LEASE TERMINATION
AGREEMENT
THIS LEASE
TERMINATION AGREEMENT (this “ Agreement ”)
is made and entered into as of the 13 day of October, 2006, by
and between CAPTEC FRANCHISE CAPITAL PARTNERS, L.P. IV a Michigan
corporation (“ Landlord ”), and BLOCKBUSTER
INC., a Delaware corporation (“ Tenant
”).
A. Landlord
and Tenant entered into that certain lease dated April 10,
1997 (collectively with all amendments thereto, the “
Lease ”), whereby Landlord leased to Tenant, and
Tenant leased from Landlord, the premises more particularly
described on Exhibit A attached hereto and incorporated
herein and located at 8529 Georgia Highway 85, Riverdale, Georgia
(the “ Premises ”); and
B. Landlord
and Tenant desire to terminate the Lease on the terms and
conditions hereinafter set forth.
NOW,
THEREFORE , in consideration of the mutual covenants and
agreements contained herein, Landlord and Tenant agree as
follows:
1.
Defined Terms . Any capitalized terms not defined
herein have the meanings assigned to them in the Lease.
2.
Termination of Lease . The Lease will terminate on
November 30, 2006 (the “ Termination Date
”) as if such Termination Date were set forth in the Lease as
the expiration date of the term of the Lease. On or before
11:59 p.m. on the Termination Date, Tenant shall vacate and
deliver possession of the Premises to Landlord in the manner set
forth in the Lease, and will be entitled to remove all of
Tenant’s personal property and trade fixtures.
3.
Rent and Other Lease Obligations . Tenant shall pay
to Landlord on or before the Termination Date, all rent, utility
charges and other charges relating to the Premises, for which
Tenant is responsible pursuant to the Lease and which accrue on or
prior to the Termination Date. Tenant shall indemnify and hold
Landlord harmless from and against any utility charges or other
charges relating to the Premises which are the obligation of Tenant
under the Lease and which accrue on or prior to the Termination
Date. In addition, Landlord and Tenant shall comply with all of
their other respective obligations under the Lease that accrue on
or prior to the Termination Date.
4.
Representations . Each party hereto represents and
warrants to the other that such party has full authority to execute
and deliver this Agreement and that no consents or authorizations
to this Agreement are required to make this Agreement binding on
the parties hereto.
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5.
Release of Landlord . Tenant agrees that, upon
termination of the Lease as aforesaid, Landlord and its agents and
employees will be fully released and discharged from any and all
obligations that may have theretofore arisen or may thereafter
arise under or with respect to the Lease or the Premises, save and
except any failure to comply with the terms of this
Agreement.
6.
Release of Tenant and Guarantor . Landlord agrees
that, upon termination of the Lease as aforesaid, Tenant and its
agents and employees will be fully released and discharged from any
and all obligations that may have theretofore arisen or may
thereafter arise under or with respect to the Lease or the
Premises, save and except any failure to comply with the terms of
this Agreement. Upon termination of the Lease as aforesaid,
Landlord further releases and discharges Viacom Inc. (“
Guarantor ”) of and from any and all liabilities and
obligations under that certain Guaranty executed by Guarantor on
April 4, 1997, in favor of Landlord, which Guaranty guaranteed
the obligations of Tenant under the Lease.
7.
Attorneys’ Fees . If either party to this
Agreement institutes any action or proceeding against the other
relating to the provisions of this Agreement or any default
hereunder, the prevailing party in such action or proceeding will
be entitled to receive from the non-prevailing party reasonable
attorneys’ fees and paralegal fees and disbursements incurred
therein by such prevailing party. Such reimbursement will include
all legal expenses incurred prior to trial, at trial and in all
levels of appeal and post-judgment proceedings.
8.
Successors and Assigns . All covenants, promises,
conditions, representations and agreements herein contained are
binding upon and inure to the benefit of the parties hereto and
their respective heirs, executors, administrators, successors and
assigns.
9.
Entire Agreement . This Agreement, together with the
Lease, constitutes the entire understanding and agreement of the
parties hereto with respect to the matters covered by this
Agreement, and no prior written or oral agreements, letters,
representations, warranties, promises or understandings pertaining
to any such matters are effective with respect thereto. The parties
agree that this Agreement may be executed in multiple counterparts,
each of which will be deemed an original, and all of which will
constitute one and the same instrument. This Agreement will be
binding upon the parties hereto upon receipt by each party of an
executed copy of this Agreement transmitted to it by the other
party via facsimile or other means of
telecommunications.
[THE BALANCE OF THIS PAGE
INTENTIONALLY LEFT BLANK]
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IN WITNESS
WHEREOF , the parties have executed this Lease Termination
Agreement as of the date first written above.
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LANDLORD:
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WITNESSES:
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CAPTEC
FRANCHISE CAPITAL PARTNERS L.P. IV,
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a Michigan
corporation
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By: /s/ Daniel
J. Kelly__________________________
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Name: Daniel J.
Kelly__________________________
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Title: Vice
President ___________________________
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TENANT:
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BLOCKBUSTER
INC.,
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WITNESSES:
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a Delaware corporation
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By: /s/ Stephen
B. Krumholz_____________________
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Name: Stephen
B. Krumholz
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Title: Senior
Vice President
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[ACKNOWLEDGEMENT OF
LANDLORD]
On this
___13___day of October, 2006, before me, the undersigned Notary
Public in and for said County and State, personally appeared
Daniel J. Kelly as VP of CAPTEC FRANCHISE CAPITAL
PARTNERS L.P. IV , a(n) Michigan corporation, who executed the
foregoing instrument on behalf of said corporation for the purposes
therein expressed. He/She is either ( X ) personally known to me or
( ) has produced _____________
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