Document:

<PAGE>

                                                                   Exhibit 10.50

                                PLEDGE AGREEMENT

         THE PLEDGE AGREEMENT, dated as of this 22nd day of October, 2003 (as
amended, modified and supplemented from time to time, this "Agreement"), is
entered into by and between CITADEL CINEMAS, INC, a Nevada corporation (the
"Pledgor"), and SUTTON HILL CAPITAL, L.L.C., a New York limited liability
company (together with its permitted successors and assigns, the "Pledgee").

                                   WITNESSETH:

         WHEREAS, the Pledgor wishes to induce the Pledgee to enter into a new
amendment and restatement of a certain Master Lease (as defined below) with the
Pledgor and to enter into certain related transactions, including the transfer
of its interest in the Sutton Property, as hereinbelow defined; and

         WHEREAS, the Pledgee is unwilling to enter into the amendment and
restatement of the Master Lease and the related transactions unless the Pledgor
enters into a Guarantee (as defined below) and enters into this Agreement to
secure Pledgor's obligations under the Guarantee;

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

SECTION 1. Definitions. Unless otherwise defined herein, terms that are defined
in the Standby Credit Agreement (as defined below) and used herein are so used
as so defined, and the following terms shall have the following meanings:

         "Ancillary Security Documents" shall mean all such further
documentation, including, without limitation, any guarantees, guaranteeing the
performance by the Purchaser of its obligations under the Notes and/or the
Mortgage and any security agreements securing the performance of the guarantor
under any one or more such guarantees.

         "Citadel Reinvestment Option" means Citadel's right under the Purchase
and Sale Agreement to acquire an equity interest in 205-209 East 57th Street
Associates, LLC (referred to herein collectively with a title holding nominee
that it may designate to hold title to the Sutton Property, as the "Purchaser").

                                       1
<PAGE>

         "Code" shall mean the Uniform Commercial Code from time to time in
effect in the State of New York.

         "Collateral" shall have the meaning assigned to that term in Section 2
of this Agreement.

         "Credit Bid Amount" shall mean the aggregate amount of (i) the
outstanding principal balance of the Notes, (ii) all accrued and unpaid interest
and late fees due under the Notes, (iii) all costs incurred by Pledgee in
connection with the collection and enforcement of the Notes and the Mortgage and
Ancillary Security Documents, together with any sums advanced by the Pledgee to
protect the security of the Mortgage and/or any one or more of the Ancillary
Security Documents, (iv) all amounts advanced by the Pledgor to protect the
security of the Mortgage and/or any one or more of the Ancillary Security
Documents, and (v) all costs incurred by Pledgor in connection with the exercise
of the secured party's rights under the Ancillary Security Documents.

         "Event of Default" shall mean the occurrence of any of the following
events: (1) an Event of Default (as defined in the Standby Credit Agreement),
(2) a default on the part of Pledgor under the Guarantee, or (3) a default on
the part of the Pledgor in the due performance or observance of any covenant or
obligation of the Pledgor contained herein, and, if such default under clauses
(2) or (3) is capable of cure, the continuance of such default for thirty (30)
days after written notice from the Pledgee to the Pledgor; provided, however,
that if such default is of a nature that it is capable of being cured but not
within such thirty (30) day period and the Pledgor shall have proceeded
diligently and in good faith to complete curing such default, such thirty (30)
day period shall be extended to one hundred eighty (180) days.

         "Guarantee" shall mean the Guarantee from Pledgor to Pledgee entered
into as of the date hereof of the obligations of Reading International, Inc., as
lender under a certain Standby Credit Agreement to Pledgee as borrower and/or as
a party to the Intercreditor Agreement ("Lender").

         "In Lieu Note" shall mean that certain promissory note of even date
herewith in the amount of $650,000, issued by the Purchaser to Pledgor and
secured by the Mortgage.

         "Intercreditor Agreement" shall mean that certain amended and restated
intercreditor agreement dated as of July 28, 2000, as amended and restated as of
January 29, 2002 and as of even date herewith by and among Reading
International, Inc., Nationwide Theatres, Inc. and Pledgee, as the same may be
amended, modified and supplemented from time to time.

         "Master Lease" shall mean the Master Lease Agreement between Pledgee,
as lessor, and Pledgor, as lessee, dated as of July 28, 2000, as amended and
restated as of January 29, 2002 and as of even date herewith, as the same may be
amended, modified and supplemented from time to time.

         "Lien" shall mean any security interest, mortgage, pledge,
hypothecation, assignment as collateral, encumbrance, lien (statutory or other),
or other security agreement of any kind or

                                       2
<PAGE>

nature whatsoever (including, without limitation, any conditional sale or other
title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of any financing
statement under the Code or comparable law of any jurisdiction in respect of any
of the foregoing).

         "Mortgage" shall mean that certain first mortgage of even date herewith
securing the Notes.

         "Notes" shall mean, collectively and without differentiation, the
Purchase Money Promissory Note and the In Lieu Note.

         "Obligations" shall mean any and all indebtedness, debts, obligations,
and liabilities of the Pledgor to the Pledgee from time to time outstanding
under the Operative Documents, whether fixed or contingent, due or not due,
liquidated or unliquidated, determined or undetermined, and whether for
principal, interest, fees, expenses or otherwise, including principal of and
interest on any other amounts payable in respect of the Loans, if any, and
including, further, any rights of subrogation or contribution arising under the
Operative Documents.

         "Omnibus Amendment Agreement" shall mean that certain agreement dated
as of even date herewith by and among Pledgee, Pledgor, Lender, Sutton Hill
Associates (the parent of Sutton Capital), and Nationwide Theaters Corp.

         "Operative Documents" shall mean the Guarantee and any documents
securing the performance of the Guarantee.

         "Pledgor Permitted Liens" shall mean (i) any rights held by the
Purchaser to offset against its obligation under the Purchase Money Note the
exercise price in the event that Pledgor elects to exercise the Citadel
Reinvestment Option and (ii) any liens placed upon or any claims made against
the Collateral, or any part or portion thereof, to the extent that such liens or
claims are approved by the Pledgee and/or the result of the acts or omissions of
the Pledgee.

         "Proceeds" shall mean all "proceeds" as such term is defined in Section
9-306(1) of the Code on the date hereof and, in any event, shall include,
without limitation, all interest and principal payments under the Notes, subject
to the provisions of Sections 4(e) and 7.

         "Purchase Money Promissory Note" shall mean that certain purchase money
promissory note of even date herewith in the amount of $13,000,000 issued by the
Purchaser to Pledgor and secured by the Mortgage.

         "Purchase and Sale Agreement" means that certain purchase and sale
agreement dated of even date herewith between Pledgor and Purchaser, pertaining
to the sale of that certain real and personal property located at 205-209 East
57th Street and 957 Third Avenue, New York, New York, commonly known as the
"Sutton Cinema" and the associated Wendy's restaurant.

                                       3
<PAGE>

         "Standby Credit Agreement" shall mean the Amended and Restated Standby
Credit Agreement dated as of July 28, 2000, as amended and restated as of
January 29, 2002, and as of even date herewith between Pledgee as borrower and
Reading International, Inc. as lender, as the same may be amended, modified and
supplemented from time to time.

         "Sutton Property" means the real and personal property subject to the
Purchase and Sale Agreement.

          "Taxes" shall mean any present or future taxes, levies, imposts,
duties, fees, assessments, deductions, withholdings or other charges of whatever
nature, including income, receipts, excise, property, sales, use, transfer,
license, payroll, withholding, social security and franchise taxes now or
hereafter imposed or levied by the United States, or any state, local or foreign
government or by any department, agency or other political subdivision or taxing
authority thereof or therein and all interest, penalties, additions to tax and
similar liabilities with respect thereto.

         "Termination Date" has the meaning set forth in the Omnibus Agreement.

         SECTION 2. Grant of Security. As security for the prompt and complete
payment when due of the Obligations, the Pledgor hereby assigns, pledges,
transfers and grants to the Pledgee a continuing security interest in, and a
lien upon, all of the Pledgor's right, title and interest in the following
property now owned or at any time hereafter acquired by the Pledgor, or in which
the Pledgor may acquire any right, title or interest, as collateral security for
the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations (collectively, the
"Collateral"):

                  a)       the Notes;

                  b)       the Mortgage;

                  c)       the Ancillary Security Documents; and

                  d)       all Proceeds of any and all of the foregoing
         (including, without limitation, (i) all proceeds from and payments on
         the Notes, (ii) all benefits and proceeds of and from any related
         policy of title insurance and hazard insurance, (iii) all benefits and
         proceeds of and from any condemnation proceedings concerning the Sutton
         Property, (iv) all rights and benefits in and under the Notes, the
         Mortgage and the Ancillary Security Documents, which the Pledgor now
         has or may at anytime hereafter have, and (v) the Sutton Property, to
         the extent that Pledgee or Pledgor exercises their respective rights
         under the Notes, Mortgage and/or any one or more of the Ancillary
         Security Documents (and/or accepts a deed in lieu of foreclosure) and
         acquires title to such property.

                                       4
<PAGE>

         This Agreement shall create a continuing security interest in the
Collateral which shall remain in effect until the Termination Date.

         SECTION 3. Certain Covenants Of Pledgor. Concurrently with the closing
of the transaction governed by the Purchase and Sale Agreement, Pledgor shall do
each of the following:

                  a)       execute and deliver to Pledgee an Assignment of the
         Mortgage in the form attached hereto as Exhibit "A" (the "Assignment");

                  b)       deliver to Pledgee the original of the Notes,
         endorsed in blank;

                  c)       deliver to the Pledgee the original of the Ancillary
         Security Documents, endorsed in such form as may be reasonably required
         by the Pledgee in order to perfect its security interest in such
         Ancillary Security Documents and/or to facilitate the exercise by the
         Pledgee of its rights under this Agreement;

                  d)       notify the maker/mortgagee under the Notes and the
         Mortgage (the "Obligor") in writing of this Agreement with instructions
         that all payments under or pursuant to the Note are to be made directly
         to Pledgee at Pledgee's address set forth in Section 9, below;

                  e)       procure an ALTA lender's policy of title insurance
         with form 100 endorsement insuring Pledgor in the amount of the
         principal balance of the Notes that the Mortgage is a valid lien and
         charge on the Sutton Property, subject only to title matters approved
         in writing by Pledgee (the "Title Policy) and deliver the original of
         such policy, together with an endorsement insuring Pledgee (such
         endorsement to be acquired at Pledgee's cost) that, by valid
         assignment, the mortgagee's interest in the Mortgage has been assigned
         to Pledgee; and

                  f)       provide Pledgee with such other documentation and
         information as Pledgee may reasonably request.

         SECTION 4. Further Assurances; Affirmative Covenants.

         The Pledgor covenants and agrees that, from and after the date of this
Agreement until the Termination Date:

                  a)       The Pledgor will promptly execute and deliver and
         will cause to be executed and delivered all further instruments and
         documents, including, without limitation, financing and continuation
         statements, and will take all further action and will cause all further
         action to be taken, that the Pledgee may reasonably request in order to

                                       5
<PAGE>

         create, preserve, perfect and protect the security interest in the
         Collateral or to enable the Pledgee to exercise and enforce its rights
         and remedies hereunder or to preserve, perfect and protect the
         Pledgee's right, title and interest in and to the Collateral.

                  b)       The Pledgor will at all times keep accurate and
         complete books and records with respect to the Collateral and agrees
         that the Pledgee or its representative shall have the right at any time
         and from time to time to call at the Pledgor's place of business during
         normal business hours to inspect and examine the books and records of
         the Pledgor relating to the Collateral and to make extracts therefrom
         and copies thereof.

                  c)       The Pledgor will keep the Collateral free and clear
         of all security interests, liens and claims other than the security
         interest and lien herein granted, Pledgor Permitted Liens, Liens for
         Taxes and governmental charges and levies which are not delinquent,
         which are being contested by or on behalf of the Pledgor or which are
         the obligation of Pledgee or any of its Affiliates to pay pursuant to
         any agreements and Liens placed on the Collateral by, or arising from,
         the actions or inactions of, or any event or condition relating to,
         Pledgee or any of its Affiliates, whether or not such Liens are
         permitted to exist pursuant to the terms of any agreements, and will
         not sell, assign, transfer, exchange or otherwise dispose of, or grant
         any option with respect to, the Collateral, except by assignment to the
         Pledgee or pursuant to the terms of this Agreement.

                  d)       The Pledgor will defend the Pledgee's right, title
         and security interest in and to the Collateral against claims and
         demands of all persons whomsoever, other than any such persons who are
         making such claims in their capacity as claimants against and/or
         creditors of the Pledgee.

                  e)       Notwithstanding anything in this Pledge Agreement to
         the contrary, at the election of Pledgor, up to five million dollars
         ($5,000,000) of the Proceeds of the Purchase Money Promissory Note
         and/or the Mortgage shall be used to fund the exercise price of the
         Citadel Reinvestment Option and in such event shall be released as
         Collateral automatically. Pledgee will execute and deliver proper
         instruments acknowledging such release and authorizes Pledgor to file
         amendments to any financing statements reflecting such release. In the
         event of any such release, the equity interest acquired by the Pledgor
         will be treated as proceeds from the Collateral, and any certificate or
         documentation evidencing Pledgor's interest in the Purchaser will be
         promptly delivered to Pledgee, together with such stock powers or
         transfer documents, executed in blank, as the Pledgee may reasonably
         request in order to perfect and/or to facilitate the enforcement of the
         security interest granted to it by this Agreement.

                  f)       Pledgee will be responsible for all transfer and
         filing fees and taxes, if any, related to the granting and perfection
         of the security interests granted by this Agreement.

                                       6
<PAGE>

         SECTION 5. Pledgee's Right to Assign Collateral in Lieu of Performance.
In the event that the Lender is in breach of its obligations under the Standby
Line of Credit, Pledgor shall have the option, exercisable within five (5)
business days to assign to Pledgee its entire ownership interest in the Purchase
Money Promissory Note (and, if not previously satisfied as contemplated by
Section 7, below, in the In Lieu Note), the Mortgage and the Ancillary Security
Documents free and clear of all liens and other claims (other than the rights of
Sutton Capital created by this Agreement and/or any Pledgor Permitted Lien). If
Pledgor does so in a timely manner, then Pledgor shall be relieved of further
obligations accruing under the Guarantee and this Agreement.

         SECTION 6. Remedies.

         (a)      Upon the occurrence of an Event of Default, the Pledgee may,
in its sole discretion, exercise with respect to the Collateral, in addition to
any other rights and remedies provided for herein or otherwise available to it,
all the rights and remedies of a secured party under the New York Uniform
Commercial Code or other applicable law, and the Pledgee may also, upon
reasonable notice as specified below, sell the Collateral at public or private
sale, at any exchange, broker's board or at any of the Pledgee's offices or
elsewhere, for cash, on credit or for future delivery, and at such price and
upon such other terms as the Pledgee may in good faith deem commercially
reasonable. The Pledgee or any of its Affiliates may be the purchaser of the
Collateral at any such sale and shall be entitled, for the purpose of bidding
and making settlement or payment of the purchase price for the Collateral, to
use and apply any of the Obligations as a credit on account of the purchase
price of the Collateral payable by such Person at such sale; provided however
that in any private or public sale, the Pledgee agrees to make a bid in the
amount of the Credit Bid Amount. Each purchaser at any such sale shall acquire
the property sold absolutely free from any claim or right on the part of the
Pledgor, and the Pledgor hereby waives (to the fullest extent permitted by law)
all rights of redemption, stay and/or appraisal which it now has or may at any
time in the future have under any rule of law or statute now existing or
hereafter enacted. The Pledgor agrees that at least fifteen (15) days' notice to
the Pledgor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notice. The Pledgee will
not be obligated to make any sale regardless of notice of sale having been
given. The Pledgee may adjourn any public or private sale from time to time by
announcement of the time and place fixed therefore, and such sale may, without
further notice, be made at the time and place to which it was adjourned. The
Pledgor hereby waives any claims against the Pledgee arising by reason of the
fact that the price at which the Collateral may have been sold at such private
sale was less than the price which might have been obtained at a public sale,
even if the Pledgee accepts the first offer received and does not offer the
Collateral to more than one offeree.

         (b)      The proceeds of any sale of the Collateral under subsection
(a) above shall be applied in the following manner:

                                       7
<PAGE>

                           i. FIRST, to the payment of all costs and expenses
                  reasonably incurred in connection with the sale, collection or
                  other realization, including reasonable costs, fees and
                  expenses of the Pledgee and its agents and counsel, all other
                  reasonable expenses, liabilities and advances made or incurred
                  by the Pledgee and/or the Pledgor in connection therewith
                  (provided that the reimbursement of Pledgee's costs and
                  expenses shall take priority over the reimbursement of the
                  Pledgor's costs and expenses);

                           ii. SECOND, to the Pledgor in an amount equal to any
                  and all interest and late fees accrued under the Purchase
                  Money Promissory Note;

                           iii. THIRD, to fund the obligations of the Lender
                  under the Standby Credit Facility; and

                           iv. FOURTH, the balance, if any, shall be paid to the
                  Pledgor or to whomsoever may be lawfully entitled to receive
                  the same, or as a court of competent jurisdiction may direct.

         The amount distributed to Pledgee pursuant to item (iii), above, shall
         constitute a Loan made by the Lender under, and pursuant to, the
         Standby Credit Agreement.

         (c)      The Pledgee has the right to enforce any and all remedies
provided in this Agreement, successively and concurrently, and such action will
not operate to estop or prevent the Pledgee from pursuing any other remedy which
the Pledgee may have at law or in equity or under any other document.

         (d)      THE PLEDGOR ACKNOWLEDGES THAT ANY PRIVATE SALE OF THE
COLLATERAL MAY RESULT IN PRICES AND OTHER TERMS LESS FAVORABLE TO THE PLEDGOR
THAN IF SUCH SALE WERE A PUBLIC SALE AND THE PLEDGOR AGREES THAT ANY SUCH
PRIVATE SALE SHALL BE DEEMED TO HAVE BEEN MADE IN A COMMERCIALLY REASONABLE
MANNER.

         (e)      In the event that Pledgee becomes the owner of the Purchase
Money Promissory Note (and, if not previously satisfied as contemplated by
Section 7, below, the In Lieu Note), the Mortgage and the Ancillary Security
Documents following a private sale or otherwise, and provided that Pledgor
reimburses Pledgee all of the costs and expenses incurred by Pledgee in
conducting such private sale, Pledgee agrees to use reasonable good faith
efforts thereafter to initiate and pursue, in consultation and cooperation with
Pledgor, foreclosure proceedings pursuant to the terms of the Mortgage. At the
foreclosure, Pledgee shall make a credit bid in the amount of the Credit Bid
Amount. Pledgee also agrees to use reasonable good faith efforts, again in
consultation and cooperation with Pledgor, to exercise its rights under the
Ancillary Security Documents, provided that Pledgor shall be responsible for
advancing the costs thereof, which costs shall, to the extent permitted by the
Notes, the Mortgage and/or the Ancillary

                                       8
<PAGE>

Security Documents, be added to the indebtedness evidenced or secured thereby.
After such foreclosure, Pledgee agrees to take the following actions:

                  i)       If Pledgee's bid is the high bid at the foreclosure
         sale (or, alternatively, if Pledgee elects, in Pledgee's sole and
         absolute discretion, but with Pledgor's consent, such consent not to be
         unreasonably withheld or delayed, accepts a deed to the Sutton Property
         in lieu of foreclosure), the Master Lease shall be deemed to have been
         automatically amended to restore the Sutton Property to the Master
         Lease as provided in the Omnibus Agreement.

                  ii)      If Pledgee is not the successful bidder, Pledgee
         shall disburse the proceeds from the foreclosure as follows: (A) first,
         to Pledgee in an amount equal to the costs incurred by Pledgee in
         connection with the collection and enforcement of the Notes, the
         Mortgage and/or the Ancillary Security Documents, together with any
         sums advanced by Pledgee to protect the security of the Mortgage, (B)
         second, to Pledgor in an amount equal to the costs incurred by Pledgor
         in connection with the collection and enforcement of the Notes, the
         Mortgage and/or the Ancillary Security Documents, together with any
         sums advanced by Pledgor to protect the security of the Mortgage, (C)
         third, to Pledgor in an amount equal to the accrued interest and/or
         late fees on the Purchase Money Note, (D) fourth, to Pledgee in an
         amount equal to the unpaid principal under the Purchase Money Note, and
         (E) fifth, to Pledgor in an amount equal to the unpaid principal and
         interest under the In Lieu Note. The amount distributed to Pledgee
         pursuant to item (D), above, shall constitute a Loan made by the Lender
         under, and pursuant to, the Standby Credit Agreement.

         Except as expressly set forth above, Pledgee shall have no obligation
to take any action with respect to the Notes, the Mortgage or the Ancillary
Security Documents and shall incur no liability for any failure to take any such
action.

         SECTION 7. Payments under Notes and Mortgage. Pledgee shall receive all
payments made by the maker of the Notes as additional collateral under this
Agreement, subject to the following:

                  a)       Provided Pledgor is not in default under the terms of
         the Guaranty, Pledge will, upon the request of Pledgor in the form of a
         declaration that it intends to promptly surrender such In Lieu Note to
         the maker thereof for payment, promptly release and reassign to the
         Pledgor the In Lieu Promissory Note so that the same may be so tendered
         for payment by the Pledgee, and any payments of interest on the
         Purchase Money Note and any payment of interest, late fees and/or
         principal on the In Lieu Note shall be remitted to Pledgor promptly
         following receipt by Pledgee and will not be treated as Proceeds or
         Collateral under this Agreement;

                                       9
<PAGE>

                  b)       Payments in reimbursement for sums advanced by
         Pledgor or Pledgee to protect the security of the Mortgage, shall be
         remitted to, or retained by, the party who advanced such sums, as
         appropriate, it being understood that the first dollars paid by the
         maker of the Purchase Money Note shall, in the event of advances make
         by both Pledgor and Pledgee shall be in reimbursement of the amounts
         advanced by Pledgee; and

                  c)       Payments of principal on the Purchase Money Note may,
         in the Pledgee's discretion, be retained by Pledgee as Proceeds for
         purposes of securing the obligation of the Lender to make advances
         under the Standby Credit Agreement.

         SECTION 8. Pledgee Appointed Attorney-in-Fact.

         Upon the occurrence and during the continuance of an Event of Default
which is not waived by the Pledgee, the Pledgor hereby irrevocably makes,
constitutes and appoints the Pledgee or any of its officers or designees its
true and lawful attorney-in-fact, with full authority in the place and stead of
the Pledgor and in the name of the Pledgor or otherwise, from time to time after
the occurrence and during the continuation of an Event of Default which is not
waived by the Pledgee, to take any action, to execute any instruments and to
exercise any rights, privileges, elections or power of the Pledgor pertaining or
relating to the Collateral which the Pledgee may reasonably deem necessary or
desirable to preserve and enforce its security interest in the Collateral and
otherwise to accomplish the purposes of this Agreement.

         SECTION 9. Pledgee May Perform. If the Pledgor fails to perform any
agreement, the Pledgee may (but shall not be obligated to) itself perform, or
cause performance of, such agreement; provided, however, that the Pledgee shall
first have provided to the Pledgor five (5) Business Days' prior written notice
of the Pledgee's intention so to act (except in cases of emergency when no such
notice shall be required). Any sums expended by the Pledgee pursuant to this
Section 9 shall be added to the Obligations and secured by the Collateral.

         SECTION 10. Amendments, etc. No amendment, waiver or modification of
any provision of this Agreement, nor consent to any departure by the Pledgor
therefrom, shall in any event be effective unless the same shall be in writing
making specific reference to this Agreement and such amendment, waiver,
modification or consent shall be consented to in one or more writings and signed
by the Pledgor and the Pledgee, and then such amendment, waiver, modification or
consent shall be effective only in the specific instance for the specific
purpose for which given.

         SECTION 11. Continuing Security Interest. This Agreement shall create a
continuing security interest in the Collateral and shall (a) remain in full
force and effect until the Termination Date, (b) be binding upon the Pledgor and
(c) inure to the benefit of the Pledgee and

                                       10
<PAGE>

its successors and assigns. If the Pledgee shall have instituted any proceeding
to enforce any right, power or remedy under this instrument by foreclosure,
sale, entry or otherwise, and such proceeding shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the Pledgee,
then and in every such case, the Pledgor and the Pledgee shall be restored to
their respective former positions and rights hereunder with respect to the
Collateral, and all right, remedies and powers of the Pledgee shall continue as
if no such proceeding had been instituted.

         SECTION 12. Notices. All notices, offers, acceptances, approvals,
waivers, requests, demands and other communication hereunder or under any
Operative Document shall be in writing, shall be addressed as provided below and
shall be considered as properly given (a) if delivered in person, (b) if sent by
express courier service (including Federal Express, Emery, DHL, Airborne
Express, and other similar express delivery services), (c) in the event
overnight delivery services are not readily available, if mailed by United
States Postal Service, postage prepaid, registered or certified with return
receipt requested, or (d) if sent by telecopy and confirmed; provided, that in
the case of a notice by telecopy, the sender shall in addition confirm such
notice by writing sent in the manner specified in clause (a), (b) or (c) of this
Section 12. All notices shall be effective upon delivery to the addressee;
provided, however, that if any notice is tendered to an addressee and the
delivery thereof is refused by such addressee, such notice shall be effective
upon such tender. For the purposes of notice, the addresses of the parties shall
be as set forth below; provided, however, that any party shall have the right to
change its address for notice hereunder to any other location by giving written
notice to the other party in the manner set forth herein. The initial addresses
of the parties hereto are as follows:

         (a)      If to the Pledgor:
                  Citadel Cinemas, Inc.
                  c/o Reading International, Inc.
                  550 South Hope Street
                  Suite 1825
                  Los Angeles, CA 90071
                  Attention: Chief Financial Officer
                  Telecopier No.: (213) 235-2229

with required copies to:

                  S. Craig Tompkins
                  Reading International, Inc.
                  550 South Hope Street
                  Suite 1825
                  Los Angeles, CA 90071
                  Telecopier No. (213) 235-2229

                                       11
<PAGE>

         (b)      If to the Pledgee:
                  Sutton Hill Capital, L.L.C.
                  120 North Robertson Blvd.
                  Los Angeles, California 90048
                  Attention: Legal Department
                  Telecopier: (310) 652-6490

         with required copies to:

                  Ira Levin
                  Pacific Theatres
                  120 North Robertson Boulevard
                  Los Angeles, CA  90048
                  Telecopier: (310) 652-6490

Each such notice, request or other communication shall be effective when
actually received.

         SECTION 13. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED AT, AND
SHALL BE EFFECTIVE WHEN EXECUTED BY THE PLEDGOR AND THE PLEDGEE IN, NEW YORK,
NEW YORK, WHEREUPON THIS AGREEMENT SHALL BE DEEMED A CONTRACT MADE IN NEW YORK
AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK.

         SECTION 14. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         SECTION 15. Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto on separate counterparts, each
of which counterparts, when executed and delivered, shall be deemed an original
and all of which counterparts, taken together, shall constitute one and the same
instrument.

         SECTION 16. Benefits. The rights and privileges of the Pledgee
hereunder shall inure to the benefit of its successors and assigns and the
obligations of the Pledgor shall be binding on the Pledgor's successors and
assigns.

                                       12
<PAGE>

         SECTION 17. Powers Coupled With An Interest. All authorizations and
agencies herein contained with respect to the Collateral are irrevocable and
powers coupled with an interest.

         SECTION 18. Paragraph Headings. The Article and Section headings in
this Agreement and the table of contents are for convenience of reference only
and shall not affect the construction hereof or be taken into consideration in
the interpretation hereof.

         SECTION 19. Waiver of Jury Trial. THE PARTIES HERETO KNOWINGLY,
VOLUNTARILY AND EXPRESSLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ENFORCING OR DEFENDING ANY RIGHTS ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE PLEDGOR
ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION 18 HAVE BEEN BARGAINED FOR AND
THAT IT HAS BEEN REPRESENTED BY COUNSEL IN CONNECTION HEREWITH.

         SECTION 20. Termination. Upon the Termination Date, this Agreement
shall terminate and the Pledgee at the request of the Pledgor will execute and
deliver to the Pledgor a proper instrument or instruments acknowledging the
satisfaction and termination of this Agreement, and will duly assign, transfer
and deliver to the Pledgor such of the Collateral as may be in the possession of
the Pledgee and as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement, together with any moneys at the time held
by the Pledgee. Pledgee authorizes Pledgor to file termination statements in
connection with such termination.

         SECTION 21. Limited Recourse. No recourse for the payment of the
principal of, or interest on, the Obligations or obligations of the Pledgor
hereunder or any other amount due under this Agreement, or for any claim based
thereon or otherwise in respect thereof or hereof, shall be had against any
direct or indirect partner or owner of the Pledgor or any incorporator, partner,
shareholder, officer, member, Affiliate or director, as such, past, present or
future, of any such direct or indirect partner. Nothing contained in this
Section 21 shall be construed to limit the exercise or enforcement, in
accordance with the terms of this Agreement and the other documents referred to
herein, of rights and remedies against the Collateral, or any other Person
expressly undertaking in writing obligations in connection with the transactions
contemplated hereby. In no event shall the Pledgor have any liability to the
Pledgee hereunder for any lost or prospective profits or any other special,
punitive, exemplary, consequential, incidental or indirect losses or damages (in
tort, contract or otherwise). The parties further agree that no claim for direct
damages by a party hereunder shall include any amounts for which such party has
been reimbursed or is entitled to be reimbursed under any insurance required to
be obtained under the Master Lease or acquired in connection therewith.

                                       13
<PAGE>

         SECTION 22. Cumulative Rights; No Waiver. No failure on the part of the
Pledgee to exercise, no course of dealing with respect to, and no delay on the
part of the Pledgee in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein
provided are cumulative and are not exclusive of any remedies provided by law.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                    PLEDGOR:

                                    CITADEL CINEMAS, INC.

                                    By: /s/ S. Craig Tompkins
                                        --------------------------------------
                                            Name: S. Craig Tompkins
                                            Title: Vice Chairman

                                    PLEDGEE:

                                    SUTTON HILL CAPITAL, L.L.C.

                                    By: /s/ James D. Vandever
                                        --------------------------------------
                                            Name: James D. Vandever
                                            Title: Vice President

                                       14<PAGE>

                                                                   EXHIBIT 10.51

             GUARANTEE OF LENDER'S OBLIGATIONS UNDER STANDBY CREDIT
                                    AGREEMENT

         GUARANTEE, dated as of October 22, 2003 (this "Guarantee"), from
CITADEL CINEMAS, INC, a Nevada corporation (the "Guarantor"), in favor of SUTTON
HILL CAPITAL, L.L.C., a New York limited liability company (the "Sutton
Capital"), and its successors and assigns.

         WHEREAS, the Guarantor wishes to induce the Sutton Capital to enter
into a new amendment and restatement of a certain Operating Lease (as defined
below) with the Guarantor and to enter into certain related transactions; and

         WHEREAS, the Sutton Hill is unwilling to enter into the amendment and
restatement of the Operating Lease and the related transactions unless the
Guarantor enters into this Guarantee of the obligations of the Lender (as
defined below) which is an Affiliate (as defined below) of the Guarantor to
Sutton Capital under the Standby Credit Agreement (as defined below) and/or the
Intercreditor Agreement (as defined below);

         NOW, THEREFORE, in order to induce Sutton Capital to enter into the new
amendment and restatement of the Operating Lease and the related transactions,
the Guarantor hereby agrees as follows:

                                    SECTION 1

                                  DEFINED TERMS

                              RULES OF CONSTRUCTION

1.1      DEFINITIONS

         As used in this Guarantee, capitalized terms defined in the preamble,
Preliminary Statements and other Sections of this Guarantee shall have the
meanings set forth therein, terms defined in Exhibit A shall have the meanings
set forth therein, and capitalized terms used herein or in Exhibit A but not
otherwise defined herein or in Exhibit A shall, except as otherwise provided in
the Standby Credit Agreement, have the meanings set forth in the Standby Credit
Agreement.

1.2      ACCOUNTING TERMS

         All accounting terms not specifically defined herein shall be construed
in accordance with generally accepted accounting principles.

1.3      USE OF CERTAIN TERMS

         Unless the context of this Guarantee requires otherwise, the plural
includes the singular, the singular includes the plural, and "including" has the
inclusive meaning of "including without

<PAGE>

limitation." The words "hereof," "herein," "hereby," "hereunder," and other
similar terms of this Guarantee refer to this Guarantee as a whole and not
exclusively to any particular provision of this Guarantee. All pronouns and any
variations thereof shall be deemed to refer to masculine, feminine, or neuter,
singular or plural, as the identity of the Person or Persons may require.

1.4      HEADINGS AND REFERENCES

         Section and other headings are for reference only, and shall not affect
the interpretation or meaning of any provision of this Guarantee. Unless
otherwise provided, references to Articles, Sections, Schedules, and Exhibits
shall be deemed references to Articles, Sections, Schedules, and Exhibits of
this Guarantee. References to this Guarantee and any other Operative Document
include this Guarantee and the other Operative Documents as the same may be
modified, amended, restated or supplemented from time to time pursuant to the
provisions hereof or thereof. A reference to any Law shall mean that Law as it
may be amended, modified or supplemented from time to time, and any successor
Law. A reference to a Person includes the successors and assigns of such Person,
but such reference shall not increase, decrease or otherwise modify in any way
the provisions in this Guarantee governing the assignment of rights and
obligations under or the binding effect of any provision of this Guarantee.

                                    SECTION 2

                                    GUARANTEE

2.1      GUARANTEE

         Subject to the terms and conditions in this Guarantee, the Guarantor
absolutely, unconditionally and irrevocably guarantees to Sutton Capital that
the Lender will duly and punctually perform, comply with, and observe all
Obligations as and when required in accordance with the terms thereof and
subject to the conditions thereof, in each case, without regard to whether such
Obligation is direct or indirect, absolute or contingent, now or hereafter
existing or owing, voluntary or involuntary, created or arising by contract,
operation of Law or otherwise, all to the same extent, except as otherwise
specifically provided herein, as if the Guarantor were the Lender under the
Standby Credit Agreement and/or under the Intercreditor Agreement; provided,
however, that the foregoing limitation imposing on the Guarantor obligations
hereunder as if it were the Lender under the Standby Credit Agreement (except as
herein set forth) and/or under the Intercreditor Agreement shall not limit
obligations of the Guarantor hereunder to the extent the limitations (including
termination, disavowal, rejection or reduction) of any such obligation of the
Lender results from an Insolvency or Liquidation Proceeding, and in such event
the Guarantor shall be liable in respect of obligations of the Lender pursuant
to the Standby Credit Agreement and/or under the Intercreditor Agreement as if
no such Insolvency or Liquidation Proceeding had been initiated.

                                    -- 2 --
<PAGE>

2.2      GUARANTEE ABSOLUTE

         Subject to the terms and conditions of the Guarantee, including without
limitation Section 2.7, this Guarantee is an absolute, unlimited and continuing
guaranty of performance and payment (and not of collection) of the Obligations.
This Guarantee is in no way conditioned upon any attempt to collect from the
Lender or upon any other event of contingency, and shall be binding upon and
enforceable against the Guarantor without regard to the validity or
enforceability of any Operative Document, or of any term thereof or obligation
thereunder.

         The obligations of the Guarantor set forth herein constitute full
recourse obligations of the Guarantor enforceable against it to the full extent
of all its assets and properties. Without limiting the foregoing, it is agreed
and understood that repeated and successive demands may be made and recoveries
may be had hereunder as and when, from time to time, the Lender shall be in
default with respect to the Obligations under the terms of the Standby Credit
Agreement and/or the Intercreditor Agreement and that, notwithstanding the
recovery hereunder for or in respect of any given default with respect to the
Obligations by the Lender under the Standby Credit Agreement and/or under the
Intercreditor Agreement, this Guarantee shall remain in full force and effect
said shall apply to each and every subsequent default with respect to the
Obligations; but the foregoing shall not limit rights and remedies under the
Standby Credit Agreement, the Intercreditor Agreement, or the Obligations
hereunder.

2.3      REINSTATEMENT

         In case any Operative Document or obligation thereunder shall be
terminated as a result of the rejection thereof by any trustee, receiver or
liquidating agent of the Lender or any of its properties in any Insolvency or
Liquidation Proceeding, the Guarantor's obligations hereunder shall continue to
the same extent as if such agreement had not been so rejected. The Guarantor
agrees that this Guarantee shall continue to be effective or be reinstated, as
the case may be, if at any time payment to Sutton Capital of the Obligations or
any part thereof is rescinded or must otherwise be returned by Sutton Capital
upon the Insolvency or Liquidation Proceeding, as though such payment to Sutton
Capital had not been made.

2.4      ENFORCEMENT

         The Guarantor shall pay all costs, expenses and damages incurred
(including reasonable attorneys' fees and disbursements) in connection with the
enforcement of the obligations to the extent that such costs, expenses and
damages are not paid by the Lender, said in connection with the enforcement of
the obligations of the Guarantor under this Guarantee.

2.5      RIGHTS OF SETOFF, ETC.

         The obligations of the Guarantor hereunder shall be subject to the same
counterclaims, setoffs, deductions and defenses as would be available to the
Guarantor if the Guarantor were the Lender under the Standby Credit Agreement,
and/or the Intercreditor Agreement. Except as provided in the immediately
preceding sentence, the obligations of the Guarantor hereunder shall not be
subject to any counterclaims, setoffs, deductions or defenses (other than
payment, performance or affirmative discharge, release or termination of this
Guarantee by Sutton Capital) that the Guarantor may have against the Lender or
any other Person, and shall remain in full

                                    -- 3 --
<PAGE>

force and effect without regard to, and shall not be released, discharged,
reduced or in any way affected by any circumstance or condition (whether or not
the Guarantor shall have any knowledge or notice thereof) whatsoever which might
constitute a legal or equitable discharge or defense (except as provided in
Section 4.1(b)) including (a) the amending, modifying, supplementing or
terminating (by operation of law or otherwise), expressly or impliedly, of any
Operative Document, or any other instrument applicable to the Lender or to its
Obligations, or any part thereof; (b) any failure on the part of the Lender to
perform or comply with any term of any Operative Document or any failure of any
other Person (other than Sutton Capital and its Affiliates, to the extent such
failure constitutes a defense to performance by the lender under the Standby
Credit Agreement of its obligations thereunder) to perform or comply with any
term of any Operative Document; (c) any waiver, consent, change, extension,
indulgence or other action or any action or inaction under or in respect of any
Operative Document or this Guarantee (except for any written waiver or
modification of the provisions of this Guarantee signed by the parties hereto),
whether or not Sutton Capital, the Lender or the Guarantor has notice or
knowledge of any of the foregoing; (d) any Insolvency or Liquidation Proceeding
or any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or similar proceeding with respect to the Guarantor or
its properties, or any action taken by any trustee or receiver or by any court
in any such proceeding; (e) any furnishing or acceptance of additional or
substitute security or any release (whether for valuable consideration or
otherwise) of any security (and the Guarantor authorizes Sutton Capital to
furnish, accept or release said security); (f) any limitation on the liability
or Obligations of the Lender under any Operative Document (except as expressly
set forth therein) or any termination (by operation of law or otherwise),
cancellation (by operation of law or otherwise), frustration or
unenforceability, in whole or in part, of any Operative Document, or any term
thereof or Obligation thereunder, except to the extent my such limitation,
termination, cancellation, frustration or unenforceability arises in favor of
the Lender thereunder based on circumstances, conditions or events which would
have limited, terminated, cancelled, frustrated or rendered unenforceable the
obligations of the Guarantor, if the Guarantor had been the lender under the
Standby Credit Agreement; (g) any lien, charge or encumbrance on or affecting
the Guarantor's or the Lender's respective assets and properties; (h) any act,
omission or breach on the part of Sutton Capital or any Assignee under any
Operative Document, or my other agreement at any time existing between Sutton
Capital and the Lender or any other Law or other agreement applicable to Sutton
Capital or any Obligation, except to the extent such act, omission or breach
would have resulted in the limitation or termination of any liability of the
Guarantor if the Guarantor had been the Lender under the Standby Credit
Agreement and/or the Intercreditor Agreement; (i) any claim as a result of any
other dealings among Sutton Capital and the Guarantor, except to the extent such
act, omission or breach would have resulted in the limitation or termination of
any liability of the Guarantor if the Guarantor had been the Lender under the
Standby Credit Agreement and/or the Intercreditor Agreement; (j) the assignment
or transfer of this Guarantee, any Operative Document (in accordance with and
subject to the terms thereof) or any other agreement or instrument referred to
in any Operative Document or applicable to the Lender or the Obligations by
Sutton Capital to any other Person; (k) any change in the name of Sutton
Capital, the Lender or my other Person referred to herein; (l) any merger or
consolidation of the Lender or the Guarantor into or with any other Person or
any sale, lease or transfer of any other assets of the Lender or the Guarantor
to any other Person, whether or not permitted pursuant to the terms of the
Operative Documents; (m) the availability to Sutton Capital of claims against
other parties

                                    -- 4 --
<PAGE>

with respect to the Obligations (whether or not such parties are then solvent)
or the release of any or all of such claims (whether for valuable consideration
or otherwise); or (n) any change in the ownership of any shares of capital stock
of or other evidences of equity interests in the Guarantor or the Lender
(including any such change which results in the Lender no longer owning capital
stock of, or any such interests in, the Guarantor), whether or not permitted
pursuant to the terms of the Operative Documents; provided, however, that,
notwithstanding the foregoing, this Guarantee shall not constitute a waiver or
release by the Lender or the Guarantor of any claim of the Lender or the
Guarantor which may be asserted against Sutton Capital or any other party in a
separate action or proceeding, or if required by applicable Law as a compulsory
counterclaim in such action.

2.6      WAIVER

         The Guarantor unconditionally waives: (a) notice of any of the matters
referred to in Section 2.5 hereof; (b) all notices which may be required by
statute, rule of law or otherwise to preserve any rights against the Guarantor
hereunder, including notice of the acceptance of this Guarantee by Sutton
Capital, or the creation, renewal, extension, modification or accrual of the
Obligations or notice of any other matters relating thereto, any presentment,
demand, notice of dishonor, protest or nonpayment of any damages or other
amounts payable under any Operative Document; (c) any requirement for the
enforcement, assertion or exercise of any right, remedy, power or privilege
under or in respect of any Operative Document, including diligence in collection
or protection of or realization upon the Obligations or any part thereof or any
collateral therefor; (d) any requirement of diligence; (e) any requirement to
mitigate the damages resulting from a default under any Operative Document,
except that this shall not relieve Sutton Capital of any such obligation if and
to the extent required by the terms of the Operative Documents or required by
Law; (f) the occurrence of every other condition precedent to which the
Guarantor or the Lender may otherwise be entitled, except as provided in any
Operative Document; and (g) the right to require Sutton Capital to proceed
against the Lender or any other Person liable on the Obligations, to proceed
against or exhaust security held from the Lender or any other Person, or to
pursue any other remedy in Sutton Capital's power whatsoever, and the Guarantor
waives the right to have the property of the Lender first applied to the
discharge of the Obligations.

          Sutton Capital may, at its election, exercise any right or remedy it
might have against the Lender or any security held by Sutton Capital, including
the right to foreclose upon any such security by judicial or nonjudicial sale,
without affecting or impairing in any way the liability of the Guarantor
hereunder, except to the extent the Obligations have been indefeasibly paid or
satisfied, and the Guarantor waives any defense arising out of the absence,
impairment or loss of any right of reimbursement, contribution or subrogation or
any other right or remedy of the Guarantor against the Lender or any such
security, whether resulting from such election by Sutton Capital or otherwise.
Except to the extent provided in the first sentence of Section 2.5 hereof, the
Guarantor waives any defense arising by reason of any disability or other
defense of the Lender (which may nevertheless be asserted in a separate action
or proceeding against Sutton Capital or any other party), or by reason of the
cessation of the liability, either in whole or in part, of the Lender to the
Obligations (other than as a result of payment, performance or affirmative
discharge, release or termination of this Guarantee by Sutton Capital).

                                    -- 5 --
<PAGE>

2.7      LIMITATIONS ON AMOUNT AND DURATION OF THIS GUARANTEE

         Notwithstanding anything herein to the contrary, the Guarantor's total
obligations and liabilities of any nature under this Guarantee shall in no event
exceed thirteen million dollars ($13,000,000) in the aggregate. All obligations
and liabilities of any nature under this Guarantee shall terminate as of the
Termination Date.

2.8      PLEDGE AGREEMENT

         This Guarantee is secured by a Pledge Agreement entered into on the
date hereof by Guarantor as pledgor and Sutton Capital as pledgee.

                                    SECTION 3

                          REPRESENTATIONS & WARRANTIES

         The Guarantor represents and warrants to Sutton Capital that the
following statements are true and correct in all material respects:

3.1      CORPORATE EXISTENCE; COMPLIANCE WITH LAW.

         The Guarantor (a) has been duly incorporated and is validly existing as
a corporation in good standing under the laws of the State of Nevada, and (b)
has full power, authority and legal right to own and operate its properties and
to conduct its business as presently conducted.

3.2      OWNERSHIP OF GUARANTOR

         All of the Guarantor's common stock is owned beneficially and of record
by the Lender or a Subsidiary of Lender.

                                    SECTION 4

                                  MISCELLANEOUS

4.1      PARTIES.

         (a) This Guarantee shall inure to the benefit of Sutton Capital and its
successors, assigns or transferees, and shall be binding upon the Guarantor and
its successors and assigns. Except as provided in Section 4.1(b), the Guarantor
may not delegate any of its duties under this Guarantee without the prior
written consent of Sutton Capital. Upon notice to the Guarantor, Sutton Capital
and its successors, assigns and transferees may assign its or their rights and
benefits under this Guarantee to (i) any financial institutions providing
financing to Sutton Capital in connection with the Property or Equipment or any
trustee for such financial institutions, and (ii) any purchaser or transferee of
all or a substantial portion of the rights and

                                    -- 6 --
<PAGE>

interests of Sutton Capital and its successors, assigns or transferees in and to
the Theatre Properties and Equipment.

         (b) If in connection with a Business Sale (i) either (A) the Lender
shall assign to any Person the Lender's obligations under the Standby Credit
Agreement or (B) the Lender shall transfer the capital stock of the Guarantor to
any Person which is not an Affiliate of the Lender (whether by transfer of the
stock of the Guarantor or any Subsidiary of the Lender which owns such stock, by
merger of the Lender or any such Subsidiary of the Lender, or otherwise), and
(ii) a Suitable Replacement either assumes the Lender's obligations under the
Standby Credit Agreement or executes and delivers to Sutton Capital a Guarantee
substantially similar to this Guarantee (subject to such modifications as may be
reasonably acceptable to Sutton Capital), this Guarantee shall be terminated and
the Guarantor shall have no further liability hereunder with respect to
Obligations thereafter arising.

4.2      NOTICES.

         All notices, offers, acceptances, approvals, waivers, requests, demands
and other communications hereunder shall be in writing, shall be addressed as
provided below and shall be considered as properly given (a) if delivered in
person, (b) if sent by express courier service (including Federal Express,
Emery, DHL, Airborne Express, and other similar express delivery services), (c)
in the event overnight delivery services are not readily available, if mailed
through the United States Postal Service, postage prepaid, registered or
certified with return receipt requested, or (d) if sent by telecopy and
confirmed; provided, that in the case of a notice by telecopy, the sender shall
in addition confirm such notice by writing sent in the manner specified in
clauses (a), (b) or (c) of this Section 4.2. All notices shall be effective upon
receipt by the addressee; provided, however, that if any notice is tendered to
an addressee and the delivery thereof is refused by such addressee, such notice
shall be effective upon such tender. For the purposes of notice, the addresses
of the parties shall be as set forth below; provided, however, that any party
shall have the right to change its address for notice hereunder to any other
location by giving written notice to the other party in the manner set forth
herein. The initial addresses of the parties hereto are as follows:

                  If to Sutton Capital:

                           Sutton Capital, L.L.C.
                           120 North Robertson Blvd.
                           Los Angeles, California 90048
                           Attention: Ira Levin
                           Telecopier: (310) 855-8416

                  If to the Guarantor:

                           Citadel Cinemas, Inc.
                           c/o Reading International, Inc.
                           550 South Hope Street
                           Suite 1825
                           Los Angeles, California 90071

                                    -- 7 --
<PAGE>

                           Attention: Chief Financial Officer
                           Telecopier: (213) 239-0548

4.3      REMEDIES.

         The Guarantor stipulates that the remedies at law in respect of any
default or threatened default by the Guarantor in the performance of or
compliance with any of the terms of this Guarantee are not and will not be
adequate, and that any of such terms may be specifically enforced by a decree
for specific performance or by an injunction against violation of any such terms
or otherwise, in each case to the same extent as if the Guarantor were the
Lender under the Standby Credit Agreement and/or the Intercreditor Agreement
subject to the proviso in Section 2.1 hereof.

4.4      RIGHT TO DEAL WITH THE LENDER.

         At any time and from time to time, without terminating, affecting or
impairing the validity of this Guarantee or the obligations of the Guarantor
hereunder, Sutton Capital may deal with the Lender in the same manner and as
fully and as if this Guarantee did not exist and shall be entitled, among other
things, to grant the Lender, without notice or demand and without affecting the
Guarantor's liability hereunder, such extension or extensions of time to
perform, renew, compromise, accelerate or otherwise change the time for
performance of or otherwise change the terms of performance or any part thereof
contained in or arising under any Operative Document, or to waive any Obligation
of the Lender to perform any act or acts as Sutton Capital may deem advisable.

4.5      SUBROGATION.

         The Guarantor will not exercise any rights which it may acquire by way
of subrogation hereunder, by any payment made hereunder or otherwise, until the
Termination Date. If any amount shall be paid to the Guarantor on account of
such subrogation rights at any time prior to the Termination Date, such amount
shall be held in trust for the benefit of Sutton Capital and shall forthwith be
credited and applied upon the Obligations, whether matured or unmatured, in
accordance with the terms of the Operative Documents. If (a) the Guarantor shall
make payment to Sutton Capital or any successor, assignee or transferee of
Sutton Capital of all or any part of the Obligations and (b)the Termination Date
occurs, Sutton Capital or any such successor, assignee or transferee of Sutton
Capital will, at the Guarantor's request and expense, execute and deliver to the
Guarantor appropriate documents necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Obligations resulting from
such payment by the Guarantor.

4.6      SURVIVAL OF REPRESENTATIONS, WARRANTIES, ETC.

         All representations, warranties, covenants and agreements made herein
and in statements or certificates delivered pursuant hereto shall survive any
investigation or inspection made by or on behalf of Sutton Capital and shall
continue in full force and effect until the Termination Date.

                                    -- 8 --
<PAGE>

4.7      GOVERNING LAW.

         THIS GUARANTEE HAS BEEN EXECUTED AND DELIVERED IN THE STATE OF NEW
YORK. THE GUARANTOR AND SUTTON CAPITAL AGREE THAT, TO THE MAXIMUM EXTENT
PERMITTED BY THE LAWS OF THE STATE OF NEW YORK, THIS GUARANTEE, AND THE RIGHTS
AND DUTIES OF THE GUARANTOR AND SUTTON CAPITAL HEREUNDER, SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING,
WITHOUT LIMITATION, SECTIONS 51401 AND 51402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW) IN ALL RESPECTS, IN RESPECT OF ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE.

4.8      CONSENT TO JURISDICTION.

         THE GUARANTOR HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS
PROPERTIES, THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK AND THE SUPREME COURT OF THE STATE OF NEW YORK IN
THE COUNTY OF NEW YORK IN ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND
RELATED TO OR IN CONNECTION WITH THIS GUARANTEE, AND TO THE EXTENT PRMITTED BY
APPLICABLE LAW, THE GUARANTOR HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY
CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT
THE SUIT, ACTINO OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THIS GUARANTEE OR
THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURT. THIS
SUBMISSION TO JURISDICTION IS NONEXCLUSIVE AND DOES NOT PRECLUDE SUTTON CAPITAL
OR ANY ASSIGNEE FROM OBTAINING JURISDICTION OVER THE GUARANTOR IN ANY COURT
OTHERWISE HAVING JURISDICTION.

4.9      WAIVER OF JURY TRIAL.

         TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE GUARANTOR AGREES NOT TO
SEEK AND HEREBY WAIVES THE RIGHT TO ANY REVIEW OF THE JUDGMENT OF ANY SUCH COURT
BY ANY COURT OF ANY OTHER NATION OR JURISDICTION WHICH MAY BE CALLED UPON TO
GRANT AN ENFORCEMENT OF SUCH JUDGMENT. THE GUARANTOR AGREES THAT SERVICE OF
PROCESS MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR
NOTICES SET FORTH IN THIS GUARANTEE OR ANY METHOD AUTHORIZED BY THE LAWS OF NEW
YORK.

         THE GUARANTOR AND SUTTON CAPITAL EXPRESSLY WAIVE ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM RELATED TO THIS GUARANTEE. THE
GUARANTOR AND SUTTON CAPITAL ACKNOWLEDGE THAT THE PROVISIONS OF SECTIONS 4.7,
4.8 AND 4.9 HAVE

                                    -- 9 --
<PAGE>

BEEN BARGAINED FOR AND THAT THEY HAVE BEEN REPRESENTED BY COUNSEL IN CONNECTION
THEREWITH.

4.10     SEVERABILITY.

         If any term of this Guarantee or any application thereof shall be
invalid or unenforceable, the remainder of this Guarantee and any other
application of such term shall not be affected thereby. Any term of this
Guarantee may be amended, modified, waived, discharged or terminated only by an
instrument in writing signed by the Guarantor and Sutton Capital.

4.11     COUNTERPARTS.

         This Guarantee may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument.

4.12     NO WAIVER.

         No delay on the part of Sutton Capital in exercising any power or right
hereunder or under any Operative Document shall operate as a waiver thereof; nor
shall any single or partial exercise of any power or right hereunder or the
failure to exercise same in any instance preclude other or further exercise
thereof or the exercise of any other power or right; nor shall Sutton Capital be
liable for exercising or failing to exercise any such power or right; the rights
and remedies hereunder expressly specified are cumulative and not exclusive of
any rights or remedies which Sutton Capital may or will otherwise have. The
Guarantor hereby agrees and acknowledges that to the extent in any instance
claims under this Guarantee consist of claims for the payment of money only,
Sutton Capital, at its sold option, shall have the right to bring a motion or
proceeding under New York State Civil Practice Law and Rules Section 3213.

4.13     LIMITATIONS.

         In no event shall the Guarantor have any liability to Sutton Capital
hereunder for any lost or prospective profits or any other special, punitive,
exemplary, consequential, incidental or indirect losses or damages (in tort,
contract or otherwise).

                            [Signature page follows]

                                    -- 10 --
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this Guarantee to be
executed and delivered as of the day and year first above written.

                                          GUARANTOR

                                          CITADEL CINEMAS, INC.

                                          By: /s/ S. Craig Tompkins
                                              ------------------------------
                                              Name: S. Craig Tompkins
                                               Title: Vice Chairman

Acknowledged and Agreed:

SUTTON CAPITAL

SUTTON HILL CAPITAL, L.L.C.

By: /s/ James D. Vandever
    ---------------------------------
    Name: James D. Vandever
    Title: Manager

                                    -- 11 --
<PAGE>

                                    EXHIBIT A

                                  DEFINED TERMS

         "Affiliate" of any Person means any other Person controlling,
controlled by or under direct or indirect common control with such Person. For
the purposes of this definition, "control," when used with respect to any
specified Person, means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have the meanings correlative to the foregoing. Notwithstanding the
foregoing: (a) Sutton Capital and its Affiliates (the "Sutton Capital's
Affiliates") shall not include the Guarantor and Lender and its Subsidiaries;
and (b) the Guarantor and Lender and its Subsidiaries (including the Guarantor),
on the one hand, and Sutton Capital and Sutton Capital's Affiliates, on the
other hand, shall not be considered Affiliates of each other.

         "Business Sale" has the meaning set forth in the Operating Lease.

         "Insolvency or Liquidation Proceeding" means:

                  (a) The entry of a decree or order for relief in respect of
         the Lender by a court having jurisdiction in the premises, or the
         appointment of a receiver, liquidator, assignee, custodian, trustee,
         sequestrator (or other similar official) of the Lender or of any
         substantial part of its property, or ordering the winding up or
         liquidation of its affairs, in an involuntary case under the Federal
         bankruptcy laws, as now or hereafter constituted, or any other
         applicable Federal or state bankruptcy, insolvency or other similar
         law; or the commencement against the Lender of an involuntary case
         under the Federal bankruptcy laws, as now or hereafter constituted, or
         any other applicable Federal or state bankruptcy, insolvency or other
         similar law; or

                  (b) The commencement by the Lender of a voluntary case under
         the Federal bankruptcy laws, as now or hereafter constituted, or any
         other applicable Federal or state bankruptcy, insolvency or other
         similar law, or the consent by it to the entry of an order for relief
         in an involuntary case under any such law or the consent by it to the
         appointment of or taking possession by a receiver, liquidator,
         assignee, custodian, trustee, sequestrator (or other similar official)
         of the Lender or of any substantial part of its property, or the making
         by it of a general assignment for the benefit of creditors, or the
         taking of any action in furtherance of any of the foregoing.

          "Intercreditor Agreement" means the Amended and Restated Intercreditor
Agreement dated as of July 28, 2000 as amended and restated as of January 29,
2002 as further amended and restated as of even date herewith between Sutton
Hill Capital, Reading International, Inc. and Nationwide Theatres Corp., as the
same may be amended, restated, modified, or supplemented from time to time.

         "Law" shall mean any law (including, without limitation, any
environmental Law), treaty, statute, rule, regulation, ordinance, order,
directive, code, interpretation, judgment, decree, injunction, writ,
determination, award, permit, license, authorization, direction, requirement or

                                    -- A-1 --
<PAGE>

decision of or agreement with or by any governmental or governmental department,
commission, board, court, authority, agency, official or officer having
jurisdiction of the matter in question.

         "Lender" means Reading International, Inc. in its capacity as Lender
under the Standby Credit Agreement, and in its capacity as a party to the
Intercreditor Agreement, and, in each case, its successors and assigns.

         "Mortgage" means that certain first mortgage of even date herewith
securing the Note.

         "Note" means that certain purchase money promissory note of even date
herewith between Purchaser as payor and Guarantor as payee.

         "Obligations" means all obligations, covenants, and undertakings of
Reading International, Inc. contained in the Operative Documents.

         "Omnibus Agreement" means that certain Omnibus Amendment Agreement
dated as of even date herewith by and among Lender, Guarantor, Sutton Capital,
Sutton Hill Associates and Nationwide Theater Corp.

         "Operating Lease" means the Amended and Restated Operating Lease
Agreement dated as of July 28, 2000 as amended and restated as of January 29,
2002 and as further amended and restated as of even date herewith between Sutton
Hill Capital, L.L.C., as Lessor, and Citadel Cinemas, Inc., as Lessee, as the
same may be amended, restated, modified or supplemented from time to time.

         "Operative Documents" means the Standby Credit Agreement and each
agreement, certificate or instrument delivered by the Lender pursuant to the
terms of the Standby Credit Agreement, the Intercreditor Agreement and each
agreement, certificate or instrument delivered by the Lender pursuant to the
terms of the Intercreditor Agreement.

          "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, limited liability company,
unincorporated association, joint venture or other entity, or a government or
any political subdivision or agency thereof.

         "Purchaser" means collectively 205-209 East 57th Street Associates,
LLC, its successors and assigns, including any title holding nominee that it may
designate to hold title to the Sutton Property (as such term is defined in the
Omnibus Agreement).

         "Standby Credit Agreement" means the Amended and Restated Standby
Credit Agreement dated as of July 28, 2000, as amended and restated as of
January 29, 2002, as further amended and restated as of even date herewith
between Sutton Hill Capital, L.L.C. as Borrower and Reading International, Inc.
as Lender, as the same may be amended, restated, modified or supplemented from
time to time.

         "Subsidiary" of any Person means any corporation, partnership, limited
liability company, joint venture, trust or estate of which (or in which) more
than 50% of:

                                    -- A-2 --
<PAGE>

                  (a)      the outstanding capital stock having voting power to
         elect a majority of the board of directors of such corporation
         (irrespective of whether at the time capital stock of any other class
         or classes of such corporation shall or might have voting power upon
         the occurrence of any contingency);

                  (b)      the interest in the capital or profits of such
         partnership or joint venture; or

                  (c)      the beneficial interest of such trust or estate

is at the time directly or indirectly owned by such Person, by such Person and
one or more of its Subsidiaries or by one or more of such Person's Subsidiaries.

         "Suitable Replacement" has the meaning set forth in the Operating
Lease.

         "Termination Date" has the meaning set forth in the Omnibus Agreement.

                                    -- A-3 --

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]