration or new construction materially and adversely affects Tenant’s operations, including without limitation, parking, access, ingress and egress and visibility, the parties agree to submit the issue to binding arbitration pursuant to the Lease. | ||
| (ii) | Landlord shall not lease, sell or use any space on Non-leased Premises or the Contiguous Property for operating a motion picture theatre. | ||
| (iii) | Subject to existing leases, licenses and operating agreements, Landlord shall not lease, license, enter into an operating agreement for, sell or use any space on Non-leased Premises for operating the following: a bowling alley; a bar or lounge (other than a bar or lounge that is connected with a restaurant, deriving 50% of its revenues from the sale of food); a liquor store (other than first-class or upper-end wine or liquor store such as “BevMo”); a bulk candy store, (other than upper-end candy stores such as Godiva, Sees, Rocky Mountain Chocolates and similar concepts); a popcorn store; a massage parlor or adult (i.e., pornographic) book store. | ||
| (iv) | Landlord shall not place any carts, kiosks or other temporary structures selling food and/or beverages within common areas of the Entire Premises unless such carts, kiosks or other structures are more than 500 feet from the theatre. Such carts and kiosks may not sell any food or beverages sold in the theatre. Landlord shall not place any vending machines selling food and/or beverages on the common areas of the Entire Premises unless such vending machines are more than 500 feet from the theatre. | ||
| (v) | Any new buildings shall be limited to retail, restaurant, residential and/or office uses. |
16. Permitted Use and Operations. From and after the Effective Date, Tenant shall be
permitted to use and operate the Leased Premises as and only as: a first-class motion picture
theatre complex (whether operated as a so-called “first-run” theatre, a “second-run” theatre,
and/or an “art house” theatre). In no event shall Tenant be permitted to operate the Leased
Premises as a so-called “adult” theater complex.
17. No Obligation To Continuously Operate. Notwithstanding anything to the contrary
in the Lease or otherwise, Landlord hereby acknowledges that Tenant shall not be required to
continuously operate and open for business in or from the Premises and any election by Tenant to
cease operations at the Premises shall not constitute a default or breach of the terms and
conditions of the Lease.
18. Removal of Equipment, Surrender and Demolition. Upon the expiration of the Term
or earlier termination of the Lease, and provided Tenant is not in default under the Lease beyond
applicable notice and cure periods, and said earlier termination is not due to Tenant’s default
under the Lease, then for a period extending forty-five (45) days beyond the date of said
expiration or termination, Tenant shall be permitted to remove any and all furniture, fixtures and
equipment owned and installed by Tenant in, on or to the Leased Premises. Such removal shall be:
(a) at Tenant’s sole cost and expense; (b) conducted in such manner that no liens or claims shall
arise or exist in connection therewith; (c) conducted in a manner to avoid unreasonable
interference with the activities of Landlord and subsequent tenants or occupants upon the Leased
Premises and Tenant shall repair all damages caused by such removal.
Upon surrender of the Leased Premises by Tenant and removal of its equipment pursuant to the
terms of the Lease and this Amendment, Landlord shall be responsible for the cost of any
demolition of the Leased Premises and site grading and restoration as a result. Such demolition
shall be undertaken in Landlord’s sole discretion and at such times, manner and upon such events
as Landlord solely shall determine.
19. Early Termination — Opening of Nearby Theatre. As of the Effective Date hereof,
Tenant is the lessee under a lease agreement (the “Nearby Theatre Lease”) for the motion picture
theatre complex located or to be located at the “New Park Mall” located in Newark, California (the
“Nearby Theatre”). The Lease shall automatically terminate
and the term shall expire if Tenant takes possesion of the Nearby
Theatre pursuant to the Nearby Theatre lease and opens and operates
the Nearby Theatre for business as a motion picture theatre complex.
20. Expansion of Premises if Nearby Theatre is not Developed. If the lessor under the
Nearby Theatre Lease does not commence construction of the Nearby
Theatre within twelve (12) months after the Effective Date of this Amendment, then upon notice to Landlord not later than
thirty (30) days after the expiration of such 12 month period, Tenant shall elect either (i) to
terminate the Lease, or (ii) to exercise the option (the “Expansion Option”) to expand the
Premises to include the adjacent 2.764 acres, more or less, owned by
Landlord (the “Expansion
Premises”), as depicted on Exhibit B attached hereto. If Tenant fails to notify Landlord of
Tenant’s election under this Section 20 on or before the
date which is thirteen (13) months after
the Effective Date, then Tenant conclusively shall be deemed to have
elected to terminate the lease pursuant to clause (i) above. The Expansion Option shall be subject to the following terms
and conditions:
(a) At the time Tenant notifies Landlord of Tenant’s election to expand the Premises, no
material Event of Default by Tenant shall be outstanding beyond the expiration of any applicable
notice and cure period, and neither this Lease nor Tenant’s possession of the Premises shall have
been terminated. Landlord shall cooperate at Tenant’s sole cost and expense with Tenant in
pursuing any necessary or appropriate entitlements to develop the Theatre.
(b) The Expansion Premises shall be accepted by Tenant in its then-existing “AS-IS” condition
(it being expressly understood and agreed by Tenant that Landlord
shall not be required to perform or pay for any work or improvements
to the Expansion Premises) and otherwise on the terms,
conditions, and provisions of this Lease. Tenant shall be solely responsible for the planning,
permitting and construction of the Expansion Premises and the associated alterations of the
Building, at Tenant’s sole cost and expense. Landlord shall not
be obligated to provide any allowance or to pay or reimburse Tenant
for the construction of the Expansion Premises. Promptly
after exercising the Expansion Option, Tenant shall apply for the entitlements required for the
redevelopment of the theatre as contemplated hereunder (the “Expansion Entitlements”), and Tenant
shall thereafter diligently and continuously seek to obtain the Expansion Entitlements; provided
however that no Expansion Entitlements shall be binding upon Landlord, the Expansion Premises or
any other portion of the Premises unless and until Tenant’s termination rights under this Section
are waived by Tenant in writing or have lapsed. Tenant shall keep Landlord well informed of
Tenant’s efforts to obtain and the status of the Expansion Entitlements. If the Expansion
Entitlements are not obtained within 24 months after Tenant’s exercise of the Expansion Option, and
provided that Tenant shall have used good faith, reasonably diligent efforts to obtain the
Expansion Entitlements, then Tenant (at Tenant’s election) shall have the right and option to
terminate the Lease upon thirty (30) days’ prior written notice, subject to the following terms and
conditions: (A) in order to be effective, the termination notice must be given by Tenant to
Landlord not later than the first to occur of (x) thirty (30)
days after the second (2nd) anniversary of
the date of Tenant’s exercise of the Expansion Option, or
(y) thirty (30) days after Tenant ceases
to actively and diligently pursue the Expansion Entitlements; (B) if Tenant so terminates the
Lease, the Lease shall be terminated in its entirety (as to both the original Premises and the
Expansion Premises); and (C) Tenant shall have no further right to terminate the Lease pursuant to
this Section if the Expansion Entitlements are issued (or may be obtained by the payment of
applicable fees) or if Tenant fails to timely notify Landlord of the termination in accordance with
clause (A) above.
(c) Within days after receipt of entitlements, building permits and letting of
construction contracts, Tenant shall commence redevelopment of the Theatre. Prior to commencing any
on-site work relative to the Expansion Premises, Tenant shall submit the proposed construction
plans for same to Landlord for Landlord’s review and approval, which shall not be unreasonably
withheld, delayed or conditioned. Upon completion and opening of any improvements on or to the
Expansion Premises (including any expansion of or alterations to the existing Building on the
Leased Premises), Tenant shall deliver to Landlord a copy of the so-called “as-built” plans and
specifications for such Building improvements. The improvements, work, equipment and materials
located upon or incorporated into the Expansion Premises by Tenant shall be deemed to be Tenant’s
property.
(d) If the Expansion Option is exercised and the Lease is not terminated by
Tenant pursuant to subsection (b), then commencing on the second
(2nd)
anniversary of the date Tenant exercised
the Expansion Option and thereafter for the remainder of the term of the Lease: (i) the
Expansion Premises shall be deemed to be a part of the Leased Premises for all purposes
under the Lease, (ii) the Base Rent otherwise due under the
Lease shall be increased by One Hundred Ninety-Two Thousand Six
Hundred Forty Dollars ($192,640) per
annum ($16,053.33 per month), and (iii) Tenant shall have no further right to terminate the Lease pursuant to
Section 19 above entitled “Early Termination — Opening of Nearby Theatre.”
(e) If Tenant exercises the Expansion Option, Landlord and Tenant shall either (i)
execute a written supplement to the Lease regarding the terms, provisions, and conditions of
this Lease applicable to the Expansion Premises or (ii) negotiate in good faith the terms
and conditions of a new lease containing the rent specified above and containing an initial
term (from the date Tenant exercises the Expansion Option) of (10)
years, four (4)
renewal options of five (5) years each and one renewal option for
four (4) years and such other terms as the parties may agree.
(f) Landlord agrees not to install improvements or engage in construction prior to the
exercise or lapse of the Expansion Option or encumber the property in any way that
frustrates the purpose of the Expansion Option.
(g) Tenant shall indemnify landlord and the Premises (including the
Expansion Premises) from and against any loss, cost, liability, lien, encumbrance, damage or
expense that arises out of or in connection with the issuance of, or Tenant’s efforts to
obtain the Expansion Entitlements. The terms and provisions of this subsection shall survive
the termination of the Lease.
21. Restrictive Covenant. Landlord covenants and agrees that if, upon the
termination of the Lease for any reason other than the default of Tenant, Tenant or an affiliate of
Tenant is leasing and operating the Nearby Theater pursuant to the Nearby Theater Lease, then no
portion of the Entire Premises, including the Leased Premises, shall be used or operated as a
motion picture theater complex prior to the date which is the first to occur of (i) twenty (20)
years from the date that the Nearby Theater is or was first open to the general public and operated
as a motion picture theater complex, or (ii) the termination or expiration of Nearby Theater Lease,
or (iii) the Nearby Theater ceasing to be open to the public and operating as a first run motion
picture theater complex, for reasons other than Excused Closure, for a continuous period of
eighteen (18) consecutive months or more. The terms and provisions of this Paragraph shall survive
the termination of the Lease (except that the foregoing restrictive covenant shall not apply if the
Lease is terminated as a consequence of a default by Tenant. Such restrictive covenants shall run
with the land. Landlord agrees to execute within thirty (30) days after request by Tenant a
restrictive covenant in form appropriate for recording containing the restrictions contained
herein. Tenant shall be responsible for the cost of all such recording fees.
22. California Remedies. Landlord’s remedies upon a default under the Lease shall
include, without limitation, the following:
Even though Tenant has breached the Lease and/or abandoned the Premises, this Lease shall
continue in effect for so long as Landlord does not terminate Tenant’s right to
possession, and Landlord may enforce all of its rights and remedies under this Lease,
including (but without limitation) the right to recover Rent as it becomes due. Landlord
has the remedy described in Section 1951.4 of the Civil Code of the State of California or
any successor code section (Landlord may continue the Lease in effect after Tenant’s breach
and abandonment and recover rent as it becomes due, if Tenant has the right to sublet or
assign, subject only to reasonable limitations). Acts of maintenance, preservation or
efforts to lease the Premises or the appointment of receiver upon application of Landlord
to protect Landlord’s interest under this Lease shall not constitute an election to
terminate Tenant’s right to possession.
23. Termination of Lease and Lessee’s Right to Possession. Section 15.02(C) of the
Lease shall be deemed deleted in its entirety and replaced with the following:
“If an event of default occurs, Landlord shall have the right, with or without notice or
demand, immediately (after expiration of the applicable grace periods) to terminate this Lease,
and at any time thereafter recover possession of the Premises or any part thereof and expel and
remove therefrom Tenant and any other person occupying the same, by any lawful means, and again
repossess and enjoy the Premises without prejudice to any of the remedies that Landlord may have
under this Lease, or at law or equity by reason of Tenant’s default or of such termination. Should
Landlord terminate this Lease pursuant to foregoing, Landlord shall have all the rights and
remedies of a landlord provided by Section 1951.2 of the Civil Code of the State of California, or
successor code section. Upon such termination, in addition to any other rights and remedies to
which Landlord may be entitled at law or in equity, Landlord shall be entitled to recover from
Tenant:
(1) the worth at the time of award of the unpaid Rent which had been earned at
the time of termination;
(2) the worth at the time of award of the amount by which the unpaid Rent which
would have been earned after termination until the time of award exceeds the amount
of such Rent loss that the Tenant proves could have been reasonably avoided;
(3) the worth at the time of award of the amount by which the unpaid Rent for
the balance of the Term after the time of award exceeds the amount of such Rent loss
that the Tenant proves could be reasonably avoided;
(4) any other amount, and court costs, necessary to compensate Landlord for all
the detriment proximately caused by Tenant’s failure to perform its obligations
under this Lease or which, in the ordinary course of things, would be likely to
result therefrom; and
(5) for any other sums due.”
24. Notices. The notices provisions of the Lease, as the case may be, shall be deemed
deleted in their entirety and replaced with the following:
(a) Except as otherwise expressly and specifically in this Lease provided, a xxxx, demand,
statement, consent, notice or other communication (“notice”) which either party may desire or be
required to give to the other party shall be deemed sufficiently given or rendered if in writing,
delivered personally to the party to be charged therewith or sent by certified mail (return receipt
requested) or private express mail courier service (postage or delivery or courier fees fully
prepaid) addressed to such party at the addresses set forth in subparagraph (c) below (including
the addresses for copies of notices) and/or at such other address(es) as such party shall designate
to the other party by notice given as herein provided. If Landlord is notified of the identity
and address of Tenant’s Leasehold Mortgagee, Landlord shall give such party any notice served upon
Tenant hereunder to the last known address of such Leasehold Mortgagee as provided by Tenant to
Landlord by certified mail or private express courier service. If Tenant is notified of the
identity and address of Landlord’s mortgagee, Tenant shall give such mortgagee any notice served
upon Landlord hereunder to the last known address of such mortgagee as provided by Landlord to
Tenant, by certified mail or private express courier service.
(b) Any notice given in accordance with the foregoing provisions of this Section shall be
deemed effective upon the earlier of (i) if the notice is personally delivered, the date actually
received by intended recipient, (ii) if the notice is sent by certified mail, five (5) days after
the same is mailed, or (iii) if the notice is sent by private overnight courier service (e.g.,
Federal Express. DHL or similar courier), one (1) day after the same is delivered to or picked up
by such courier. Rejection or refusal to accept a notice or the inability to deliver same because
of a changed address of which no notice was given shall be deemed to be a receipt of the notice
sent. Notwithstanding any provision to the contrary contained in this Lease, no provision in this
Lease shall preclude service of notices in accordance with Section 1162 of the California Code of
Civil Procedure or any similar and/or successor code sections.
(c) Addresses for Notices to Landlord and Tenant.
Notices are to be delivered, mailed or couriered to the following address(es):
| To Landlord: | Syufy Enterprises, L.P. | |||
| 150 Xxxxxxx Xxx | ||||
| Xxx Xxxxxx, Xxxxxxxxxx 00000 | ||||
| Attention: President | ||||
| with a copy to: | Syufy Enterprises, L.P. | |||
| 150 Xxxxxxx Xxx | ||||
| Xxx Xxxxxx, Xxxxxxxxxx 00000 | ||||
| Attention: General Counsel | ||||
| and a copy to: | DLA Piper | |||
| 200 Xxxxx XxXxxxx | ||||
| Xxxxx 0000 | ||||
| Xxxxxxx, XX 00000 | ||||
| Attention: Xxxxx Xxxxxx, Esq. |
| To Tenant: | Century Theatres, Inc. | |||
| c/o Cinemark, Inc. | ||||
| 3900 Xxxxxx Xxxxxxx | ||||
| Xxxxx 000 | ||||
| Xxxxx, XX 00000 | ||||
| Attention: Legal Department |
Tenant and Landlord may change their respective addresses for purposes of this
section by giving written notice of such change to the other.
25. Miscellaneous Amendments. Notwithstanding anything contained herein to the
contrary, whenever any of the terms “Leased Premises”, “Demised Premises” or “Premises” (and
whether or not capitalized) is used herein, it shall be understood to mean the “premises leased
hereby”; and whenever the term “Entire Premises” is used herein (and whether or not capitalized),
it shall be understood to mean all of the contiguous land and buildings owned by Landlord at this
location, which include the premises leased hereby. The term “Non-leased Premises” shall mean
the Entire Premises less the Leased Premises.
26. Prior Amendments. All of the provisions of the First Amendment are hereby
deleted in their entirety and of no further force and effect except for (i) the first
grammatical paragraph of Paragraph A concerning the definition of Consumer Price Index and (ii)
Paragraph E concerning the Indemnity and Hold Harmless. The Second Amendment and the Third
Amendment are hereby deemed to be void ab initio — it being the intent of the parties hereto that
this Amendment shall supersede such Second Amendment and Third Amendment in their entirety.
27. Effect of Amendment. The Amendment modifies and amends the Lease, and the terms
and provisions hereof shall supersede and govern over any contrary or inconsistent terms and
provisions set forth in the Lease. The Lease, as previously amended and as hereby further amended
and modified, remains in full force and effect and is hereby ratified and confirmed. All future
references in the Lease to the “Lease” shall mean and refer to the Lease, as amended and modified
by this Amendment.
[Signatures Appear on Next Page]
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as
of the date herein above provided.
Landlord:
SYUFY ENTERPRISES, L.P., a California limited partnership
| By: | /s/ Xxxxxx Xxxxx | |||||
| Name: | ||||||
| Title: | ||||||
Tenant:
CENTURY THEATRES, INC., a California corporation
| By: | /s/ Xxxxxxx X. Xxxxx | |||||
| Name: | ||||||
| Title: | ||||||
