DREAMWORKSANIMATIONSKG,INC. NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued) In December 1997, DreamWorks Studios entered into a capital lease with Pacific Enterprises for the energy management assets associated with the Company’s Glendale animation campus. This capital lease has been attributed to the Company, and, accordingly, the Company has reflected an asset of approximately $7.0 million. As of December 31, 2004, $3.0 million of the related capital lease obligation remains outstanding. Payments of obligations under the capital lease totaled approximately $0.6 million in each of the years ended December 31, 2002 and 2003 and $0.7 million for the year ended December 31, 2004. Future minimum lease commitments of all leases are as follows (in thousands): Net Operating Operating Capital Lease Sublease Lease Lease Commitments Income Commitments Commitments 2005 ............................................ $10,423 $ (806) $ 9,616 $ 996 2006 ............................................ 8,590 (806) 7,783 996 2007 ............................................ 4,097 — 4,097 996 2008 ............................................ 3,558 — 3,558 332 2009 ............................................ 3,665 — 3,665 — Thereafter ....................................... 9,971 — 9,971 — Subtotal ......................................... 40,304 (1,612) 38,690 3,320 Less amount representing interest ..................... — — — (393) Total ........................................... $40,304 $(1,612) $38,690 $2,927 The Company estimates that in 2005, it will pay approximately $32.7 million of its accrued contingent compensation and residual costs as of December 31, 2004. AsofDecember31,2004,wehadcontractual commitments to make the following payments (in thousands): PaymentsDuebyYear Contractual Cash Obligations 2005 2006 2007 2008 2009 Thereafter Total Operating leases, net of sublease income . . . $ 9,616 $ 7,783 $ 4,097 $3,558 $3,665 $ 9,971 $ 38,690 Executive officers employment agreements(1) ....................... 2,150 2,175 2,200 2,200 2,200 — 10,925 Wallace & Gromit: Curse of the Were Rabbit obligation(2) .................. 37,862 — — — — — 37,862 Glendale animation campus note payable(3) .......................... — — 70,059 — — — 70,059 Universal advance(4) .................... — — — — — 75,000 75,000 HBOsubordinated debt(5) ............... — — 50,000 — — — 50,000 Capital leases(6) ....................... 996 996 996 332 — — 3,320 Total contractual cash obligations ......... $50,624 $10,954 $127,352 $6,090 $5,865 $84,971 $285,856 (1) In connection with the Separation, the Company entered into employment agreements with contractual cash salaries totaling $10.9 million over the next five years. (2) In October 2003, the Company entered into an agreement to acquire certain distribution rights to Wallace & Gromit: Curse of the Were Rabbit, an animated film currently in production. Pursuant to the acquisition agreement, the Company is obligated to pay approximately $45.0 million to acquire substantially all rights to 87