Document:

Unassociated Document

 

EXHIBITOR MANAGEMENT SERVICES AGREEMENT

THIS EXHIBITOR MANAGEMENT SERVICES AGREEMENT ("Agreement") is entered into as of March 11, 2011 ("Effective Date") by and between Cinedigm Digital Cinema Corp., a Delaware corporation, with its offices located at 55 Madison Avenue, Suite 300, Morristown, NJ 07960 ("Cinedigm") and Digital Cinema Destinations Corp. a Delaware corporation, with its offices located at 250 East Broad Street Westfield, NJ 07090 ("Client"). Each of Cinedigm and Client is sometimes referred to in this Agreement as a "Party" and collectively as the "Parties."

 

WHEREAS, Cinedigm is the owner of the Exhibitor Management System and related proprietary software (cumulatively, the "EMS System" as more fully described in Schedule Aattached hereto); and

 

WHEREAS, Client wishes to receive, and Cinedigm desires to provide to Client, a license to use the EMS System and related support services (cumulatively, the "EMS Services"), on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing premises, the covenants and agreements herein contained and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Cinedigm and Client agree as follows:

 

SECTION 1.   DEFINITIONS

 

The definitions set forth in this Section apply to the following capitalized words and terms when used in this Agreement.

 

1.1           "Affiliate(s)" means and includes any entity that directly or indirectly controls, is controlled by or is under common control with the entity, where "control" means the ownership of, or the power to vote, at least fifty percent (50%) of the voting stock, shares or interests of such entity.

 

1.2           "Documentation" means Cinedigm's then current guides and manuals published by Cinedigm for the EMS Services.

 

1.3           "Improvement" means any adaptations, modifications, improvements, enhancements, revisions or interface elements to the EMS Services (including the EMS System) in any form or medium whatsoever, and any "derivative" work of the EMS Services (including the EMS System), as defined in the copyright law of the United States of America, 17 U.S.C. Section 101 et seq.

  

  

  

 

1.4           “In-house Purposes" means Client's internal business operations,

1.5           "Professional DP Organization" means any individual or business, which supplies unaffiliated third parties with computer equipment, software, proprietary software-based services or professional advice regarding such. Computer manufacturers, dealers, distributors, original equipment manufacturers ("OEMs"), independent sales organizations ("ISOs"), value added resellers ("VARs"), system integrators, software houses, and data processing consultants are examples of Professional DP Organizations.

 

1.6           "Server" means the serialized Central Processor Unit of a computer system without which the function of the EMS Services would not be possible and which accommodates the programming language and operating systems as stated herein.

 

1.7           "System Start Date" means the date on which Cinedigm makes the EMS Services operational and available to Client for initial use.

 

1.8     "Territory" means the United States of America and Canada.

 

SECTION 2.    USE RIGHTS AND RESTRICTIONS

 

2.1           Use Rights. Subject to the terms and conditions of this Agreement, including payment in full of the applicable fees, Cinedigm (a) shall host and support the EMS Services, and (b) hereby grants Client with a personal, non-exclusive, non-transferable, limited and revocable license to access the EMS Services, in each case for use of the EMS Services by Client within the Territory solely for its In-house Purposes. Cinedigm may change the designated Server and/or the Server site to another Server and/or Server site upon reasonable advance notice to Client and without material interruption of service. Cinedigm shall have the right to suspend or revoke Client's authorization to use the EMS Services if Client exceeds the scope of Client's access rights or otherwise breaches the terms of this Agreement.

 

2.2           Change in EMS Services. Notwithstanding any other provision hereof, Cinedigm shall have the right from time to time to change the EMS System and/or the EMS Services (including operating procedures, Client accessibility, Client use periods or user identification and authentication methodology) to the extent Cinedigm reasonably deems necessary, including to comply with changes in law.

 

2.3           Client Infrastructure Requirements. Cinedigm will provide Client with technical specifications that Client's computer operating systems, telecommunications, networks and general IT infrastructure must meet in order to work with the EMS Services and with a list of applicable hardware, software and equipment ("Third Party Equipment") Client must acquire from third party vendors in order to use the EMS Services in accordance with the terms hereof (collectively, the "Client Infrastructure Requirements"). Cinedigm shall provide updated versions of the Client Infrastructure Requirements as it deems necessary or advisable from time to time, including, for example, if Client changes or expands the EMS Services it receives from Cinedigm hereunder and/or because of changes in the IT, infrastructure, telecommunications, 

 

  

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software or network elements that Cinedigm uses or to which the EMS Service connects. Client shall promptly comply with the Client Infrastructure Requirements.

 

2.4           Client Computer System. Client shall implement operational systems and controls to ensure that any transmission using the EMS Services complies with this Agreement and with procedures and instructions provided to it by Cinedigm from time to time. As between the Parties, Client shall be solely responsible, at its expense, for: (a) installing, operating, supporting and maintaining the operating environments, computer systems, telecommunications systems, and networks (including internal networks), to meet the Client Infrastructure Requirements and use the EMS Services in accordance with the terms hereof (the "Client Computer System"), and (b) maintain the security of the Client Computer System as it connects to, or is used with, the EMS System, including preventing unauthorized access or use of the EMS System. Without limiting the other provisions hereof, as between the Parties, Client shall bear all responsibility and liability hereunder resulting from, or arising in connection with, the use and any malfunction in the operation of the Computer System or compromises to security resulting from Client's failure to comply with the provisions of this Section 2.4 or the Client Infrastructure Requirements.

 

2.5           Third Party Dependencies. The provision of EMS Services is subject to Cinedigm receiving certain infrastructure, services, products, assistance and cooperation from third parties (collectively, the "Third Party Dependencies"), including the availability of the Internet and telecommunications connectivity.

 

2.6           Service Interruption. If, as a result of Client's actions or inactions, failure of Client to comply with the Client Infrastructure Requirements or Cinedigm's written instructions issued pursuant hereto, the failure or unavailability in whole or in part of the Client Computer System, a lack of or interruption in service by a third party service provider, the failure or unavailability of a Third Party Dependency or a force majeure event (singularly or collectively, a "Service Interruption"), Cinedigm is prevented from providing the EMS Services or performing its other obligations hereunder, Cinedigm shall promptly notify Client of the same. Cinedigm's obligation to provide the EMS Services and/or perform its other obligations hereunder affected by the Service Interruption shall be suspended until such time such Service interruption continues to exist. Cinedigm shall have no liability and shall not be deemed to be in breach of its obligations hereunder to the extent that Cinedigm reasonably determines that it is prevented from performing the EMS Services and/or its other material obligations hereunder as a result of a Service Interruption.

 

2.7           Use Restrictions. The access rights granted under Section 2.1 hereof are subject to the following restrictions: (i) Client shall not, directly or indirectly, reverse engineer, disassemble, decompile, disclose, alter, modify or create derivative works or improvements of the EMS System, including without limitation, attempt to derive the human readable source code of the EMS System in the form of machine executable code; (ii) Client shall not, directly or indirectly, design any system, process or software that is similar or provides competitive functionality to the EMS System or the EMS Services; (iii) with regard to any and all copies of 

 

  

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the EMS System and Documentation, Client shall ensure that each copy contains all proprietary right legends, disclaimers, and warning notices as in the original; (iv) Client shall not use the EMS Services or the EMS System for any purpose other than for In-house Purposes; (v) Client shall not alter or remove any copyright or other proprietary notices of Cinedigm or its licensors from the EMS System or the EMS Services; (vi) Client shall not apply for copyright, trademark or patent protection in the EMS System, EMS Services or Improvements, file any document with any governmental agency that would affect Cinedigm's ownership of the EMS System, EMS Services or Improvements, or aid or abet anyone else in doing so; (vii) Client shall not sublicense Client's rights to access the EMS System or EMS Services to any third party; and (viii) Client shall not utilize any equipment, device, software, or other means designed to circumvent or remove any form of copy protection used by Cinedigm in connection with the EMS System or the EMS Services.

 

2.8           Retention of Rights. The access rights granted pursuant to Section 2.1 of this Agreement does not constitute a transfer or sale of Cinedigm's ownership rights in or to the EMS Services, EMS System or Improvements. Cinedigm reserves all rights not expressly granted to Client in this Agreement. Without limiting the generality of the foregoing, Client acknowledges and agrees that: (i) Cinedigm and its suppliers exclusively retain all rights, title and interest in and to the EMS System, EMS Services, Improvements and Documentation, and Client acknowledges and agrees that except for the limited access rights granted by Cinedigm to Client under this Agreement, Client does not acquire any rights, express or implied; (ii) any configuration, modification, implementation or deployment of the EMS System or EMS Services shall not affect or diminish Cinedigm's rights, title and interest in and to the EMS System or EMS Services; and (iii) any Improvement made by Client or by any person on its behalf, and all right, title and interest thereto throughout the world, shall be and hereby is assigned by Client to Cinedigm in perpetuity, and any such Improvement shall be the sole and exclusive property of Cinedigm. Client shall assist Cinedigm, at Cinedigm's request, in maintaining protection of the EMS Services, EMS System and Improvements. Client acknowledges and agrees that use by Client of Cinedigm's routines, whether altered or disguised by any means whatsoever to create new works to be used or distributed without the prior written permission of Cinedigm and without payment of additional fees to Cinedigm is expressly prohibited by the terms of this Agreement.

 

2.9           Unauthorized Use. Client agrees to notify Cinedigm immediately in writing in the event that any unauthorized access, disclosure, distribution, possession, alteration, transfer, reproduction or use of the EMS Services, EMS System or any portion thereof, is found. Client shall be responsible for any use that is not expressly authorized herein.

 

2.10           Audit. Client shall keep accurate business records relating to its use of the EMS Services, EMS System and its compliance with the terms hereof. From time to time, Cinedigm shall be entitled to conduct (including through the use of an independent third party auditing firm) audits of Client to confirm that Client's use of the EMS Services and EMS System complies with the provisions of this Agreement, including the payment provisions hereof. Client shall provide reasonable cooperation and access to the Client Computer System and its other

 

  

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equipment and records for purposes of such audit and shall cooperate with Cinedigm, including, without limitation, by making available to Cinedigm its employees and reasonable access to Client's records and equipment for the purpose of audits. Client shall immediately pay any fees or other amounts which an audit discloses are owed by Client. Cinedigm shall bear the cost of any audit conducted pursuant to this Section 2.10, unless such audit shows an error in Cinedigm's favor in excess of five percent (5%) of the actual amounts paid by Client hereunder, in which event Client shall bear the cost of such audit.

 

2.11    Other Terms.

 

(a)           Client shall be responsible for supplying all hardware and software necessary to operate or interface with the EMS System and for complying with the additional requirements set forth in Schedule C attached hereto.

 

(b)           Client shall provide all information and assistance necessary and required from time to time by Cinedigm to host, support and maintain the EMS Services.

 

(c)           Client shall be responsible for the use or misuse of the EMS Services and/or any other Confidential Information of Cinedigm by its employees or by any third party.

 

(d)           Client understands that the EMS Services may require preparatory procedures before the EMS Services is ready for initial use. Cinedigm shall provide instructions for the preparatory procedures, provided, however, that, Client Is solely responsible for the implementation of such preparatory procedures.

 

(e)           Client represents and warrants that it is not a Professional DP Organization involved, in the regular course of its business, in the design, creation, modification for hire, sale, or distribution of business or commercial software or services related to, or similar to the EMS System or the EMS Services.

 

SECTION 3.    SERVICE LEVELS

 

3.1 Service Levels. In accordance with the service levels set forth in Schedule B attached hereto, Cinedigm will provide services reasonably required to correct reproducible programming or documentation errors reported by Client. Cinedigm will not be responsible for fixing errors that cannot be recreated or where Client has not supplied sufficient information regarding the error. Cinedigm reserves the right to alter the terms of Schedule B from time to time after providing Client with sixty (60) days prior written notice.

 

SECTION 4.    TERM AND TERMINATION

 

  

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4.1           Term. This Agreement shall be commence on the Effective Date and shall be valid for an initial term of one (1) year from the System Start Date, unless terminated earlier in accordance with the provisions herein. This Agreement will automatically renew for successive additional periods of one (1) year each upon the completion of the initial term unless either Party provides the other Party with written notice of its intention not to renew the Agreement within sixty (60) days prior to the completion of the then existing term.

 

4.2           Termination. Either Party may terminate this Agreement by written notice to the other Party upon the occurrence of any of the following events: (i) if the other Party fails to comply with any term, condition or covenant contained herein other than Section 9 (Confidentiality) hereof, and such Party fails to correct such lack of compliance within thirty (30) days after delivery of a written notice of such failure by the non-defaulting Party; or (ii) in the event of default by the other Party of Section 9 (Confidentiality) hereof, effective immediately on the date of termination set forth in the written notice.

 

4.3           Effect of Termination or Expiration. Upon termination or expiration of this Agreement for any reason, (i) Client shall immediately pay all fees and expenses then accrued, (ii) Cinedigm will immediately disconnect Client's use of the EMS System and EMS Services regardless of the effect to Client's business, (iii) all license and other rights granted to Client under this Agreement shall automatically and immediately terminate, and (iv) Client's data will be removed from Cinedigm's database. Client shall promptly, and in all events, within thirty (30) days after termination or expiration, destroy or return to Cinedigm all Confidential Information of Cinedigm and deliver to Cinedigm within thirty (30) days after termination or expiration, a written notice signed by an executive officer of Client certifying such destruction or return. The Parties' rights and obligations under Sections 2.2, 2.7, 2.8, 6, 7, 8, 9, and 10 shall survive the termination and expiration of this Agreement.

 

SECTION 5.     INDEMNITIES

 

5.1     Intellectual Property Infringement Indemnities.

 

(a) if a third party makes a claim against Client that the EMS System infringe any U.S. patent or copyright of such third party (IP Claim"), Cinedigm shall indemnify, defend and hold harmless Client against the IP Claim and pay all reasonable costs, damages and expenses (including reasonable legal fees and expenses) incurred by Client in defending such claim, provided that (i) Client immediately notifies Cinedigm in writing after Client's receipt of notification of a claim; (ii) Client permits Cinedigm to assume sole control of the defense of such claim and all related settlement negotiations; and (iii) Client provides Cinedigm, at Cinedigm's request and expense, with such assistance, information and authority necessary to perform Cinedigm's obligations under this Section 5. Notwithstanding the foregoing, Cinedigm shall have no liability for any claim of infringement due to or as a result of (A) the use of a superseded or altered release of EMS System, (B) the modification of the EMS System by Client or by a third party, (C) the combination of the EMS System with materials not supplied by Cinedigm or that are not authorized by Cinedigm, and/or (D) the use of the EMS System other 

 

  

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than in accordance with the terms of this Agreement and/or Cinedigm's written instructions (all of which are hereby defined as the "Excluded Claims").

 

(b)           If, due to an IP Claim, (i) the EMS System is held by a court of competent jurisdiction, or in Cinedigm's reasonable judgment may be held to infringe by such a court, or (ii) Client receives a valid court order enjoining Client from using the EMS System, Cinedigm shall at its election and at its expense take commercially reasonable efforts to (A) replace or modify the infringing EMS System to be non-infringing; or (B) obtain for Client a license to continue using the EMS System. If Cinedigm cannot reasonably obtain the remedies in (A) or (B) within a reasonable period of time, Cinedigm shall be entitled to terminate the Agreement.

 

(c)           THIS SECTION 5 STATES CLIENT'S EXCLUSIVE REMEDY AND CINEDIGM'S ENTIRE LIABILITY HEREUNDER FOR ANY CLAIM OF INFRINGEMENT OR MISAPPROPRIATION.

SECTION 6.     WARRANTIES

 

6.1           ALL PRODUCTS AND SERVICES, INCLUDING ANY THIRD PARTY PRODUCTS AND SERVICES, PROVIDED BY OR THROUGH CINEDIGM UNDER THIS AGREEMENT ARE BEING PROVIDED TO CLIENT ON AN "AS IS" BASIS, WITHOUT ANY WARRANTY OR REPRESENTATION OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AVAILABILITY, TIMELINESS, ACCURACY, COMPLETENESS, TITLE, NON-INFRINGEMENT, ANY WARRANTIES OR OBLIGATIONS THAT MIGHT OTHERWISE BE CONSIDERED TO ARISE FROM TRADE USAGE, COURSE OF DEALING, OR COURSE OF PERFORMANCE, AND ANY WARRANTY OR COMMITMENT OF BEST EXECUTION. THERE IS NO GUARANTEE THAT THE PRODUCTS AND SERVICES, INCLUDING ANY THIRD PARTY PRODUCTS AND SERVICES, PROVIDED BY CINEDIGM UNDER THIS AGREEMENT WILL MEET CLIENT'S REQUIREMENTS, BE ERROR-FREE OR BE AVAILABLE WITHOUT INTERRUPTION.

 

SECTION 7.     LIMITATION OF LIABILITY

 

7.1           TO THE EXTENT PERMITTED BY APPLICABLE LAW, IT IS EXPRESSLY AGREED THAT EXCEPT FOR PAYMENTS DUE TO CINEDIGM UNDER THE AGREEMENT, (I) EITHER PARTY'S AGGREGATE MAXIMUM LIABILITY UNDER THIS AGREEMENT FOR DAMAGES HEREUNDER SHALL IN NO EVENT EXCEED AN AMOUNT EQUAL TO THE AGGREGATE PAYMENTS MADE BY CLIENT TO CINEDIGM PURSUANT TO THIS AGREEMENT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE OF THE CLAIM, AND (II) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, GOODWILL, REVENUE, DATA OR USE OR INTERRUPTION OF BUSINESS. THE FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY (I) 

 

  

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REGARDLESS OF THE FORM OF LEGAL ACTION, WHETHER IN CONTRACT OR IN TORT, INCLUDING NEGLIGENCE OR RELIANCE, UNDER WHICH SUCH DAMAGES ARE SOUGHT, (II) EVEN IF SUCH PARTY KNOWS OR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND (III) NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED FOR HEREIN. THE FOREGOING LIMITATIONS OF LIABILITY ARE CUMULATIVE, WITH ALL EXPENDITURES OF A PARTY BEING AGGREGATED TO DETERMINE SATISFACTION OF SUCH PARTY'S LIMITATION OF LIABILITY.

 

SECTION 8.     PAYMENT PROVISIONS

 

8.1           Fees. Client agrees to pay the fees set forth in Schedule A, which fees shall be non-refundable. Cinedigm shall be entitled to increase the fees during each renewal period, provided, however, that such fees will not increase more than five percent (5%) per year. Annual service fees for each renewal period will be payable in advance of the contract anniversary date.

 

8.2           Payments. Unless otherwise set forth in this Agreement, all fees, expenses and charges shall become payable within thirty (30) days of receipt of an invoice. All amounts owed hereunder not paid when due and payable shall bear interest from the date such amounts are due and payable at the rate of one percent (1.0%) per month or the maximum percentage permitted under law. Client shall have the right to dispute any invoice within fifteen (15) days from the date of receipt of the invoice. Should Client have a good faith dispute, Client shall have the right to withhold any disputed amount so long as it pays, in full, the amount of the invoice not disputed. The Parties will use their good faith efforts to resolve any dispute within sixty (60) days following the date that it is raised by Client and, thereafter, each Party may pursue their legal rights and remedies. In the event that it is determined that Client incorrectly disputed an amount, it shall pay interest on such amount at the rate specified above from the original due date of the invoice in question.

 

8.3           Expenses. All expenses incurred by Cinedigm's employees and consultants will be charged to Client on a monthly basis. In addition, Client shall be responsible to pay Cinedigm any expenses incurred by Cinedigm at the request of Client, All expenses shall be approved in writing by Client in advance. Client shall have the right to arrange travel and lodging for Cinedigm's employees through its own travel arranger for the purpose of limiting the expenses charged to Client by Cinedigm hereunder.

 

8.4           Taxes. All fees and expenses under this Agreement are exclusive of any and all taxes, duties and levies assessed by applicable governmental authorities. All such taxes, duties and levies shall be assumed by and paid by Client, All payments by Client shall be made free and clear of, and without reduction for, any withholding or similar taxes. Any such taxes that are otherwise imposed on payments to Cinedigm shall be Client's sole responsibility. Client shall provide Cinedigm with official receipts issued by the appropriate taxing authority or such other evidence as is reasonably requested by Cinedigm to establish that such taxes have been paid. Client shall indemnify, defend, and hold harmless Cinedigm

 

  

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and its directors, officers, employees and agents from and against all taxes, duties, levies, penalties and interest that may be levied by any governmental authority under this Agreement.

 

SECTION 9.    CONFIDENTIALITY AND NON-DISCLOSURE

 

9.1           Confidential Information. Each Party may have access to information that is confidential to the other Party ("Confidential Information"). Confidential Information shall include, but not be limited to, a Party's software, documentation, formulas, methods, know how, processes, designs, developmental work, marketing requirements, marketing plans, in any form and whether or not marked as confidential or proprietary, and all information whether written or oral which a reasonable person in the industry would normally consider to be confidential. Confidential Information includes all information received from third parties that either Party is obligated to treat as confidential and oral information that is identified by, either Party as confidential. For the sake of clarity, Cinedigm's Confidential Information shall include the EMS Services and EMS System, including but not limited to, the specific design and structure of the individual modules and their interaction, the programming techniques employed therein, and SQL Server Objects including, tables, views, data types, triggers, stored procedures, utility SQL scripts, DOS batch files and BCP format files.

 

9.2           Non-Disclosure and Non-Use. Each Party shall treat as confidential all Confidential Information of the other Party, shall not use such Confidential Information except as set forth herein, and shall not disclose such Confidential Information to any third party except as set forth herein. With respect to the foregoing, each of the Parties shall use at least the same degree of care which it uses to prevent the disclosure of its own confidential information of like importance to prevent the disclosure of Confidential Information disclosed to it by the other Party under this Agreement, provided, however, that in no event shall such degree of care be less than reasonable in light of general industry practice. Confidential Information shall only be disclosed to employees and third party service providers of a Party that have a need to know such information in connection with this Agreement and who and have agreed in writing to protect such information in accordance with the terms hereof. Each Party also agrees that it shall be responsible for any breach of these confidentiality provisions by its own employees and third party service providers. Client acknowledges and agrees that the EMS Services and EMS System constitute a valuable trade secret of Cinedigm. Without in any limiting the foregoing obligations, Client hereby agrees that it shall use Cinedigm's Confidential Information only in connection with Client's use of the EMS Services in accordance with the terms of this Agreement. Each Party acknowledges and agrees that, due to the unique nature of Confidential Information, there can be no adequate remedy at law for breach of this Section 9 and that such breach would cause irreparable harm to the non-breaching Party; therefore, the non-breaching Party shall be entitled to seek immediate injunctive relief without the posting of any bond, in addition to whatever remedies it might have at law, in equity or under this Agreement.

 

9.3           Exceptions. A Party's Confidential Information shall not include information that: (i) is or becomes a part of the public domain through no act or omission of the other Party 

 

  

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(Confidential Information shall not be deemed to be in the public domain merely because any part of the Confidential Information is embodied in general disclosures or because individual features, components or combinations thereof are now or become known to the public); (II) was rightfully known to the receiving Party, without restriction, at the time of disclosure as shown by the files of the receiving Party in existence at the time of disclosure, and had not been obtained by the other Party either directly or indirectly from the disclosing Party; (iii) is generally disclosed with the prior written approval of the disclosing Party; or (iv) is independently developed by a Party without use of or reference to the other Party's Confidential Information. In the event that any Confidential Information is required to be disclosed by law or valid order of a court or other governmental authority, the responding Party shall, to the extent legally permitted, give notice to the other Party and shall have made a reasonable effort to obtain a protective order requiring that the Confidential Information so disclosed be used only for the purposes for which the order was issued.

 

9.4          Notification. The Parties agree, to the extent legally permitted, to notify each other promptly in writing in the event that any unauthorized access, disclosure, distribution, possession, alteration, transfer, reproduction or use of the Confidential Information of the other Party, or any portions thereof, is found. Each Party shall have the right to take all legal action it deems necessary or advisable to minimize the consequences of such unauthorized use or disclosure of its Confidential Information.

SECTION 10.   MISCELLANEOUS

 

10.1           Waivers. Any waiver of any term or condition of this Agreement shall only be deemed to have been made if expressed in writing by the Party granting such waiver. The failure or neglect by either Party to enforce, in any one or more instances, any of the terms and conditions of this Agreement shall not be construed as a waiver of the future performance of any such term or condition, or any other terms or conditions of this Agreement.

 

10.2           Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of New York without regard to conflict of law rules which would cause the laws of any other jurisdiction to apply. The Parties hereto expressly submit themselves to the exclusive and personal jurisdiction of the state and federal courts of New York County on any such dispute or controversy relating to this Agreement. The Parties hereto expressly exclude the application of the United Nations Convention on Contracts for the International Sale of Goods from this Agreement and any transaction that may be entered into between the Parties in connection with this Agreement. All rights and remedies, whether evidenced hereby, by law or in equity shall be cumulative and may be exercised singularly or concurrently.

 

10.3           Equitable Relief. It is understood and agreed that, notwithstanding any other provision of this Agreement, a breach of Section 2 of this Agreement or a breach relating to a Party's intellectual property rights or Confidential Information may cause irreparable damage to that Party for which recovery of money damages would be inadequate, and that either Party shall therefore be entitled, in addition to any other remedies available to it at law or in equity, 

 

  

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to seek injunctive relief to protect such Party's rights under this Agreement without posting any bond.

 

10.4          Severability. In the event that a particular provision of this Agreement is held by a court of competent jurisdiction to be invalid, such provision shall be severed from the Agreement and shall not affect the validity of this Agreement as a whole or any of its other provisions (other than payment or license restrictions). The Parties hereto agree to replace such invalid provision with a new provision that has the most nearly similar permissible, economic, or other effect.

 

10.5           Force Majeure. Except for payment, license restrictions, and confidentiality obligations, neither Party shall be liable or deemed to be in default for any delay or failure in performance under this Agreement or interruption of services resulting directly or indirectly from acts of God, civil or military authority, war, riots, civil disturbances, accidents, fire, earthquakes, flood, strikes, lockouts, labor disturbances, court or governmental order, interruptions in Internet connectivity or other communications network, or any other cause beyond the reasonable control of such Party. Each Party agrees to provide the other with notice upon becoming aware of an event of force majeure, such notice to contain details of the circumstances giving rise to the event of force majeure.

 

10.6           Entire Agreement. This Agreement, together with the attached schedules and exhibits which are incorporated by reference, constitute the complete agreement between the Parties and supersedes all prior or contemporaneous agreements or representations, written or oral, concerning the subject matter of this Agreement and such schedules and exhibits. The terms and conditions set forth in the Agreement shall control in the event that there are different or additional terms set forth in any other document, including any purchase order, submitted by Client. This Agreement may not be modified or amended except in writing signed by a duly authorized representative of each Party.

 

10.7           Compliance With Law. Each Party agrees that all of its obligations contained in this Agreement and any action taken by it pursuant to this Agreement shall be performed in accordance with all applicable federal, state, local and foreign laws, statutes, rules, regulations and ordinances, including all export restrictions.

 

10.8           Further Assurances. Each Party hereto shall execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such instruments and take such other action as may be necessary or advisable to carry out its obligations hereunder and to implement the terms and conditions of this Agreement.

 

10.9           Assignment. Neither this Agreement nor any rights granted hereunder may be sold, leased, assigned, or otherwise transferred, in whole or in part, by either Party without the prior written consent of the other Party, and any such attempted assignment shall be void and of no effect without the advance written consent of the other Party; provided, however, that Cinedigm may assign this Agreement to an Affiliate or in connection with a merger, acquisition or sale of all or substantially all of its assets. Cinedigm may also assign its right to receive and 

 

  

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collect payments hereunder. Subject to the foregoing, this Agreement shall be binding upon the permitted assigns of the Parties.

 

10.10           Relationship Between the Parties. The relationship of Cinedigm and Client is that of independent contractors, and it is expressly agreed that nothing contained herein shall be construed to constitute the Parties as partners, joint venturers, co-owners, or Clients in a joint or common undertaking, or otherwise to create a relationship of principal and agent, it being intended that each shall remain an independent contractor responsible for its own actions. Client agrees that that the licenses granted herein and the terms of this Agreement are on a non-exclusive basis, and nothing herein shall be deemed to limit Cinedigm's right to use the EMS Services or EMS System, or license the EMS Services or EMS System to third parties, or such third party's right to use the EMS Services or EMS System, and exchange information, enter into agreements and conduct business relationships of any kind with such third parties, to the exclusion of Client.

 

10.11           Non-Solicitation. Neither Party shall, during the term of this Agreement and for a period of one (1) year after its termination or expiration, as the case may be, solicit for hire or hire as an employee or independent contractor any of the other Party's employees or independent contractors. This restriction shall not apply to any employee or independent contractor who independently solicits employment or who responds to indirect solicitations (such as general newspaper advertisements, employment agency referrals and internet postings) not targeting such person.

 

10.12           Publicity. Subject to Client's prior written approval, which approval will not be unreasonably withheld or delayed, Cinedigm may use Client's name and logo in the form approved by Client in Cinedigm's marketing materials and publicize Client's usage of Cinedigm's products and services.

 

10.13           Notices and Contacts. All notices required to be sent hereunder shall be in writing and shall be deemed to have been given upon (i) the date sent by confirmed facsimile, (ii) on the date it was delivered by courier, or (iii) if by certified mail return receipt requested, on the date received, to the addresses set forth above and to the attention of the signatory of this Agreement or to such other address or individual as the Parties may specify from time to time by written notice to the other Party. The Parties agree that any notice which is required to be given hereunder shall be in writing.

 

10.14           Counterparts. This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one and the same instrument. The exchange of a fully executed Agreement (in counterparts or otherwise) by fax shall be sufficient to bind the Parties to the terms and conditions of this Agreement.

 

10.15           Section Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The English language shall govern the meaning and interpretation of this Agreement.

 

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement through their representatives duly authorized as of the date and year first written above.

 

 

 

  

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SCHEDULE A

	
1. 

	
Description of EMS System

	
Item

	
Description

	
Version

	
001

	
Bookings Module

	
1,4.0

	
002

	
Accruals Module

	
1.4.0

	
004

	
Settlement Module

	
1.4.0

	
005

	
Box Office Module

	
1.4.0

	
006

	
Payments Processing Module

	
1.4.0

	
007

	
Standard Reporting Module

	
1.4.0

	
008

	
Administration Module

	
1.4.0

	
009

	
Interface - Box Office

	
1.4.0

	
2.

	
Pricing and Payment Terms

	
  

	
2.1.

	
Pricing for the EMS Services up to 25 screens is $500 per screen per year. Pricing for new screens added during a contract term will be pro-rated and any discounted pricing based upon screens added over the 25 threshold will be applied retroactively. Based upon Client's existing theatres and screens listed in Schedule A-l, initial annual fees are $9,500 per year.

 

	
  

	
2.2.

	
All pricing is based on 12 month usage. Pricing includes 100% of core feature functionality. Optional features may be licensed for an additional charge upon request.

 

	
3. 

	
System Implementation and Training

 

	
  

	
3.1.

	
System training to Client's staff will be necessary. System training and implementation services are generally provided at Client's location, provided, however, they can be provided at Cinedigm's Hollywood location upon request.

 

	
  

	
3.2.

	
Implementation set-up and training will be provided at the Cinedigm's standard rate of $150 per hour, not to exceed $1,200 per day.

 

	 	
3.3. 

	
Additional time will be provided upon request at the standard daily rate.

 

	 	
3.4.

	
Client agrees to make appropriate staff available to Cinedigm to assist in the commencement and operation of services, including attending the recommended amount of system training prior to commencement of services.

 

  

14

  

 

SCHEDULE A-1

Client's Sites as of System Start Date

	
Theatres

	
Screens

	
Annual Fee

	
Bloomfield 8

	
8

	
$4,000

	
Rialto

	6	
$3,000

	
Cranford

	
5

	
$2,500

	 	 	
$9,500

  

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SCHEDULE B

	
1. 

	
Service Levels

 

	
1.1

	
Cinedigm shall provide access to Client to the EMS System via a virtual private network ("VPN"). Cinedigm may restrict system access, at its sole discretion, during weekends and between 7:00 pm to 4:00 am Pacific Standard Time Monday — Friday, (the "Maintenance Window"). Cinedigm will reasonably endeavor to inform Client in advance of planned system maintenance that would prevent Client from accessing the EMS System during the Maintenance Window. Cinedigm will take commercially reasonable efforts to perform its maintenance tasks exclusively during the Maintenance Window, provided, however, that in the event that Cinedigm is required to perform maintenance services outside of the Maintenance Window, Cinedigm will reasonably endeavor to notify Client in a timely fashion and work with Client to mitigate any loss of access to the EMS System.

 

	
1.2.

	
Telephone support will be provided during Cinedigm's standard business hours of 9 am to 6 pm Pacific Standard Time, Monday through Friday, excluding national holidays (the "Service Window"). In the event that Client support calls not related to the performance of the EMS Services exceed ten (10) calls per month, an additional charge may be incurred. Support calls will be responded to by the following order of severity:

	 	
1.2.1.

	
Level 1 — EMS System is not working during Service Window preventing the performance of mission critical tasks such as booking, etc. Cinedigm will respond within one (1) hour and use its commercially reasonable efforts to provide a fix within three (3) hours thereafter.

	 	
1.2.2. 

	
Level 2 — EMS System has a non-critical bug. Cinedigm will respond within one (1) business day and use commercially reasonable efforts to provide a fix within one (1) business day thereafter.

 

	 	
1.2.3. 

	
Level 3 — Client has a non-critical question. Cinedigm will respond within two (2) business days.

 

	
1.3.

	
Additional extended customer support may be provided for an additional charge.

 

	
1.4.

	
Cinedigm will not be responsible for or required to correct any errors or program faults caused by:

 

a.           Unauthorized or additional applications, programs or other software which interferes with the EMS System;

 

b.           Use of the EMS System for other than the specific purpose for which the EMS System is intended, including use by users not authorized by Cinedigm;

 

  

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c.           Service for EMS System for which all required maintenance releases have not been implemented by Client; and

 

d.           Errors due to: (i) failure of computer hardware or equipment or programs not covered by the Agreement; or (ii) any cause or causes beyond the reasonable control of Cinedigm (e.g., floods, fires, theft, vandalism, terrorism, war, loss of electricity or other utilities), negligence of Client or any third party, operator error, improper use of hardware or software or attempted maintenance by unauthorized persons.

 

	
2. 

	
Exclusions

 

2.1     Services set forth herein shall not apply to the following:

 

a.           Custom programming services;

 

b.           On-Site support;

 

c.           System training;

 

d.           Hardware, operating software and related supplies;

 

e.           Resolving problems regarding software not subject to this Agreement, or supervision of repairs on associated equipment;

 

f.           Software modifications;

 

g.           Necessary hardware (e.g., PC workstations, communications hardware);

 

h.           Necessary software (e.g., software for setting up VPN, workstations, etc.);

 

i.           Communications charges (e.g., leased line costs, ISP connection costs, etc.); and

 

j.          Custom programming to interface Client's operating systems to the EMS System.

 

	
3. 

	
Client's Responsibilities

 

3.1           Upon detection of any error or a program fault in the EMS Services, Client agrees to provide Cinedigm with electronic system access and/or a listing of output and any other data, including databases and backup systems, that may reasonably be requested by Cinedigm in order to reproduce operating conditions similar to those present when the error or program fault occurred. Cinedigm's response obligations shall commence only after Client provides Cinedigm with sufficient information and/or documentation to duplicate the error.

 

3.2           Client shall designate at least two (2) liaison personnel and to the maximum extent practicable, will restrict Client's communications mainly through these individuals and use Cinedigm's recommended procedures for reporting support-related issues.

 

  

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3.3           Client shall notify Cinedigm of all errors utilizing Cinedigm's online error reporting system.

 

3.4           Client shall maintain adequate data back-up procedures at all times. As part of such procedures, Client shall perform a complete back-up of all system data at least on a daily basis. Client shall further ensure that appropriate safeguards are in place for backed-up data and the media upon which it is stored. Client will provide Cinedigm, its agents and employees with reasonable access to such backed-up data and the media upon which it is stored when required by Cinedigm, subject to compliance by such parties with Client's security procedures.

 

3.5           Client shall provide Cinedigm with a complete test environment, including hardware, software and test data comparable to Client's production environment.

 

  

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SCHEDULE C

Client Hardware Configuration

Client understands that to' be functional, the EMS System requires that each personal computer of Client have certain hardware and software requirements ("Eligible Computer System"). The following is an itemized list of the minimum requirements for the proper operation of the EMS System;

a)           PC with 266 Mhz Pentium II Processor (or better)

b)           128 MB of RAM (256 MB recommended for Windows 2000 users)

c)           30 MB Hard Drive space (if installed locally, 15MB if run from server)

d)           800x600 Resolution Video (must support at least 16bit color, 4 MB Video RAM or more)

 

Note: Client workstation desktop should utilize the following settings:

Appearance Scheme: Windows Standard

Minimum Display Area: 800x600 or higher

Color Palette: High Color (16bit or better)

Font Size: Small Fonts

Color Settings: Default Color

e)           15" Monitor (17" or better highly recommended)

f)           Microsoft Windows 2000 SP1, or higher

 

NOTE: Use of the EMS System on any personal computer of Client that is not an Eligible Computer System is not supported by Cinedigm. In addition, the system requirements of the EMS System may change with future upgrades of related software.

 

	
1.1. 

	
The following is an itemized list of the recommended system configuration for the optimum operation of the EMS System:

a)           Pentium III - Class Machine or better (600 Mhz or faster)

b)           256 MB RAM (512 MB for Power Users)

c)           30 MB Available Hard Drive Space

d)           Microsoft Windows XP Professional SP2

e)           1024x768 Video Resolution with True Color

f)           19" Monitor or better

 

	
1.2.

	
Client acknowledges and agrees that the EMS System is comprised of several software components including some third party components, such as Crystal Reports. The proper operation of the EMS System is dependent on the correct versions of these components being installed on Client's system. It is possible for other software applications to install different versions of these components and cause the EMS System to no longer function properly. Included with the EMS System is a module that lists the components used, the required versions, and the version present on the workstation.

 

  

19

  

 

Client will be solely responsible for ensuring that the software versions of these components are consistent with the versions listed in the module.

 

	
1.3.

	
Client will be responsible for providing the communication link between Client's computer network and Cinedigm's network. This communication link can be established by utilizing a VPN over the Internet or via a private leased-line connection through a telecommunications carrier, as more fully described in Section 1.5 below.

 

	
1.4.

	
Client acknowledges and agrees that in order to utilize the EMS System via a VPN connection, Client's network infrastructure must accommodate the following protocols and standards in order to access Cinedigm's servers.

 

	
  

	
a)

	
The EMS System requires a network that is configured to support the standard TCP/IP protocol.

	
  

	
b)

	
The EMS System network should be configured to use a network address that is derived from the RFC 1918 Reserved Address Space standard. In the event that this address space conflicts with the addresses currently used on Client's network, Client will be responsible for altering its address space to accommodate Cinedigm's network.

	
  

	
c)

	
In order to access the EMS System over the Internet in a secure fashion, a VPN tunnel is utilized. If there is a firewall protecting Client's network, it must be configured to allow IPSEC traffic to pass from Client's personal computer or from Client's VPN device to Cinedigm's network.

	
  

	
d)

	
Client acknowledges and agrees that in order for Cinedigm to proactively manage the VPN connection between Client and ASP servers, Client will employ hardware and software that is compatible with Cinedigm's recommended technical requirements. Technical requirements may include, but are not limited to, requirements that are necessitated by the applicable hardware manufacturer, operating system, system and software configuration, and server access. Cinedigm will not be required to modify its standard hardware and software configurations to make the EMS System operate with incompatible hardware and software. At Client's cost, Cinedigm will configure Client's server upon request.

 

	
1.5.

	
In the event that the communications link between Client's and Cinedigm's networks fails, Cinedigm will take commercially reasonable efforts to establish an emergency dial-in solution using standard modem connections. Client will need to configure its workstations for a standard RAS connection and install phone lines to be used for dial-in access. Cinedigm will provide Client with phone numbers and setup instructions for the proper configuration of Client's workstation for this purpose.

 

 

20Unassociated Document

 

REALD SYSTEM LEASING AGREEMENT

 

(2011 U.S. CBG Member Leasing Agreement)

This REALD SYSTEM LEASING AGREEMENT (the "Agreement") is entered into as of March 23, 2011 (the "Effective Date"), by and between RealD, Inc., a company incorporated under the laws of the State of Delaware and having a principal place of business at 100 North Crescent Drive, Suite 120, Beverly Hills, California 90210 ("RealD"), and Digital Cinema Destination Corporation, a Delaware corporation and having a principal place of business at 250 East Broad Street Westfield, NJ 07090 ("Lessee").

 

RECITALS

WHEREAS, RealD leases a 3D cinema system for the delivery of premium 3D content as more fully described on Schedule A hereto (collectively, the "RealD System");

WHEREAS, Lessee, through itself and its subsidiaries, is the operator of theater venues within the United States (the "Territory"), and wishes to obtain the right to use the RealD System in certain theater venues in the Territory; and

WHEREAS, Cinema Buying Group ("CBG"), of which Lessee is a member (each, a "Member" and collectively, the "Members") has undertaken to use its best efforts to assist in the leasing and installation of a specified number of RealD Systems in certain Locations (as herein defined) by the "3D Deadline" (meaning the later of (a) December 1, 2009; or (b) the date twelve months after the third party digital integrator for Members commences a roll-out of digital projection equipment pursuant to a written agreement with CBG), and RealD has agreed to provide certain discounts to CBG and its Members with respect to the Rental Fees that otherwise would be payable by such Lessees to RealD for such RealD Systems, if such objectives are in fact achieved, and all as is described further in Section 7.1.1 of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises set forth herein and for other good and adequate consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. DEFINITIONS

The following terms shall have the meanings indicated below.

1.1 "3D Deadline" is defined in the Recitals.

1.2 "3D Shows" means 3D theatrical motion pictures and other 3D content, including, without limitation, live events, non-theatrical programming and pre-show advertising containing 3D content.

1.3 "Admission Based Rental Fee" is defined in Section 7.1.2.

 

  

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1.4 "Affiliate" means a company or any other entity or person which controls, is controlled by, or is under common control with a party to this Agreement. For purposes of this definition, "control" means an equity or income interest of fifty percent (50%) or more, or the possession of the power, directly or indirectly, to direct or cause the direction of the management and policies of such party whether through the ownership of voting securities, by contract or otherwise.

1.5 "Agreement" is defined in the preamble.

1.6 "Auditorium" means an auditorium owned and/or operated by Lessee in which a RealD System is installed.

1.7 "Authorized Glasses" is defined in Section 5.3.

1.8 "CBG" is defined in the Recitals.

1.9 "Closed Auditorium" is defined in Section 12.12.

1.10 "Confidential Information" is defined in Section 10.1.

1.11 "Digital 3D" means 3D content distributed in digital format for display using a digital projector.

1.12 "Effective Date" is defined in the preamble.

1.13 "Equipment" means the onsite equipment and personal property used in connection with the RealD System provided by or on behalf of RealD, including the equipment and personal property described on Schedule A attached hereto (together with Updates and Upgrades thereto, if any, as well as replacement parts, replacements thereto and repairs incorporated therein and/or affixed thereto, individually or collectively, from time to time).

 

1.14 "Equipment Schedule" means an equipment schedule, as the same may be updated from time to time by RealD, the form of which is set forth on Schedule C attached hereto, which includes a list of the Equipment included in the RealD Systems, to be provided by RealD at the Auditoriums and Locations set forth on Schedule C.

1.15 "Event of Default" is defined in Section 11.2.

1.16 "Guidelines" is defined in Section 5.6.

1.17 "Hard Coated Glasses" is defined in Section 5.2.

1.18 ["Initial Fee" is defined in Section 7.1.1.]

1.19 "Initial Term" is defined in Section 11.1.

1.20 "Installation Date" means, with respect to each Auditorium, the date that RealD or its authorized contractor determines that the RealD System is operable and installation is complete.

 

  

-2-

  

 

1.21 "Invoice" is defined in Section 7.2.

1.22 "Lessee" is defined in the preamble.

1.23 "Location" means theater venues within the Territory (e.g., a multiplex theater) at which the Auditoriums are located and specified on the Equipment Schedule. For the avoidance of doubt, more than one Auditorium may be located at any one Location.

1.24 "Members" is defined in the Recitals.

1.25 "Paid Admission" is defined in Section 7.1.2.

1.26 "Play Week" is defined in Section 7.2.

1.27 "Purchase Order" is defined in Section 5.2.

1.28 "RealD" is defined in the preamble.

1.29 "RealD Glasses" is defined in Section 5.2.

1.30 "RealD Marks" is defined in Section 3.3.3.

1.31 "RealD System" is defined in the Recitals.

1.32 "Renewal Term" is defined in Section 11.1.

1.33 "Rental Fees" is defined in Section 7.1.2.

1.34 "Sales Taxes" is defined in Section 7.5.1.

1.35 "Show" means a 3D Show or Alternative Content Show, as applicable. "Shows" means 3D Shows and Alternative Content Shows.

 

1.36 "Software" means the software and configuration files provided by RealD in conjunction with the RealD System, whether installed or embedded in the RealD System, or made available for installation, be it in projectors, other equipment or otherwise and described on Schedule A attached hereto, including any Updates or Upgrades thereto.

1.37 "Standard Glasses" is defined in Section 5.2.

1.38 "Term" is defined in Section 11.1.

1.39 "Territory" is defined in the Recitals.

1.40 "UCC" is defined in Section 2.9.

1.41 "Update" means any addition, modification, or enhancement made to the Software and/or the Equipment, as applicable, to maintain compatibility between components of the RealD System or to maintain compatibility with external equipment required for its 

 

  

-3-

  

 

operation, or to improve existing features and operations, all as determined by RealD in its sole discretion.

 

1.42 "Upgrade" means any addition, modification, or enhancement to the Software and/or the Equipment, as applicable, that adds new features or functionality, which do not constitute solely of an Update, as determined by RealD in its sole discretion.

2. REALD SYSTEM LEASE, INSTALLATION, MAINTENANCE AND SUPPORT

2.1 Lease of RealD System. In consideration for the fees payable pursuant to Section 7, and subject to the terms and conditions provided herein (including the consideration payable pursuant to Section 7 hereof), RealD hereby leases to Lessee each RealD System installed in Lessee's Auditoriums hereunder. With the approval of RealD, Lessee may lease additional RealD Systems from RealD by adding the applicable information regarding the additional RealD Systems, Auditorium(s), and Location(s) to the Equipment Schedule and executing such updated Equipment Schedule as of the applicable Installation Date(s).

2.2 Lessee Requirements. Lessee acknowledges and agrees that it may only use screens and port glass (as such terms are customarily used in the entertainment industry) approved by RealD in connection with the RealD System. A list of approved manufacturers of port glass and screens is attached hereto as Schedule D, which schedule may be updated by RealD from time to time. Lessee shall purchase and pay all costs (including the costs of installation) of the approved port glass and screens for each Auditorium. Lessee shall notify RealD when installation of the screen and port glass is complete with respect to each Auditorium. Lessee shall also ensure that a compatible digital projector and a 3D enabled server are installed in each Auditorium for use with each RealD System leased to Lessee hereunder.

2.3 Installation. Conditioned upon Lessee having installed the screen and the port glass pursuant to Section 2.2, RealD shall install, or designate a qualified contractor to install, the RealD Systems, including the Equipment, at each Auditorium at such times as mutually agreed to by the parties. Lessee agrees to obtain all necessary permits, access rights, and utility connections necessary for the installation of the RealD System at each Auditorium. Upon completion of the installation of the RealD System at an Auditorium, RealD, or its designated contractor, shall, in coordination with and under the supervision of Lessee's technical services personnel, test the RealD System to ensure the operability of the RealD System in accordance with the applicable specifications of the RealD System to ensure that each RealD System is operable and the installation is complete.

2.4 Maintenance and Support. RealD, or its designated agent, shall during regular office hours, maintain and support each RealD System (at RealD's expense) leased to Lessee hereunder to ensure that such RealD System is fully functional and operational, unless (i) the reason for such maintenance results from Lessee's negligence or misconduct, or (ii) Lessee has modified the RealD System or its location in such a way that affects the component's functions. RealD, or its designated agent, as applicable, will charge Lessee for any maintenance on a time and materials basis at its standard hourly rates to resolve either of the aforementioned exceptions. All replacement parts used or installed and repairs made to the RealD System will

 

  

-4-

  

 

be owned by RealD and leased to Lessee under this Agreement. RealD, or its designated agent, as applicable, shall use commercially reasonable efforts to respond to Lessee's request for maintenance and support within twenty-four (24) hours of receipt of a service call from Lessee, taking into account the Location, level of urgency, and nature of the problem; provided, however, that response times may change as a result of changes in digital cinema standards.

 

2.5 Limitations on Use of RealD System. Lessee acknowledges that only 3D Shows that have been conditioned by proprietary RealD software (or other software approved by RealD) for Digital 3D display, may be exhibited using the RealD System.

2.6 Exclusive System at Locations. Lessee shall not use the RealD System or any part thereof at any Location or Auditorium that is not approved in writing by RealD. Lessee agrees that once a RealD System is installed at a Location in accordance with Section 2.3, Lessee shall exclusively use the RealD System at such Location and Lessee will not use, or acquire the right to use, any other digital cinema projection, film based projection or other similar system for the purpose of displaying any 3D Shows at such Location until the expiration of the Term of the last Auditorium in which a RealD System is installed; provided, however, that the foregoing shall not prohibit Lessee from using any 3D projection system developed for large format motion pictures (70 mm-release film prints) of "8 perf" (as that term is customarily used in the film industry) by IMAX Corporation (or its successor) or any other entity. If content is available in Digital 3D at a Location, the content shall be presented exclusively using the RealD System.

2.7 Title; Obligations of Lessee. RealD shall have sole and absolute right, title and interest to the RealD System, including the Equipment, which at all times shall remain the personal property of RealD. While the RealD System is within its possession or control, Lessee shall keep the RealD System, including the Equipment, free and clear of all liens, encumbrances and charges of any nature caused by Lessee. Upon request of RealD, Lessee shall mark the Equipment to indicate the nature of RealD's interest therein. Lessee shall not permanently affix or attach the Equipment to any real property or permanent improvement thereon. For the avoidance of doubt, the RealD System does not include the screen, the port glass or any third party digital projection system to which it may be attached. Lessee shall at all times operate the RealD System in compliance with the instructions and training (if necessary) provided by RealD, or its authorized agent, and shall use each item of Equipment (other than screens) solely in connection with the RealD System and solely for its intended purpose. Lessee shall not make any alterations, additions or improvements to the RealD System without the prior written consent of RealD (which may be withheld in its sole and absolute discretion). Any such changes or accessories shall become the property of RealD. Lessee shall not remove any labels or notices of ownership placed on the RealD System by RealD without the prior written consent of RealD, which may be withheld in its sole and absolute discretion. Lessee shall not move or otherwise relocate the RealD System without the prior written consent of RealD, which shall not be unreasonably withheld or delayed.

2.8 Right to Inspect Locations. Lessee shall permit RealD, or RealD's agents, to enter Lessee's Locations at mutually agreed times to determine Lessee's adherence to the terms and conditions of this Agreement. Such inspection shall be conducted in a manner that does not interfere with Lessee's operations. Notwithstanding the foregoing, RealD shall be permitted to exercise the foregoing inspection right not more than twice per calendar year.

 

  

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2.9 Additional Filings; Cooperation. Lessee shall execute and deliver such documents and instruments, and render such assistance, and take such other action as RealD may reasonably request, at RealD's expense, in order to apply for, register, perfect, confirm and protect RealD's rights in the RealD System. The parties acknowledge and agree: (a) that this Agreement shall be construed to be a "true" lease and license and not a "lease and license intended as security" within the meaning of Section 1-203 of the Uniform Commercial Code as in effect in the jurisdiction whose laws govern this Agreement (the "UCC"), and, therefore (b) that this Agreement is not subject to Article 9 of the UCC. Despite the express intent of the parties, in the event that this Agreement is not deemed to be a true lease and license, then solely in that event and for that limited purpose, it shall be deemed a security agreement and, in that regard, Lessee hereby grants RealD a purchase money security interest in the RealD System, and all accessories, substitutions and replacements thereto, and all interest of Lessee therein, and all proceeds (including insurance proceeds) and products thereof, to secure Lessee's prompt payment and performance as and when due of all obligations and indebtedness to RealD hereunder.

2.10 Insurance. During the term of this Agreement and at all times while a RealD System is installed at any Location, Lessee is responsible for any and all loss, damage, theft and destruction to or of such RealD System from any and every cause whatsoever, whether or not insured. Lessee shall, at its cost, keep each RealD System leased to Lessee hereunder insured against all losses, including but not limited to, fire and extended coverage, collapse, flood or earth movement, for the full replacement cost of such RealD Systems. Lessee shall also, at its sole expense, maintain and keep in force during the term of this Agreement, insurance covering the following risks: (i) General Liability for bodily injury, personal injury and property damage with at least a one million dollar ($1,000,000) per occurrence/aggregate limit (and where the policy's general aggregate (i.e., total limit) applies separately at each Location where RealD performs its services), and (ii) Workers Compensation (in accordance with statutory limits). Lessee's insurance policies shall (a) contain an express waiver of subrogation clause against any claim against RealD, and (b) name RealD as an additional insured and loss payee. Lessee will pay all premiums for such insurance and must deliver proof of insurance coverage satisfactory to RealD. If Lessee does not provide such insurance, Lessee agrees that RealD has the right, but not the obligation, to obtain such insurance and pass the cost of such insurance due on to the Lessee. All policies will be endorsed to show they are primary to any policy maintained by Lessee and not require contribution by any other similar insurance available to Lessee. Certificates of Insurance listing the required coverage and acceptable to RealD will be provided to RealD prior to commencing installation of any RealD System at a Location. Such certificates will provide that RealD will be given at least thirty (30) business days written notice prior to cancellation or any change to restrict the coverage. The insurance required and RealD's approval of Lessee's insurance will not affect Lessee's other obligations under this Agreement.

 

3. SOFTWARE AND TRADEMARKS

3.1 Software Use and Restrictions. All Software is embedded in, and forms an inseparable component part of, the RealD System. All payments made under this Agreement are pursuant to the lease of the RealD System. Lessee has the right to use the Software only in connection with its use of the RealD System. Except as otherwise expressly provided in this Agreement, RealD grants, and Lessee obtains, no other rights, title or interest, express, implied, 

 

  

-6-

  

 

or by estoppel, to the Software or any other proprietary rights of RealD. Lessee will not (i) copy, display, transfer, adapt, modify, distribute or reproduce, in any manner, and whether in tangible or intangible form, the Software or any part or component thereof; (ii) decompile, decrypt, reverse engineer, disassemble or otherwise determine, attempt to determine or reduce the Software to human-readable form; (iii) modify or create derivative works of any portion of the Software; (iv) sublease, sublicense, transfer or assign any part of the Software; or (v) modify or remove any part of the Software, or use any firmware, middleware or other software included in the Equipment or the RealD System or otherwise provided by RealD, other than solely with the RealD System, and will not permit or authorize anyone else to do any of the foregoing. To the extent Lessee owns any rights to any modification or improvement of the Software or any other part of the RealD System by operation of law or otherwise, Lessee shall assign and hereby does assign all such rights to RealD. Lessee agrees to provide all assistance reasonably requested by RealD in the establishment, preservation, and enforcement of such rights.

3.2 Updates and Upgrades. RealD shall notify Lessee of Updates and Upgrades as they are released and shall perform, or otherwise make available to Lessee, such Updates and Upgrades at such times as are mutually agreeable to the parties. RealD shall provide such Updates and Upgrades to Lessee at no additional cost for the Term. Such Updates and Upgrades shall become part of the Software or Equipment, as applicable, and the personal property of RealD.

3.3 Incidental Use of Trademarks and Names.

 

3.3.1 RealD Trademark. In connection with the lease of each RealD System hereunder and subject to Lessee's full compliance with the terms and conditions contained herein (including the consideration payable pursuant to Section 7 hereof), at no additional charge or expense to Lessee, RealD hereby grants Lessee during the Term a royalty­ free, non-sublicensable, non-assignable, revocable, non-exclusive right to use the RealD name and logo in the Territory for the sole purpose of promoting and marketing the RealD System in accordance with Section 6.

 

3.3.2 Lessee's Trademark. In connection with the lease of each RealD System hereunder, at no charge or expense to RealD, Lessee hereby grants RealD during the Term a royalty-free, non-sublicenseable, non-assignable, revocable, non-exclusive right to use the Lessee's name and logo in the Territory for the sole purpose of marketing and promoting the RealD System in accordance with Section 6.

3.3.3 Use of Trademarks. Each party agrees (i) that it will not acquire any rights, title or interest in or to any of the other party's trade names, trademarks, logos, goodwill or other form of intellectual property of the other party, and (ii) not to use the other party's trademarks, trade names, logos, goodwill or other form of intellectual property of the other party, except as provided in this Agreement or with the prior written consent of the other party. Neither party shall make use of the other's name or logo whether in connection with advertising, in promotion, in public relations, or otherwise, that has not been approved by the other party pursuant to the approval procedures and requirements set forth in Section 6. All goodwill pertaining to a party's trade names, trademarks, logos, and all rights, registrations, applications and entitlement thereto, and all extensions thereof, are and shall remain the sole and 

 

  

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exclusive property of such party. Each party agrees to comply with the other party's trademark use guidelines, which the other party may provide from time to time with respect to the use of such party's name or logo. Lessee acknowledges that the trade names, trademarks and service marks listed on Schedule B are the exclusive property of RealD (the "RealD Marks"). Lessee agrees that it will not use any trademark or service mark which is confusingly similar to the RealD Marks, will not file or register any trademark or service mark which is confusingly similar to the RealD Marks, and will not hold itself out as having acquired any proprietary right or goodwill to any of the RealD Marks by virtue of its use pursuant to this Agreement. Other than the limited right to use the RealD name and logo pursuant to Section 3.3.1, Lessee acquires no rights, title or interest in or to the RealD Marks.

 

4. OWNERSHIP AND PROPRIETARY RIGHTS

4.1 Ownership of RealD System. Notwithstanding anything to the contrary expressed or implied in this Agreement or otherwise, and regardless of whether the RealD System may become affixed or attached at the Auditorium, Location or other property, RealD retains all right, title and interest in and to the RealD System, including without limitation, all intellectual property rights associated therewith and any developments or improvements arising therefrom. Lessee shall have no right, title or interest in the RealD System, or any intellectual property or other rights associated therewith or any developments or improvements arising therefrom, other than those that are expressly granted pursuant to the terms of this Agreement.

 

4.2 Protection of Proprietary Information. Lessee agrees and acknowledges that (i) RealD has expended substantial time, money and effort developing the proprietary rights evidenced by, associated with, embodied in or related to the RealD System; (ii) Lessee will use its best efforts to preserve the proprietary information contained in the RealD System; and (iii) Lessee will assist RealD's efforts to prevent any theft, unauthorized use, or misappropriation of the RealD System, by, among other things, at all times maintaining each RealD System leased to Lessee hereunder at a locked and secured location, with access restricted to persons employed by Lessee with a need to access such RealD System or such location. Lessee agrees that it will promptly notify RealD, both verbally and in writing, of any loss, theft, unauthorized use, or misappropriation of any RealD System leased to Lessee hereunder.

4.3 Infringement Notification. Lessee shall promptly give written notice to RealD upon becoming aware of any allegation, claim or challenge that Lessee's use of the RealD System infringes on the intellectual property rights of a third party. In the event of a claim (whether asserted, threatened or in RealD's reasonable judgment likely to arise) of infringement against Lessee relating to the RealD System, RealD may, at its option (i) secure for Lessee the rights necessary to continue to use and operate the RealD System under this Agreement; (ii) assume control of the defense or settlement of such claim; or (iii) terminate this Agreement upon not less than thirty (30) days prior written notice.

      

5. RELATED PRODUCTS AND SERVICES

    

5.1 RealD Glasses. Lessee acknowledges and understands that an integral part of the RealD System are the stereoscopic glasses sold or pre-approved by RealD to be worn for viewing the 3D Shows. Lessee shall not distribute any glasses, or other stereoscopic viewing 

 

  

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materials to its patrons, other than RealD Glasses or Authorized Glasses (each as defined below), for use with the RealD System and viewing a 3D Show. If RealD Glasses or Authorized Glasses are not provided by a distributor or other third party authorized by RealD, Lessee agrees to purchase, and RealD agrees to sell, all RealD Glasses required for Lessee's patrons at the prices and on terms set forth in Section 5.2.

 

5.2 RealD Glasses Price and Payment Terms. Lessee shall have the option to purchase either (i) standard soft coated glasses at a purchase price per unit equal to U.S. $0.65 ("Standard Glasses"), or (ii) standard hard coated glasses at a purchase price per unit equal to U.S. $1.00 ("Hard Coated Glasses" and collectively, with the Standard Glasses, "RealD Glasses"). For purchases of RealD Glasses by Lessee, (a) Lessee shall place orders (each a "Purchase Order") for RealD Glasses no later than thirty (30) days prior to its required delivery date, (b) Lessee shall remit one hundred percent (100%) of the purchase price of all orders of RealD Glasses with each Purchase Order and (c) RealD shall use commercially reasonable efforts to deliver all orders of RealD Glasses in accordance with Lessee's reasonable requirements; provided that (1) Lessee has made full payment to RealD on each such Purchase Order and (2) RealD shall not be responsible for delays or failures of delivery due to circumstances not within the reasonable control of RealD. If Lessee begins to purchase RealD Glasses, Lessee shall provide RealD with quarterly rolling forecasts of its anticipated needs for the following six (6) month period.

 

5.3 For purposes of this Section 5, "Authorized Glasses" shall mean soft-coat glasses or hard-coat glasses which are (i) manufactured by third party licensees under an express written license from RealD and in compliance with its technical specifications, and (ii) distributed independently by such authorized third party licensees or their own distributors. Lessee shall be permitted to purchase Authorized Glasses from such third party licensees or their distributors on such terms as may be independently negotiated by Lessee.

 

5.4 Delivery. RealD shall ship all RealD Glasses FOB destination using RealD's designated carrier. [NOTE: ANY CHANGES TO THIS SECTION MUST BE APPROVED BY CURTIS DOMBEK.]

    

5.5 Returns. Lessee may return any RealD Glasses that are defective in material or workmanship within ten (10) days of delivery. Any RealD Glasses not rejected within such time period will be deemed accepted. RealD will use commercially reasonable efforts to replace defective RealD Glasses within ten (10) days of return. Lessee may return full unopened cases of surplus non-customized RealD Glasses (each in their original unopened packaging) to RealD (at Lessee's cost), in return for a credit in the amount paid by Lessee for such RealD Glasses, provided that such return is made within thirty (30) days of delivery.

 

5.6 Lessee's Obligations. Lessee acknowledges and understands that each pair of Standard Glasses shall be distributed to patrons for only one exhibition of a 3D Show and will not redistribute or reuse such Standard Glasses at any time after their first use, unless otherwise permitted by applicable health and safety codes. In the event that Lessee determines to purchase Hard Coated Glasses, RealD shall provide Lessee with guidelines for the care of such Hard Coated Glasses ("Guidelines"), and Lessee shall comply with such Guidelines in all material respects, including the Guidelines included therein relating to the washing and care of 

   

  

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such Hard Coated Glasses. Lessee further acknowledges and agrees that all pairs of RealD Glasses and Authorized Glasses shall be used and maintained pursuant to applicable health and safety codes and industry practices.

 

6. MARKETING

6.1 Marketing Efforts. Lessee and RealD shall cooperate in the marketing of 3D Shows, and each party agrees to use commercially reasonable efforts to market and promote the 3D Shows and the RealD System. Without limiting the foregoing, Lessee agrees to: (a) display a twenty second bumper provided by RealD and featuring the RealD logo prior to each performance of a 3D Show (which bumper shall not make reference to any third party sponsor), and display the RealD logo and slogan provided by RealD on Lessee's website; (b) include the RealD name and logo provided by RealD in all advertising in newspapers, television, via Internet, in publications and magazines, and other advertising media, if any, paid for or otherwise arranged by Lessee in connection with 3D Shows; (c) place interior signage, standees and other customary in-theater advertising provided by RealD, or created by Lessee with RealD's prior written approval, at the Locations during the run of a 3D Show; provided, that such in-theater advertising shall not feature any trademark, service mark, logo or other branding of a party other than those of Lessee, RealD or the film studios, distributors or production companies responsible for the production or promotion of the 3D Show (i.e. no third party branding) unless otherwise agreed to by RealD and Lessee; and (d) include the RealD logo in any reference to 3D at a Location. In connection with the foregoing, Lessee shall only use marketing materials provided by RealD in accordance with guidelines reasonably established by RealD, and Lessee shall use its reasonable efforts to abide by all brand guidelines provided to Lessee by RealD.

6.2 Press Launch. RealD may engage in a press launch for the opening of the RealD System at each Location, and Lessee agrees to cooperate with RealD, in connection with such press launch, including making each Location available for press conferences and related events at mutually agreed times. Lessee agrees to issue a joint press release with RealD, in form and substance reasonably determined by RealD, in connection with each significant event related to the transactions contemplated by this Agreement.

6.3 Ongoing Promotion and Marketing. Each party may promote its relationship with the other party in advertising, promotional and marketing materials approved by the other party, including without limitation the inclusion of the other party's name and logo in a list of a party's partners or associates; provided, however, that any use of such other party's logos or name in any materials shall require the other party's prior written consent, which consent shall be granted or withheld at such other party's sole discretion. Lessee and RealD shall endeavor to mutually agree on the marketing and promotional efforts for the 3D Shows and the RealD System.

 

7. FINANCIAL TERMS

7.1 Rental Fees.

7.1.1 Initial Fee. RealD initially shall waive the requirement that Lessee pay to RealD a non-refundable, up-front initial fee of U.S. $10,000 (each an "Initial Fee" and

 

  

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 collectively, the "Initial Fees") for each Auditorium in which a RealD System is installed pursuant to the terms and provisions of this Agreement. Notwithstanding the foregoing, in the event that Lessee and the other Members have failed, collectively, to install at least one hundred (100) RealD Systems, in the aggregate, at one or more Locations, and pursuant to the terms of this Agreement and the other agreements entered into by and between RealD and the other Members, by the 3D Deadline, then Lessee shall pay to RealD (a) on or before thirty (30) days after the 3D Deadline, a non-refundable Initial Fee of US $10,000, for each of its Auditoriums in which a RealD System has been installed as of the 3D Deadline, and (b) a non-refundable Initial Fee of U.S. $10,000, payable to RealD on the applicable Installation Date, for each of its Auditoriums in which a RealD System is installed on or after the 3D Deadline (each of which Auditoriums will then be listed on the Equipment Schedule). However, in the event that Lessee and the other Members have, collectively, installed at least one hundred (100) RealD Systems, in the aggregate, on the terms specified in the second sentence of this Section 7.1.1, then (a) Lessee shall be entitled to install additional RealD Systems, at one or more of its Locations, and at any time on or before twelve (12) months after the 3D Deadline, without being required to pay to RealD an Initial Fee with respect to any such RealD System, and (b) for each additional Auditorium in which a RealD System is installed, at any time following twelve (12) months after the 3D Deadline, Lessee shall pay to RealD a non-refundable Initial Fee of U.S. $10,000, payable to RealD upon the applicable Installation Date, for each such RealD System. For purposes of determining whether the Members have, collectively, installed at least one hundred (100) RealD Systems, in the aggregate, on the terms specified in the second sentence of this Section 7.1.1, only RealD Systems that have been installed pursuant to the terms and provisions of an Agreement in (x) the form attached as Exhibit A to this Agreement or (y) a form substantially similar to this Agreement shall be counted for purposes of such determination.

 

7.1.2 Admissions Based Rental Fees. For each paid admission to a 3D Show at each Auditorium (including, without limitation, discount tickets and admissions purchased with gift certificates) ("Paid Admissions"), Lessee shall pay an admission based rental fee (each an "Admission Based Rental Fee", collectively the "Admission Based Rental Fees" and together with the Initial Fees, the "Rental Fees") to RealD in an amount equal to four percent (4%) of the gross ticket price of such Paid Admission; provided, that in each case, such Admission Based Rental Fee shall not be less than U.S. $0.50 nor more than U.S. $0.75 per Paid Admission.

7.2 Reports and Payments. Within fourteen (14) days of the end of each one week period ending at 11:59 p.m. on Thursday (in the local time zone of the state in which Lessee resides) ("Play Week"), Lessee shall provide RealD with a box office report (based on information from Lessee's tracking system) showing for each Location, (a)the gross ticket price of each Paid Admission to each 3D Show at each Auditorium and the number of Paid Admissions at each gross ticket price and (b) the calculation of Admission Based Rental Fees due to RealD for the immediately preceding Play Week. Within seven (7) calendar days from receipt of such report, RealD or its designated agent shall issue to Lessee a written invoice for the Admission Based Rental Fees due for such Play Week ("Invoice"). Lessee shall pay to RealD or its designated agent in full all Admission Based Rental Fees due under each such Invoice within seven (7) calendar days following the receipt by Lessee of each such Invoice.

 

  

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7.3 Audit Rights. Lessee shall maintain for two (2) years after the expiration of each calendar year during the Term and for two (2) years after termination of this Agreement, complete and accurate records of all reports and supporting documentation and records which may give rise to a payment obligation under this Agreement. RealD, together with its designated agents and representatives, shall have the right to inspect, upon prior written notice to Lessee and during normal business hours, the records of Lessee upon which Lessee's Paid Admissions and Rental Fees calculations are based. Such inspection shall be conducted in a manner that does not interfere with Lessee's operations. Notwithstanding the foregoing, RealD shall be permitted to exercise the foregoing inspection right not more than one time per calendar year.

7.4 Underreporting of Admission Based Rental Fees. To the extent any audit reveals an error in excess of five percent (5%) in Rental Fees due to be paid to RealD, Lessee shall immediately pay the amount owed, plus six percent (6%) interest per annum on such amount from the due date of the report subject to audit to the date of payment and shall reimburse RealD for the cost of such audit.

7.5 Sales Taxes.

7.5.1 Lessee shall be responsible for any sales, use or similar taxes that may be imposed on the RealD Glasses and the Rental Fees. ("Sales Taxes")

7.5.2 Unless otherwise required by applicable law, Lessee shall be responsible for directly remitting any Sales Taxes described in Section 7.5.1 to the appropriate taxing authority, and shall make all appropriate filings with respect thereto and shall provide to RealD proof of such payment and copies of such filings.

7.5.3 In the event that RealD is required under applicable law to remit any Sales Taxes described in Section 7.5.1, Lessee shall pay to RealD the full amount of such Sales Taxes at such time as Lessee pays the associated Admission Based Rental Fees [and Initial Fees], as applicable. RealD shall be responsible for remitting such Sales Taxes to the appropriate taxing authority, and shall make all appropriate filings with respect thereto and shall provide to Lessee proof of such payment and copies of such filings.

7.5.4 RealD and Lessee shall reasonably cooperate with each other to mitigate, reduce or eliminate any Sales Taxes, including by using commercially reasonable efforts to obtain any certificate or other document from any governmental authority or any other person as may be necessary to mitigate, reduce or eliminate any such Sales Taxes.

7.6 Late Fee. In the event that any payment required under this Agreement is not paid within ten (10) days after the date when such payment is due, RealD may add, each month until such payment is made, a late charge equal to the lesser of (i) one and one-half percent (1.5%) of the payment then due or (ii) the maximum amount permitted by law, and Lessee shall pay such late fee concurrently with the overdue payment.

 

8. REPRESENTATIONS AND WARRANTIES

 

  

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8.1 Representations. Each party represents and warrants to the other party that: (i) such party is duly organized and validly existing under the laws of the jurisdiction of its incorporation or formation and has full power and authority to enter into this Agreement and to carry out the provisions hereof; (ii) this Agreement is a legal and valid obligation of such party, binding upon such party and enforceable against such party in accordance with the terms of this Agreement; (iii) it has the right to enter into this Agreement and grant the rights granted herein; and (iv) entering into and performance of this Agreement by such party does not violate, conflict with, or result in a material default under applicable law or any contract or agreement to which such party is a party, or by which it is bound. RealD further represents and warrants that (a) subject to Section 12.4, RealD has obtained all licenses and consents required to provide Lessee with the right to use the RealD System; and (b) to its knowledge, the RealD System does not infringe on the intellectual property rights of any third party in the Territory.

8.2 DISCLAIMER OF ADDITIONAL REPRESENTATIONS AND WARRANTIES. EXCEPT AS SPECIFICALLY SET FORTH HEREIN, REALD MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE REALD SYSTEM, AND DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY REPRESENTATIONS AND WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

9. LIMITATIONS OF LIABILITY

9.1 NO CONSEQUENTIAL DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE TO PERSONS OR PROPERTY RESULTING FROM A BREACH OF THIS AGREEMENT, OR FOR LOSS OF USE OF THE REALD SYSTEM OR ANY PART THEREOF OR FOR ANY INTERRUPTION IN BUSINESS CAUSED BY LOSS OF USE OF THE REALD SYSTEM OR ANY PART THEREOF FOR ANY REASON WHATSOEVER.

 

9.2 LIABILITY CAP. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, IN NO EVENT SHALL REALD'S LIABILITY FOR ANY CLAIM ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT (WHEN AGGREGATED WITH REALD'S LIABILITY FOR ALL OTHER CLAIMS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT) EXCEED THE TOTAL AMOUNT RECEIVED BY REALD UNDER THIS AGREEMENT DURING THE 6-MONTH PERIOD PRIOR TO THE DATE THE LIABILITY FIRST AROSE.

9.3 Exceptions from Exclusions and Limitations. Nothing in this Agreement shall exclude or limit either party's liability for: (i) breaches of Section 10 (Confidentiality); or (ii) Lessee's breach of the terms of any right granted hereunder or applicable restriction.

 

10. CONFIDENTIALITY

 

  

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10.1 Confidential Information. By virtue of this Agreement, each party may have access to certain confidential information of the other party ("Confidential Information"). In particular, each party acknowledges, understands and agrees that the terms and provisions of this Agreement, shall constitute Confidential Information for all purposes of this Section 10.1 and of all other terms and provisions of this Agreement, provided that RealD may disclose certain terms of this Agreement that may be required pursuant to any agreements with third parties. Each party agrees to hold the other party's Confidential Information in strict confidence, using the same degree of care it uses with its own confidential information of a similar type (but in no event using less than a reasonable degree of care) and not to publish, disclose or otherwise make available, directly or indirectly, the other party's Confidential Information or any part thereof to any third party, or use the other party's Confidential Information for any purpose other than in accordance with this Agreement, except as required by law or the rules of any stock exchange, or in connection with any litigation, mediation or arbitration between the parties, without the other party's prior written consent. Each party shall disclose Confidential Information on a "need-to-know" basis to employees, officers, directors, agents, legal and financial advisors, actual and prospective sources of financing and acquirers who have signed a non-disclosure agreement or are otherwise subject to confidentiality obligations that protect the disclosing party's Confidential Information, provided such non-disclosure agreement or confidentiality obligations are no less stringent than the terms set forth in this Section 10. Each party shall take all reasonable steps to ensure that the other party's Confidential Information is not disclosed or distributed by the receiving party's agents or employees in violation of the provisions of this Agreement and shall be liable for any such violation. Confidential Information does not include any information that: (i) was in a party's possession or known to such party, without an obligation to keep it confidential; (ii) is or becomes public knowledge other than by disclosure by a party in violation of this Section 10.1; or (iii) is or becomes lawfully available to a party from a source other than the other party, which to such party 's knowledge was not bound by any duty or obligation of confidentiality.

 

10.2 Exceptions. Either party may disclose Confidential Information of the other party to the extent required by law, regulatory body, national securities exchange, or order of a court of competent jurisdiction, provided that, in such event, the party desiring to disclose Confidential Information shall provide the other party prompt, advance notice of such requirement to allow intervention (and shall cooperate with such party) to contest or minimize the scope of the disclosure (including through application for a protective order).

10.3 Return of Confidential Information. Upon any expiration or termination of this Agreement or upon the request of a party, the other party shall return or destroy, at the disclosing party's option, all Confidential Information of the disclosing party and any copies thereof, including electronic or otherwise non-returnable embodiments of the Confidential Information.

11. TERM AND TERMINATION

11.1 Term. This Agreement shall commence and become effective on the Effective Date and continue until the latest termination date set forth on the Equipment Schedule, unless terminated earlier as provided under this Agreement. The initial term as to a specific Auditorium shall be ten (10) years from the Installation Date for that Auditorium (the "Initial 

 

  

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Term") and shall automatically renew for successive ten (10) year terms ("Renewal Term(s)"), unless a party provides written notice to the other party of non-renewal at least sixty (60) days prior to the expiration of the Initial Term or, thereafter, sixty (60) days prior to the expiration of the then current Renewal Term as to such Auditorium. The Initial Term and any Renewal Term(s) shall be collectively referred to as the "Term".

 

11.2 Events of Default. The occurrence of any of the following events shall constitute an "Event of Default" hereunder:

11.2.1 if any party fails to make any payment due hereunder, within ten (10) days of written notice of failure to make such payment;

11.2.2 a material breach by the other party of any representation or warranty or any of its obligations hereunder, other than a breach of a party's payment obligations which is governed by Section 11.2.1, upon thirty (30) days' prior written notice to the breaching party if such breaching party fails to remedy such breach within such thirty (30) days;

11.2.3 the making of an assignment by a party for the benefit of its creditors or the admission by a party in writing of its inability to pay its debts as they become due, or the filing by a party of a voluntary petition in bankruptcy, or the adjudication of a party as bankrupt or insolvent, or the filing by a party of any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, or the filing of any answer by a party admitting, or the failure by a party to deny, the material allegations of a petition filed against it for any such relief, or the seeking or consenting by a party to, or acquiescence by a party in, the appointment of any trustee, receiver or liquidator of either party or of all or any substantial part of the properties or assets of a party; and

11.2.4 within ninety (90) days after the commencement of any proceedings against a party seeking reorganization, arrangement, composition, readjustment, liquidation or similar relief under the federal bankruptcy laws or any similar federal or state statute, law or regulation, such proceedings shall not have been dismissed, or if within ninety (90) days after the appointment without a party's consent or acquiescence of any trustee, custodian, receiver or liquidator for the RealD Systems, such party or any substantial part of a party's assets or properties, such appointment shall not have been vacated.

11.3 Remedies. Upon the occurrence and during the continuation of any Event of Default, the non-defaulting party may, at its option, declare this Agreement to be in default, and may exercise any remedy available to it, at law or in equity, including the remedies below, as such non-defaulting party in its sole and absolute discretion may elect, it being the intention of both parties that all of such remedies are cumulative and will not limit any other rights or remedies a non-defaulting party may have hereunder, at law or in equity:

11.3.1 undertake proceedings, at law or in equity, to recover any and all damages and expenses, including reasonable attorneys' fees and costs, which the non-breaching party will have sustained by reason of such Event of Default or on account of such party 's enforcement of its remedies hereunder; or

 

  

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11.3.2 terminate this Agreement in its entirety or only with respect to one or more Locations (in which event, if RealD is the party exercising this remedy, it may retake possession of the RealD Systems affected thereby as provided in Section 11.5).

11.4 Effect of Termination. Termination of this Agreement in its entirety or with respect to any Location listed on the Equipment Schedule will not limit either party from pursuing other remedies available to it, including injunctive relief, nor will such termination relieve Lessee's obligation to pay all fees that have accrued or are otherwise owed by Lessee under this Agreement. Sections 1, 2.7, 2.9, 3.1, 3.3.3, 4, 7, 8, 9, 10, this Section 11.4, and Sections 11.5 and 12 and Schedule E will survive termination of this Agreement or any portion of the Equipment Schedule. Upon any termination arising out of Lessee's breach of its payment obligations, RealD will have all the rights of a secured creditor, including, without limitation, the right to repossess the applicable RealD Systems, wherever found, and the right to enter the premises where the applicable RealD System is located and disconnect, render unusable and remove it pursuant to Section 11.5. If this Agreement is terminated with respect to one or more Locations pursuant to Section 11.3.2, then this Agreement shall continue in full force and effect with respect to all other Locations.

11.5 Surrender. Upon the expiration of the Initial Term or a Renewal Term with respect to an Auditorium or earlier termination of this Agreement or termination of this Agreement with respect to a particular Location pursuant to Section 11.3.2, Lessee shall relinquish possession and control of all applicable RealD System(s), including the Equipment and shall have no further right to use such RealD System(s). Upon the expiration of the Initial Term or a Renewal Term with respect to an Auditorium or earlier termination of this Agreement or termination of this Agreement with respect to a particular Location pursuant to Section 11.3.2, RealD shall have the right to retake possession of any or all of the RealD Systems (or any or all RealD Systems at the applicable Location(s) in the event this Agreement is terminated with respect to one or more Locations pursuant to Section 11.3.2), and for such purpose RealD shall have the right to enter upon any premises where any or all of the RealD Systems are located at mutually agreed upon times by RealD and Lessee and remove the same. Any expenses incurred by RealD in removing the RealD Systems shall be paid by RealD unless this Agreement is terminated because of Lessee's breach, in which case any expenses incurred by RealD in removing the RealD Systems shall be paid by Lessee. All removal of RealD Systems will be performed in accordance with the following:

11.5.1 Upon expiration or earlier termination with respect to a single Auditorium and /or Location only, if RealD fails to remove the RealD System within thirty (30) business days of the expiration or earlier termination of the applicable Auditorium and/or Location listed on the Equipment Schedule, Lessee may remove and store such RealD System;

11.5.2 Upon expiration or earlier termination with respect to multiple Auditoriums and/or Locations or the entire Agreement, if RealD fails to remove the RealD System within sixty (60) business days of the expiration or earlier termination of (a) the applicable Auditorium and/or Location listed on the Equipment Schedule, or (b) this Agreement, as applicable, Lessee may remove and store such RealD System.

 

  

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11.5.3 If RealD fails to reclaim such RealD System within one hundred and eighty (180) business days of expiration or earlier termination of (a) any Auditorium and/or Location listed on the Equipment Schedule or (b) this Agreement, as applicable, Lessee may, upon ten (1 0) business days written notice to RealD, to provide RealD with one last opportunity to remove such RealD System, destroy such RealD System without any further liability or obligation to RealD. This provision shall survive the expiration or earlier termination of this Agreement or the applicable portion of the Equipment Schedule.

12. GENERAL

 

12.1 Assignment. Neither party may assign or transfer its rights or obligations under this Agreement without the other party's prior written consent, which consent shall not be unreasonably withheld; provided, however, that RealD may assign all of its right, title and interest under this Agreement to any (i) person or entity with which RealD is merged or consolidated, or (ii) person or entity that acquires all or substantially all of RealD's assets or equity securities of whatever type. RealD shall give Lessee written notice of any assignment permitted under this Section 12.1. This Agreement shall bind, inure to the benefit of and be enforceable by the successors and permitted assigns hereto.

 

12.2 Relationship of Parties. The parties to this Agreement are independent contractors, and this Agreement shall not establish any relationship of partnership, joint venture, employment, franchise, or agency between the parties. This Agreement does not give either party the power to bind the other or incur obligations on the other's behalf without the other party's prior written consent.

12.3 Counterparts; Facsimile Signatures. This Agreement and any amendment hereto may be executed in counterparts, and by using facsimile and electronic signature pages, each of which when executed and delivered shall be deemed an original and all of which taken together shall constitute one and the same instrument.

12.4 Compliance with Laws. Lessee shall, at its own expense, procure all necessary approvals, licenses, permits, permissions, waivers, certificates and consents that may be required from any governmental authorities (and any lessees, landlords or other third parties) for the installation and use of the RealD System at the Locations in accordance with the terms of this Agreement.

 

12.5 Injunctive Relief. It is understood and agreed that, notwithstanding any other provision of this Agreement, any breach of Section 2.7, 3.1, 3.3.3, 4, or Section 10 by either party may cause irreparable damage for which recovery of money damages may be inadequate, and that the non-breaching party will therefore be entitled to seek timely injunctive relief from a court of competent jurisdiction to protect such party's rights under this Agreement in addition to any and all remedies available at law.

12.6 Applicable Law; Venue. This Agreement and all disputes arising between the parties will be governed by and construed in accordance with the internal laws of the State of California, excluding that body of law pertaining to conflict of laws. The parties expressly agree that the United Nations Convention on Contracts for the International Sale of Goods or the 

 

  

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Uniform Computer Information Transactions Act shall not apply to this Agreement. Any action or proceeding arising out of or relating to this Agreement shall be brought in the state or federal courts located within Los Angeles County, California, and the parties irrevocably agree to the jurisdiction and venue of such courts for such purposes.

 

12.7 Notices. All notices, consents, waivers, and other communications intended to have legal effect under this Agreement must be in writing, must be delivered to the other party at the address set forth below by personal delivery, by registered or certified mail (postage pre-paid), by an internationally recognized overnight courier, and will be effective upon receipt (or when delivery is refused). Each party may change its address for receipt of notices by giving notice of the new address to the other party.

	 	
RealD:

	
RealD Inc.

100 N. Crescent Dr., Suite 120

Beverly Hills, CA 90210

Attn: Joseph Peixoto, President, Worldwide Cinema

(310) 385-4029 (phone) 

(310) 385-4001 (fax) 

jpeixoto@reald.com

 

with a copy to: 

 

RealD Inc.

100 N. Crescent Dr., Suite 120

Beverly Hills, CA 90210

Attn: Craig Gatarz, EVP and General Counsel

(310) 385-4066 (phone) 

(310) 385-4001 (fax) 

cgatarz@reald.com

	 	
Lessee:

	
Digital Cinema Destination Corporation

250 East Broad Street

Westfield, NJ 07090

Attn: Jeff Butkovsky

908-396-1360 

jbutkovsky@digiplexdest.com

 

12.8 Severability. If any provision of this Agreement is unenforceable or invalid under any applicable law or is so held by applicable court decision, such unenforceability or invalidity will not render this Agreement unenforceable or invalid as a whole, and such provision will be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or applicable court decisions.

12.9 Jointly Drafted; Review by Counsel. The parties have participated jointly in the negotiation and drafting of this Agreement and have had the opportunity to review this Agreement with counsel of their choosing. In the event an ambiguity or question of intent or 

 

  

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interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

12.10 Entire Agreement; Waiver. This Agreement, together with the Schedules and Equipment Schedule hereto, all of which are hereby incorporated by reference, constitutes the entire agreement of the parties regarding its subject matter. It supersedes all prior or contemporaneous understandings, agreements, or other communications between the parties, oral or written, regarding such subject matter. Neither this Agreement nor the Schedules can be altered, amended or modified except in writing executed by both parties. The failure of a party to enforce any provision of this Agreement shall not be construed to be a waiver of the right of such party to thereafter enforce that provision or any other provision or right. Any waiver of any provision of this Agreement must be in writing and executed by the party waiving such provision. If there is a conflict between the provisions of any Schedule, including the Equipment Schedule, and the provisions of this Agreement, the provisions in this Agreement shall control.

12.11 Headings. The captions to the several Sections of this Agreement are not a part of this Agreement, but are included merely for convenience of reference only and shall not affect its meaning or interpretation.

12.12 Auditorium Closures or Changes. Notwithstanding Section 12.1 above, if at any time during the term of this Agreement, Lessee discontinues operations at any Auditorium where the RealD System is installed (each such Auditorium, a "Closed Auditorium") or elects to move the RealD System from a Closed Auditorium to another auditorium owned and/or operated by Lessee in the Territory, Lessee shall have the option, upon RealD's prior written approval, which such approval shall not be unreasonably withheld, to utilize the RealD System located at the Closed Auditorium in any other auditorium owned and/or operated by Lessee or its Affiliates in the Territory. If Lessee elects to move the RealD System in accordance with the above, Lessee and RealD shall execute an amended Equipment Schedule reflecting the remaining balance of the Term for the Auditorium in which such RealD System was originally installed in accordance with the terms of this Agreement. Lessee shall pay all costs for the installation of the RealD System at the new auditorium pursuant to this Section 12.12. If Lessee does not elect to move the RealD System in accordance with the above, or if RealD rejects Lessee's request to move the RealD System in its reasonable discretion, Lessee shall promptly return the RealD System to RealD. If Lessee returns a RealD System from a Closed Auditorium, Lessee and RealD shall execute an amended Equipment Schedule removing the Closed Auditorium from the Equipment Schedule. For the avoidance of doubt, if Lessee returns a RealD System from a Closed Auditorium pursuant to this Section 12.12, (a) this Agreement shall continue in full force and effect with respect to all other Auditoriums in a Location and (b) if Lessee later installs a RealD System in such Closed Auditorium, Lessee shall again pay RealD the applicable Initial Fees and Admission Based Rental Fees owed to RealD under Section 7 above.

12.13 Location Sales. Notwithstanding Section 12.1 above, if during the term of this Agreement, Lessee or its Affiliates sell, transfer, convey or assign to a third party their respective interest in any Location, Lessee or its Affiliates may transfer each RealD System installed at such Location in such transaction so long as such acquirer or transferee, which acquirer or transferee is approved in writing by RealD (such approval not to be unreasonably 

 

  

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withheld), executes and delivers to RealD an agreement in substantially the same form as this Agreement for the remaining Term of the applicable Auditorium(s). Upon such transfer, Lessee shall have no further obligation after the date of such transfer under this Agreement or the Equipment Schedule for such Location, but shall retain all liability for performance of its obligations under this Agreement prior to such transfer.

 

12.14 References to Time. Any reference in this Agreement to a "day" or number of "days" (without the explicit qualification of "business day") shall be interpreted as a reference to a calendar day or number of calendar days. Any and all references to "business day" shall be interpreted as a reference to any day other than a Saturday or Sunday or any day on which the Federal Reserve Bank of New York is closed.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their authorized representatives as of the Effective Date.

 

	
REALD INC. 

	 	
Digital Cinema Destination Corporation

	 	 	 	 	 
	By: 	/s/ CRAIG GATARZ 	 	By:	/s/ A. DALE MAYO 
	 	 	 	 	 
	Name:	CRAIG GATARZ	 	Name:	A. DALE MAYO
	 	 	 	 	 
	Title:	E.V.P. & GENERAL COUNSEL	 	Title:	CEO
	 	 	 	 	 
	Date:	3/25/11	 	Date:	3/22/11

 

-Signature Page to Leasing Agreement-

 

  

  

  

 

Schedule A

 

RealD System

EQUIPMENT

	 	
A.

	
RealD Cinema System, where applicable

A.1 RealD Cinema System Zscreen

A.2 RealD Cinema system Zscreen control module

A.3 RealD Cinema System Z-Screen Mounting Hardware

	 	
B.

	
RealD Cinema System XL, where applicable

B.1 XL Mounting Kit, where applicable

	 	
C.

	
RealD Cinema System XLW, where applicable

C.1 RealD XL W mounting kit, where applicable

	 	
D.

	
RealD XLS Stereoscopic Projector Lens for Sony 4K Projector, where applicable

SOFTWARE

System Software: The RealD Cinema System Control Module contains embedded software, which is an integral part of the RealD System and is proprietary to RealD.

Image Enhancement Software: The RealD System may include software located in either the digital cinema player server, or in the digital projector, which enhances the viewing of stereoscopic images. This software is proprietary to RealD and, if present, is included as an integral component of the RealD System.

The RealD authorized installers will install configuration files in the projector which are necessary for the 30 projector formats.

GLASSES

The RealD System requires circular polarized glasses, manufactured exclusively for, and distributed by RealD, which glasses will be purchased separately by Lessee from RealD or a third party distributor of Authorized Glasses, as set forth in this Agreement.

 

-Schedule A-

 

  

  

  

 

Schedule B

 

MARKS

 

REAL D (US) - Registration No. 3410242

 

 -- U.S. Application No. 77/776,061

3D SO BELIEVABLE IT'S UNBELIEVABLE-Registration No. 3655937

 

 

"REAL D® and any company logos are the trademarks of RealD and are protected by registration in multiple countries. All rights reserved."

REAL D Copyright Notice:

"Copyright © 2011 [or relevant year], RealD Inc. All rights reserved."

 

-Schedule B-

 

  

  

  

 

Schedule C

FORM OF EQUIPMENT SCHEDULE

 

Equipment Schedule dated as of March 23, 2011 to the RealD System Leasing Agreement, between RealD Inc. and Digital Cinema

Destination Corporation dated as of March 23, 2011 (the "Agreement")

	
Location

(name and address)

	
Aud.#

	
Equipment

Installed

	
Serial

Number

	
Installation

Date

	
Initial

Term

End Date

	
Renewal

Term

End Date

	
Termination

Date

	
Rialto Theatre of Westfield

250 East Broad Street

Westfield. NJ 07090

	
2

	 	 	 	 	 	 
	
Rialto Theatre of Westfield

250 East Broad Street

Westfield, NJ 07090

	
4

	 	 	 	 	 	 
	
Rialto Theatre of Westfield

250 East Broad Street

Westfield. NJ 07090

	
5

	 	 	 	 	 	 
	
Rialto Theatre of Westfield

250 East Broad Street

Westfield. NJ 07090

	
6

	 	 	 	 	 	 
	
Cranford 8

25 North Avenue

Cranford, NJ 07016

	
1

	 	 	 	 	 	 
	
Cranford 8

25 North Avenue

Cranford. NJ 07016

	
5

	 	 	 	 	 	 
	
Bloomfield 8

863 Park Avenue

Bloomfield. CT 06002

	
3

	 	 	 	 	 	 
	
Bloomfield 8

863 Park Avenue

Bloomfield, CT 06002

	
4

	 	 	 	 	 	 

 

-Schedule C-

 

  

  

  

 

 

	
Bloomfield 8

863 Park Avenue

Bloomfield. CT 06002

	5	 	 	 	 	 	 
	
Bloomfield 8

863 Park Avenue

Bloomfield, CT 06002

	6	 	 	 	 	 	 
	
Bloomfield 8

863 Park Avenue

Bloomfield. CT 06002

	7	 	 	 	 	 	 

 

This Equipment Schedule is executed pursuant to the Agreement. All of the terms and conditions of the Agreement are incorporated herein by reference and made a part hereof as if such terms and conditions were set forth in full in this Equipment Schedule. This Equipment Schedule replaces any previous Equipment Schedule executed by the parties. The parties may add additional Equipment, Auditorium(s), and Location(s) to this Equipment Schedule by adding the applicable information hereto and executing such updated Equipment Schedule as of the applicable Installation Date(s). By executing this Equipment Schedule, Lessee and RealD hereby reaffirm all of the terms, conditions, representations and warranties of the Agreement except as supplemented hereby.

	
REALD INC. 

	 	
Digital Cinema Destination Corporation

	 	 	 	 	 
	By: 	/s/ CRAIG GATARZ 	 	By:	/s/ A. DALE MAYO 
	 	 	 	 	 
	Name:	CRAIG GATARZ	 	Name:	A. DALE MAYO
	 	 	 	 	 
	Title:	E.V.P. & GENERAL COUNSEL	 	Title:	CEO
	 	 	 	 	 
	Date:	3/25/11	 	Date:	3/22/11

 

 

  

  

  

 

Schedule D

 

APPROVED MANUFACTURERS 

 

(Screens)

 

Silver Screens Qualified for RealD Cinema Systems

The following screens have been qualified by RealD for use with the RealD Cinema System. This qualification means that RealD has inspected samples and found them to have adequate cosmetic properties and adequate optical performance characteristics to give high quality 3D as well as 2D images in normal cinema use. RealD has not investigated any other features or parameters of these screens. Exhibitors should make sure that these screens meet all of their specific purchasing requirements. Qualified Projection Screens and sales contact information:

Etoniq Screen- SS2400

Sonic Equipment Company (North American Distributor)

900 West Miller Rd, Iola, KS 66749

Sarah Noah, Sales Manager Ph: (800) 365-5701, x101 Email: sarah@sonicequipment.com

MGS Group P/L (Australian Distributor)

8 Ballarat St., Yarraville, VIC

Contact Jennifer: Ph: 03 9362 0597 jennifer@mgsgroup.com

GDC Technology Pte Limited (South East Asia Distributor)

6 Changi South Street 2, Fedex Building, Level 7, Singapore 486349

Dr Liu Qiang Tel: +65 6222 1082 Fax: +65 6222 1089

GDC Technology Limited (Distributor for other Asia Pacific countries)

Unit 1-7, 20th Floor, Kodak House II, 39 Healthy Street East, North Point, Hong Kong

Ms Connie Wong Tel: +852 2523 6851 Fax: +852 2579 1131

Harkness Hall- Spectral 240

Harkness Hall, North America

10 Harkness Blvd, Fredericksburg, VA 22401

Dennis Pacelli, Sales Director Ph: 540-370-1590 or 877-375-8958 Email: dpacelli@harkness­

screens.com

Harkness Hall Screens UK

Unit A Norton Road, Stevenage Herts, UK SG1 2BB

Tony Dilley, Sales Manager Ph: 44-1438-725-200 Email: tdilley@harkness-screens.com

Severtson Corporation - SeVision 3D GX

303 S. Alma School Rd, Mesa, AZ 85210

Kirk Severtson, Sales Team Mgr Ph: (480) 610-5155 Email: sales@severtsonscreens.com

Stewart Filmscreen- Silver 3D

1161 W Sepulveda Blvd, Torrance, CA 90502

Hideki Okamoto, Sales Manager Ph: (800) 762-4999 or (310) 784-5300 x120 Email:

hideki@stewartfilm.com

Strong / MDI- Stereoview 3D

1440, Raoul-Charrette, Joliette, PQ, J6E 8S7, Canada

Francois Barrette, General Manager Ph: (450) 755-3795 Email: francois.barrette@strong­-

mdicinema.com

Screen Setsubi, Inc

Tokyo Office (Okaichi Building #101), 6-51-3, Higashi-Nippon, Arakawa-ku, Tokyo 116-0014 Japan

Mr. Kazuo Ushida Ph: 81 (0) 3-5810-7653 Email: 3D@screensetsubi.com

 

-Schedule D-

 

  

  

  

Exhibit A

Form Agreement

-Exhibit A-

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