Document:

exv10w20xby

 

EXHIBIT 10.20(b)

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of August 18,
2004, is among (i) Cinemark Empreendimentos e Participacões, Ltda (the
“Purchaser”), (ii) Prona Global Ltd. (“Prona”), (iii) Edgar Gleich, (iv)
Riccardo Arduini, (v) Moises Pinsky, (vi) Eduardo Alalou, and (vii) Roberto
Luiz Leme Klabin; Prona, Edgar Gleich, Riccardo Arduini, Moises Pinsky, Eduardo
Alalou and Roberto Luiz Leme Klabin are sometimes referred to individually as a
“Seller” and collectively as the “Sellers”.

R E C I T A L S

     A. Cinemark USA, Inc., Lee Roy Mitchell, Venture II Equity Holdings
Corporation (“Venture” II”), Kristal Holdings Limited (“Kristal”) and NN
Participações Ltda. (“NN”) are parties to that certain Option and Voting
Agreement dated November 13, 2001, as amended to the date hereof (the “Option
Agreement”), pursuant to which Venture II, Kristal and NN would have the right
to cause Cinemark USA, Inc. and/or Lee Roy Mitchell to purchase shares of
Cinemark Brasil S.A. owned by Venture II, Kristal and NN (the “Liquidity
Option”) upon the occurrence of certain events.

     B. Cinemark USA, Inc. has notified Venture II, Kristal, and NN of the
occurrence of an event which triggered the Liquidity Option.

     C. Venture II, Kristal and NN have exercised the Liquidity Option in
accordance with the terms of the Option Agreement.

     D. The parties hereto have agreed upon the price per share to be paid for
the shares of Cinemark Brasil S.A.

     E. The Parties have agreed that Purchaser would be the entity acquiring
all of the quotas issued by NN.

     F. Sellers have agreed to sell such quotas to the Purchaser in accordance
with the terms and conditions contained herein;

     ACCORDINGLY, in consideration of the premises and the mutual agreements,
covenants, representations and warranties hereafter set forth, and for other
good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

1. DEFINITIONS.

     1.1 Defined Terms. Unless the context otherwise requires, the following
terms shall have the meanings herein specified for all purposes of this
Agreement, applicable to both the singular and plural forms of any of the terms
herein defined.

     “Affiliates” of any person or entity means any other person or entity
directly or indirectly controlling, controlled by, or under common control
with, such person or entity, whether through the ownership of voting
securities, by voting agreement or otherwise. For purposes of this definition,
“control”, as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     “Charter Documents” means the certificate or articles of incorporation,
bylaws, partnership certificate and agreement, or other similar instrument of
an entity pursuant to which such entity was formed.

 

 

     “Cinemark Brasil” means Cinemark Brasil S.A., a company organized under
the laws of Brazil.

     “Cinemark Brasil Common Stock” means the common stock of Cinemark Brasil.

     “Damages” mean all demands, claims, actions or causes of action,
assessments, losses, damages, liabilities, costs and expenses, including,
without limitation, interest, penalties, judgments, assessments, court costs
and reasonable attorneys’ fees and expenses.

     “Governmental Body” means any federal, state, local, foreign or other
governmental or quasi-governmental, or self regulatory national securities
association, agency, authority, department, commission, court, board, bureau,
instrumentality or body.

     “Laws” mean, as to any Person, all applicable treaties, laws, rules,
regulations, orders, ordinances, judgments, decrees, orders, writs and
injunctions of all Governmental Bodies (federal, state, local, foreign or
otherwise), in each case applicable to or binding upon such Person or any of
its property or to which such Person or any of its property is subject.

     “Lien” means any charge, mortgage, pledge, hypothecation, assignment,
encumbrance, lien (statutory or other), security interest or other encumbrance
of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement or any financing lease
having substantially the same economic effect as any of the foregoing).

     “Material Adverse Effect” means a material adverse effect on the business,
operations, property or financial condition of a Person and its Subsidiaries
taken as a whole.

     “Negocios Consulting Agreement” means that certain Private Instrument of
Intermediation and Management dated November 13, 1997, between NN and Núcleo de
Novos Negocios Ltda.

     “Person” means any individual, partnership, corporation, association,
joint stock company, trust, joint venture, unincorporated organization,
exempted company with limited liability, other entity or governmental entity or
department, agency or political subdivision thereof.

     “Purchaser Group” means the Purchaser, the directors, officers,
shareholders, employees and Affiliates of the Purchaser.

     “Related Agreements” mean any instruments and agreements contemplated
herein required to be executed and delivered pursuant to this Agreement,
including the Agreement to Terminate Agreements, the resignation of the
directors required by Section 6.1 hereof, the rescission of any power of
attorney referred to in Schedule 4.21.

     “Sellers” mean Prona, Edgar Gleich, Riccardo Arduini, Moises Pinsky,
Eduardo Alalou and Roberto Luiz Leme Klabin collectively.

     “Subsidiary” of any specified Person means a corporation or other entity
of which a majority of the voting power of the equity securities or other
equity interests is owned, directly or indirectly, by such specified Person.

     1.2 Certain Other Defined Terms. The following terms have the meanings
specified in the sections of this Agreement set forth below:

	 	 	 	 	 
	Term 
	 	Section

	Alalou Purchase Price
	 	 	2.5	 
	Alalou Quotas
	 	 	2.5	 
	Arduini Purchase Price
	 	 	2.3	 
	Arduini Quotas
	 	 	2.3	 
	Pinsky Purchase Price
	 	 	2.4	 

 - 2 -

 

	 	 	 	 	 
	Term 
	 	Section

	Pinsky Quotas
	 	 	2.4	 
	Consents
	 	 	4.16	 
	Gleich Purchase Price
	 	 	2.2	 
	Gleich Quotas
	 	 	2.2	 
	Indemnitee
	 	 	9.4.1	 
	Indemnitee’s Certificate
	 	 	9.4.1	 
	Indemnitor
	 	 	9.4.1	 
	Klabin Purchase Price
	 	 	2.6	 
	Klabin Quotas
	 	 	2.6	 
	Prona Purchase Price
	 	 	2.1	 
	Prona Quotas
	 	 	2.1	 
	Rules
	 	 	8.13.2	 

2. PURCHASE OF STOCK.

     2.1 NN Quotas Owned by Prona. On the date hereof, subject to the terms
and conditions of this Agreement, Prona sells to the Purchaser, and the
Purchaser purchases from Prona, all of the quotas that Prona holds in the
capital of NN, consisting of 2,721,485,608 (two billion, seven hundred and
twenty one million, four hundred and eighty five thousand, six hundred and
eight) quotas (the “Prona Quotas”). The total purchase price for the Prona
Quotas is US$16,281,156.76 (sixteen million, two hundred and eighty one
thousand, one hundred and fifty six dollars and seventy six cents) (the “Prona
Purchase Price”).

     2.2 NN Quotas Owned by Edgar Gleich. On the date hereof, subject to the
terms and conditions of this Agreement, Edgar Gleich sells to the Purchaser,
and the Purchaser purchases from Edgar Gleich, all of the quotas that Gleich
holds in the capital of NN, consisting of 66,720,643 (sixty six million, seven
hundred and twenty thousand, six hundred and forty three) quotas (the “Gleich
Quotas”). The total purchase price for the Gleich Quotas is the equivalent in
Brazilian Reais to US$399,153.03 (three hundred and ninety nine thousand, one
hundred and fifty three dollars and three cents) (the “Gleich Purchase Price”).

     2.3 NN Quotas Owned by Riccardo Arduini. On the date hereof, subject to
the terms and conditions of this Agreement, Riccardo Arduini sells to the
Purchaser, and the Purchaser purchases from Riccardo Arduini, all of the quotas
that Riccardo Arduini holds in the capital of NN, consisting of 66,720,643
(sixty six million, seven hundred and twenty thousand, six hundred and forty
three) quotas (the “Arduini Quotas”). The total purchase price for the Arduini
Quotas is the equivalent in Brazilian Reais to US$399,153.03 (three hundred and
ninety nine thousand, one hundred and fifty three dollars and three cents) (the
“Arduini Purchase Price”).

     2.4 NN Quotas Owned by Moises Pinsky. On the date hereof, subject to the
terms and conditions of this Agreement, Moises Pinsky sells to the Purchaser,
and the Purchaser purchases from Moises Pinsky, all of the quotas that Moises
Pinsky holds in the capital of NN, consisting of 66,720,643 (sixty six million,
seven hundred and twenty thousand, six hundred and forty three) quotas (the
“Pinsky Quotas”). The total purchase price for the Pinsky Quotas is the
equivalent in Brazilian Reais to US$399,153.03 (three hundred and ninety nine
thousand, one hundred and fifty three dollars and three cents) (the “Pinsky
Purchase Price”).

     2.5 NN Quotas Owned by Eduardo Alalou. On the date hereof, subject to the
terms and conditions of this Agreement, Eduardo Alalou sells to the Purchaser,
and the Purchaser purchases from Eduardo Alalou, all of the quotas that Eduardo
Alalou holds in the capital of NN, consisting of 30,691,496 (thirty million,
six hundred and ninety one thousand, four hundred and ninety six) quotas (the
“Alalou Quotas”). The total purchase price for the Alalou Quotas is the
equivalent in Brazilian Reais to US$183,610.40 (one hundred and eighty three
thousand, six hundred and ten dollars and forty cents) (the “Alalou Purchase
Price”).

     2.6 NN Quotas Owned by Roberto Luiz Leme Klabin. On the date hereof,
subject to the terms and conditions of this Agreement, Roberto Luiz Leme Klabin
sells to the Purchaser, and the Purchaser purchases from Roberto Luiz Leme
Klabin, all of the quotas that Roberto Luiz Leme Klabin holds in the capital of
NN, consisting of 66,720,643 (sixty six million, seven hundred and twenty
thousand, six hundred and forty three) quotas (the “Klabin

 - 3 -

 

Quotas”). The total purchase price for the Klabin Quotas is the
equivalent in Brazilian Reais to US$399,153.03 (three hundred and ninety nine
thousand, one hundred and fifty three dollars and three cents) (the “Klabin
Purchase Price”).

     2.7 Taxes. Sellers are solely responsible for the payment of any and all
taxes that may become payable as a result of the consummation of the
transactions contemplated herein, except for the Brazilian Income Tax which
shall be withheld by Purchaser on the payment of, and deducted from the Gleich
Purchase Price . The withholding tax is for the account of the Purchaser, and
its Reais value equivalent to the above mentioned dollar values shall be
deducted from the applicable purchase price. Sellers shall indemnify and hold
Purchaser harmless from and against any taxes payable by Sellers as a result of
the transactions contemplated herein (including, but not limited to any
additional Brazilian income tax) as well as any penalties and accrued interest
thereon in accordance with the provisions contained in Section 7.

     2.8 Exchange Rate. The effective exchange rate to convert the Arduini
Purchase Price, the Pinsky Purchase Price, the Alalou Purchase Price, the
Gleich Purchase Price and the Klabin Purchase Price into Reais shall be the
exchange rate of the foreign exchange agreement to be entered into on the date
hereof for the remittance of the Prona Purchase Price .

3. PRICE AND TERMS.

     3.1 Payment for Quotas of NN. Subject to the terms and conditions of this
Agreement, and in consideration of the sale and delivery of the Prona Quotas,
the Gleich Quotas, the Arduini Quotas, the Pinsky Quotas, the Alalou Quotas and
the Klabin Quotas, the Purchaser delivers to Prona, Edgar Gleich (or to an
attorney-in-fact duly empowered in Brazil), Riccardo Arduini, Moises Pinsky,
Eduardo Alalou and Roberto Luiz Leme Klabin on the date hereof in full payment
for the sale and delivery of the Prona Quotas, the Gleich Quotas, the Arduini
Quotas, the Pinsky Quotas, the Alalou Quotas and the Klabin Quotas free and
clear of all Liens, the Prona Purchase Price, the Gleich Purchase Price, the
Arduini Purchase Price, the Pinsky Purchase Price, the Alalou Purchase Price
and the Klabin Purchase Price, net of any tax withholdings required under
applicable Brazilian law, by wire transfer of immediately available funds to
accounts designated in writing by each of Prona, Edgar Gleich (or by an
attorney-in-fact duly empowered in Brazil), Riccardo Arduini, Moises Pinsky,
Eduardo Alalou and Roberto Luiz Leme Klabin. Transfer of quotas shall occur on
the same date of payment subject to confirmation (acknowledging receipt of the
price through an electronic bank credit) of the banks indicated by Prona, Edgar
Gleich, Riccardo Arduini, Moises Pinsky, Eduardo Alalou and Roberto Luiz Leme
Klabin.

     3.2 Deliveries by Quotaholders of NN. On the date hereof, and upon the
payment to the quotaholders of NN referred to in Section 3.1, the quotaholders
of NN, as applicable, shall deliver to the Purchaser the following:

          (a) Transfer Notification. Evidence of the execution by Prona, Edgar
Gleich, Riccardo Arduini, Moises Pinsky, Eduardo Alalou and Roberto Luiz Leme
Klabin of an amendment to NN’s Articles of Organization prepared by Purchaser
transferring to Purchaser the Prona Quotas, the Gleich Quotas, the Arduini
Quotas, the Pinsky Quotas, the Alalou Quotas and the Klabin Quotas,
respectively;

          (b) Transfer of Director Shares. Transfer by Edgar Gleich, Riccardo
Arduini, Moises Pinsky, Eduardo Alalou and Roberto Luiz Leme Klabin to NN, for
no additional consideration, of the shares of Cinemark Brasil Common Stock
registered in each such individuals name which is evidenced by the execution by
each such individual of the transfer terms in the Stock Transfer Book of
Cinemark Brasil and the registration of the transfer in the name of NN in the
stock registry of Cinemark Brasil;

          (c) Related Agreements. Counterparts of the Related Agreements duly
executed by NN;

          (d) Certificate. A certificate of Prona duly executed by its authorized
officer certifying the Charter Documents of Prona and the corporate
authorization for the party to sign on behalf of Prona;

 - 4 -

 

          (e) Termination of Negocios Consulting Agreement. Evidence satisfactory
to the Purchaser that the Negocios Consulting Agreement has been properly
terminated between NN and Núcleo de Novos Negocios Ltda.;

          (f) NN Books and Records. All original books and records of NN;

          (g) Clearance Certificates. (i) A clearance certificate of federal taxes
and contributions of the Company of NN issued by the Federal Revenue (Certidão
Negativa de Débito de Tributos e Contribuições para com a Fazenda Nacional,
emitida pela Receita Federal), (ii) a clearance certificate of NN issued by the
National Institute of Social Security (Certidão Negativa de Débito junto ao
Instituto Nacional de Seguridade Social, emitida pelo Instituto Nacional da
Seguridade Social), (iii) a clearance certificate of NN issued by the Severance
Pension Fund (Certificado de Regularidade do Fundo de Garantia por Tempo de
Serviço, emitido pela Caixa Econômica Federal), and (iv) a clearance
certificate of federal debts of NN issued by the Federal Treasury (Certidão
Negativa de Inscrição de Dívida Ativa da União, emitida pela Procuradoria Geral
da Fazenda Nacional);

          (h) Termination of Inter-Shareholders Agreement. Evidence satisfactory to
Purchaser of termination of that certain agreement between Venture II, Kristal
and NN related to their respective shares of Cinemark Brasil Common Stock; and

          (i) Deutsche Bank Fees. Evidence of payment of the fees related to
services rendered by Deutsche Bank in connection with the Cinemark Brasil
Common Stock owned by NN.

     3.3 Deliveries by the Purchaser. On the date hereof, the Purchaser
delivers to Prona the Prona Purchase Price, to Edgar Gleich (or to an
attorney-in-fact duly empowered in Brazil) the Gleich Purchase Price, to
Riccardo Arduini the Arduini Purchase Price, to Moises Pinsky the Pinsky
Purchase Price, to Eduardo Alalou the Alalou Purchase Price and to Roberto Luiz
Leme Klabin the Klabin Purchase Price, in accordance with the terms contained
herein.

4. REPRESENTATIONS AND WARRANTIES BY PRONA AND CERTAIN INDIVIDUALS. Each of
Prona, Edgar Gleich, Riccardo Arduini, Moises Pinsky and Eduardo Alalou jointly
and severally hereby represents and warrants to the Purchaser with respect to
the representations and warranties contained in Sections 4.7 through 4.21, and
each of Prona, Edgar Gleich, Riccardo Arduini, Moises Pinsky, Eduardo Alalou
and Roberto Luiz Leme Klabin severally represents for himself/itself with
respect to the representations and warranties contained in Sections 4.1 through
4.7, as applicable, that:

     4.1 Organization and Good Standing. Prona is a corporation duly organized
and validly existing under the laws of the British Virgin Islands, is in good
standing in that jurisdiction and is qualified to do business and is in good
standing as a foreign corporation in any other jurisdiction where the failure
to be so qualified or in good standing would have a material adverse effect on
the validity or enforceability of this Agreement or its ability to timely
perform its obligations thereunder.

     4.2 Authority. Prona has the power and authority to enter into this
Agreement and the Related Agreements and will at all times have the corporate
power and authority to perform its obligations under this Agreement and the
Related Agreements.

     4.3 Validity for Prona. This Agreement and the Related Agreements have
been duly authorized by all requisite action on Prona’s part, have been
executed and delivered by it, and this Agreement and the Related Agreements
constitute its valid and binding obligation, enforceable in accordance with the
terms of this Agreement and the Related Agreements.

     4.4 Validity for Individuals. Each of Edgar Gleich, Riccardo Arduini,
Moises Pinsky, Eduardo Alalou and Roberto Luiz Leme Klabin has the legal
capacity to execute, deliver and perform his obligations under this Agreement
and the Related Agreements. This Agreement is, and each of the Related
Agreements, executed and delivered to Purchaser by each of Edgar Gleich,
Riccardo Arduini, Moises Pinsky, Eduardo Alalou and Roberto

 - 5 -

 

Luiz Leme Klabin on the date hereof are valid and legally binding
obligations of each of them enforceable against them in accordance with its
terms.

     4.5 Ownership. The Prona Quotas are owned by Prona, the Gleich Quotas are
owned by Edgar Gleich, the Arduini Quotas are owned by Riccardo Arduini, the
Pinsky Quotas are owned by Moises Pinsky, the Alalou Quotas are owned by
Eduardo Alalou and the Klabin Quotas are owned by Roberto Luiz Leme Klabin,
free and clear of any Lien, claim or encumbrance of any kind or nature
whatsoever, and, on the date hereof, the Purchaser acquires valid, indefeasible
and marketable title as to the relevant parties to the Prona Quotas, the Gleich
Quotas, the Arduini Quotas, the Pinsky Quotas, the Alalou Quotas and the Klabin
Quotas free and clear of any Lien, claim or encumbrance of any kind or nature
whatsoever.

     4.6 No Violation by Prona. Neither the execution, delivery or performance
by Prona of this Agreement or any of the Related Agreements, nor the
consummation by Prona of the transactions contemplated hereby or thereby: (a)
violates any provision of the Corporation Law of the British Virgin Islands or
the Charter Documents of NN; or (b) (i) violates, or conflicts with, or
constitutes a default (or an event or condition which, with notice or lapse of
time or both, would constitute a default) under, or breach of, (ii) results in
the termination of, or accelerates the performance required by, or causes the
acceleration of the maturity of any liability or obligation, (iii) results in
any third party having any rights in the Prona Quotas or (iv) results in the
creation or imposition of any Lien upon any of the assets of NN under, in each
case, any note, bond, mortgage, indenture, deed of trust, license, lease,
franchise, contract, commitment, understanding, arrangement, agreement,
instrument, undertaking or restriction of any kind or character to which Prona
or NN is a party or by which Prona or NN may be bound or affected or to which
any of the assets of NN may be subject.

     4.7 No Violation by Individuals. Neither the execution, delivery or
performance by each of Edgar Gleich, Riccardo Arduini, Moises Pinsky, Eduardo
Alalou and Roberto Luiz Leme Klabin of this Agreement or any other Related
Agreement to which each person is a party nor the consummation of the
transactions contemplated hereby or thereby and compliance by them with any of
the provisions hereof or thereof (a) requires any consent, approval or notice
under, violates, conflicts with, or results in a breach of any provisions of,
or constitutes a default (or any event which, with notice or lapse of time or
both, would constitute a default) under, or results in the termination of, or
accelerates the performance required by, or results in a right of termination
or acceleration or results in the creation of any Lien upon any of the
properties or assets of each of Edgar Gleich, Riccardo Arduini, Moises Pinsky,
Eduardo Alalou and Roberto Luiz Leme Klabin under, in each case, any of the
terms, conditions or provision of any agreement, instrument, undertaking or
arrangement to which they are a party or by which the Gleich Quotas, the
Arduini Quotas, the Pinsky Quotas, the Alalou Quotas or the Klabin Quotas are
bound or (b) violates any Laws.

     4.8 Intentionally Deleted.

     4.9 Organization and Good Standing of NN. NN is duly organized, validly
existing, has the power and ability to own its assets and carry on its business
as now being conducted, and has not initiated nor is subject to any insolvency
or bankruptcy proceeding.

     4.10 Capitalization of NN; Quotas Validly Issued. The authorized, issued,
and outstanding quotas of NN are 3,019,059,676 (three billion, nineteen
million, fifty nine thousand, six hundred and seventy six quotas, 2,721,485,608
(two billion, seven hundred and twenty one million, four hundred and eighty
five thousand, six hundred and eight) quotas of which are owned by Prona,
66,720,643 (sixty six million, seven hundred and twenty thousand, six hundred
and forty three) quotas of which are owned by Edgar Gleich, 66,720,643 (sixty
six million, seven hundred and twenty thousand, six hundred and forty three)
quotas of which are owned by Riccardo Arduini, 66,720,643 (sixty six million,
seven hundred and twenty thousand, six hundred and forty three) quotas of
which are owned by Moises Pinsky, 30,691,496 (thirty million, six hundred and
ninety one thousand, four hundred and ninety six) quotas of which is owned by
Eduardo Alalou and 66,720,643 (sixty six million, seven hundred and twenty
thousand, six hundred and forty three) quotas of which are owned by Roberto
Luiz Leme Klabin. No other quotas of NN are authorized, issued or outstanding.
All of the issued and outstanding quotas of NN have been duly and validly
authorized and issued and R$ 29,689,050.70 (twenty nine million, six hundred
and eighty nine thousand and fifty reais and seventy cents) are fully paid and
non-assessable and R$ 501,546.06 (five hundred and one thousand,

 - 6 -

 

five hundred and forty six reais and six cents) of the capital is
subscribed but not fully paid, and, upon consummation of the purchase of the
Prona Quotas, the Gleich Quotas, the Arduini Quotas, the Pinsky Quotas, the
Alalou Quotas and the Klabin Quotas as contemplated by this Agreement, the
Prona Quotas, the Gleich Quotas, the Arduini Quotas, the Pinsky Quotas, the
Alalou Quotas and the Klabin Quotas are duly and validly authorized and issued,
and non-assessable, in accordance and compliance with NN’s Charter Documents
and all applicable Laws, free and clear of any lien, claim or encumbrance of
any kind or nature whatsoever. There are no outstanding options, warrants,
rights, calls, commitments, plans, contracts or other agreements of any
character granted or issued by NN or to which NN is a party or otherwise bound,
or to which NN is otherwise subject, which provide for the purchase, sale,
delivery, issuance or transfer of any quotas of or other equity interest in NN,
nor are there any outstanding securities granted or issued by NN or any other
Person that are convertible or exchangeable into or redeemable for or otherwise
evidencing the right to purchase any quotas of or other equity interest in NN,
nor have any of the foregoing been authorized. Prona has properly registered
foreign investment capital with the Central Bank of Brazil for its investment
in NN in the amount of US$16,548,202.55 (sixteen million, five hundred and
forty eight thousand, two hundred and two dollars and fifty five cents). Edgar
Gleich, a resident outside of Brasil, has a tax basis in the Gleich Quotas
equal to R$656,122.35 (six hundred and fifty six thousand, one hundred and
twenty two reais and thirty five cents).

     4.11 Balance Sheet; Undisclosed Liabilities.

          4.11.1 Interim Financial Statements. Attached as Exhibit “A” is a true
and complete copy of the unaudited balance sheet of NN as of July 31, 2004 and
related statements of income and cash flows for the trailing twelve month
period ended July 31, 2004, with footnotes showing adjustments since July 31,
2004 for any changes of cash or liabilities (collectively, the “Financial
Statements”). Such Financial Statements are true, accurate and correct and
accurately represent the financial condition of NN. The Financial Statements
have been prepared in accordance with Brazilian generally accepted accounting
principles consistently applied.

          4.11.2 No Undisclosed Liabilities. There are no liabilities or
obligations of NN, whether accrued, absolute, contingent or otherwise except
those reflected or otherwise provided for in the Financial Statements.

     4.12 Absence of Certain Changes. Since the date of its organization, (i)
NN has not conducted any business or entered into any oral or written contract
or agreement of any kind or nature except for the Negocios Consulting Agreement
and (ii) has not generated any taxable income, except for interest income
relating to investments of NN in financial markets.

     4.13 Subsidiaries. NN does not own, directly or indirectly, shares of the
outstanding capital stock of any Person other than Cinemark Brasil. NN has
never owned any asset since the date of its organization other than the shares
of Cinemark Brasil Common Stock.

     4.14 Compliance with Applicable Law. NN is in all material respects in
compliance with all applicable Laws.

     4.15 Litigation. There are no suits, arbitrations, claims, actions,
proceedings, investigations or inquiries in progress, pending, or threatened
against or affecting NN, its assets, or the transactions contemplated hereby or
by the Related Agreements in any court or before any arbitration panel of any
kind or before or by any Governmental Body. NN is not subject to, or in
violation of, any judgment, order, injunction or decree entered in any lawsuit
or proceeding.

     4.16 Consents. NN has all licenses, permits, consents, approvals,
authorizations and orders of Governmental Bodies and other Persons
(collectively, “Consents”) necessary to enable NN to continue to conduct its
business as presently conducted. No Consent of, or registration, declaration,
filings, or order of or with any court or any Governmental Body or other Person
is required in connection with the execution and delivery of this Agreement or
any Related Agreement by NN or the consummation of the transactions
contemplated herein or therein, except for the approval of the transaction
contemplated hereunder to be submitted to the Brazilian antitrust authorities.

 - 7 -

 

     4.17 Title to Properties; Liens and Encumbrances. Except for the shares
of capital stock of Cinemark Brasil, NN owns no other real, personal or
intangible property of any kind or nature. NN owns the shares of capital stock
of Cinemark Brasil free and clear of any Liens.

     4.18 Employees. NN has never had and does not now have any Person under
employment.

     4.19 Taxes. NN filed all tax returns required to be filed by it, and has
paid in full all taxes levied or imposed upon it or its properties, income or
assets (whether or not shown on, or required to be shown on any tax return)
before any such taxes became delinquent or any penalty accrued with respect
thereto. All deficiencies asserted or assessments with respect to all taxes
have been paid in full. There is no proposed tax assessment against NN. There
are no liens, charges or encumbrances of any kind or nature with respect to
taxes upon any of the assets of NN. There is no dispute or claim concerning a
tax liability of NN claimed or raised by any authority.

     4.20 By-Laws. The copy of the last amendment of the Articles of
Organization of NN attached hereto as Exhibit “B” is a complete, true and
correct copy of the Articles of Organization of NN in effect as of the date
hereof.

     4.21 Powers of Attorney. Attached as Schedule 4.21 is a true and accurate
list of all outstanding powers of attorney granted on behalf of NN. Prona
hereby delivers to Purchaser rescissions of such powers of attorney.

5. REPRESENTATIONS AND WARRANTIES BY THE PURCHASER. The Purchaser hereby
represents and warrants to Seller the following:

     5.1 Organization and Good Standing. Purchaser is a corporation,
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its formation.

     5.2 Authority. Purchaser has all requisite corporate power and authority
to execute and deliver this Agreement and the Related Agreements, and to
consummate the transactions contemplated hereby or thereby. The execution,
delivery and performance by the Purchaser of this Agreement and each of the
Related Agreements has been duly authorized by the Purchaser, and no other act
or proceeding on the part of the Purchaser is necessary to authorize this
Agreement or any of the Related Agreements or the transactions contemplated
hereby or thereby. This Agreement is, and each of the other Related Agreements
executed and delivered to the Seller by the Purchaser, is a valid and legally
binding obligation of the Purchaser, enforceable against the Purchaser in
accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity
(regardless of whether such enforcement is sought in a proceeding in equity or
at law).

     5.3 No Violation. Neither the execution, delivery or performance by the
Purchaser of this Agreement or any of the Related Agreements, nor the
consummation by the Purchaser of the transactions contemplated hereby or
thereby: (a) violates any provision of the Charter Documents of Purchaser; or
(b) (i) violates, or be in conflict with, or constitutes a default (or an event
or condition which, with notice or lapse of time or both, would constitute a
default) under, or breach of, or (ii) results in the termination of, or
accelerates the performance required by, or causes the acceleration of the
maturity of any liability or obligation.

     5.4 Lehman Fees. Purchaser’s affiliate has paid or will pay all amounts
owed to Lehman Brothers Inc. for the services related to the Cinemark Brasil
Common Stock.

6. OTHER AGREEMENTS.

     6.1 Resignation of Directors. On the date hereof, and upon the payment
referred to in Section 3.1, Edgar Gleich and all of his alternates shall
execute and deliver resignations from the Board of Directors of Cinemark Brasil
effective as of the date hereof.

 - 8 -

 

     6.2 Termination of Agreements. On the date hereof, and upon the payment
referred to in Section 3.1, Purchaser and Sellers shall execute the Agreement
to Terminate Agreements attached hereto as Exhibit “C”.

     6.3 Intentionally Deleted.

     6.4 Approval of Transaction by CADE. Purchaser will promptly cause
Cinemark Brasil to file such information and seek such approvals of the
Brazilian antitrust authorities, CADE, as shall be required with respect to the
transactions contemplated herein under the antitrust laws and regulations of
Brazil. Any costs associated with the filing with the CADE, including but not
limited to attorney’s fees and filing fees, shall be borne by Purchaser,
provided however that Purchaser and Sellers agree, at their own cost and
expense, to make available or cause to be made available promptly to Cinemark
Brasil or each other (as applicable) such information as may reasonably be
requested relative to the businesses, assets and property of Purchaser, Sellers
(exception made to specific personal information of the individuals other than
such information relating to such individuals’ investments in NN) or Cinemark
Brasil (as the case may be), as may be required to prepare such filings and to
file any additional information requested by such agencies under such laws,
rules or regulations.

     6.5 Name Change. On the date hereof, the Purchaser shall take all
necessary and appropriate action to change the name of NN to another name
acceptable to Purchaser.

     6.6 Waiver of Right of NN Quotaholders First Refusal. Each of Prona,
Edgar Gleich, Riccardo Arduini, Moises Pinsky, Eduardo Alalou and Roberto Luiz
Leme Klabin waives and forfeits his or its right of first refusal, granted to
each quotaholder in the Articles of Organization of NN, to purchase the quotas
of NN being sold by the other quotaholders.

     6.7 Registration of the Amendment to NN’s Articles of Organization. The
parties agree that Purchaser shall promptly conduct the filing and registration
of the Amendment to NN’s Articles of Organization with the competent Registry
of Commerce (Junta Comercial do Estado de São Paulo). On the date hereof NN’s
Quotaholders deliver to Purchaser all documents requested by the same in
connection with the mentioned filing, to wit, those referred to in Section
3.6.(g) and the Power of Attorney issued by Prona.

7. INDEMNIFICATION.

     7.1 Survival of Representations. All representations and warranties made
by any party to this Agreement or pursuant hereto or the Related Agreements
shall survive the date hereof.

     7.2 Prona’s and Certain Individual’s Agreement to Indemnify. Subject to
the terms and conditions of this Section 7, (i) Prona, Edgar Gleich, Riccardo
Arduini, Moises Pinsky, Eduardo Alalou and Roberto Luiz Leme Klabin each hereby
severally agree, with respect to Section 7.3.(a) below (in connection with the
representations and warranties contained in Sections 4.1 through 4.7, as
applicable), and (ii) Prona, Edgar Gleich, Riccardo Arduini, Moises Pinsky and
Eduardo Alalou each hereby jointly and severally agree, with respect to Section
7.3. (a) (provided however that the joint indemnification does not apply to the
representations and warranties contained in Section 4.1 through 4.7) and (b)
below, to indemnify, defend and hold harmless the Purchaser Group at any time
after consummation of the transactions contemplated by this Agreement, from and
against all Damages, asserted against, resulting to, imposed upon or incurred
by the Purchaser Group or any member thereof, directly or indirectly, by reason
of or resulting from:

          (a) a breach of any representation, warranty or agreement of Prona or such
individuals contained in this Agreement or the Related Agreements or any facts
or circumstances constituting such a breach; and/or

          (b) any liabilities of NN not specifically assumed under the terms of this
Agreement resulting from any act, fact or omission occurring prior to the date
hereof by NN or by any company deemed to be a predecessor of NN for which
successor liability may be ascribed to Sellers or NN, including, without
limitation, any tax liability related to events prior to the date hereof.

 - 9 -

 

     7.3 The Purchaser’s Agreement to Indemnify. Subject to the terms and
conditions of this Section 7, the Purchaser agrees to indemnify, defend and
hold harmless Sellers at any time after consummation of the transactions
contemplated by this Agreement, from and against all Damages asserted against,
resulting to, imposed upon or incurred by the Sellers or any member thereof,
directly or indirectly, by reason of or resulting from a breach of any
representation, warranty or agreement of the Purchaser contained in this
Agreement or the Related Agreements or any facts or circumstances constituting
such a breach.

     7.4 Procedures for Resolution and Payment of Claims for Indemnification.

          7.4.1 Notice Claims Between the Parties. If a person or entity entitled
to be indemnified under this Section 7 (the “Indemnitee”) shall incur any
Damages or determine that it is likely to incur any Damages, and believes that
it is entitled to be indemnified against such Damages by a party hereunder (the
“Indemnitor”), such Indemnitee shall deliver to the Indemnitor a certificate
(an “Indemnitee’s Certificate”) signed by the Indemnitee, which Indemnitee’s
Certificate shall:

               (a) state that the Indemnitee has paid or properly accrued Damages for
which such Indemnitee is entitled to indemnification pursuant to this
Agreement; and

               (b) if and to the extent practicable, specify in reasonable detail each
individual item of Damages included in the amount so stated, the date such item
was paid or properly accrued, the basis for any anticipated liability and basis
upon which the claim for indemnification is being made and the computation of
the amount to which such Indemnitee claims to be entitled hereunder.

          7.4.2 Agreed Claims. Claims for Damages specified in any Indemnitee’s
Certificate to which an Indemnitor shall not timely object in writing within
thirty (30) days after receipt of such Indemnitee’s Certificate and claims for
Damages the validity and amount of which shall have been the subject of a final
judicial determination are hereinafter referred to, collectively, as “Agreed
Claims”.

          7.4.3 Right to Defend. The Indemnitor shall have the right to undertake,
conduct and control, through counsel of its own choosing and at the sole
expense of the Indemnitor, the conduct and settlement of any third party claim
giving rise to indemnification hereunder, and the Indemnitee shall cooperate
with the Indemnitor in connection therewith; provided that (i) the Indemnitor
agrees to undertake such defense as an Agreed Claim hereunder without waiver of
any claim or right the Indemnitor may have against the Indemnitee with respect
to such claim, including termination of indemnification in the event that facts
or circumstances become known to the Indemnitor following the undertaking of
such defense that would terminate the Indemnitor’s obligation to indemnify the
Indemnitee hereunder, and (ii) the Indemnitor shall permit the Indemnitee to
participate in such conduct or settlement through counsel chosen by the
Indemnitee, but the fees and expenses of such counsel shall be borne by the
Indemnitee.

          7.4.4 Settlement. Anything in this Section 7.4 to the contrary
notwithstanding, (i) if there is a reasonable probability that a third party
claim may materially and adversely affect the Indemnitee other than as a result
of money damages or other money payments for which the Indemnitee would be
entitled to receive indemnification, the Indemnitee shall have the right, at
its own cost and expense, to defend, compromise or settle such claim; provided,
however, that if such claim is settled without the Indemnitor’s consent (which
consent shall not be unreasonably withheld), the Indemnitee shall be deemed to
have waived all rights hereunder against the Indemnitor for money damages
arising out of such claim, and (ii) the Indemnitor shall not, without the
written consent of the Indemnitee, settle or compromise any claim or consent to
the entry of any judgment which does not include as an unconditional term
thereof the giving by the claimant or the plaintiff to the Indemnitee a release
from all liability in respect to such claim.

     7.5 Remedies Cumulative. Except as herein expressly provided, the
remedies provided herein shall be cumulative and shall not preclude assertion
by any party hereto of any other rights or the seeking of any other remedies
against any other party hereto.

8. MISCELLANEOUS.

 - 10 -

 

     8.1 Expenses. Sellers and the Purchaser shall pay all their respective
expenses (including, without limitation, expenses of their attorneys,
accountants, investment bankers, consultants and travel) incurred in connection
with the transactions contemplated by this Agreement and the Related
Agreements.

     8.2 Reformation and Severability. If any provision of this Agreement is
held to be illegal, invalid or unenforceable under present or future laws
effective during the term hereof in lieu of such illegal, invalid or
unenforceable provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and be legal, valid and enforceable,
and the legality, validity and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby.

     8.3 Further Assurances. Each party hereto shall, from time to time after
the date hereof, at the request of any other party hereto and without further
consideration, promptly execute and deliver such other instruments of
conveyance, assignments, transfer and assumption, and take such other actions,
as such other party may reasonably request to more effectively consummate the
transactions contemplated by this Agreement.

     8.4 Notices. Any notice or other communication required or permitted to
be given hereunder shall be in writing and shall be sent by certified mail,
return receipt requested (or by the most nearly comparable method if mailed
from or to a location outside of the United States), or by cable, telex,
telegram or facsimile transmission, or delivered by hand or by overnight or
similar delivery service, fees prepaid, to the party to whom it is to be given
at the address of such party set forth below or to such other address for
notice as such party shall provide in accordance with the terms of this
section. Except as otherwise specifically provided in this Agreement, notice
so given shall, in the case of notice given by certified mail (or by such
comparable method) be deemed to be given and received ten (10) business days
after the time of certification thereof (or comparable act), in the case of
notice so given by overnight delivery service, on the date of actual delivery,
and, in the case of notice so given by cable, telegram, facsimile transmission,
telex or personal delivery, on the date of actual transmission or, as the case
may be, personal delivery.

	 	 	 
	If to Prona, Edgar Gleich,
	 	 
	Riccardo Arduini, Moisés Pinsky,
	 	 
	Eduardo Alalou or
	 	 
	Roberto Luiz Leme Klabin:

	 	c/o Prona Global Ltd.
	

	 	Rua Dr. Renato Paes de Barros, 714
	

	 	Conjunto 64 — São Paulo – SP
	

	 	Attention: Edgar Gleich
	

	 	Copy to: Moises Pinsky
	

	 	Facsímile Number: 011-5511-3849-5340
	 
	 	 
	With a copy to:

	Tozzini Freire Teixeira e Silva
	

	 	Rua Líbero Badaró, 293, 21o andar
	

	 	São Paulo-SP -01095.900 Brazil
	

	 	Attention: Maria Elisa Gualandi Verri
	

	 	Facsímile Number: 55-11-3291-1111
	 
	 	 
	If to Purchaser:

	 	Cinemark Empreendimentos Participacões Ltda.
	

	 	c/o Cinemark, Inc.
	

	 	3900 Dallas Parkway, Suite 500
	

	 	Plano, Texas 75093
	

	 	Attention: Michael Cavalier, Vice President-General Counsel
	

	 	Facsimile Number 972-665-1004

     8.5 Headings. The headings of sections contained in this Agreement are
for convenience only and shall not be deemed to control or affect the meaning
or construction of any provision of this Agreement.

 - 11 -

 

     8.6 Waiver. The failure of any party to insist, in any one or more
instances, upon performance of any of the terms, covenants or conditions of
this Agreement shall not be construed as a waiver or a relinquishment of any
right or claim granted or arising hereunder or of the future performance of any
such term, covenant, or condition, and such failure shall in no way affect the
validity of this Agreement or the rights and obligations of the parties hereto.

     8.7 Law Governing. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the Federative Republic of Brazil
without giving effect to the conflict of laws thereof.

     8.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute one and the same instrument notwithstanding that all
parties are not signatories to each counterpart.

     8.9 Assignability and Binding Effect. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. Sellers may not assign this Agreement nor
any of the rights and obligations hereunder to any third party without the
express written consent of Purchaser. Purchaser may assign this Agreement
without Sellers’ consent to any third party who agrees to be bound by this
Agreement.

     8.10 Amendments. This Agreement may not be modified, amended or
supplemented except by an agreement in writing signed by all of the parties
hereto.

     8.11 Number and Gender of Words. When the context so requires in this
Agreement, words of gender shall include either or both genders and the
singular number shall include the plural.

     8.12 Entire Agreement. This Agreement (including the Schedules and
Exhibits hereto) and the Related Agreements shall constitute the entire
agreement between the parties hereto with respect to the subject matter thereof
and shall supersede all prior negotiations, understandings and agreements, oral
and written with respect to the transactions contemplated hereby and thereby.

     8.13 Arbitration.

          8.13.1 The parties undertake to adopt the principle of good faith and to
use their best efforts towards an amicable solution as a definitive settlement
for any claim, controversy or dispute related to this Agreement.

   8.13.1.1 Should the parties be unable to reach an amicable
settlement within the period of fifteen days from the date of the
relevant notice sent by one party to the other in connection therewith,
any of the parties shall, without any further formality, be free to
initiate arbitration proceedings in pursuance thereof.

          8.13.2 The arbitration proceeding shall governed by Brazilian law and
shall be held in the city of São Paulo, State of São Paulo. The parties hereby
elect the Panel of Arbitrators of the Brazil-Canada Chamber of Commerce (the
“Panel of Arbitrators”) and undertake to accept its rules (“Rules”) effective
as of the date on which the arbitration request is presented, being admitted
any amendments convened between the parties. If the Rules are silent on any
procedural aspect they shall be supplemented by Brazilian procedural laws,
namely the relevant provisions of Federal Law No. 9,307, of September 23, 1996
and those of the Brazilian Civil Procedure Code.

          8.13.3 The Panel of Arbitrators shall consist of three (3) arbitrators, of
whom one (1) shall be nominated by Purchaser, one (1) by Sellers or relevant
Seller(s) and the third, who shall serve as chairman, shall be chosen by the
two party-appointed arbitrators, or, in the event the party-appointed
arbitrators are unable to designate the third arbitrator the third arbitrator
shall be appointed within the subsequent period of ten (10) days in accordance
with the Rules. The language of the arbitration shall be Portuguese. The
award of the arbitrators shall be final and binding. The parties waive any
right to appeal, to the extent that a right to appeal may lawfully be waived.
Each party retains the right to seek judicial assistance: (a) to compel
arbitration; (b) to obtain interim measures of

 - 12 -

 

protection rights prior to institution of pending arbitration and any such
action shall not be construed as a waiver of the arbitration proceedings by the
parties; and (c) to enforce any decision of the arbitrators, including the
final award. In case the parties seek judicial assistance the Central Courts of
the City of São Paulo shall have jurisdiction.

          8.13.4 If any party hereto refuses to sign the arbitration covenant, the
other party may pursue the remedies provided under the applicable law to
proceed with the arbitration. If the claim is accepted, such refusal shall be
considered unjustified, and the party that refused to sign the arbitration
covenant shall reimburse the prevailing party of its attorneys fees and costs
in pursuing the claim.

     8.14 Prevailing Language. This Agreement (including the Exhibits hereto)
and the Related Agreements have been drafted in English. On the date hereof,
the Parties agreed on the Portuguese translation of this Agreement and the
Related Agreements, which is attached to this Agreement as Exhibit D. Any
translations to any other language shall be only for convenience or for
purposes of making any necessary filings. The English version of this
Agreement, including the Exhibits and Related Agreements, shall prevail in all
matters related to this Agreement, or the applicable Exhibits or Related
Agreements.

 - 13 -

 

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

	 	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	CINEMARK EMPREENDIMENTOS	 	 
	 	 	E PARTICIPACOES LTDA.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/Valmir Fernandes
	 	 
	

	 	 	 	
 	 	 
	

	 	Name:
	 	Valmir Fernandes	 	 
	

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/Marcelo Bertini Derezende Barbosa	 	 
	

	 	 	 	
 	 	 
	

	 	Name:
	 	Marcelo Bertini Derezende Barbosa	 	 
	

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	SELLERS:	 	 
	 
	 	 	 	 	 	 
	 	 	PRONA GLOBAL LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/Gilberto Cipullo	 	 
	

	 	Name:
	 	Gilberto Cipullo	 	 
	

	 	Title:
	 	Legal Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Edgar Gleich	 	 
	 	 	
 	 	 
	 	 	Edgar Gleich	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Riccardo Arduini	 	 
	 	 	
 	 	 
	 	 	Riccardo Arduini	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Moises Pinsky	 	 
	 	 	
 	 	 
	 	 	Moises Pinsky	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Eduardo Alalou	 	 
	 	 	
 	 	 
	 	 	Eduardo Alalou	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Roberto Luiz Leme Klabin	 	 
	 	 	
 	 	 
	 	 	Roberto Luiz Leme Klabinexv10w15xby

 

EXHIBIT 10.15(b)

            FIRST AMENDMENT, dated as of August 18, 2004 (this “Amendment”), to the
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 2, 2004 (the “Credit
Agreement”), among CINEMARK, INC. (the “Parent”), CNMK HOLDING, INC.
(“Holdings”), CINEMARK USA, INC. (the “Borrower”), the several banks and other
financial institutions or entities from time to time parties to the Credit
Agreement (the “Lenders”), LEHMAN BROTHERS INC. and GOLDMAN SACHS CREDIT
PARTNERS L.P., as joint lead arrangers and joint bookrunners, GOLDMAN SACHS
CREDIT PARTNERS L.P., as syndication agent, DEUTSCHE BANK SECURITIES INC., THE
BANK OF NEW YORK, GENERAL ELECTRIC CAPITAL CORPORATION and CIBC INC., as
co-documentation agents, and LEHMAN COMMERCIAL PAPER INC., as administrative
agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

            WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to
make, and have made, certain Loans and other extensions of credit to the
Borrower;

            WHEREAS, the Parent and the Borrower wish to repurchase from time to time
a portion of (i) the Borrower’s 9% Senior Subordinated Notes due 2013 and (ii)
the Parent’s Senior Discount Notes, and the Borrower has requested that the
Lenders agree to amend certain provisions of the Credit Agreement to permit
such repurchases and make other amendments as set forth herein;

            WHEREAS, the Borrower wishes to consummate the Brazilco Acquisition and
has requested that the Lenders agree to delete the requirement of Section
6.11(d) of the Credit Agreement requiring that the Borrower designate Brazilco
as a Class II Restricted Subsidiary, and make other amendments as set forth
herein;

            WHEREAS, the Borrower desires to refinance the outstanding principal
balance of the Term Loans made on the Effective Date (the “August 2004 Term
Loan Refinancing”);

            WHEREAS, in order to finance the August 2004 Term Loan Refinancing, the
Borrower has requested that the Lenders agree to make certain amendments to the
Credit Agreement; and

            WHEREAS, the Lenders have agreed to make such amendments solely upon the
terms and conditions provided for in this Amendment;

            NOW, THEREFORE, the parties hereto agree as follows:

            1. Defined Terms. Unless otherwise noted herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

            2. Amendment to Section 1.1 of the Credit Agreement (Defined Terms).

            (a) Section 1.1 of the Credit Agreement is hereby amended by adding the
following new definitions in the appropriate alphabetical order:

       “August 2004 Term Loan Refinancing”: the refinancing of the
outstanding principal balance of the Existing Term Loans on the First
Amendment Effective Date.

       “Existing Term Loans”: the Term Loans (as defined in the Credit
Agreement in effect prior to the First Amendment Effective Date).

       “Existing Term Loan Lender”: each Lender that holds an Existing
Term Loan.

 

 

       “First Amendment”: the First Amendment, dated as of August 18,
2004, to this Agreement.

       “First Amendment Effective Date”: the date on which the conditions
precedent set forth in Section 16 of the First Amendment shall have been
satisfied.

       “First Amendment Lender Addendum”: with respect to each Tranche C
Term Loan Lender, a First Amendment Lender Addendum, substantially in the
form of Exhibit C to the First Amendment, duly executed and delivered by
such Tranche C Term Loan Lender.

       “Rollup Subsidiaries”: Pricino I, L.P., Pricino II, L.P, Pricino
III, L.P., Pricino IV, L.P., Pricino V, L.P., Pricino VI, L.P., Pricino
VII, L.P., Pricino VIII, L.P., Pricino IX, L.P., Pricino X, L.P., Pricino
XI, L.P., Pricino XII, L.P., Priciba EY Trust XIII and Priciba RI Trust
XIII or any of their successors.

       “Rollup Transaction”: the acquisition, in one or multiple
transactions, by the Borrower or any of its Subsidiaries of the legal or
beneficial interests in the Rollup Subsidiaries which are landlords in up
to thirteen of the Borrower’s properties which were sold to such Rollup
Subsidiaries as part of a sale leaseback transaction.

       “Tranche C Term Loan”: as defined in Section 2.24(a).

       “Tranche C Term Loan Commitment”: as to any Lender, the obligation
of such Lender, if any, to make a Tranche C Term Loan to the Borrower
hereunder in a principal amount not to exceed the amount set forth under
the heading “Tranche C Term Loan Commitment” opposite such Lender’s name
on Schedule 1 to the First Amendment Lender Addendum delivered by such
Lender, or, as the case may be, in the Assignment and Acceptance pursuant
to which such Lender became a party hereto, as the same may be changed
from time to time pursuant to the terms hereof. The original aggregate
amount of the Tranche C Term Loan Commitments is $259,350,000.

       “Tranche C Term Loan Facility”: the Tranche C Term Loan Commitments
and the Tranche C Term Loans made thereunder.

       “Tranche C Term Loan Lender”: each Lender which has a Tranche C
Term Loan Commitment or holds a Tranche C Term Loan.

       “Tranche C Term Loan Percentage”: as to any Tranche C Term Loan
Lender at any time, the percentage which such Lender’s Tranche C Term
Loan Commitment then constitutes of the aggregate Tranche C Term Loan
Commitments (or, at any time after the First Amendment Effective Date,
the percentage which the aggregate amount of such Lender’s Tranche C Term
Loans then outstanding constitutes of the aggregate principal amount of
Tranche C Term Loans then outstanding).

            (b) Section 1.1 is further amended by deleting the defined terms
“Applicable Margin”, “Brazilco”, “Investment Limit”, “Term Loan”, “Term Loan
Commitment”, “Term Loan Facility” and “Term Loan Lender” substituting in lieu
thereof the following new definitions in the appropriate alphabetical order:

       “Applicable Margin”: for each Type of Loan under each Facility, the
rate per annum set forth opposite such Facility under the relevant column
heading below:

	 	 	 	 	 	 	 	 	 
	 	 	Base Rate Loans
	 	Eurodollar Loans

	Tranche C Term Loan Facility
	 	 	1.00	%	 	 	2.00	%
	Revolving Credit Facility
	 	 	1.50	%	 	 	2.50	%;

 

 

provided that, on and after the first Adjustment Date occurring after the
completion of two full fiscal quarters of the Borrower after the
Effective Date, the Applicable Margin with respect to the Loans will be
determined pursuant to the Pricing Grid.

       “Brazilco”: the collective reference to Cinemark Brasil S.A.,
Cinemark Empreendimentos e Participacoes Ltda. and, upon the acquisition
thereof by a subsidiary, NN Participacoes Ltda.

       “Investment Limit”: on any date of determination, the sum of (a)
$100,000,000 plus (b) the lesser of (i) $75,000,000 and (ii) an amount
equal to (x) 50% of the aggregate amount of Excess Cash Flow for each
Fiscal Year ended after the Closing Date prior to such date of
determination minus (y) the excess, if any, of (A) the aggregate amount
of 9% Senior Subordinated Notes due 2013 and Senior Discount Notes
prepaid, repurchased or redeemed after the First Amendment Effective Date
pursuant to Section 7.9(a) over (B) an amount equal to 50% of the
aggregate amount of Excess Cash Flow for each Fiscal Year ended after the
Closing Date prior to such date of determination.

       “Term Loan”: each Tranche C Term Loan.

       “Term Loan Commitment”: as to any Lender, its Tranche C Term Loan
Commitment.

       “Term Loan Facility”: the Tranche C Term Loan Commitments and the
Tranche C Term Loans made thereunder.

       “Term Loan Lender”: each Tranche C Term Loan Lender.

            (c) Section 1.1 of the Credit Agreement is hereby further amended by
amending the definition of “Unrestricted Subsidiary” by adding the following
new sentence at the end of the definition of Unrestricted Subsidiary: “In
addition, upon the consummation of the Rollup Transaction, the Rollup
Subsidiaries shall be Unrestricted Subsidiaries.”.

            3. Amendment to Sections 2.1 (Term Loan Commitments), 2.2 (Procedure for
Term Loan Borrowing) and 2.3(Repayment of Term Loans) of the Credit Agreement.
Sections 2.1, 2.2 and 2.3 of the Credit Agreement are hereby amended by
deleting them in their entirety and, in each case, substituting in lieu thereof
the words “[Intentionally Omitted].”.

            4. Amendment to Section 2.6(a) of the Credit Agreement (Repayment of
Loans; Evidence of Debt). Section 2.6(a) of the Credit Agreement is hereby
amended by deleting the reference to “Section 2.3” therein and substituting in
lieu thereof a reference to “Section 2.24”.

            5. Amendment to Section 2.9 of the Credit Agreement (Optional
Prepayments). Section 2.9 of the Credit Agreement is hereby amended by
deleting the Section in its entirety and substituting in lieu therefor the
following new Section 2.9:

       2.9 Optional Prepayments. The Borrower may at any time and from
time to time prepay the Loans, in whole or in part:

       (x) at any time on or prior to the first anniversary of the First
Amendment Effective Date, without premium or penalty other than pursuant
to Section 2.19 and this Section 2.9, at a prepayment price equal to (1)
with respect to any optional prepayment of Revolving Credit Loans, 100%
of the principal amount of the Revolving Credit Loans optionally prepaid
(together with all amounts payable in connection therewith pursuant to
Section 2.19), (2) with respect to any optional prepayment of Term Loans
made with the Net Cash Proceeds of an issuance or incurrence of term
loans or high yield debt securities, 101% of the principal amount of the
Term Loans optionally prepaid (together with all amounts payable in
connection therewith pursuant to Section 2.19), and (3) with respect to
any other optional prepayment of the Term

 

 

Loans, 100% of the principal amount of the Term Loans optionally
prepaid (together with all amounts payable in connection therewith
pursuant to Section 2.19); and

       (y) at any time after the first anniversary of the First Amendment
Effective Date, without premium or penalty (other than pursuant to
Section 2.19).

       In each case, the Borrower shall deliver irrevocable notice to the
Administrative Agent at least three Business Days prior thereto in the
case of Eurodollar Loans and at least one Business Day prior thereto in
the case of Base Rate Loans, which notice shall specify the date and
amount of such prepayment, whether such prepayment is of Term Loans or
Revolving Credit Loans, and whether such prepayment is of Eurodollar Loans
or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any
day other than the last day of the Interest Period applicable thereto, the
Borrower shall also pay any amounts owing pursuant to Section 2.19. Upon
receipt of any such notice the Administrative Agent shall promptly notify
each relevant Lender thereof. If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of Revolving Credit Loans that
are Base Rate Loans) accrued interest to such date on the amount prepaid.
Partial prepayments of Term Loans and Revolving Credit Loans shall be in
an aggregate principal amount of $1,000,000 or a whole multiple of
$200,000 in excess thereof.

            6. Amendment to Section 2.10 of the Credit Agreement (Mandatory
Prepayments). Section 2.10 of the Credit Agreement is hereby amended by adding
the following new sentence before the last sentence of Section 2.10(b):

            Each prepayment of the Term Loans under this Section 2.10(b) made
with the Net Cash Proceeds of the incurrence of term loans or high-yield
debt securities shall (x) at any time on or prior to the first
anniversary of the First Amendment Effective Date, be at a prepayment
price equal to 101% of the principal amount of the Term Loans being
prepaid (together with all amounts payable in connection therewith
pursuant to Section 2.19) and (y) at any time after the first anniversary
of the First Amendment Effective Date, be at a prepayment price equal to
100% of the principal amount of the Term Loans being prepaid (together
with all amounts payable in connection therewith pursuant to Section
2.19), and in each case shall be without premium or penalty other than
pursuant to clause (x) above and Section 2.19.

            7. Amendment to Section 2 of the Credit Agreement (Amount and Terms of the
Commitments). Section 2 of the Credit Agreement is hereby amended by adding
the following new Section 2.24 in the appropriate numerical order:

            2.24 Tranche C Term Loan Facility.

       (a) Tranche C Term Loans. Subject to the terms and conditions
hereof, the Tranche C Term Loan Lenders severally agree to make term
loans (each, a “Tranche C Term Loan”) to the Borrower on the First
Amendment Effective Date in an amount for each Tranche C Term Loan Lender
not to exceed the amount of the Tranche C Term Loan Commitment of such
Lender. The Tranche C Term Loans may from time to time be Eurodollar
Loans or Base Rate Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.24(b) and 2.11.

       (b) Procedure for Tranche C Term Loan Borrowing. The Borrower shall
deliver to the Administrative Agent a Borrowing Notice (which Borrowing
Notice must be received by the Administrative Agent prior to 12:00 Noon,
New York City Time, at least three Business Days prior to the anticipated
First Amendment Effective Date) requesting that the Tranche C Term Loan
Lenders make the Tranche C Term Loans on the First Amendment Effective
Date. Upon receipt of such Borrowing Notice the Administrative Agent
shall promptly notify each Tranche C Term Loan Lender thereof. Not later
than 12:00 Noon, New York City time, on the First Amendment Effective
Date each Tranche C Term Loan Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately

 

 

available funds equal to the Tranche C Term Loan to be made by such
Lender; provided, however, that, at the option of each Tranche C Term
Loan Lender that is an Existing Term Loan Lender immediately prior to the
First Amendment Effective Date, all or a portion of the aggregate amount
of the Existing Term Loans of such Tranche C Term Loan Lender may be
converted to Tranche C Term Loans and applied toward satisfaction of the
foregoing funding requirement. Subject to the immediately preceding
sentence, the Administrative Agent shall use the amounts made available
to the Administrative Agent by the Tranche C Term Loan Lenders to prepay
the Existing Term Loans outstanding on the First Amendment Effective
Date.

       Notwithstanding anything to the contrary in the Credit Agreement,
(i) the Interest Period in effect on the First Amendment Effective Date
in respect of the Existing Term Loans that are being converted to Tranche
C Term Loans on the First Amendment Effective Date (the “Current Interest
Period”) will continue to be in effect for such Loans following the First
Amendment Effective Date, but such converted Tranche C Term Loans shall
bear interest for each day during the remainder of the Current Interest
Period at a rate per annum equal to the Eurodollar Rate determined for
such day, based upon the Eurodollar Base Rate in effect with respect to
the converted Existing Term Loans immediately prior to the First
Amendment Effective Date, plus the Applicable Margin in effect for such
day after giving effect to the First Amendment, and (ii) the initial
Interest Period of any new Tranche C Term Loan funded on the First
Amendment Effective Date will end on the last day of the Current Interest
Period, and such newly funded Tranche C Term Loans shall bear interest
for each day during the remainder of the Current Interest Period at a
rate per annum equal to the Eurodollar Rate determined for such day,
based upon the Eurodollar Base Rate determined as if the First Amendment
Effective Date were the first day of such Interest Period, plus the
Applicable Margin in effect for such day after giving effect to the First
Amendment.

       Any Lender that has converted some but not all of its Existing Term
Loan to a Tranche C Term Loan on the First Amendment Effective Date shall
be indemnified by the Borrower, with respect to the portion of such
Lender’s Existing Term Loan not converted to a Tranche C Term Loan, as
provided in Section 2.19 of the Credit Agreement, which indemnity amounts
shall be paid to each such Lender on the First Amendment Effective Date;
provided, however, if a Lender converts all of its Existing Term Loan to
an equivalent amount of a Tranche C Term Loan on the First Amendment
Effective Date, the indemnification provided in Section 2.19(c) of the
Credit Agreement shall not apply to such Lender on the First Amendment
Effective Date.

       (c) Repayment of Tranche C Term Loans. The Tranche C Term Loans
shall mature in 27 consecutive quarterly installments, commencing on
September 30, 2004, each of which shall be in the aggregate amount set
forth below opposite such installment:

	 	 	 	 	 
	Installment
	 	Principal Amount

	September 30, 2004
	 	$	650,000	 
	December 31, 2004
	 	$	650,000	 
	March 31, 2005
	 	$	650,000	 
	June 30, 2005
	 	$	650,000	 
	September 30, 2005
	 	$	650,000	 
	December 31, 2005
	 	$	650,000	 
	March 31, 2006
	 	$	650,000	 
	June 30, 2006
	 	$	650,000	 
	September 30, 2006
	 	$	650,000	 
	December 31, 2006
	 	$	650,000	 
	March 31, 2007
	 	$	650,000	 
	June 30, 2007
	 	$	650,000	 
	September 30, 2007
	 	$	650,000	 
	December 31, 2007
	 	$	650,000	 

 

 

	 	 	 	 	 
	Installment
	 	Principal Amount

	March 31, 2008
	 	$	650,000	 
	June 30, 2008
	 	$	650,000	 
	September 30, 2008
	 	$	650,000	 
	December 31, 2008
	 	$	650,000	 
	March 31, 2009
	 	$	650,000	 
	June 30, 2009
	 	$	650,000	 
	September 30, 2009
	 	$	650,000	 
	December 31, 2009
	 	$	650,000	 
	March 31, 2010
	 	$	650,000	 
	June 30, 2010
	 	$	61,100,000	 
	September 30, 2010
	 	$	61,100,000	 
	December 31, 2010
	 	$	61,100,000	 
	March 31, 2011
	 	$	61,100,000	 

            8. Amendment to Section 4.16 of the Credit Agreement (Use of Proceeds).
Section 4.16 of the Credit Agreement is hereby amended by deleting the first
sentence thereof and by adding to the end of such Section the following: “The
proceeds of the Tranche C Term Loans shall be used to finance the August 2004
Term Loan Refinancing and to pay related fees and expenses in connection
therewith.”.

            9. Amendment to Section 6.11 of the Credit Agreement (Designation of
Restricted and Unrestricted Subsidiaries). Section 6.11(d) of the Credit
Agreement is hereby amended by deleting it in its entirety and substituting in
lieu thereof the words “[Intentionally Omitted].”.

            10. Amendment to Section 7.6 of the Credit Agreement (Limitation on
Restricted Payments). Section 7.6 of the Credit Agreement is hereby amended by
(i) deleting the word “and” at the end of clause (h) thereof, (ii) deleting the
period at the end of clause (i) and substituting in lieu thereof the word “;
and”, and (iii) adding the following clause (j) immediately after clause (i)
thereof:

       ”(j) the Borrower may make Restricted Payments to Holdings, and
Holdings may make Restricted Payments to the Parent, in the amount
required to redeem or repurchase the Senior Discount Notes to the extent
permitted by Section 7.9(a).”

            11. Amendment to Section 7.9 of the Credit Agreement (Limitation on
Optional Payments and Modifications of Debt Instruments). Section 7.9 of the
Credit Agreement is hereby amended by deleting it in its entirety and
substituting in lieu thereof the following:

       7.9 Limitation on Optional Payments and Modifications of Debt
Instruments, etc.. (a) Except as permitted by Section 7.2(f), (g) or
(h), make or offer to make any optional or voluntary payment, prepayment,
repurchase or redemption of, or otherwise voluntarily or optionally
defease, the Senior Subordinated Notes or the Senior Discount Notes
(except that (i) the Borrower may (A) repurchase, redeem or defease its
8 1/2% Senior Subordinated Notes and (B) repurchase or redeem its 9%
Senior Subordinated Notes due 2013 and (ii) the Parent may repurchase or
redeem the Senior Discount Notes, provided that, the aggregate principal
amount of the Borrower’s 9% Senior Subordinated Notes due 2013 redeemed
after the First Amendment Effective Date pursuant to clause (i)(B) above
plus the aggregate accreted amount of the Senior Discount Notes redeemed
after the First Amendment Effective Date pursuant to clause (ii) above
shall not exceed $100,000,000), or segregate funds (except in connection
with a repurchase, redemption or defeasance permitted by the preceding
parenthetical) for any such payment, prepayment, repurchase, redemption
or defeasance, or enter into any derivative or other transaction with any
Derivatives Counterparty obligating the Parent, Holdings, the Borrower or
any Class I Restricted Subsidiary to make payments to such Derivatives
Counterparty as a result of any change in market value of the Senior
Subordinated Notes, (b) amend, modify or otherwise change, or consent or
agree to any

 

 

amendment, modification, waiver or other change to, any of the terms
of the Senior Subordinated Notes or the Senior Discount Notes (other than
any such amendment, modification, waiver or other change which (A) would
extend the maturity or reduce the amount of any payment of principal
thereof, reduce the rate or extend the date for payment of interest
thereon or relax any covenant or other restriction applicable to the
Parent, Holdings, the Borrower or any of its Class I Restricted
Subsidiaries or add any Guarantor as a guarantor of the Senior
Subordinated Notes, provided that such guarantee is subordinated in right
of payment to the Guarantor’s guarantee of the Obligations to at least
the same extent in all material respects as the obligations of the
Borrower in respect of the Senior Subordinated Notes are subordinated to
the Obligations or (B) does not require the consent of any holder of the
Senior Subordinated Notes or Senior Discount Notes, as applicable, to (i)
cure any ambiguity, defect or inconsistency or (ii) comply with the
requirements of the SEC in order to effect or maintain the qualification
of the Senior Subordinated Note Indenture or the Senior Discount Note
Indenture, as the case may be, under the TIA (as defined in the
applicable agreement)), (c) designate any Indebtedness (other than the
Obligations) as “Designated Senior Indebtedness” for the purposes of any
Senior Subordinated Note Indenture or (d) amend its certificate of
incorporation in any manner reasonably determined by the Administrative
Agent to be material and adverse to the Lenders.

            12. Amendment to Section 7.14 of the Credit Agreement (Limitation on
Restrictions on Subsidiary Distributions). Section 7.14 of the Credit
Agreement is hereby amended by adding to the end of such Section the following
new sentence: “Notwithstanding any of the foregoing, the ability of Brazilco
and its subsidiaries to make Restricted Payments may be subject to encumbrances
and restrictions imposed by agreements or instruments relating to any
Non-Recourse Debt of Brazilco.”.

            13. Amendment to Section 7.16 of the Credit Agreement (Limitation on
Activities of the Parent and Holdings. Section 7.16 of the Credit Agreement is
hereby amended by adding to the end of such Section the following new sentence:
“Notwithstanding any of the foregoing, the Parent shall be allowed to
repurchase or redeem its Senior Discount Notes to the extent permitted by
Section 7.9(a).”.

            14. Amendment to Section 10.17 of the Credit Agreement (Delivery of Lender
Addenda). Section 10.17 of the Credit Agreement is hereby amended by adding
(a) a paragraph lettering “(a)” in front of the existing paragraph therein and
(b) the following new paragraph (b) at the end thereof:

       (b) Each Tranche C Term Loan Lender shall become a party to this
Agreement by delivering to the Administrative Agent a First Amendment
Lender Addendum duly executed by such Lender, the Borrower and the
Administrative Agent.

            15. Amendment to Annex A of the Credit Agreement (Pricing Grid). The
“Pricing Grid” on Annex A to the Credit Agreement is hereby amended by deleting
it in its entirety and substituting in lieu thereof the following:

PRICING GRID FOR TERM LOANS

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margin for Term Loans

	Consolidated Leverage Ratio
	 	Eurodollar Loans
	 	Base Rate Loans

	> 3.00 to 1.00
	 	 	2.00	%	 	 	1.00	%
	£ 3.00 to 1.00
	 	 	1.75	%	 	 	0.75	%

PRICING GRID FOR REVOLVING CREDIT LOANS

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margin for Revolving
	 	 	Credit Loans

	Consolidated Leverage Ratio
	 	Eurodollar Loans
	 	Base Rate Loans

	>2.75 to 1.00
	 	 	2.50	%	 	 	1.50	%
	 2.75 to 1.00 and > 2.25 to 1.00
	 	 	2.25	%	 	 	1.25	%
	£ 2.25 to 1.00
	 	 	2.00	%	 	 	1.00	%

Changes in the Applicable Margins resulting from changes in the
Consolidated Leverage Ratio shall become effective on the date (the
“Adjustment Date”) on which financial statements are delivered to
the Lenders pursuant to Section 6.1 (but in any event not later
than the date such financial statements are due pursuant to Section
6.1) and shall remain in effect until the next change to be
effected pursuant to this paragraph. If any financial statements
referred to above are not delivered within the time periods
specified above, then, until such financial statements are
delivered, the Consolidated Leverage Ratio as at the end of the
fiscal period that would have been covered thereby shall for the
purposes of this definition be deemed to be greater than 3.00 to
1.00. In addition, at all times while an Event of Default shall
have occurred and be continuing, the Consolidated Leverage Ratio
shall for the purposes of this Pricing Grid be deemed to be greater
than 3.00 to 1.00. Each determination of the Consolidated Leverage
Ratio pursuant to this Pricing Grid shall be made as at the last
day of any period of four consecutive fiscal quarters of the
Borrower.

            16. Conditions to Effectiveness. This Amendment shall become effective on
the date on which all of the following conditions precedent have been satisfied
or waived (the “First Amendment Effective Date”:

            (a) The Administrative Agent shall have received a counterpart of this
Amendment duly executed and delivered by the Parent, Holdings and the Borrower.

            (b) The Administrative Agent shall have received an Acknowledgment and
Consent, substantially in the form of Exhibit A hereto (the “Acknowledgment and
Consent”), duly executed and delivered by the Borrower and the Guarantors.

            (c) The Administrative Agent shall have received executed Lender Consent
Letters, substantially in the form of Exhibit B hereto (“Lender Consent
Letters”), from Lenders constituting not less than the Required Prepayment
Lenders (as defined in the Credit Agreement without giving effect to this
Amendment).

            (d) The Administrative Agent shall have received a First Amendment Lender
Addendum, substantially in the form of Exhibit C hereto, executed and delivered
by each Tranche C Term Loan Lender and accepted by the Borrower.

            (e) On or before the First Amendment Effective Date, all corporate and
other proceedings taken or to be taken in connection with this Amendment shall
be reasonably satisfactory in form and substance to Administrative Agent and
its counsel, and Administrative Agent and such counsel shall have received all
such counterpart originals or certified copies of such documents as
Administrative Agent may reasonably request.

            (f) The Administrative Agent shall have received a certificate of the
Borrower, dated as of the First Amendment Effective Date, in form and substance
reasonably satisfactory to the Administrative Agent.

            (g) The Administrative Agent shall have received the legal opinion of Akin
Gump Strauss Hauer & Feld LLP, counsel to the Loan Parties, in form and
substance reasonably satisfactory to the Administrative Agent.

 

 

            (h) All material governmental and third party approvals necessary in
connection with the Tranche C Term Loan Facility, the continuing operations of
the Parent, Holdings, the Borrower and its Restricted Subsidiaries and the
transactions contemplated hereby shall have been obtained and be in full force
and effect.

            (i) The Administrative Agent shall have received irrevocable instructions
from the Borrower to apply the proceeds of the Tranche C Term Loans to complete
the August 2004 Term Loan Refinancing.

            17. Representations and Warranties. The Borrower hereby represents and
warrants to Administrative Agent and each Lender that (before and after giving
effect to this Amendment):

            (a) Each Loan Party has the corporate power and authority, and the legal
right, to make, deliver and perform this Amendment and the Acknowledgment and
Consent (the “Amendment Documents”) to which it is a party and, in the case of
the Borrower, to borrow under the Credit Agreement as amended hereby. Each
Loan Party has taken all necessary corporate or other action to authorize the
execution, delivery and performance of the Amendment Documents to which it is a
party and, in the case of the Borrower, to authorize the borrowings on the
terms and conditions of the Credit Agreement as amended by this Amendment (the
“Amended Credit Agreement”). No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the Amendment Documents, the
borrowings under the Amended Credit Agreement or the execution, delivery,
performance, validity or enforceability of this Amendment or the Acknowledgment
and Consent, except (i) consents, authorizations, filings and notices which
have been obtained or made and are in full force and effect and (ii) the
filings referred to in Section 4.19 of the Credit Agreement. Each Amendment
Document has been duly executed and delivered on behalf of each Loan Party that
 is a party thereto. Each Amendment Document and the Amended Credit Agreement
constitutes a legal, valid and binding obligation of each Loan Party that is a
party thereto, enforceable against each such Loan Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

            (b) The execution, delivery and performance of the Amendment Documents,
the borrowings under the Amended Credit Agreement and the use of the proceeds
thereof will not violate any Requirement of Law or any material Contractual
Obligation of the Parent, Holdings, the Borrower or any of its Restricted
Subsidiaries and will not result in, or require, the creation or imposition of
any Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation (other than the Liens
created by the Security Documents).

            (c) Each of the representations and warranties made by any Loan Party
herein or in or pursuant to the Loan Documents is true and correct in all
material respects on and as of the First Amendment Effective Date as if made on
and as of such date (except that any representation or warranty which by its
terms is made as of an earlier date shall be true and correct in all material
respects as of such earlier date).

            (d) The Borrower and each other Loan Party has performed in all material
respects all agreements and satisfied all conditions which this Amendment and
the other Loan Documents provide shall be performed or satisfied by the
Borrower or the other Loan Parties on or before the First Amendment Effective
Date.

            (e) After giving effect to this Amendment and the August 2004 Term Loan
Refinancing, no Default or Event of Default has occurred and is continuing, or
will result from the consummation of the transactions contemplated by this
Amendment.

            18. Payment of Expenses. The Borrower agrees to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with this Amendment, any other documents prepared in
connection herewith and the transactions contemplated hereby, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

 

 

            19. No Other Amendments or Waivers; Confirmation. Except as expressly
provided hereby, all of the terms and provisions of the Credit Agreement and
the other Loan Documents are and shall remain in full force and effect. The
amendments contained herein shall not be construed as an amendment or waiver of
any other provision of the Credit Agreement or the other Loan Documents or for
any purpose except as expressly set forth herein or a consent to any further or
future action on the part of the Borrower that would require the consent of the
Administrative Agent or the Lenders.

            20. GOVERNING LAW; Miscellaneous. (a) THIS AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

            (b) On and after the First Amendment Effective Date, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words
of like import referring to the Credit Agreement, and each reference in the
other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof”, or
words of like import referring to the Credit Agreement shall mean and be a
reference to the Credit Agreement, as amended hereby.

            (c) This Amendment may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Amendment, the Acknowledgment and Consent, the First
Amendment Lender Addenda and the Lender Consent Letters signed by all the
parties shall be lodged with the Borrower and the Administrative Agent. This
Amendment may be delivered by facsimile transmission of the relevant signature
pages hereof.

            (d) Upon execution and delivery thereof by a Lender, each Lender Consent
Letter shall be binding upon such Lender and each of its successors and assigns
(including assignees of its Loans in whole or in part prior to effectiveness
hereof).

 

 

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their respective proper and duly authorized
officers as of the day and year first above written.

	 	 	 	 	 
	 	 	CINEMARK, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael Cavalier

	

	 	 	 	Name:  Michael Cavalier
	

	 	 	 	Title:    Secretary
	 
	 	 	 	 
	 	 	CNMK HOLDING, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Andrew Panaccione

	

	 	 	 	Name:  Andrew Panaccione
	

	 	 	 	Title:    Secretary
	 
	 	 	 	 
	 	 	CINEMARK USA, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael Cavalier

	

	 	 	 	Name:  Michael Cavalier
	

	 	 	 	Title:    Secretary
	 
	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC., as
Administrative Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Francis Chang

	

	 	 	 	Name:  Francis Chang
	

	 	 	 	Title:    Authorized
Signatory
	 
	 	 	 	 
	 	 	LEHMAN BROTHERS INC., as Sole Arranger of
the Tranche C Term Loan Commitments
	 
	 	 	 	 
	

	 	By:
	 	/s/ Francis Chang

	

	 	 	 	Name:  Francis Chang
	

	 	 	 	Title:    Authorized
Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]