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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/28/2014
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Section 4.16 3D Services.

(a) Access to Projection Systems for 3D Advertising Services. Subject to the terms and conditions of this Agreement, including, without limitation this Section 4.16, if and to the extent that Cinemark has the capability to exhibit full-length motion pictures using a Projection System in 3D in one or more auditoriums in any Digitized Theatre, LLC shall have the right to exhibit 3D Advertising Services using such Projection System in such auditoriums, in the following instances (i) after the Advertising Services have been converted to such Projection System in accordance with Section 3.06 or (ii) prior to the presentation of a 3D motion picture or other 3D content (“3D Content”); in either case, such 3D Advertising Services, (x) will be properly conditioned to meet the specifications of Cinemark 3D equipment providers, and (y) LLC shall pay or reimburse Cinemark for any and all third party licensing fees incurred by Cinemark related to use of the 3D equipment in conjunction with 3D Advertising Services. Notwithstanding the foregoing, to the extent such Projection System has not become Digital Cinema Equipment in accordance with Section 3.06, LLC shall be responsible for providing such 3D Advertising Services in a form and format to be reasonably requested by Cinemark. In the event that LLC requests Cinemark to ingest and play 3D Advertising on Cinemark’s player, if there are incremental costs that are going to be incurred beyond Cinemark’s normal operating procedures then Cinemark and LLC must meet and agree on the appropriate reimbursement to be paid by LLC to Cinemark to offset such Cinemark incremental costs necessary to accommodate LLC’s request.

(b) 3D Glasses. LLC agrees that Cinemark will bear no expense with respect to 3D Glasses provided to theatre patrons to view 3D Advertising Services. In the case of 3D Advertising Services distributed prior to the presentation of 3D Content, LLC shall obtain any and all necessary consents to allow theatre patrons to use the 3D Glasses delivered to Cinemark by the provider of such 3D Content; provided that LLC shall be liable for, and, if necessary, reimburse Cinemark for, any and all costs imposed by such provider on either LLC or Cinemark for the use of 3D Glasses to view the 3D Advertising Services; provided, further, that if Cinemark agrees with such provider to purchase 3D Glasses in order to provide them to theatre patrons to view such 3D Content, then the Parties will negotiate in good faith a reasonable allocation of such costs between Cinemark and LLC, which costs shall include additional payroll or general and administrative costs incurred by Cinemark for inventory and storing such 3D Glasses for LLC. LLC will not interfere with the rights of Real D to advertise its business, products or services on storage bins for 3D Glasses, as set in the current agreement(s) between Cinemark and Real D, or between Real D and any distributor.

(c) Applicability of ESA Provisions. All provisions of this Agreement, including the revenue provisions of Article 2 and the content standards set forth in Section 4.03, will apply to any advertising on 3D Glasses, packaging for 3D Glasses and 3D Glasses recycling bins used by LLC in connection with the distribution of 3D Advertising Services. Advertising on 3D Glasses and packaging for 3D Glasses will be permitted only as approved by Cinemark in its sole and absolute discretion.

Section 4.17 Digital Programming Event Simulcast.

(a) Definition. Under the Digital Programming Exhibitor Services Agreement, Cinemark may exhibit a Digital Programming Event that is simulcast across a broadcast (or cable, including pay-per-view) network or the Internet (the Digital Programming Event Simulcast”). LLC acknowledges that Digital Programming Event Simulcasts may contain third-party advertising that is provided by the provider of such Digital Programming Event Simulcast as part of such simulcast. A store-forward event shall not be a Digital Programming Event Simulcast for purposes of this Agreement.

 

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