Document:

exv10w36xfy

 

EXHIBIT
10.36(f)

Execution Version

FIFTH AMENDMENT TO LEASE

(Greenback, Sacramento)

     THIS FIFTH 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 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 Sacramento, 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 October 1, 2001 (the “Second Amendment”), (iii) that certain Third Amendment to Lease
dated as of April 15, 2005 (the “Third Amendment”), and (iv) that certain Fourth Amendment to Lease
dated as of September 29, 2005 (the “Fourth 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 but subject to the provisions of the Lease applicable to the exercise an
validity of such Renewal Terms, the Initial Term of the Lease is hereby extended to and shall
expire on September 20, 2016 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) years
each, followed by one (1) additional and final Renewal Term of four
(4) years.

     4. 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 Sacramento,
California metropolitan area 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.

     5. 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 the determination date.

 2

 

 

     6. 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 Leased 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 (A) and (B), except as provided in subsection (B) hereinbelow. 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 in the last two years of the Initial
Term or any Renewal Term and Tenant has no further options to extend the term of the
Lease, and if the cost to repair such damage or to restore the Leased Premises as
required in Section (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.

     Notwithstanding anything to the contrary contained in the Lease, the proceeds of any property
insurance maintained by Tenant (including proceeds of self-insurance, if applicable), net of
actual-out-of-pocket costs to adjust and settle the loss, shall be distributed to and used by
Tenant, in accordance with the Lease.

     7. 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

3

 

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, (ii) any corporation, trust, partnership or
individual that owns fifty percent (50%) or more of the issued and outstanding stock
of Tenant, or (iii) any legal entity that is engaged in the motion picture exhibition
business and operates motion picture theater complexes containing at least 100
theater screens (auditoria), excluding the Leased Premises and any other premises
concurrently being acquired from 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.

     If Tenant shall assign this Lease pursuant to clause (ii) or clause (iii) above,
and provided that (A) the assignee assumes in writing all obligations of Tenant under
the Lease and delivers such executed written assumption to Landlord, and (B) Landlord
shall have received from assignee’s chief financial officer or controller a
certification that the Net Worth of the assignee (determined as provided above)
equals or exceeds $100,000,000.00 calculated in accordance with Cinemark USA, Inc.’s
methodology in calculating Net Worth as set forth in Section 5 hereof, then Tenant
shall be released of any and all liability thereafter arising under the Lease. Except
as expressly provided above, 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.

     8. 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”.

     9. 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.

4

 

     10. 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”).

     11. 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
Premise, 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:

5

 

     (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 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 anniversary of the Effective Date, and continuing until
the tenth 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 of this Amendment.

12. 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
non-structural interior alterations, improvements, or changes in the Leased Premises as Tenant
shall deem necessary or beneficial consistent with Tenant’s exclusive use of the Leased Premises
as a motion picture theatre complex and if Tenant undertakes such work, Tenant must pursue such
work until completion. 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. 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 4
of this Amendment.

13. 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

6

 

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.

     14. 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:

     (a) 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.

     (b) Landlord shall not lease, sell or use any space on Non-leased Premises or the
Contiguous Property for operating a motion picture theatre.

     (c) 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 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.

     (d) 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

7

 

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.

     (e) Any new buildings shall be limited to retail, restaurant, residential and/or
office uses.

     15. 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 “discount” 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.

     16. 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.

     17. 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.

     18. 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

8

 

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.

     19. 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.”

     20. 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 bill,
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

9

 

(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 Pelican Way
 San Rafael,
California 94901
 Attention: President
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Syufy Enterprises, L.P.
 150 Pelican Way

San Rafael, California 94901
 Attention: General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	and a copy to:
	 	DLA Piper 
203 North LaSalle 
Suite 1900

Chicago, IL 60601
 Attention: David Sickle,
Esq.
	 
	 	 	 	 
	 

	 	To Tenant:
	 	Century Theatres, Inc.
 c/o Cinemark, Inc.
 3900 Dallas Parkway

Suite 500
 Plano, TX 75093
Attention: Legal Department

10

 

          Tenant and Landlord may change their respective addresses for
purposes of this section by giving written notice of such change to the
other.

     21. 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.

     22. 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 and the Fourth Amendment are hereby deemed to be void ab initio — it
being the intent of the parties hereto that this Amendment shall
supersede the Second, Third and Fourth Amendments in their entirety.

     23. 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]

11

 

     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:

Name:

Title:
	 	/s/ Joseph Syufy
 

 

 

	 	 

Tenant:

CENTURY THEATRES, INC., a California corporation

	 	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/ Raymond W. Syufyexv10w1

 

EXHIBIT 10.1

SEPARATION AND MUTUAL RELEASE AGREEMENT

     This Separation and Mutual Release Agreement (the “Agreement”) is made by and between
G. Thomas Graves, III (the “Individual”), and Toreador Resources Corporation (the
“Company”).

RECITALS

     WHEREAS, the Individual has been employed as the Company’s President and Chief Executive
Officer;

     WHEREAS, the Individual has decided to resign his employment and all positions with the
Company and its subsidiaries and affiliates; and

     WHEREAS, the Company and the Individual desire to enter this Agreement to reflect their mutual
undertakings, promises, and agreements arising from the Individual’s resignation.

     NOW THEREFORE, in exchange for the valuable consideration paid or given under this Agreement,
the receipt, adequacy, and sufficiency of which is hereby acknowledged, the parties knowingly and
voluntarily agree to the following terms:

TERMS

	1.	 	Resignation Date and Effect of Resignation. The Individual resigned his employment
with the Company effective January 25, 2007 (the “Resignation Date”). Effective as of
the Resignation Date, the Individual also resigned from all corporate, board, and other
offices and positions he held with the Company and all of its subsidiaries and affiliates.

	2.	 	Final Pay and Benefits. The Individual acknowledges that he has received the
following payments and benefits in accordance with the Company’s existing policies, or at the
Company’s discretion, pursuant to his employment with the Company and his participation in the
Company’s benefit plans:

	 	(a)	 	Payment of his regular base salary through the Resignation Date. This amount
is a gross amount, subject to applicable deductions and withholdings, and was paid to
the Individual on or before the Company’s first regularly scheduled payday after the
Resignation Date.
	 
	 	(b)	 	Payment or other entitlement, in accordance with the terms of the applicable
plan or other benefit, of any benefits to which he had a vested entitlement as of the
Resignation Date under the terms of employee benefit plans established by the Company.
	 
	 	(c)	 	Based on the Individual’s participation in the Toreador Resources Corporation
Amended and Restated 1990 Stock Option Plan (the “Stock Option Plan”), the
Individual received options to purchase Company stock awarded pursuant to his

-1-

 

	 	 	 	Nonqualified Stock Option Agreements dated September 24, 1998, October 28, 1999, and
April 26, 2004, which are reflected on the summary attached as Exhibit A to this
Agreement (the “Option Award Agreements”). By signing this Agreement, the
Individual represents and warrants that he has no options to purchase Company stock
other than as described on Exhibit A. Under paragraph 4(d) of each of the Option
Award Agreements, the Individual has three months following the Resignation Date to
exercise his options.

	3.	 	Cancellation/Continuance of Certain Benefits. In consideration of the Individual’s
promises and undertakings in this Agreement, the Company shall provide him with the option to
cancel or continue at his own expense the following benefits:

	 	(a)	 	Vehicle Lease. The Company’s payment of the insurance, costs, and
monthly $1,600.00 lease payments for the Mercedes vehicle provided to the Individual by
the Company during his employment shall cease on the Resignation Date. At his
election, the Individual shall have the right to (i) have the Company cancel the lease
and return the vehicle to the leasing company; or (ii) accept assignment or transfer of
the lease and title from the Company and begin paying the insurance, costs, and monthly
lease payments himself. The Individual must indicate his election by placing an “X” in
the appropriate box: X he elects to cancel the lease; or o he elects to accept
assignment or transfer of the lease and title and continue the lease himself. If the
Individual elects to continue the lease himself, he shall be solely responsible for all
insurance, costs, lease payments, and taxes on the vehicle upon assignment or transfer
of the lease and title. Regardless of his election, the parties agree to cooperate and
work together in good faith to take all actions reasonably necessary to effectuate the
intent of this subparagraph.
	 
	 	(b)	 	Term Life Insurance Policy. The Company’s payment of the premiums for
the term life insurance policy with a death benefit of $2,000,000 provided to the
Individual by the Company during his employment shall cease on the Resignation Date.
At his election, the Individual shall have the right to (i) have the Company cancel the
insurance policy; or (ii) accept assignment or transfer from the Company of the policy
and begin paying the premiums to the insurance company himself. The Individual must
indicate his election by placing an “X” in the appropriate box: o he elects to cancel
the policy; or X he elect to accept assignment or transfer of the policy and continue
the policy himself. If the Individual elects to continue the policy himself, he shall
be solely responsible for all policy premiums upon assignment or transfer of the
policy. Regardless of his election, the parties agree to cooperate and work together
in good faith to take all actions reasonably necessary to effectuate the intent of this
subparagraph. The parties further agree that any unearned premiums or other cash
benefits payable under the policy resulting from the Individual’s election shall be
payable to the Company.

	4.	 	Dues for Country Club Membership and Other Organizations. The Company’s payment of
the Individual’s dues, assessments, or other charges for his membership with any 

-2-

 

	 	 	country club
or other organization, including without limitation the Brook Hollow Golf Club and the
Petroleum Club, shall cease as of the Resignation Date. If the Individual desires to continue
any such membership after the Resignation Date, he shall be solely responsible for the payment
of any dues, assessments, or other charges.

	5.	 	Special Separation Consideration. Contingent upon the Individual’s acceptance and
non-revocation of this Agreement and in consideration of the Individual’s promises and
undertakings in this Agreement, the Company shall provide to him, in addition to the salary
and benefits he will receive pursuant to Paragraph 2, the following special separation
consideration (the “Special Separation Consideration”):

	 	(a)	 	Separation Pay. The Company shall pay the Individual $785,308.98 as
separation pay (the “Separation Pay”). The Separation Pay is a gross amount,
subject to applicable deductions and withholdings, and shall be paid to the Individual
as follows: (i) 330,308.98 shall be paid to the Individual in equal installments
beginning on the Company’s first regularly scheduled payday after the Effective Date of
this Agreement and ending on the Company’s final regularly scheduled payday in December
2007; and (ii) the remaining $455,000.00 shall be paid to the Individual in a lump sum
in 2008 on or before March 14, 2008. The Separation Pay payments are intended to be
short-term deferrals and therefore not constitute a deferral of compensation for
purposes of Section 409A of the Internal Revenue Code.
	 
	 	(b)	 	Bonus Pay. The Company shall pay the Individual $188,666.00, which is
approximately two times the average of the cash portion of the incentive bonuses the
Company paid the Individual for his performance in 2004, 2005, and 2006, as
compensation for his lost incentive bonus opportunities in 2007 and 2008 (the
“Bonus Pay”). The Bonus Pay is a gross amount, subject to applicable
deductions and withholdings, and shall be paid to the Individual in equal installments
of $94,333.00 on December 31, 2007 and December 31, 2008.
	 
	 	(c)	 	Immediate Vesting of Restricted Stock. Based on the Individual’s
participation in the Toreador Resources Corporation 2005 Long-Term Incentive Plan (the
“Long-Term Incentive Plan”), the Individual received awards of the Company’s
restricted stock pursuant to Employee Restricted Stock Awards dated May 19, 2005,
January 26, 2006, and January 25, 2007, which are reflected on the summary attached as
Exhibit A to this Agreement (the “Restricted Stock Awards”). By signing this
Agreement, the Individual represents and warrants that he has no awards of restricted
stock from the Company other than as described on Exhibit A. In consideration of the
mutual promises and undertakings in this Agreement, the Company and the Individual
hereby agree that all shares of Company stock awarded pursuant to the 2007 Restricted
Stock Award will be fully vested as of the Resignation Date, and further that the
Company and the Individual hereby amend the 2005 and 2006 Restricted Stock Awards to
provide that all unvested shares of Company stock awarded pursuant to said 2005 and 2006 Restricted

-3-

 

	 	 	 	Stock Awards that were still outstanding immediately before the Resignation Date shall be
vested as of the Resignation Date.

	 	(d)	 	COBRA Reimbursements. The Company shall reimburse the Individual for
monthly premium costs he incurs for continuing his group health, dental, and vision
coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”),
provided that the Individual timely elects insurance continuation coverage under COBRA
by completing and returning the insurance continuation election form that will be
provided under separate cover and that the Individual notifies the Company’s Board of
Directors in writing within 30 days after he becomes eligible for health insurance
coverage, if any, through subsequent employment. The Company shall reimburse the
monthly amounts just mentioned for up to 18 months or until the Individual obtains
subsequent employment that provides health insurance coverage, whichever is sooner.
	 
	 	(e)	 	Retention of Company-Issued Laptop, Computer, Telephone, and
Blackberry. The Company shall permit the Individual to retain his Company-issued
laptop, computer, cellular telephone, cellular telephone number, and blackberry;
provided, however, that (i) the Individual shall port the telephone number to
the service provider of his choice; (ii) the Individual shall be responsible for all
charges in connection with cellular telephone and blackberry services after the
Resignation Date; (iii) by his signature below, the Individual confirms that he has
removed and returned to the Company all Confidential Information (as defined below)
from his Company-issued laptop, computer, cellular telephone, and blackberry; and (iv)
following the Resignation Date, the Individual shall no longer be authorized or
permitted to log on to, access, or otherwise use the Company’s computer systems,
network, and/or Internet domain, whether via his Company-issued laptop, computer, or
otherwise.

	6.	 	Return of Property. Whether or not the Individual accepts this Agreement, he shall
return to the Company except as provided in Paragraph 5(e) any and all items of its property,
including without limitation keys, badge/access card, computers, software, cellular telephones
and personal digital devices, calculators, equipment, credit cards, forms, files, manuals,
correspondence, business records, personnel data, lists of employees, salary and benefits
information, client lists and files, lists of suppliers and vendors, price lists, contracts,
contract information, marketing plans, brochures, catalogs, training materials, product
samples, computer tapes and diskettes or other portable media, computer-readable files and
data stored on any hard drive or other installed device, and data processing reports, and any
and all other documents or property which he has had possession of or control over during his
employment with the Company. By the Individual’s signature below, he represents that he has
complied with his requirements under this paragraph. The Individual’s requirements under this
paragraph shall not apply to, and the Individual may retain a copy of, personnel, benefit, or
payroll documents concerning only him.

-4-

 

	7.	 	Non-Use and Non-Disclosure of Confidential Information. Whether or not the
Individual accepts this Agreement, he shall not, at any time following the resignation of his
employment, use or disclose to any third party any of the Company’s confidential information
(the “Confidential Information”), which includes without limitation
business-opportunity information, including all business ideas, prospects, proposals, and
other opportunities pertaining to the lease, acquisition, exploration, production, gathering,
transporting, marketing, treating, or other processing of hydrocarbons and related products
and the exploration potential of geographical areas on which hydrocarbon exploration prospects
are located; intellectual-property information, including all ideas, inventions, discoveries,
processes, designs, methods, substances, articles, computer programs, and improvements
(including, without limitation, enhancements to, or further interpretation or processing of,
information that was in the Company’s possession before the Effective Date of this Agreement),
whether or not patentable or copyrightable; e-mail or other internal memoranda; personnel
information, including personnel policies, employment practices, personnel records, employee
lists, personnel contact information, performance information, compensation data, benefits,
and training programs; trade secret information, including information or matters constituting
trade secrets as defined under applicable law; technical information, including databases,
formulae, designs, compilations of information, data, and know-how related to the company’s
operations; financial information; and supplier information, including supplier lists, contact
information, capabilities, services, prices, costs, and specially negotiated terms with
suppliers. Confidential Information shall also include all Company-related information
contained in any manual or electronic document or file created by the Individual during his
employment with the Company or created by the Company and provided or made available the
Individual in connection with his employment. Confidential Information shall not include any
Company-related information in the public domain, through no disclosure or wrongful act of the
Individual, to such an extent as to be readily available to competitors. If it appears the
Individual will be compelled by law or judicial process to disclose any Confidential
Information following the Resignation Date, to avoid potential liability he must notify the
Chairman of the Company’s Board of Directors in writing immediately upon his receipt of a
subpoena or other legal process.

	8.	 	Mutual Releases.

	 	(a)	 	By the Individual. In consideration of the Company’s promises and
undertakings in this Agreement, the Individual and his family members, heirs,
successors, and assigns (collectively, the “Releasing Parties”) hereby release,
acquit, and forever waive and discharge any and all claims and demands of whatever kind
or character, whether known, unknown, vicarious, derivative, or direct, that he or
they, individually, collectively, or otherwise, may have or assert against (i) the
Company; (ii) any parent, subsidiary, or affiliate of the Company; (iii) any past or
present officer, director, or employee of the entities just named in (i)-(ii), in their
individual and official capacities; and (iv) any predecessors, successors, parent
companies, subsidiaries, owners, shareholders, members, managers, operating units,
affiliates, divisions, agents, representatives, officers, directors, partners, members,
employees, fiduciaries, insurers, attorneys, successors, and assigns of

-5-

 

	 	 	 	the entities just named in (i)-(iii) (collectively the “Released Parties”).
This General Release includes without limitation any claim or demand arising out of
or relating in any way to (i) the Individual’s employment or his separation from
employment with the Company; (ii) any federal, state, or local statutory or common
law or constitutional provision that applies or is asserted to apply, directly or
indirectly, to the formation, continuation, or termination of the Individual’s
employment relationship with the Company, including but not limited to the Age
Discrimination in Employment Act; (iii) any contract or agreement between,
concerning, or relating to the parties; and (iv) any other alleged act, breach,
conduct, negligence, gross negligence, or omission of the Company or any of the
other Released Parties. This General Release does not waive any rights or claims
between the parties (i) arising after the date the Effective Date of this Agreement
as defined by Paragraph 24, or (ii) relating to the breach or enforcement of this
Agreement.

	 	(b)	 	By the Company. In consideration of the Individual’s promises and
undertakings in this Agreement, the Company hereby releases, acquits, and forever
waives and discharges any and all claims and demands of whatever kind or character,
whether vicarious, derivative, or direct, that it may have or assert against the
Individual and his family members, heirs, successors, and assigns. This General
Release does not apply to any rights or claims between the parties (i) arising after
the date the Effective Date of this Agreement as defined by Paragraph 24, (ii) relating
to breach or enforcement of this Agreement, or (iii) that may be based on facts not
known to the senior executives of the Company other than the Individual on the date the
Individual signs this Agreement.

	9.	 	Cooperation, Nonprosecution, and Mutual Nondisparagement. In consideration of the
mutual promises and undertakings in this Agreement, the parties agree that:

	 	(a)	 	Cooperation. The Individual shall cooperate fully and completely with
the Company or any of the other Released Parties, at their request, in all pending and
future litigation, investigations, arbitrations, and/or other fact-finding or
adjudicative proceedings, public or private, involving the Company or any of the other
Released Parties. This obligation includes without limitation the Individual promptly
meeting with counsel for the Company or the other Released Parties at reasonable times
upon their request, and providing testimony in court, before an arbitrator or other
convening authority, or upon deposition that is truthful, accurate, and complete,
according to information known to him. If the Individual appears as a witness in any
pending or future litigation, arbitration, or other fact-finding or adjudicative
proceeding at the request of Company or any of the other Released Parties, the Company
shall reimburse him, upon submission of substantiating documentation, for necessary and
reasonable expenses incurred by him as a result of testifying.
	 
	 	(b)	 	Nonprosecution. Except as requested by the Company, or as permitted or
compelled by law or judicial process, the Individual shall not assist, cooperate

-6-

 

	 	 	 	with, or supply information of any kind to any individual or private-party litigant
or their agents or attorneys (i) in any proceeding, investigation, or inquiry
raising issues involving the Company or any of the other Released Parties, or (ii)
in any other litigation against the Company or any of the other Released Parties.

	 	(c)	 	Nondisparagement. The Individual shall not make to any other parties
any statement, oral or written, which directly or indirectly impugns the quality or
integrity of the Company’s or any of the other Released Parties’ business or employment
practices, or any other disparaging or derogatory remarks about the Company or any of
the other Released Parties. The Company’s Vice-President-level-and-above executive
employees shall not make to any third party outside of the Company any statement, oral
or written, which directly or indirectly impugns the quality or integrity of the
Individual’s business practices, or any other disparaging or derogatory remarks about
the Individual. Nothing in this subparagraph shall prohibit any truthful statements by
the Individual or the Company’s Vice-President-level-and-above executive employees that
are required by law.

	10.	 	Restricted Activities. In consideration of the Company’s promises and undertakings
in this Agreement, the Individual agrees that for 24 months following the Resignation Date:

	 	(a)	 	Non-Participation in the Company’s Business Opportunities. He shall
promptly disclose to the Chairman of the Company’s Board of Directors all business
opportunities which come to the attention of the Individual following the Resignation
Date and which relate to the business of the Company or the other Released Parties or
which arise as a result of the Individual’s employment by the Company. The Individual
shall not take advantage of or divert any such opportunities for the benefit of the
Individual or any third party following the Resignation Date without the prior written
consent of the Company’s Board of Directors, which shall not be unreasonably withheld.
The Individual’s obligations under this paragraph shall apply only to activities in
foreign countries in which the Company holds licenses or permits as of the Effective
Date and shall not apply to business opportunities or operations in the United States.
	 
	 	(b)	 	Non-Solicitation of Employees. He shall not, directly or indirectly or
by assisting any third party, for his own benefit or to benefit any third party,
solicit, induce, or entice any then current employee of the Company or the Released
Parties, or any person employed by the Company or the Released Parties as of the
Resignation Date, to terminate his or her employment with the Company or the Released
Parties. Nor shall he, directly or indirectly, disclose to any third party the
salaries of, benefits paid or provided to, or performance of any of the Company’s
employees.

	11.	 	Waiver of Certain Rights. In consideration of the Company’s promises and
undertakings in this Agreement, the Individual agrees that:

-7-

 

	 	(a)	 	Right to Relief Not Provided in This Agreement. He shall and hereby
does irrevocably waive any right to monetary recovery from the Company or the other
Released Parties, whether sought directly by him or in the event any administrative
agency or other public authority, individual, or group of individuals should pursue any
claim on his behalf; and he shall not request or accept from the Company or the other
Released Parties, as compensation or damages related to his employment or the
termination of his employment with the Company, anything of value that is not provided
for in this Agreement.
	 
	 	(b)	 	Right to a Jury Trial. He shall and hereby does irrevocably waive the
right to trial by jury with respect to any claim against the Company or the Released
Parties, including without limitation any claim arising from this Agreement or the
formation, continuation, or termination of his employment relationship with the
Company.
	 
	 	(c)	 	Right to Class- or Collective-Action Initiation or Participation. He
shall and hereby does irrevocably waive the right to initiate or participate in any
class or collective action with respect to any claim against the Company or the
Released Parties, including without limitation any claim arising from the formation,
continuation, or termination of his employment relationship with the Company.

	12.	 	Agreement Not to Seek Reemployment. Neither the Company nor any of the other
Released Parties shall have any obligation to employ or to hire or rehire the Individual, to
consider him for hire, or to deal with him in any respect at any location, office, or place of
business with regard to future employment or potential employment. Accordingly, in
consideration of the Company’s promises and undertakings in this Agreement, the Individual
agrees that (a) he shall not ever apply for or otherwise seek employment with the Company or
any of the other Released Parties at any time in the future, at any location, office, or place
of business, and (b) his forbearance to seek future employment as just stated is purely
contractual and is in no way involuntary, discriminatory, or retaliatory. Nothing in this
Agreement shall prevent the Individual from serving on the board of directors of
EnergyNet.com, Inc.; provided, however, that the Individual shall comply with all of
his other obligations under this Agreement while providing such service, including without
limitation his obligations under Paragraphs 7, 9(b), 9(c), and 10.

	13.	 	Consultation. In consideration of the Company’s promises and undertakings in this
Agreement, the Individual shall, without additional compensation other than the Special
Separation Consideration, upon request of the Company’s Board of Directors or its designee, be
available from the Resignation Date through January 31, 2009, for consultation at reasonable
times and without unreasonable interference with his personal or business activities, in
person or by telephone, as necessary, on such matters relating to the Company or the other
Released Parties as may be within his knowledge.

	14.	 	Indemnification. The Individual shall be entitled to indemnification following the
Resignation Date on the same terms as indemnification is made available by the

-8-

 

Company to other executive employees, officers, and directors, whether through the Company’s
corporate bylaws or otherwise.

	15.	 	No Violations. The Individual represents that he has not informed the Company or any
of the other Released Parties of, and that he is unaware of, any alleged violations of law,
the Company’s standards of business conduct or personnel policies, or other misconduct by
Company or any of the other Released Parties that have not been resolved satisfactorily by the
Company.

	16.	 	Nonadmission of Liability or Wrongdoing. This Agreement shall not in any manner
constitute an admission of liability or wrongdoing on the part of Company or any of the other
Released Parties, but Company and the other Released Parties expressly deny any such liability
or wrongdoing; and, except to the extent necessary to enforce this Agreement, neither this
Agreement nor any part of it may be construed, used, or admitted into evidence in any
judicial, administrative, or arbitral proceedings as an admission of any kind by Company or
any of the other Released Parties.

	17.	 	Authority to Execute. The Individual represents and warrants that he has the
authority to execute this Agreement on behalf of all the Releasing Parties.

	18.	 	Governing Law; Severability; Interpretation. This Agreement and the rights and
duties of the parties under it shall be governed by the laws of the State of Texas, without
regard to any conflicts of laws principles. If any provision of this Agreement is held to be
unenforceable, such provision shall be considered separate, distinct, and severable from the
other remaining provisions of this Agreement, and shall not affect the validity or
enforceability of such other remaining provisions; and in all other respects, this Agreement
shall remain in full force and effect. If any provision of this Agreement is held to be
unenforceable as written but may be made to be enforceable by limitation, then such provision
shall be enforceable to the maximum extent permitted by applicable law. The language of all
parts of this Agreement shall in all cases be construed as a whole, according to its fair
meaning, and not strictly for or against any of the parties.

	19.	 	Breach of Agreement. Notwithstanding any other provision in this Agreement, the
Company’s obligation to provide the Special Separation Consideration to the Individual is
subject to the condition that the Individual complies with his obligations under this
Agreement. The Company shall have the right to suspend or cease providing any part of the
Special Separation Consideration, as well as to seek restitution of any Special Separation
Consideration already provided, if in its discretion the Company determines that the
Individual has breached any of his obligations under this Agreement but all other provisions
of this Agreement shall remain in full force and effect. The Company’s rights under this
paragraph shall be in addition to any other available rights and remedies should the
Individual breach any of his obligations under this Agreement.

	20.	 	Offset. The Company shall be entitled to set off against, and the Individual
authorizes the Company to deduct from, any payments due to the Individual, or to his estate,
heirs,

-9-

 

legal representatives, or successors, under this Agreement any amounts which may be due and
owing to the Company by the Individual.

	21.	 	Assignment. The Individual’s obligations, rights, and benefits under this Agreement
are personal to the Individual and shall not be assigned to any person or entity without
written permission from the Company’s Board of Directors or its designee. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective heirs,
legal representatives, successors, and permitted assigns.

	22.	 	Time for Consideration; Expiration of Offer. The Company’s offer of the Special
Separation Consideration and this Agreement shall expire at 5:00 p.m. on the 21st day after he
received this Agreement for consideration. He may accept this offer at any time before
expiration by signing this Agreement below, and returning it to the Chairman of the Company’s
Board of Directors. Whether or not the Individual accepts this Agreement, he will receive the
items in Paragraph 2, and is required to follow the obligations in Paragraph 6 and Paragraph
7.

	23.	 	Consultation With an Attorney. The Individual has the right, and is encouraged by
this paragraph, to consult with an attorney before signing this Agreement. To assist the
Individual in this endeavor, the Company shall reimburse him for reasonable attorney’s fees up
to $12,500.00 he incurs in consulting his attorney concerning whether to sign this Agreement.

	24.	 	Effective Date; Revocation Right; Effect of Revocation. This Agreement shall become
effective and enforceable upon the expiration of seven days after the Individual signs and
returns it to the Chairman of the Company’s Board of Directors (the “Effective Date”).
At any time before the Effective Date, the Individual may revoke his acceptance by notifying
the Chairman of the Company’s Board of Directors of his revocation in writing. If the
Individual revokes his acceptance, he shall not be entitled to any part of the Special
Separation Consideration.

	25.	 	Knowing and Voluntary Agreement. The Individual acknowledges that (a) he has had a
reasonable period in which to deliberate regarding the terms of this Agreement and to consider
whether to sign this Agreement, (b) he fully understands the meaning and effect of signing
this Agreement, and (c) his signing of this Agreement is knowing and voluntary. The
Individual further acknowledges that neither the Company nor any of the other Released Parties
has made any promise or representation to him concerning this Agreement that is not expressed
in this Agreement, and that in signing this Agreement, he is not relying on any statement or
representation by Company or any of the other Released Parties, but is instead relying solely
on his own judgment and consultation with his attorney.

	26.	 	Independent Consideration; Common-Law Duties. Whether expressly stated in this
Agreement or not, all obligations the Individual assumes and undertakings he makes by signing
this Agreement are understood to be in consideration of the mutual promises and undertakings
in this Agreement and the Special Separation Consideration. In addition,

-10-

 

	 	 	the Individual acknowledges and agrees that neither the Company nor any of the other
Released Parties has any legal obligation to provide the Special Separation Consideration to
him outside of this Agreement. The Individual further acknowledges and agrees that his
obligations under this Agreement supplement, rather than supplant, his common-law duties
owed to the Company.

	27.	 	Entire Agreement. This Agreement contains and represents the entire agreement of the
parties with respect to the Individual’s resignation from employment and payments and benefits
upon or by reason of his resignation from employment, and supersedes all prior agreements and
understandings, written and oral, between the parties with respect to the Individual’s
resignation from employment and payments or benefits upon or by reason of his resignation from
employment.

	28.	 	Modification. No provision of this Agreement may be amended, modified, or waived
unless such amendment, modification, or waiver is agreed to in writing and signed by the
Individual and by a duly authorized officer of the Company.

	29.	 	Internal Revenue Code Section 409A; Consultation With a Tax Advisor. The parties
have drafted this Agreement in accordance with Section 409A of the Internal Revenue Code and
intend that it comply with Section 409A of the Code and any related rules, regulations, or
other guidance. The parties further intend that this Agreement shall be interpreted and
construed to comply with Section 409A of the Code. The parties agree to cooperate and work
together in good faith to take all actions reasonably necessary to effectuate the intent of
this paragraph. Notwithstanding the preceding sentence, the Individual shall be solely
responsible for any risk that the tax treatment of all or part of the Special Separation
Consideration may be affected by Section 409A of the Code and impose significant adverse tax
consequences on him, including accelerated taxation, a 20% additional tax, and interest.
Because of the potential tax consequences, the Individual has the right, and is encouraged by
this paragraph, to consult with a tax advisor before signing this Agreement.

	30.	 	Paragraph Headings. The paragraph headings in this Agreement are for convenience of
reference only, form no part of this Agreement, and shall not affect its interpretation.

	31.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which together shall be considered one and the
same agreement.

        IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown below:

-11-

 

	 	 	 	 	 
	G. THOMAS GRAVES, III

	 	TOREADOR RESOURCES CORPORATION
	 	 
	 
	 	 	 	 
	/s/ G. Thomas Graves III

	 	/s/ J.M. McLaughlin	 	 
	 

	 	 	 	 
	G. Thomas Graves, III

	 	J.M. McLaughlin	 	 
	 

	 	Chairman of the Board of Directors	 	 
	 
	 	 	 	 
	4-12-07

	 	17 Apr. 07	 	 
	 

	 	 	 	 
	Date Signed

	 	Date Signed	 	 

-12-

 

EXHIBIT A

SUMMARY OF STOCK OPTIONS AND RESTRICTED STOCK AWARDS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total	 	 	 	 	 	 	 	 	 	 
	 	 	Options	 	Exercise	 	 	 	 	 	1/24/07	 	Grant
	Name	 	Granted	 	Price	 	Prior Exercises	 	Options Remaining	 	Date
	Graves III,
G. Thomas
	 	 	250,000	 	 	 	5.00	 	 	 	50,000	 	 	 	200,000	 	 	 	9/24/98	 
	Graves III,
G. Thomas
	 	 	50,000	 	 	 	4.00	 	 	 	50,000	 	 	 	0	 	 	 	10/28/99	 
	Graves III,
G. Thomas
	 	 	50,000	 	 	 	5.50	 	 	 	 	 	 	 	50,000	 	 	 	4/26/04	 
	Totals
	 	 	350,000	 	 	 	 	 	 	 	100,000	 	 	 	250,000	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1/24/07 Unvested	 	 
	Name	 	Total Res. Stock	 	Previously Vested	 	Vested Date	 	Res. Stock	 	Grant Date
	Graves III,
G. Thomas
	 	 	20,900	 	 	 	 	 	 	 	 	 	 	 	20,900	 	 	 	1/25/07	 
	Graves III,
G. Thomas
	 	 	15,000	 	 	 	5,000	 	 	 	5/19/06	 	 	 	10,000	 	 	 	5/19/05	 
	Graves III,
G. Thomas
	 	 	20,000	 	 	 	 	 	 	 	 	 	 	 	20,000	 	 	 	1/26/06	 
	Totals
	 	 	55,900	 	 	 	5,000	 	 	 	 	 	 	 	50,900

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]