License Agreement - Cinemark USA Inc. and Laredo Joint Venture
LICENSE AGREEMENT
This License Agreement is made by and between Cinemark USA, Inc., a Texas
corporation ("Licensor"), and Laredo Joint Venture ("Licensee").
WHEREAS, the Licensor is the proprietor of the "Cinemark" service mark,
name and corresponding logos and insignias (hereinafter collectively referred to
as the "Mark"); and
WHEREAS, Licensee is a joint venture formed to acquire and hold for
operating income and appreciation certain properties to be managed by Licensor
as motion picture exhibition theatres (the "Theatre Properties") in Laredo,
Texas; and
WHEREAS, it is the desire and intention of the parties that the Licensee be
permitted to use the Mark in Lubbock, Texas (hereinafter referred to as the
"Territory") in connection with the acquisition and ownership of the Theatre
Properties by Licensee.
NOW, THEREFORE, in consideration of the above and other valuable
consideration, the parties hereto hereby agree as follows:
1. Grant of License. Licensor hereby grants to Licensee and Licensee hereby
accepts from Licensor, in accordance with the following terms and conditions,
the royalty free, non-exclusive, personal and nontransferable right and license
to use the Mark in the Territory solely in connection with the acquisition and
ownership of the Theatre Properties by Licensee. Nothing contained herein shall
prohibit or otherwise limit the ability of the Licensor to use or license the
Mark within the Territory including any use or license which may compete
directly with Licensee.
2. Use of the Mark and Nature and Quality of Services.
(a) Licensee shall use and display the Mark as prescribed by, and shall
maintain the reasonable standards and specifications of the nature and quality
of services which are established by, Licensor for the purpose of maintaining
substantial consistency between the use of the Mark and the services offered
thereunder by Licensee and others permitted to use the Mark.
(b) Licensee shall permit duly authorized representatives of the Licensor
to inspect on the premises of the Licensee at all reasonable times, the nature
and quality of the services, as well as the mode and manner by which the Mark is
being used and displayed, for the purpose of ascertaining or determining
compliance with subparagraph 2(a) hereof.
(c) Cancellation of Licensee's right to use the Mark shall be the only
remedy for Licensee's noncompliance with the provisions of subparagraphs 2(a)
and 2(b), and then only after Licensee is given written notice of its
noncompliance and at least ninety (90) days in which to cure such noncompliance
and avoid cancellation.
3. Extent of License. The right granted in Paragraph 1 hereof shall not be
transferable without the Licensor's prior written consent and Licensor shall not
be obligated to transfer the Mark to any subsequent purchasers of the Theatre
Properties, provided, however,
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that the Licensee shall have the right to use the Mark in the Territory for the
purpose of exercising the rights granted hereunder.
4. Maintenance of Mark. The Licensor will use reasonable efforts to
register and maintain, or cause to be registered and maintained, the Mark in the
Territory.
5. Indemnity. The Licensor assumes no liability to the Licensee or to third
parties with respect to the acquisition and ownership of the Theatre Properties
by Licensee, and the Licensee hereby indemnifies and holds harmless the Licensor
against all losses, damages and expenses, including attorneys fees, incurred as
a result of or related to claims of third persons arising out of Licensee's
activities.
6. Effective Date and Term. The effective date of this License Agreement is
December 10, 1993. This License Agreement shall continue in force and effect
until such date that Licensor ceases for any reason to be the management agent
of the Theatre Properties for Licensee, unless sooner terminated as provided for
herein.
7. Termination. Subject to the provisions of Paragraph 2(c) hereof, should
the Licensee breach its obligations under Paragraph 8 hereof, the Licensor may
terminate this Agreement upon 30 days' written notice to the Licensee, provided
that the Licensee has not corrected such default during the notice period.
8. Ownership of Mark. The Licensee acknowledges the Licensor's exclusive
right, title and interest in and to the Mark and will not at any time do or
cause to be done any act or thing contesting or in any way impairing or tending
to impair any part of such right, title and interest. In connection with the use
of the Mark, the Licensee shall not in any manner represent that it has any
ownership in the Mark or registration thereof, and the Licensee acknowledges
that use of the Mark shall not create in the Licensee's favor any right, title
or interest in or to the Mark, but all use of the Mark by the Licensee shall
inure to the benefit of the Licensor. Upon termination of this Agreement in any
manner provided herein, the Licensee will cease and desist from all use of the
Mark in any way, and the Licensee shall at no time adopt or use, without the
Licensor's prior written consent, any mark which is likely to be similar to or
confusing with the Mark.
9. Notices. Any notices required or permitted to be given under this
Agreement shall be deemed sufficiently given if mailed by registered mail,
postage prepaid, addressed to the party to be notified at the following
addresses:
If to Licensor: Cinemark USA, Inc.
Suite 800, LB-9
7502 Greenville Avenue
Dallas, Texas 75231
Attention: Michael D. Cavalier
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If to Licensee: Laredo Joint Venture
c/o Cinemark II, Inc.,
Managing Venturer
Suite 800, LB-9
7502 Greenville Avenue
Dallas, Texas 75231
Attention: Lee Roy Mitchell
or at such other address as may be substituted by written notice given as herein
provided.
10. GOVERNING LAW. IT IS AGREED THAT THIS LICENSE AGREEMENT SHALL BE
INTERPRETED ACCORDING TO THE LAWS OF THE STATE OF TEXAS.
IN WITNESS WHEREOF, this Agreement has been executed as of this 10th day of
December, 1993.
LICENSOR
CINEMARK USA, INC.
By: /s/ Jeffrey J. Stedman
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Name: Jeffrey J. Stedman
Title: Vice President
LICENSEE
LAREDO JOINT VENTURE
By: CINEMARK II, INC.,
Managing Venturer
By: /s/ Margaret S. Richards
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Name: Margaret S. Richards
Title: Vice President
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