Document:

Exhibit 4.2

 

Execution Version

$400,000,000

 

REGAL CINEMAS CORPORATION

 

8.625% Senior Notes Due 2019

 

REGISTRATION RIGHTS AGREEMENT

 

July 15, 2009

 

Credit
Suisse Securities (USA) LLC

Deutsche
Bank Securities Inc.

J.P.
Morgan Securities Inc.

Banc
of America Securities LLC

Barclays
Capital Inc.

c/o
Credit Suisse Securities (USA) LLC

      Eleven
Madison Avenue

      New
York, New York 10010-3629

 

Dear
Sirs:

 

Regal Cinemas
Corporation, a Delaware corporation (the “Issuer”),
proposes to issue and sell to Credit Suisse Securities (USA) LLC, Deutsche Bank
Securities Inc., J.P. Morgan Securities Inc., Banc of America Securities LLC
and Barclays Capital Inc. (collectively, the “Initial
Purchasers”), upon the terms set forth in a purchase agreement,
dated as of July    , 2009 (the “Purchase Agreement”), $ 400.0 million aggregate
principal amount of its  8.625% Senior
Notes due 2019 (the “Initial Securities”)
to be fully and unconditionally, jointly and severally, guaranteed (the “Guarantees”) by each of the Guarantors (as defined below)
(the Guarantors, together with the Issuer, the “Company”).  The Initial Securities will be issued
pursuant to an Indenture, dated as of July 9, 2009 (the “Indenture”),
among the Issuer, the guarantors named therein (the “Guarantors”
and each a “Guarantor”) and U.S. Bank National
Association, as Trustee (the “Trustee”).  As an inducement to the Initial Purchasers to
enter into the Purchase Agreement, the Company agrees with the Initial
Purchasers, for the benefit of the holders of the Initial Securities
(including, without limitation, the Initial Purchasers), the Exchange
Securities (as defined below) and the Private Exchange Securities (as defined
below) (collectively the “Holders”), as
follows:

 

1.  Registered Exchange Offer.  The Company shall, at
its own cost, prepare and, not later than 90 days after (or if the 90th day is not a business day, the first business
day thereafter) the date of original issue of the Initial Securities (the “Issue Date” and, such 90th day, the 

 

 

“Exchange Offer Filing Deadline”), file with the Securities
and Exchange Commission (the “Commission”) a
registration statement (the “Exchange Offer
Registration Statement”) on an appropriate form under the Securities
Act of 1933, as amended (the “Securities Act”),
with respect to a proposed offer (the “Registered Exchange Offer”)
to the Holders of Transfer Restricted Securities (as defined in Section 6
hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such
Holders, in exchange for the Initial Securities, a like aggregate principal
amount of debt securities (the “Exchange Securities”)
of the Issuer, with Guarantees endorsed thereon by the Guarantors, issued under
the Indenture and identical in all material respects to the Initial Securities
(except for the transfer restrictions relating to the Initial Securities and
the provisions relating to the matters described in Section 6 hereof) that
would be registered under the Securities Act. 
The Company shall use its best efforts to cause such Exchange Offer
Registration Statement to become effective under the Securities Act within 150
days (or if the 150th day is not a business day, the first business
day thereafter) after the Issue Date of the Initial Securities (such 150th day, the “Exchange Offer
Effectiveness Deadline”) and shall keep the Exchange Offer
Registration Statement effective for not less than 20 business days (or
longer, if required by applicable law) after the date notice of the Registered
Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”).

 

If
the Company effects the Registered Exchange Offer, the Company will close the
Registered Exchange Offer no later than 30 business days after the Exchange
Offer Effectiveness Deadline (such 30th business day
after the Exchange Offer Effectiveness Deadline, the “Exchange
Offer Consummation Deadline”), provided that the Company has
accepted all the Initial Securities theretofore validly tendered in accordance
with the terms of the Registered Exchange Offer.

 

Following
the declaration of the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange Offer,
it being the objective of such Registered Exchange Offer to enable each Holder
of Transfer Restricted Securities (as defined in Section 6 hereof)
electing to exchange the Initial Securities for Exchange Securities (assuming
that such Holder is not an affiliate of the Company within the meaning of the
Securities Act, acquires the Exchange Securities in the ordinary course of such
Holder’s business and has no arrangements with any person to participate in the
distribution of the Exchange Securities and is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer)
to trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of the several states of the United
States.

 

The
Company acknowledges that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, in the absence of
an applicable exemption therefrom, (i) each Holder which is a
broker-dealer electing to exchange Initial Securities, acquired for its own
account as a result of market making activities or other trading activities,
for Exchange Securities (an “Exchanging Dealer”),
is required to deliver a prospectus containing the information set forth in (a) Annex
A hereto on the cover, (b) Annex B hereto in the “Exchange
Offer Procedures” section and the “Purpose of the Exchange Offer” section, and (c) 

 

2

 

Annex
C hereto in the “Plan of Distribution” section of such prospectus in
connection with a sale of any such Exchange Securities received by such
Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an
Initial Purchaser that elects to sell Exchange Securities acquired in exchange
for Initial Securities constituting any portion of an unsold allotment is
required to deliver a prospectus containing the information required by Items
507 and 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such sale.

 

The
Company shall use its best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained
therein, in order to permit such prospectus to be lawfully delivered by all
persons subject to the prospectus delivery requirements of the Securities Act
for such period of time as such persons must comply with such requirements in
order to resell the Exchange Securities; provided, however, that (i) in
the case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be
the lesser of 180 days and the date on which all Exchanging Dealers and the
Initial Purchasers have sold all Exchange Securities held by them (unless such
period is extended pursuant to Section 3(j) below) and (ii) the
Company shall make such prospectus and any amendment or supplement thereto,
available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of not less than 90 days after the
consummation of the Registered Exchange Offer.

 

If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the
Company, simultaneously with the delivery of the Exchange Securities pursuant
to the Registered Exchange Offer, shall issue and deliver to such Initial
Purchaser upon the written request of such Initial Purchaser, in exchange (the “Private Exchange”) for the Initial Securities held by the
Initial Purchaser, a like principal amount of debt securities of the Issuer,
with Guarantees endorsed thereon by the Guarantors, issued under the Indenture
and identical in all material respects (including the existence of restrictions
on transfer under the Securities Act and the securities laws of the several
states of the United States, but excluding provisions relating to the matters
described in Section 6 hereof) to the Initial Securities (the “Private Exchange Securities”).  The Initial Securities, the Exchange
Securities and the Private Exchange Securities are herein collectively called
the “Securities”.

 

In
connection with the Registered Exchange Offer, the Company shall:

 

(a)  mail to each Holder a copy of the prospectus forming
part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

 

(b)  keep the Registered Exchange Offer open for not less
than 30 days (or longer, if required by applicable law) after the date notice
thereof is mailed to the Holders;

 

(c)  utilize the services of a depositary for the Registered
Exchange Offer with an address in the Borough of Manhattan, The City of New
York, which may be the Trustee or an affiliate of the Trustee;

 

3

 

(d)  permit Holders to withdraw tendered Securities at any
time prior to the close of business, New York time, on the last business day on
which the Registered Exchange Offer shall remain open; and

 

(e)  otherwise comply with all applicable laws.

 

As
soon as practicable after the close of the Registered Exchange Offer or the
Private Exchange, as the case may be, the Company shall:

 

(x)  accept for exchange all the Securities validly tendered
and not withdrawn pursuant to the Registered Exchange Offer and the Private
Exchange;

 

(y)  deliver to the Trustee for cancellation all the Initial
Securities so accepted for exchange; and

 

(z)  cause the Trustee to authenticate and deliver promptly to
each Holder of the Initial Securities, Exchange Securities or Private Exchange
Securities, as the case may be, equal in principal amount to the Initial
Securities of such Holder so accepted for exchange.

 

The
Indenture will provide that the Exchange Securities will not be subject to the
transfer restrictions set forth in the Indenture and that all the Securities
will vote and consent together on all matters as one class and that none of the
Securities will have the right to vote or consent as a class separate from one
another on any matter.

 

Interest
on each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last
interest payment date on which interest was paid on the Initial Securities
surrendered in exchange therefor or, if no interest has been paid on the
Initial Securities, from the date of original issue of the Initial Securities.

 

Each
Holder participating in the Registered Exchange Offer shall be required to
represent to the Company that at the time of the consummation of the Registered
Exchange Offer (i) any Exchange Securities received by such Holder will be
acquired in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an “affiliate,” as defined in
Rule 405 of the Securities Act, of the Company or if it is an affiliate,
such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (iv) if such
Holder is not a broker-dealer, that it is not engaged in, and does not intend
to engage in, the distribution of the Exchange Securities and (v) if such
Holder is a broker-dealer, that it will receive Exchange Securities for its own
account in exchange for Initial Securities that were acquired as a result of
market-making activities or other trading activities and that it will be
required to acknowledge that it will deliver a prospectus in connection with
any resale of such Exchange Securities.

 

4

 

Notwithstanding
any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus
forming part thereof and any supplement thereto complies in all material
respects with the Securities Act and the rules and regulations thereunder,
(ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any
supplement to such prospectus, does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

2.  Shelf Registration. 
If, (i) because of any change in law or in applicable
interpretations thereof by the staff of the Commission, the Company is not
permitted to effect a Registered Exchange Offer, as contemplated by Section 1
hereof, (ii) the Registered Exchange Offer is not consummated by the
Exchange Offer Consummation Deadline, (iii) any Initial Purchaser so requests
with respect to the Initial Securities (or the Private Exchange Securities) not
eligible to be exchanged for Exchange Securities in the Registered Exchange
Offer and held by it following consummation of the Registered Exchange Offer or
(iv) any Holder (other than an Exchanging Dealer) is not eligible to
participate in the Registered Exchange Offer or, in the case of any Holder
(other than an Exchanging Dealer) that participates in the Registered Exchange
Offer, such Holder does not receive freely tradeable Exchange Securities on the
date of the exchange  (the date on which
any of the conditions described in the foregoing clauses (i) through (iv) occur,
being a “Trigger Date”):, the Company shall take
the following actions:

 

(a)  The Company shall, at its cost, as promptly as
practicable (but in no event more than 30 days after the Trigger Date, such 30th day being the “Shelf Filing
Deadline”) file with the Commission and thereafter shall use its
best efforts to cause to be declared effective (unless it becomes effective
automatically upon filing) as promptly as practicable (but in no event more
than 60 days after the Trigger Date, such 60th day being the
“Shelf Effectiveness Deadline”) a
registration statement (the “Shelf Registration
Statement” and, together with the Exchange Offer Registration
Statement, a “Registration Statement”) on an
appropriate form under the Securities Act relating to the offer and sale of the
Transfer Restricted Securities (as defined in Section 6 hereof) by the
Holders thereof from time to time in accordance with the methods of
distribution set forth in the Shelf Registration Statement and Rule 415
under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder (other than an
Initial Purchaser) shall be entitled to have the Securities held by it covered
by such Shelf Registration Statement unless such Holder agrees in writing to be
bound by all the provisions of this Agreement applicable to such Holder.

 

(b)  The Company shall use its best efforts to keep the Shelf
Registration Statement continuously effective in order to permit the prospectus
included therein to be lawfully delivered by the Holders of the relevant
Securities, for a period of two years (or 

 

5

 

for
such longer period if extended pursuant to Section 3(j) below) from
the Issue Date or such shorter period that will terminate when all the
Securities covered by the Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer restricted securities (as defined
in Rule 144 under the Securities Act, or any successor rule thereof).  The Company shall be deemed not to have used
its best efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in
Holders of Securities covered thereby not being able to offer and sell such
Securities during that period, unless such action is required by applicable
law.

 

(c)  Notwithstanding any other provisions of this Agreement
to the contrary, the Company shall cause the Shelf Registration Statement and
the related prospectus and any amendment or supplement thereto, as of the
effective date of the Shelf Registration Statement, amendment or supplement, (i) to
comply in all material respects with the applicable requirements of the
Securities Act and the rules and regulations of the Commission and (ii) not
to contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

 

3.  Registration Procedures. 
In connection with any Shelf Registration contemplated by Section 2
hereof and, to the extent applicable, any Registered Exchange Offer
contemplated by Section 1 hereof, the following provisions shall apply:

 

(a)  The Company shall (i) furnish to each Initial
Purchaser, prior to the filing thereof with the Commission, a copy of the
Registration Statement and each amendment thereof and each supplement, if any,
to the prospectus included therein and, in the event that an Initial Purchaser
(with respect to any portion of an unsold allotment from the original offering)
is participating in the Registered Exchange Offer or the Shelf Registration
Statement, the Company shall use its best efforts to reflect in each such
document, when so filed with the Commission, such comments as such Initial
Purchaser reasonably may propose; (ii) include the information set forth
in Annex A hereto on the cover, in Annex B hereto in the “Exchange
Offer Procedures” section and the “Purpose of the Exchange Offer” section and
in Annex C hereto in the “Plan of Distribution” section of the
prospectus forming a part of the Exchange Offer Registration Statement and
include the information set forth in Annex D hereto in the Letter of
Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
requested by an Initial Purchaser, include the information required by Items
507 and 508 of Regulation S-K under the Securities Act, as applicable, in the
prospectus forming a part of the Exchange Offer Registration Statement; (iv) include
within the prospectus contained in the Exchange Offer Registration Statement a
section entitled “Plan of Distribution,” reasonably acceptable to the Initial
Purchaser, which shall contain a summary statement of the positions taken or
policies made by the staff of the Commission with respect to the potential “underwriter”
status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of Exchange Securities received by such
broker-dealer in the Registered Exchange 

 

6

 

Offer
(a “Participating Broker-Dealer”), whether
such positions or policies have been publicly disseminated by the staff of the
Commission or such positions or policies, in the reasonable judgment of the
Initial Purchasers based upon advice of counsel (which may be in-house
counsel), represent the prevailing views of the staff of the Commission; and (v) in
the case of a Shelf Registration Statement, include in the prospectus included
in the Shelf Registration Statement (or, if permitted by Commission Rule 430B(b),
in a prospectus supplement that becomes a part thereof pursuant to Commission Rule 430B(f))
that is delivered to any Holder pursuant to Sections 3(d) and (f),
the names of the Holders, who propose to sell Securities pursuant to the Shelf
Registration Statement, as selling securityholders.

 

(b)  The Company shall give written notice to the Initial
Purchasers, the Holders of the Securities and any Participating Broker-Dealer
from whom the Company has received prior written notice that it will be a
Participating Broker-Dealer in the Registered Exchange Offer (which notice
pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction
to suspend the use of the prospectus until the requisite changes have been
made):

 

(i)  when the Registration Statement or
any amendment thereto has been filed with the Commission and when the
Registration Statement or any post-effective amendment thereto has become
effective;

 

(ii)  of any request by the Commission for
amendments or supplements to the Registration Statement or the prospectus
included therein or for additional information;

 

(iii)  of the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose, of the issuance by the
Commission of a notification of objection to the use of the form on which the
Registration Statement has been filed, and of the happening of any event that
causes the Company to become an “ineligible issuer,” as defined in Commission Rule 405.

 

(iv)  of the receipt by the Company or its
legal counsel of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose; and

 

(v)  of the happening of any event that
requires the Company to make changes in the Registration Statement or the
prospectus in order that the Registration Statement or the prospectus do not
contain an untrue statement of a material fact nor omit to state a material
fact required to be stated therein or necessary to make the statements therein
(in the case of the prospectus, in light of the circumstances under which they
were made) not misleading.

 

7

 

(c)  The Company shall make every reasonable effort to obtain
the withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Registration Statement.

 

(d)  The Company shall furnish to each Holder of Securities
included within the coverage of the Shelf Registration, without charge, at
least one copy of the Shelf Registration Statement and any post-effective
amendment or supplement thereto, including financial statements and schedules,
and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference). 
The Company shall not, without the prior consent of the Initial
Purchasers, make any offer relating to the Securities that would constitute a “free
writing prospectus,” as defined in Commission Rule 405.

 

(e)  The Company shall deliver to each Exchanging Dealer and
each Initial Purchaser, and to any other Holder who so requests, without
charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including financial statements and schedules,
and, if any Initial Purchaser or any such Holder requests, all exhibits thereto
(including those incorporated by reference).

 

(f)  The Company shall, during the Shelf Registration Period,
deliver to each Holder of Securities included within the coverage of the Shelf
Registration, without charge, as many copies of the prospectus (including each
preliminary prospectus) included in the Shelf Registration Statement and any
amendment or supplement thereto as such person may reasonably request. The
Company consents, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

(g)  The Company shall deliver to each Initial Purchaser, any
Exchanging Dealer, any Participating Broker-Dealer and such other persons
required to deliver a prospectus following the Registered Exchange Offer,
without charge, as many copies of the final prospectus included in the Exchange
Offer Registration Statement and any amendment or supplement thereto as such
persons may reasonably request.  The
Company consents, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by the Initial
Purchasers, if necessary, any Participating Broker-Dealer and such other
persons required to deliver a prospectus following the Registered Exchange
Offer in connection with the offering and sale of the Exchange Securities
covered by the prospectus, or any amendment or supplement thereto, included in
such Exchange Offer Registration Statement.

 

(h)  Prior to any public offering of the Securities, pursuant
to any Registration Statement, the Company shall register or qualify or
cooperate with the Holders of the Securities included therein and their
respective counsel in connection with the registration or qualification of the
Securities for offer and sale under the securities or “blue sky” laws 

 

8

 

of
such states of the United States as any Holder of the Securities reasonably
requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities
covered by such Registration Statement; provided, however, that the Company
shall not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified or (ii) take any action
which would subject it to general service of process or to taxation in any
jurisdiction where it is not then so subject.

 

(i)  The Company shall cooperate with the Holders of the
Securities to facilitate the timely preparation and delivery of certificates
representing the Securities to be sold pursuant to any Registration Statement
free of any restrictive legends and in such denominations and registered in
such names as the Holders may request a reasonable period of time prior to
sales of the Securities pursuant to such Registration Statement.

 

(j)  Upon the occurrence of any event contemplated by
paragraphs (ii) through (v) of Section 3(b) above during
the period for which the Company is required to maintain an effective
Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the
related prospectus and any other required document so that, as thereafter
delivered to Holders of the Securities or purchasers of Securities, the
prospectus will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  If the Company notifies
the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of
Section 3(b) above to suspend the use of the prospectus until the
requisite changes to the prospectus have been made, then the Initial
Purchasers, the Holders of the Securities and any such Participating
Broker-Dealers shall suspend use of such prospectus, and the period of
effectiveness of the Shelf Registration Statement provided for in Section 2(b) above
and the Exchange Offer Registration Statement provided for in Section 1
above shall each be extended by the number of days from and including the date
of the giving of such notice to and including the date when the Initial
Purchasers, the Holders of the Securities and any known Participating
Broker-Dealer shall have received such amended or supplemented prospectus
pursuant to this Section 3(j). 
During the period during which the Company is required to maintain an
effective Shelf Registration Statement pursuant to this Agreement, the Company
will prior to the three-year expiration of that Shelf Registration Statement
file, and use its best efforts to cause to be declared effective (unless it
becomes effective automatically upon filing) within a period that avoids any
interruption in the ability of Holders of Securities covered by the expiring
Shelf Registration Statement to make registered dispositions, a new
registration statement relating to the Securities, which shall be deemed the “Shelf
Registration Statement” for purposes of this Agreement.

 

(k)  Not later than the effective date of the applicable
Registration Statement, the Company will provide a CUSIP number for the Initial
Securities, the Exchange Securities or the Private Exchange Securities, as the
case may be, and provide the applicable trustee 

 

9

 

with
printed certificates for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, in a form eligible for deposit
with The Depository Trust Company.

 

(l)  The Company will comply with all rules and
regulations of the Commission to the extent and so long as they are applicable
to the Registered Exchange Offer or the Shelf Registration and will make
generally available to its security holders (or otherwise provide in accordance
with Section 11(a) of the Securities Act) an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act, no
later than 45 days after the end of a 12-month period (or 90 days, if such
period is a fiscal year) beginning with the first month of the Company’s first
fiscal quarter commencing after the effective date of the Registration
Statement, which statement shall cover such 12-month period.

 

(m)  The Company shall cause the Indenture to be qualified
under the Trust Indenture Act of 1939, as amended, in a timely manner and
containing such changes, if any, as shall be necessary for such
qualification.  In the event that such
qualification would require the appointment of a new trustee under the
Indenture, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions of the Indenture.

 

(n)  The Company may require each Holder of Securities to be
sold pursuant to the Shelf Registration Statement to furnish to the Company
such information regarding the Holder and the distribution of the Securities as
the Company may from time to time reasonably require for inclusion in the Shelf
Registration Statement, and the Company may exclude from such registration the
Securities of any Holder that unreasonably fails to furnish such information
within a reasonable time after receiving such request.

 

(o)  The Company shall enter into such customary agreements
(including, if requested, an underwriting agreement in customary form) and take
all such other action, if any, as any Holder of the Securities shall reasonably
request in order to facilitate the disposition of the Securities pursuant to
any Shelf Registration.

 

(p)  In the case of any Shelf Registration, the Company shall
(i) make reasonably available for inspection by the Holders of the
Securities, any underwriter participating in any disposition pursuant to the
Shelf Registration Statement and any attorney, accountant or other agent
retained by the Holders of the Securities or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of
the Company and (ii) cause the Company’s officers, directors, employees,
accountants and auditors to supply all relevant information reasonably
requested by the Holders of the Securities or any such underwriter, attorney,
accountant or agent in connection with the Shelf Registration Statement, in
each case, as shall be reasonably necessary to enable such persons, to conduct
a reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that the foregoing inspection and
information gathering shall be coordinated on behalf of the Initial Purchasers
by you and on behalf of the other parties, by one counsel designated by and on
behalf of such other parties as described in Section 4 hereof.

 

10

 

(q)  In the case of any Shelf
Registration, the Company, if requested by any Holder of Securities covered
thereby, shall cause (i) its counsel to deliver an opinion and updates thereof
relating to the Securities in customary form addressed to such Holders and the
managing underwriters, if any, thereof and dated, in the case of the initial
opinion, the effective date of such Shelf Registration Statement (it being
agreed that the matters to be covered by such opinion shall include, without
limitation, the due incorporation and good standing of the Company and its
subsidiaries; the qualification of the Company and its subsidiaries to transact
business as foreign corporations; the due authorization, execution and delivery
of the relevant agreement of the type referred to in Section 3(o) hereof;
the due authorization, execution, authentication and issuance, and the validity
and enforceability, of the applicable Securities; the absence of material legal
or governmental proceedings involving the Company and its subsidiaries; the
absence of governmental approvals required to be obtained in connection with
the Shelf Registration Statement, the offering and sale of the applicable
Securities, or any agreement of the type referred to in Section 3(o) hereof;
the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the
requirements of the Securities Act and the Trust Indenture Act, respectively;
and (A) as of the date of the opinion and as of the effective date of
the Shelf Registration Statement or most recent post-effective amendment
thereto, as the case may be, the absence from such Shelf Registration Statement
and the prospectus included therein, as then amended or supplemented, and from any
documents incorporated by reference therein and (B) as of an
applicable time identified by such Holders or managing underwriters, the
absence from such prospectus taken together with any other documents identified
by such Holders or managing underwriters, in the case of (A) and (B),
of an untrue statement of a material fact or the omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading (in the case of any such incorporated documents, in
light of the circumstances existing at the time that such documents were filed
with the Commission under the Exchange Act); (ii) its officers to execute
and deliver all customary documents and certificates and updates thereof
requested by any underwriters of the applicable Securities and (iii) its
independent public accountants and the independent public accountants with
respect to any other entity for which financial information is provided in the
Shelf Registration Statement to provide to the selling Holders of the
applicable Securities and any underwriter therefor a comfort letter in
customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings, subject to receipt
of appropriate documentation as contemplated, and only if permitted, by
Statement of Auditing Standards No. 72.

 

(r)  In the case of the Registered
Exchange Offer, if requested by any Initial Purchaser or any known
Participating Broker-Dealer, the Company shall cause (i) its counsels to
deliver to such Initial Purchaser or such Participating Broker-Dealer signed
opinions in the forms set forth in Exhibits A-1, A-2, B
and C referred to in Sections 7(c), (d) and (e) of the
Purchase Agreement with such changes as are customary in connection with the
preparation of a Registration Statement and (ii) its independent public 

 

11

 

accountants
and the independent public accountants with respect to any other entity for
which financial information is provided in the Registration Statement to
deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort
letter, in customary form, meeting the requirements as to the substance thereof
as set forth in Exhibits D-1 and D-2 referred to in Section 7(a) of
the Purchase Agreement, with appropriate date changes.

 

(s)  If a Registered Exchange Offer or a
Private Exchange is to be consummated, upon delivery of the Initial Securities
by Holders to the Company (or to such other Person as directed by the Company)
in exchange for the Exchange Securities or the Private Exchange Securities, as
the case may be, the Company shall mark, or caused to be marked, on the Initial
Securities so exchanged that such Initial Securities are being canceled in
exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be; in no event shall the Initial Securities be marked as paid or
otherwise satisfied.

 

(t)  The Company will use its best efforts
to (a) if the Initial Securities have been rated prior to the initial sale
of such Initial Securities, confirm such ratings will apply to the Securities
covered by a Registration Statement, or (b) if the Initial Securities were
not previously rated, cause the Securities covered by a Registration Statement
to be rated with the appropriate rating agencies, if so requested by Holders of
a majority in aggregate principal amount of Securities covered by such
Registration Statement, or by the managing underwriters, if any.

 

(u)  In the event that any broker-dealer
registered under the Exchange Act shall underwrite any Securities or
participate as a member of an underwriting syndicate or selling group or “assist
in the distribution” (within the meaning of the Conduct Rules (the “Rules”) of the Financial Industry Regulatory Authority, Inc.)
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with the
requirements of such Rules, including, without limitation, by (i) if such
Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to
exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

 

(v)  The Company shall use its best
efforts to take all other steps necessary to effect the registration of the
Securities covered by a Registration Statement contemplated hereby.

 

12

 

4.  Registration Expenses. 
The Company shall bear all fees and expenses incurred in connection with
the performance of its obligations under Sections 1 through 3 hereof (including
the reasonable fees and expenses, if any, of Skadden, Arps, Slate, Meagher &
Flom LLP, counsel for the Initial Purchasers, incurred in connection with the
Registered Exchange Offer), whether or not the Registered Exchange Offer or a
Shelf Registration is filed or becomes effective, and, in the event of a Shelf
Registration, shall bear or reimburse the Holders of the Securities covered
thereby for the reasonable fees and disbursements of one firm of counsel
designated by the Holders of a majority in principal amount of the Initial
Securities covered thereby to act as counsel for the Holders of the Initial
Securities in connection therewith.

 

5.  Indemnification.  (a) 
The Company agrees to indemnify and hold harmless each Holder of the
Securities, any Participating Broker-Dealer and each person, if any, who
controls such Holder or such Participating Broker-Dealer within the meaning of
the Securities Act or the Exchange Act (each Holder, any Participating
Broker-Dealer and such controlling persons are referred to collectively as the “Indemnified Parties”) from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in
any amendment or supplement thereto or in any preliminary prospectus or “issuer
free writing prospectus,” as defined in Commission Rule 433 (“Issuer FWP”), relating to a Shelf Registration, or arise out
of, or are based upon, the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and shall reimburse, as incurred, the Indemnified
Parties for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided, however, that (i) the
Company shall not be liable in any such case to the extent that such loss,
claim, damage or liability arises out of or is based upon any untrue statement
or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus or Issuer FWP relating to a Shelf Registration
in reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein and (ii) with respect to any untrue statement or
omission or alleged untrue statement or omission made in any preliminary
prospectus relating to a Shelf Registration Statement, the indemnity agreement
contained in this subsection (a) shall not inure to the benefit of
any Holder or Participating Broker-Dealer from whom the person asserting any
such losses, claims, damages or liabilities purchased the Securities concerned,
to the extent that a prospectus relating to such Securities was required to be
delivered (including through satisfaction of the conditions of Commission Rule 172)
by such Holder or Participating Broker-Dealer under the Securities Act in
connection with such purchase and any such loss, claim, damage or liability of
such Holder or Participating Broker-Dealer results from the fact that there was
not conveyed to such person, at or prior to the time of the sale of such
Securities to such person, an amended or supplemented prospectus or, if
permitted by Section 3(d), an Issuer FWP correcting such untrue statement
or omission or alleged untrue statement or omission if the Company had
previously 

 

13

 

furnished
copies thereof to such Holder or Participating Broker-Dealer; provided further,
however, that this indemnity agreement will be in addition to any liability
which the Company may otherwise have to such Indemnified Party.  The Company shall also indemnify underwriters,
their officers and directors and each person who controls such underwriters
within the meaning of the Securities Act or the Exchange Act to the same extent
as provided above with respect to the indemnification of the Holders of the
Securities if requested by such Holders.

 

(b)  Each
Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act from and against any
losses, claims, damages or liabilities or any actions in respect thereof, to
which the Company or any such controlling person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus or Issuer FWP relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary to make the statements
therein not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein; and, subject to the limitation set forth immediately preceding
this clause, shall reimburse, as incurred, the Company for any legal or other
expenses reasonably incurred by the Company or any such controlling person in
connection with investigating or defending any loss, claim, damage, liability
or action in respect thereof.  This
indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Company or any of its controlling persons.

 

(c)  Promptly
after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 5, notify the
indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have under subsection (a) or (b) above except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided further that the
failure to notify the indemnifying party shall not relieve it from any
liability that it may have to an indemnified party otherwise than under
subsection  (a) or (b) above.  In case any such action is brought against
any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party (who shall not, except with
the consent of the indemnified party, be counsel to the indemnifying party),
and after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof the indemnifying party will not be
liable to such indemnified party under this Section 5 for any legal or
other expenses, other than reasonable costs of investigation, subsequently
incurred by such indemnified party in connection with the defense thereof.  No 

 

14

 

indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement (i) includes
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

 

(d)  If
the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
or parties on the one hand and the indemnified party on the other from the
exchange of the Securities, pursuant to the Registered Exchange Offer, or (ii) if
the allocation provided by the foregoing clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative
fault of the indemnifying party or parties on the one hand and the indemnified
party on the other in connection with the statements or omissions that resulted
in such losses, claims, damages or liabilities (or actions in respect thereof)
as well as any other relevant equitable considerations.  The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company on the one
hand or such Holder or such other indemnified party, as the case may be, on the
other, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d).  Notwithstanding any
other provision of this Section 5(d), the Holders of the Securities shall
not be required to contribute any amount in excess of the amount by which the
net proceeds received by such Holders from the sale of the Securities pursuant
to a Registration Statement exceeds the amount of damages which such Holders
have otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.  For purposes of this paragraph (d), each
person, if any, who controls such indemnified party within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution
as such indemnified party and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act shall have the
same rights to contribution as the Company.

 

(e)  The
agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force
and effect, regardless of any 

 

15

 

termination
or cancellation of this Agreement or any investigation made by or on behalf of
any indemnified party.

 

6.  Additional Interest Under Certain Circumstances.  (a)  Additional interest (the “Additional Interest”) with respect to the Initial Securities
shall be assessed as follows if any of the following events occur (each such
event in clauses (i) through (iii) below a “Registration Default”:

 

(i)  If by the Exchange Offer Filing
Deadline, the Exchange Offer Registration Statement has not been filed with the
Commission, or if by the Shelf Filing Deadline, the Shelf Registration
Statement, if required to be filed by Section 2, has not been filed with
the Commission; or

 

(ii)  If by the Exchange Offer
Effectiveness Deadline, the Exchange Offer Registration Statement has not been
declared effective by the Commission, or if by the Exchange Offer Consummation
Deadline, the Registered Exchange Offer has not been consummated, or if by the
Shelf Effectiveness Deadline, the Shelf Registration Statement, if required to
be filed by Section 2, has not been declared (or has not become
automatically) effective by the Commission; or

 

(iii)  If after either the Exchange Offer
Registration Statement or the Shelf Registration Statement is declared (or
becomes automatically) effective (A) such Registration Statement
thereafter ceases to be effective; or (B) such Registration Statement or
the related prospectus ceases to be usable (except as permitted in
paragraph (b)) in connection with resales of Transfer Restricted
Securities during the periods specified herein because either (1) any
event occurs as a result of which the related prospectus forming part of such
Registration Statement would include any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein in
light of the circumstances under which they were made not misleading, (2) it
shall be necessary to amend such Registration Statement or supplement the
related prospectus, to comply with the Securities Act or the Exchange Act or
the respective rules thereunder, or (3) such Registration
Statement is a Shelf Registration Statement that has expired before a
replacement Shelf Registration Statement has become effective.

 

Additional
Interest shall accrue on the Initial Securities over and above the interest set
forth in the title of the Securities in an amount equal to 0.25% per annum (the “Additional Interest Rate”) for the first 90-day period from
and including the date on which any such Registration Default occurs.  The Additional Interest Rate shall increase
by an additional 0.25% per annum with respect to each subsequent 90-day period
until all Registration Defaults have been cured, up to a maximum Additional
Interest Rate of 0.50% per annum, except as provided in Section 6(c) hereof.  The Company shall not be required to pay
Additional Interest for more than one Registration Default at any given time.

 

16

 

(b)  A
Registration Default referred to in Section 6(a)(iii)(B) hereof shall
be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate
annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other
material events, with respect to the Company that would need to be described in
such Shelf Registration Statement or the related prospectus and (ii) in
the case of clause (y), the Company is proceeding promptly and in good faith to
amend or supplement such Shelf Registration Statement and related prospectus to
describe such events; provided, however, that in any case if such Registration
Default occurs for a continuous period in excess of 30 days, Additional
Interest shall be payable in accordance with the above paragraph from the day
such Registration Default occurs until such Registration Default is cured.

 

(c)  Any
amounts of Additional Interest due pursuant to clause (i), (ii) or (iii) of
Section 6(a) above will be payable in cash on the regular interest
payment dates with respect to the Initial Securities. The amount of Additional
Interest will be determined by multiplying the applicable Additional Interest
rate by the principal amount of the Initial Securities, multiplied by a
fraction, the numerator of which is the number of days such Additional Interest
rate was applicable during such period (determined on the basis of a 360-day
year comprised of twelve 30-day months), and the denominator of which is 360.

 

(d)  “Transfer Restricted Securities” means each Security until (i) the
date on which such Transfer Restricted Security has been exchanged by a person
other than a broker-dealer for a freely transferable Exchange Security in the
Registered Exchange Offer, (ii) following the exchange by a broker-dealer
in the Registered Exchange Offer of a Initial Security for an Exchange Note,
the date on which such Exchange Note is sold to a purchaser who receives from
such broker-dealer on or prior to the date of such sale a copy of the
prospectus contained in the Exchange Offer Registration Statement or (iii) the
date on which such Initial Security has been effectively registered under the
Securities Act and disposed of in accordance with the Shelf Registration
Statement.

 

7.  Rules 144 and 144A.  The Company shall use
its best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder of Initial Securities, make publicly available other information so long
as necessary to permit sales of their securities pursuant to Rules 144 and
144A.  The Company covenants that it will
take such further action as any Holder of Initial Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Initial Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A (including
the requirements of Rule 144A(d)(4)). 
The Company will provide a copy of this Agreement to prospective
purchasers of Initial Securities identified to the Company by the Initial
Purchasers upon request.  Upon the
request of any Holder of Initial Securities, the Company shall deliver to such
Holder a written statement as to whether it has 

 

17

 

complied
with such requirements. Notwithstanding the foregoing, nothing in this Section 7
shall be deemed to require the Company to register any of its securities
pursuant to the Exchange Act.

 

8.  Underwritten Registrations.  If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing Underwriters”)
will be selected by the Holders of a majority in aggregate principal amount of
such Transfer Restricted Securities to be included in such offering.

 

No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Transfer Restricted Securities on
the basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

 

9.  Miscellaneous.

 

(a)  Amendments and Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, except by the
Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consents.

 

(b)  Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
first-class mail, facsimile transmission, or air courier which guarantees
overnight delivery:

 

(1) 
if to a Holder of the Securities, at the most current address given by such
Holder to the Company.

 

(2) 
if to the Initial Purchasers;

 

Credit
Suisse Securities (USA) LLC

Eleven
Madison Avenue

New
York, NY 10010-3629

Fax
No.:  (212) 325-4296

Attention:  Transactions Advisory Group

 

18

 

with
a copy to:

 

Skadden,
Arps, Slate, Meagher & Flom LLP

300
South Grand Avenue, Suite 3400

Los
Angeles, CA 90071

Fax
No.:  (213) 687-5600

Attention:  Casey Fleck, Esq.

 

(3)           if to the
Company, at its address as follows:

 

Regal
Cinemas Corporation

c/o Regal Entertainment
Group

7132 Regal Lane

Knoxville, Tennessee
37918

Fax No.:  (865) 922-6085

Attention:  General Counsel

 

with
a copy to:

 

Hogan & Hartson
L.L.P.

One Tabor Center, Suite 1500

1200 Seventeenth Street

Denver, Colorado 80202

Fax No.:  (303) 899-7333

Attention:  Richard Mattera, Esq.

 

All
such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; three business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile
machine operator, if sent by facsimile transmission; and on the day delivered,
if sent by overnight air courier guaranteeing next day delivery.

 

(c)  No Inconsistent Agreements.  The Company has not,
as of the date hereof, entered into, nor shall it, on or after the date hereof,
enter into, any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

 

(d)  Successors and Assigns.  This Agreement shall be
binding upon the Company and its successors and assigns.

 

(e)  Counterparts.  This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

 

19

 

(f)  Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(g)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

(h)  Severability.  If any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

(i)  Securities Held by the Company.  Whenever the
consent or approval of Holders of a specified percentage of principal amount of
Securities is required hereunder, Securities held by the Company or its
affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

(j)  
Agent for Service; Submission to Jurisdiction;
Waiver of Immunities.  By the execution and delivery of
this Agreement, the Company (i) acknowledges that it has, by separate
written instrument, irrevocably designated and appointed The Corporation Trust
Company  (and any successor entity) (the “Agent”), as its authorized agent upon which process may be
served in any suit or proceeding arising out of or relating to this Agreement
that may be instituted in any federal or state court in the State of New York
or brought under federal or state securities laws, and acknowledges that the
Agent has accepted such designation, (ii) submits to the nonexclusive
jurisdiction of any such court in any such suit or proceeding, and (iii) agrees
that service of process upon the Agent and written notice of said service to
the Company shall be deemed in every respect effective service of process upon
it in any such suit or proceeding.  The
Company further agrees to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment of the Agent in full force and effect
so long as any of the Securities shall be outstanding.  To the extent that the Company may acquire
any immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it
hereby irrevocably waives such immunity in respect of this Agreement, to the
fullest extent permitted by law.

 

20

 

If the foregoing is in
accordance with your understanding of our agreement, please sign and return to
the Issuer a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Initial Purchasers, the
Issuer and the Guarantors in accordance with its terms.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGAL CINEMAS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Ownby

  
	
   

  	
   

  	
  Name: David S. Ownby

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  

 

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  A 3 THEATRES OF SAN
  ANTONIO, LTD.,

  
	
   

  	
  by
  A3 Theatres of Texas, Inc., its General Partner

  
	
   

  	
  A 3
  THEATRES OF TEXAS, INC.

  
	
   

  	
  CONSOLIDATED THEATRES
  MANAGEMENT, LLC

  
	
   

  	
  EASTGATE THEATRE, INC.

  
	
   

  	
  EDWARDS THEATRES, INC.

  
	
   

  	
  FREDERICK PLAZA
  CINEMAS, INC.

  
	
   

  	
  HOYTS CINEMAS
  CORPORATION

  
	
   

  	
  INTERSTATE THEATRES
  CORPORATION

  
	
   

  	
  R.C. COBB, INC.

  
	
   

  	
  RCI/FSSC, LLC

  
	
   

  	
  RCI/RMS, LLC

  
	
   

  	
  REGAL CINEMAS HOLDINGS,
  INC.

  
	
   

  	
  REGAL CINEMAS, INC.

  
	
   

  	
  REGAL CINEMEDIA
  CORPORATION

  
	
   

  	
  REGAL GALLERY PLACE,
  LLC

  
	
   

  	
  REGAL INVESTMENT
  COMPANY

  
	
   

  	
  RICHMOND I CINEMA, LLC

  
	
   

  	
  UA SWANSEA, LLC

  
	
   

  	
  UNITED ARTISTS
  PROPERTIES I CORP.

  
	
   

  	
  UNITED ARTISTS REALTY
  COMPANY

  
	
   

  	
  UNITED ARTISTS THEATRE
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Ownby

  
	
   

  	
   

  	
  Name: David S. Ownby

  
	
   

  	
   

  	
  Title: Executive Vice
  President, Chief Financial Officer and Treasurer or Vice President and
  Treasurer (as applicable)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGAL ENTERTAINMENT
  GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Ownby

  
	
   

  	
   

  	
  Name: David S. Ownby

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  

 

 

The foregoing Registration

Rights Agreement is hereby
confirmed

and accepted as of the date
first

above written.

 

CREDIT SUISSE SECURITIES
(USA) LLC

DEUTSCHE BANK SECURITIES
INC.

J.P. MORGAN SECURITIES INC.

BANC OF AMERICA SECURITIES
LLC

BARCLAYS CAPITAL INC.

 

	
  By:  CREDIT SUISSE SECURITIES (USA) LLC

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerald Slowik

  	
   

  
	
   

  	
   

  	
  Name: Jerald Slowik

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  

 

 

ANNEX A

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.  This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired by
such broker-dealer as a result of market-making activities or other trading
activities.  The Issuer and the
Guarantors have agreed that, for a period of 180 days after the Expiration Date
(as defined herein), they will make this Prospectus available to any
broker-dealer for use in connection with any such resale.  See “Plan of Distribution.”

 

 

ANNEX B

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. 
See “Plan of Distribution.”

 

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired as a result of market-making
activities or other trading activities. 
The Issuer and the Guarantors have agreed that, for a period of 180 days
after the Expiration Date, they will make this prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any
such resale.  In addition, until
                         ,
20  , all dealers effecting transactions in the Exchange Securities
may be required to deliver a prospectus.(1) 

 

The
Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers.  Exchange Securities
received by broker-dealers for their own account pursuant to the Exchange Offer
may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Securities or a combination of such methods of resale,
at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. 
Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities.  Any broker-dealer that
resells Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities
Act.  The Letter of Transmittal states
that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

For
a period of 180 days after the Expiration Date the Issuer and the Guarantors
will promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal.  The Issuer
and the Guarantors have agreed to pay all expenses incident to the Exchange
Offer (including the expenses of one counsel for the Holders of the Securities)
other than commissions or concessions of any brokers or dealers and will
indemnify the Holders of the Securities

 

(1)   In
addition, the legend required by Item 502(e) of Regulation S-K
will appear on the back cover page of the Exchange Offer prospectus.

 

 

(including
any broker-dealers) against certain liabilities, including liabilities under
the Securities Act.

 

2

 

ANNEX D

 

o            CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE
10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO.

 

	
  Name:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

If
the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities.  If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities, it acknowledges that it will deliver a
prospectus in connection with any resale of such Exchange Securities; however,
by so acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.Exhibit
10.1

 

Execution Version

 

$400,000,000

REGAL CINEMAS CORPORATION

8.625% Senior Notes Due 2019

PURCHASE AGREEMENT

 

July 9, 2009

 

CREDIT
SUISSE SECURITIES (USA) LLC (“Credit Suisse”),

As Representative of the Several Purchasers,

c/o Credit Suisse Securities (USA) LLC,

Eleven Madison Avenue,

New York, N.Y. 10010-3629

 

Dear Sirs:

 

1.                          Introductory. Regal Cinemas
Corporation, a Delaware corporation (the “Company”),
agrees with the several initial purchasers named in Schedule A hereto
(the “Purchasers”), for whom Credit Suisse is
acting as representative, subject to the terms and conditions stated herein, to
issue and sell to the several Purchasers $400,000,000 principal amount of its
8.625% Senior Notes due 2019 (“Offered Securities”),
to be issued under an indenture dated as of July 15, 2009 (the “Indenture”),
among the Company, the guarantors named therein (the “Guarantors”
and each a “Guarantor”) and U.S. Bank National
Association, as Trustee on a private placement basis pursuant to an exemption
under Section 4(2) of the United States Securities Act of 1933 (the “Securities Act”).  The
Offered Securities will be fully and unconditionally, jointly and severally,
guaranteed by each of the Guarantors (such guarantees, the “Guarantees”).

 

Holders (including subsequent transferees) of
the Offered Securities will have the registration rights set forth in the
registration rights agreement, to be dated the Closing Date, among the Company,
the Guarantors and the Purchasers  (the “Registration Rights Agreement”).  Pursuant to the Registration Rights Agreement,
the Company and the Guarantors will agree to file with the Securities and
Exchange Commission (the “Commission”)
under the circumstances set forth therein, (i) a registration statement
under the Securities Act of 1933 (the “Securities Act”
and, such registration statement, the “Exchange Offer
Registration Statement”) relating to the Company’s 8.625% Senior
Notes due 2019, Series B, and the Guarantees endorsed thereon, to be
issued under the Indenture and identical in all material respects to the
Offered Securities and the Guarantees endorsed thereon but registered under the
Securities Act (the “Exchange Securities”
and, together with the Offered Securities and the Guarantees, the “Securities”), and to be offered in exchange for the Offered
Securities and the 

 

 

Guarantees endorsed thereon (such offer to
exchange being referred to as the “Exchange Offer”),
and (ii) a shelf registration statement pursuant to Rule 415 under
the Securities Act (the “Shelf Registration
Statement” and the Exchange Offer Registration Statement, each a “Registration Statement”).

 

Each of the Company and each of the
Guarantors hereby agrees with the several Purchasers as follows:

 

2.                          Representations
and Warranties of the Company and the Guarantors.  The Company and each of the Guarantors
represents and warrants to, and agrees with, the several Purchasers that:

 

(a)                                  Offering Circulars; Certain Defined Terms.  The Company has
prepared or will prepare a Preliminary Offering Circular and a Final Offering
Circular.

 

For
purposes of this Agreement:

 

“Applicable Time”
means 5:20 p.m. (New York time) on the date of this Agreement.

 

“Closing Date”
has the meaning set forth in Section 3 hereof.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934.

 

“Final Offering Circular”
means the final offering circular relating to the Offered Securities that
discloses the offering price and other final terms of the Offered Securities
and is dated as of the date of this Agreement (even if finalized and issued
subsequent to the date of this Agreement).

 

“Free Writing Communication”
means a written communication (as such term is defined in Rule 405) that
constitutes an offer to sell or a solicitation of an offer to buy the Offered
Securities and is made by means other than the Preliminary Offering Circular or
the Final Offering Circular.

 

“General Disclosure Package”
means the Preliminary Offering Circular together with any Issuer Free Writing
Communication existing at the Applicable Time and the information in which is
intended for general distribution to prospective investors, as evidenced by its
being specified in Schedule B hereto.

 

“Issuer Free Writing
Communication” means a Free Writing Communication prepared by or on
behalf of the Company, used or referred to by the Company or containing a
description of the final terms of the Offered Securities or of their offering,
in the form retained in the Company’s records.

 

“Preliminary Offering
Circular” means the preliminary offering circular, dated July 9,
2009, relating to the Offered Securities to be offered by the Purchasers.

 

“Rules and Regulations”
means the rules and regulations of the Commission.

 

2

 

“Securities Laws”
means, collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”),
the Securities Act, the Exchange Act, the Rules and Regulations, the
auditing principles, rules, standards and practices applicable to auditors of “issuers”
(as defined in Sarbanes-Oxley) promulgated or approved by the Public Company
Accounting Oversight Board and the rules of the New York Stock Exchange (“Exchange Rules”).

 

“subsidiary”
with respect to any person means (1) a corporation a majority of whose
capital stock with voting power, under ordinary circumstances, to elect
directors is at the time, directly or indirectly, owned by such person, by such
person and one or more subsidiaries of such person or by one or more
subsidiaries of such person, and (2) any other person (other than a
corporation) in which such person, one or more subsidiaries of such person, or
such person and one or more subsidiaries of such person, directly or
indirectly, at the date of determination thereof has a majority ownership
interest, or (3) a partnership in which such person or a subsidiary of
such person is, at the time, a general partner and in which such person,
directly or indirectly, at the date of determination thereof has a majority
ownership interest.

 

“Supplemental Marketing
Material” means any Issuer Free Writing Communication other than any
Issuer Free Writing Communication specified in Schedule B hereto.  Supplemental Marketing Materials include, but
are not limited to, the electronic Bloomberg roadshow slides and the
accompanying audio recording and any Issuer Free Writing Communication listed
on Schedule C hereto.

 

Unless otherwise specified, a reference to a “rule”
is to the indicated rule under the Securities Act.

 

(b)                                 Disclosure.  As of the date of this Agreement, the Final
Offering Circular does not, and as of the Closing Date, the Final Offering
Circular will not, include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.  At the Applicable Time, neither (i) the
General Disclosure Package, nor (ii) any individual Supplemental Marketing
Material, when considered together with the General Disclosure Package,
included, any untrue statement of a material fact or omitted, or will omit, to
state any material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.  The preceding two sentences do not apply to
statements in or omissions from the Preliminary or Final Offering Circular, the
General Disclosure Package or any Supplemental Marketing Material based upon
written information furnished to the Company or the Guarantors by any Purchaser
through Credit Suisse specifically for use therein, it being understood and
agreed that the only such information is that described as such in Section 8(b) hereof.  Except as disclosed in the General Disclosure
Package, on the date of this Agreement, the Annual Report on Form 10-K (as
amended by Form 10-K/A) of Regal Entertainment Group (the “Parent Guarantor”) most recently filed with the Commission
and all subsequent reports (collectively, the “Exchange Act
Reports”) which have been filed by the Parent Guarantor with the
Commission or sent to stockholders pursuant to the Exchange Act do not include
any untrue statement of a 

 

3

 

material fact or omit to state any material fact necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.  Such
documents, when they were filed with the Commission, conformed in all material
respects to the requirements of the Exchange Act and the Rules and
Regulations.

 

(c)                                  Offered Securities.  The Offered
Securities have been duly authorized by the Company and, when delivered and
paid for pursuant to this Agreement and the Indenture on the Closing Date, will
have been duly executed, authenticated, issued and delivered and will
constitute valid and legally binding obligations of the Company, entitled to
the benefits provided by the Indenture and enforceable in accordance with their
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles, and will conform to the
information in the General Disclosure Package and to the description of such
Offered Securities contained in the General Disclosure Package, the Final
Offering Circular and the Indenture.

 

(d)                                 Exchange Securities.  The Exchange
Securities have been duly authorized by the Company and, when issued in the
Exchange Offer, will have been duly executed, authenticated, issued and
delivered in accordance with the terms of the Indenture, the Registration
Rights Agreement and the Exchange Offer and will constitute valid and legally
binding obligations of the Company, entitled to the benefits provided by the
Indenture and enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles, and will conform to the information in
the General Disclosure Package and to the description of such Exchange
Securities contained in the General Disclosure Package, the Final Offering
Circular and the Indenture.

 

(e)                                  Guarantee.  The Guarantee to be endorsed on the Offered
Securities by each Guarantor has been duly authorized by such Guarantor, and,
when the Offered Securities are delivered and paid for pursuant to this
Agreement and the Indenture on the Closing Date, the Guarantee of each
Guarantor endorsed thereon will have been duly executed, issued and delivered
by each such Guarantor and will constitute valid and legally binding
obligations of such Guarantor, enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles, and will conform to the
description thereof contained in the General Disclosure Package, the Final
Offering Circular and the Indenture.  The
Guarantee to be endorsed on the Exchange Securities by each Guarantor has been
duly authorized by such Guarantor, and, when issued in the Exchange Offer, will
have been duly executed and delivered by each such Guarantor and will
constitute valid and legally binding obligations of such Guarantor, enforceable
in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles,
and will conform to the description thereof contained in the General Disclosure
Package, the Final Offering Circular and the Indenture.

 

4

 

(f)                                    Good Standing of the Company and the
Guarantors.  Each of the Company and each of the Guarantors
has been duly incorporated or organized and is an existing corporation or other
business organization, as the case may be, in good standing under the laws of
the jurisdiction of its incorporation or organization, with power and authority
(corporate and other) to own its properties and conduct its business as
described in the General Disclosure Package; and each of the Company and each
of the Guarantors is duly qualified to do business as a foreign corporation or
other business organization, as the case may be, in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its
business requires such qualification, except where the failure to so qualify
would not, individually or in the aggregate, have a material adverse effect on
the condition (financial or other), business, properties or results of
operations of the Company, the Guarantors and their respective subsidiaries
taken as a whole, or materially and adversely affect the ability of the Company
or the Guarantors to issue the Securities or perform their respective
obligations hereunder or thereunder, under the Indenture or under the
Registration Rights Agreement, or otherwise affect the validity of the
Securities or otherwise be material in the context of the Securities (“Material Adverse Effect”).

 

(g)                                 Subsidiaries.  Each subsidiary of the Company and each
subsidiary of the Guarantors has been duly incorporated or organized and is an
existing corporation or other business organization, as the case may be, in
good standing under the laws of the jurisdiction of its incorporation or
organization with power and authority (corporate and other) to own its
properties and conduct its business as described in the General Disclosure
Package, except where failure to be so incorporated or organized and in good
standing would not, individually or in the aggregate, have a Material Adverse
Effect; and each subsidiary of the Company and each subsidiary of the
Guarantors is duly qualified to do business as a foreign corporation or other
business organization, as the case may be, in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its
business requires such qualification, except where failure to so qualify would
not, individually or in the aggregate, have a Material Adverse Effect; all of
the issued and outstanding capital stock or other ownership interests of each
subsidiary of the Company and each subsidiary of the Guarantors has been duly
authorized and, in the case of each subsidiary that is a corporation, validly
issued and is fully paid and nonassessable; and, except as disclosed in the
General Disclosure Package, the capital stock or other ownership interests of
each subsidiary owned by the Company or a Guarantor, directly or through
subsidiaries, is owned free from liens, encumbrances and defects.

 

(h)                                 Indenture.  The Indenture has been duly authorized by
each of the Company and each of the Guarantors and, when the Offered Securities
and the Guarantees are delivered and paid for pursuant to this Agreement on the
Closing Date, the Indenture will have been duly executed and delivered, and the
Indenture will constitute a valid and legally binding obligation of each of the
Company and each of the Guarantors, enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles, and will conform to the description
of the Indenture contained in the General Disclosure Package and the Final
Offering Circular.

 

5

 

(i)                                     Registration Rights Agreement.  The Registration
Rights Agreement has been duly authorized by each of the Company and each of
the Guarantors and, on the Closing Date, will have been duly executed and
delivered by each of the Company and each of the Guarantors and will constitute
a valid and legally binding obligation of each of the Company and each of the
Guarantors, enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles, and will conform to the description of the Registration
Rights Agreement contained in the General Disclosure Package and the Final
Offering Circular.

 

(j)                                     No Finder’s Fee.  Except as disclosed
in the General Disclosure Package, there are no contracts, agreements or
understandings between the Company, the Guarantors and any person that would
give rise to a valid claim against the Company, the Guarantors or any Purchaser
for a brokerage commission, finder’s fee or other like payment in connection
with the transactions related to the Securities.

 

(k)                                  Absence of Further Requirements.  No consent,
approval, authorization, or order of, or filing or registration with, any
governmental agency or body or any court is required for the consummation of
the transactions contemplated by this Agreement, the Indenture or the
Registration Rights Agreement in connection with the offering, issuance and
sale of the Securities by the Company and the Guarantors, except for the order
of the Commission declaring effective the Exchange Offer Registration Statement
or, if required, the Shelf Registration Statement.

 

(l)                                     Absence of Defaults and Conflicts Resulting
from Transaction.  The execution, delivery and performance of
the Indenture, this Agreement and the Registration Rights Agreement, and the
issuance and sale of the Securities and compliance with the terms and
provisions hereof and thereof will not result in a breach or violation of any
of the terms and provisions of, or constitute a default under, (A) any
statute, any rule, regulation or order of any governmental agency or body or
any court, domestic or foreign, having jurisdiction over the Company, the
Guarantors or any of their respective subsidiaries or any of their properties, (B) any
agreement or instrument to which the Company, the Guarantors or any of their
respective subsidiaries is a party or by which the Company, the Guarantors or
any of their respective subsidiaries is bound or to which any of the properties
of the Company, the Guarantors or any of their respective subsidiaries is
subject, or (C) the charter or by-laws or similar governing documents of
the Company, the Guarantors or any of their respective subsidiaries, except in
the case of a breach, violation, or default described in clause (A) or (B) above
that would not, individually or in the aggregate, be expected to have a
Material Adverse Effect, and each of the Company and each of the Guarantors has
full power and authority to authorize, issue and sell the Offered Securities
and the Guarantees endorsed thereon as contemplated by this Agreement and the
Exchange Securities and the Guarantees endorsed thereon as contemplated by the
Registration Rights Agreement.

 

(m)                               Authorization of Agreement.  This Agreement has
been duly authorized, executed and delivered by each of the Company and each of
the Guarantors.

 

6

 

(n)                                 Title to Property.  Except as disclosed
in the General Disclosure Package, the Company, the Guarantors and their
respective subsidiaries have good and marketable title to all real properties
and all other properties and assets owned by them, in each case free from
liens, encumbrances and defects that would materially affect the value thereof
or materially interfere with the use made or to be made thereof by them and
that, individually or in the aggregate, would have a Material Adverse Effect;
and except as disclosed in the General Disclosure Package, the Company, the
Guarantors and their respective subsidiaries hold all leased real or personal
property under valid and enforceable leases with no exceptions that would
materially interfere with the use made or to be made thereof by them and that,
individually or in the aggregate, would have a Material Adverse Effect.

 

(o)                                 Possession of Licenses and Permits.  The Company, the
Guarantors and their respective subsidiaries possess adequate certificates,
authorizations or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by them and have not received
any notice of proceedings relating to the revocation or modification of any
such certificate, authority or permit that, if determined adversely to the
Company, the Guarantors or any of their respective subsidiaries, would,
individually or in the aggregate, have a Material Adverse Effect.

 

(p)                                 Absence of Existing Defaults and
Conflicts.  None of the Company, the Guarantors or any of their
respective subsidiaries is (A) in violation of its charter or bylaws or
other similar governing documents or (B) in default in the performance or
observance of any obligation, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which it is a party or by which it or any of its properties may be bound,
except in the case of a default described in clause (B) above that,
individually or in the aggregate, would not have a Material Adverse Effect.

 

(q)                                 Registration Rights.  Except for the
Registration Rights Agreement to be entered into on the Closing Date, there are
no contracts, agreements or understandings between the Company or any Guarantor
and any person granting such person the right (i) to require the Company
or any of the Guarantors to file a registration statement under the Securities
Act with respect to any securities of the Company or any of the Guarantors or (ii) to
require the Company or any of the Guarantors to include such securities with
the Securities registered pursuant to any Registration Statement.

 

(r)                                    Absence of Labor Disputes.  No labor dispute
with the employees of the Company, the Guarantors or any of their respective
subsidiaries exists or, to the knowledge of the Company or the Guarantors, is
imminent that would, individually or in the aggregate, have a Material Adverse
Effect.

 

(s)                                  Possession of Intellectual Property.  The Company, the
Guarantors and their respective subsidiaries own, possess or can acquire on
reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other
intellectual property (collectively, “intellectual property
rights”) necessary to conduct the
business now operated by them, or presently 

 

7

 

employed by them, and have not received any notice of
infringement of or conflict with asserted rights of others with respect to any
intellectual property rights that, if determined adversely to the Company, the
Guarantors or any of their respective subsidiaries, would, individually or in
the aggregate, have a Material Adverse Effect.

 

(t)                                    Environmental Laws.  Except as disclosed
in the General Disclosure Package, none of the Company, the Guarantors or any
of their respective subsidiaries is in violation of any statute, any rule,
regulation, decision or order of any governmental agency or body or any court,
domestic or foreign, relating to the use, disposal or release of hazardous or
toxic substances or relating to the protection or restoration of the
environment or human exposure to hazardous or toxic substances (collectively, “environmental  laws”), owns or
operates any real property contaminated with any substance that is subject to
any environmental laws, is liable for any off-site disposal or contamination
pursuant to any environmental laws, or is subject to any claim relating to any
environmental laws, which violation, contamination, liability or claim would,
individually or in the aggregate, have a Material Adverse Effect; and none of
the Company or the Guarantors is aware of any pending investigation which might
lead to such a claim.

 

(u)                                 Litigation.  Except as disclosed in the General Disclosure
Package, there are no pending actions, suits or proceedings against or
affecting the Company, the Guarantors or any of their respective subsidiaries or
any of their respective properties that, if determined adversely to the
Company, the Guarantors or any of their respective subsidiaries, would,
individually or in the aggregate, have a Material Adverse Effect; and to the
Company’s and the Guarantors’ knowledge, no such actions, suits or proceedings
are threatened or contemplated.

 

(v)                                 Financial Statements.  The financial
statements of the Parent Guarantor, together with the related schedules and
notes, included in the General Disclosure Package present fairly in all
material respects the financial position of the parent Guarantor and its
consolidated subsidiaries, and the financial statements of National CineMedia,
LLC (“National CineMedia”), together with the
related schedules and notes, included in the General Disclosure Package present
fairly in all material respects the financial position of National CineMedia
and its consolidated subsidiaries, in each case, as of the dates shown and
their results of operations and cash flows for the periods shown, and such
financial statements and related schedules and notes have been prepared in
conformity with the generally accepted accounting principles in the United
States (“GAAP”) applied on a
consistent basis and the other financial and statistical information and data
set forth in the General Disclosure Package are, in all material respects,
accurately presented and, with respect to such financial information, prepared
on a basis consistent with the financial statements of  the Parent Guarantor and National CineMedia,
respectively, and the books and records of the Parent Guarantor and National
CineMedia, respectively.

 

(w)                               No Material Adverse Change in Business.  Except as disclosed
in the General Disclosure Package, since January 1, 2009, there has been
no material adverse change, nor any development or event involving a
prospective material adverse change, in the condition (financial or other),
business, properties or results of operations of the 

 

8

 

Company, the Guarantors or any of their respective
subsidiaries taken as a whole, and, except as disclosed in or contemplated by
the General Disclosure Package, there has been no dividend or distribution of
any kind declared, paid or made by the Company or any of the Guarantors on any
class of its capital stock.

 

(x)                                   Reporting Status.  The Parent Guarantor
is subject to the reporting requirements of either Section 13 or Section 15(d) of
the Securities Exchange Act of 1934 and files reports with the Commission on
the Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”)
system.

 

(y)                                 Investment Company Act.  None of the Company
or the Guarantors is an open-end investment company, unit investment trust or
face-amount certificate company that is or is required to be registered under Section 8
of the United States Investment Company Act of 1940 (the “Investment
Company Act”); and none of the Company or the Guarantors is and,
after giving effect to the offering and sale of the Offered Securities and the
application of the proceeds thereof as described in the General Disclosure
Package, none will be an “investment company” as defined in the Investment
Company Act.

 

(z)                                   Class of Securities Not Listed.  No securities of the
same class (within the meaning of Rule 144A(d)(3) under the
Securities Act) as the Offered Securities or the Guarantees are listed on any
national securities exchange registered under Section 6 of the Exchange
Act or quoted in a U.S. automated inter-dealer quotation system.

 

(aa)                            No Registration.  The offer and sale
of the Offered Securities and the Guarantees and the initial resales by the
Purchasers, in each case, in the manner contemplated by this Agreement and the
General Disclosure Package will be exempt from the registration requirements of
the Securities Act and no registration of the Offered Securities or the
Guarantees is required under the Securities Act for sale of the Offered
Securities or the Guarantees to the Purchasers as contemplated hereby or for
the initial resales in the manner contemplated by this Agreement and the
General Disclosure Package (assuming (i) the representations of the
Purchasers contained in this Agreement are true, correct and complete and (ii) compliance
by the Purchasers with its covenants set forth in this Agreement), and it is
not necessary to qualify an indenture in respect of the Offered Securities or
the Guarantees under the United States Trust Indenture Act of 1939, as amended
(the “Trust Indenture Act”) for sale of the
Offered Securities and the Guarantees to the Purchasers and the initial resales
by the Purchasers, in each case, in the manner contemplated by this Agreement
and the General Disclosure Package.

 

(bb)                          Qualification of Indenture.  The Indenture
conforms in all material respects to the requirements of the Trust Indenture
Act and the rules and regulations of the Commission applicable to an
indenture that is qualified thereunder.

 

(cc)                            Regulations T, U, X.  None of the Company,
the Guarantors or any of their respective subsidiaries nor any agent thereof
acting on the behalf of it has taken, and none of them will take, any action
that might cause this Agreement or the issuance or sale of 

 

9

 

the Offered Securities or the Guarantees to violate
Regulation T, Regulation U or Regulation X of the Board of Governors of the
Federal Reserve System.

 

(dd)                          Ratings.  No “nationally recognized statistical rating
organization” as such term is defined for purposes of Rule 436(g)(2) under
the Securities Act (i) has imposed (or has informed the Company or any of
the Guarantors that it is considering imposing) any condition (financial or
otherwise) on the Company’s or any of the Guarantor’s retaining any rating
assigned to the Company or any of the Guarantors or any securities of the
Company or any of the Guarantors or (ii) has indicated to the Company or
any of the Guarantors that it is considering any of the actions described in Section 7(b)(ii) hereof.

 

(ee)                            No General Solicitation.  No form of general
solicitation or general advertising (as defined in Regulation D under the
Securities Act) was used by the Company or the Guarantors, or any of their
respective representatives (other than the Purchasers, as to whom the Company
and the Guarantors make no representation) in connection with the offer and
sale of the Offered Securities or the Guarantees contemplated hereby,
including, but not limited to, articles, notices or other communications
published in any newspaper, magazine, or similar medium or broadcast over
television or radio, or any seminar or meeting whose attendees have been
invited by any general solicitation or general advertising.  No securities of the same class as the
Offered Securities or the Guarantees have been offered, issued or sold by the
Company within the six-month period immediately prior to the date hereof.

 

(ff)                                Regulation S Restrictions.  Neither the Company,
nor any Guarantor, nor any of their respective affiliates, nor any person
acting on its or their behalf has offered or will offer or sell the Offered Securities
or the Guarantees with respect to any such securities sold in reliance on Rule 903
of Regulation S (“Regulation S”)
under the Securities Act, by means of any directed selling efforts within the
meaning of Rule 902(c) of Regulation S.  The Company, the Guarantors, their respective
affiliates and any person acting on its or their behalf have complied and will
comply with the offering restrictions requirement of Regulation S. Neither the
Company nor any Guarantor has entered into and neither the Company nor any
Guarantor will enter into any contractual arrangement with respect to the
distribution of the Offered Securities or the Guarantees except for this
Agreement.

 

(gg)                          Tax.  All material Tax returns required to be filed
by the Company, the Guarantors and their respective subsidiaries have been
filed and all such returns are true, complete and correct in all material
respect.  All material Taxes that are due
or claimed to be due from the Company, the Guarantors and their respective
subsidiaries have been paid other than those (A) currently payable without
penalty or interest or (B) being contested in good faith and by
appropriate proceedings and for which, in the case of both clauses (A) and
(B), adequate reserves have been established on the books and records of the
Company, the Guarantors and their respective subsidiaries in accordance with
GAAP.  There are no material Tax
assessments proposed in writing against the Company, the Guarantors or any of
their respective subsidiaries.  To the
Company’s and the Guarantors’ knowledge, the accruals and reserves on the books
and records of the Company, the Guarantors and their respective subsidiaries in
respect of any material Tax 

 

10

 

liability for any taxable period not finally determined are
adequate to meet any assessments of Tax for any such period.  For purposes of this Agreement, the term “Tax” and “Taxes” shall
mean all federal, state, local and foreign taxes, and other assessments of a
similar nature (whether imposed directly or through withholding), including any
interest, additions to tax, or penalties applicable thereto.

 

(hh)                          Internal Controls and Compliance with the
Sarbanes-Oxley Act.  KPMG LLP are independent public auditors as
required by the Securities Act and the Rules and Regulations thereof.  Except as set forth in the General Disclosure
Package, the Company, the Guarantors and their respective subsidiaries and the
Parent Guarantor’s Board of Directors (the “Board”)
are in compliance, in all material respects, with Sarbanes-Oxley and all
applicable Exchange Rules.  The Parent
Guarantor maintains a system of internal controls, including, but not limited
to, disclosure controls and procedures, internal controls over accounting
matters and financial reporting, an internal audit function and legal and
regulatory compliance controls (collectively, “Internal
Controls”) that comply in all material respects with the Securities
Laws and are sufficient to provide reasonable assurances that (i) transactions
are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
accountability for assets, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences and (v) the Parent Guarantor has adopted and applies corporate
governance guidelines.  The Internal
Controls are, or upon consummation of the offering of the Offered Securities
will be, overseen by the Audit Committee (the “Audit
Committee”) of the Board in accordance with Exchange Rules.  The Parent Guarantor has not publicly
disclosed or reported to the Audit Committee or the Board, and within the next
90 days the Parent Guarantor does not reasonably expect to publicly disclose or
report to the Audit Committee or the Board, a significant deficiency, material
weakness, change in Internal Controls or fraud involving management or other
employees who have a significant role in Internal Controls (each, an “Internal Control Event”), any violation of, or failure to
comply with, the Securities Laws, or any matter which, if determined adversely,
would, individually or in the aggregate, have a Material Adverse Effect.

 

(ii)                                  Insurance.  The Company, the Guarantors and each of their
respective subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which they are engaged; none of the Company,
the Guarantors or any of their respective subsidiaries (A) has received
notice from any insurer or agent of such insurer that substantial capital
improvements or other material expenditures will have to be made in order to
continue such insurance or (B) has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers at a cost that
would not have, individually or in the aggregate, a Material Adverse Effect.

 

(jj)                                  Material Changes.  Subsequent to the respective
dates as of which information is given in the General Disclosure Package, (A) the
Company, the 

 

11

 

Guarantors and their respective subsidiaries have not
incurred any material liability or obligation, direct or contingent, nor
entered into any material transaction not in the ordinary course of business; (B) the
Company and the Guarantors have not purchased any of its outstanding capital
stock, nor declared, paid or otherwise made any dividend or distribution of any
kind on its capital stock; and (C) there has not been any material change
in the capital stock, short-term debt or long-term debt of the Company, the
Guarantors and their respective subsidiaries (taken as a whole), except in each
case as described in the General Disclosure Package.

 

(kk)                            Use of Proceeds.  The net proceeds of
the issuance and sale of the Offered Securities are being incurred in good
faith to repay a portion of the Company’s borrowings under that certain Fifth
Amended and Restated Credit Agreement, dated as of October 27, 2006, as
amended, by and among the Company, the Guarantors party thereto, Credit Suisse,
Cayman Islands Branch, as administrative agent and collateral agent, Credit
Suisse Securities (USA) LLC, as sole lead arranger and sole book runner, and
the lenders from time to time party thereto.

 

(ll)                                  Statistical and Market Related Data.  The industry,
statistical and market-related data included or incorporated by reference in
the Preliminary Offering Circular, the Final Offering Circular or any Issuer
Free Writing Communication are derived from sources that the Company and the
Guarantors reasonably and in good faith believe to be accurate, reasonable and
reliable, and such data agrees with the sources from which they were derived.

 

(mm)                      Absence of Manipulation.  None of the Company,
the Guarantors or any of their respective affiliates has, either alone or with
one or more other persons, bid for or purchased for any account in which it or
any of its affiliates had a beneficial interest in any Offered Securities or
attempt to induce any person to purchase any Offered Securities in violation of
Section 9 of the Exchange Act or Regulation M promulgated under the
Exchange Act.

 

(nn)                          ERISA.  The Company, the Guarantors and their
respective subsidiaries are in compliance with all presently applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended,
including the regulations and published interpretations thereunder (“ERISA”), except where the failure to be in such compliance
would not, individually or in the aggregate, have a Material Adverse Effect; no
“reportable event” (as defined in ERISA) has occurred with respect to any “pension
plan” (as defined in ERISA) for which the Company, the Guarantors or any of
their respective subsidiaries would have any liability; except for matters that
would not, individually or in the aggregate, have a Material Adverse Effect,
the Company, the Guarantors and their respective subsidiaries have not incurred
and do not expect to incur liability under (A) Title IV of ERISA with
respect to termination of, or withdrawal from, any “pension plan” or (B) Section 412
or 4971 of the Internal Revenue Code of 1986, as amended, including the
regulations and published interpretations thereunder (“Code”);
and each “pension plan” for which the Company, the Guarantors and each of its
respective subsidiaries would have any liability that is intended to be
qualified under Section 401(a) of the Code 

 

12

 

is so qualified in all material respects and nothing has
occurred, whether by action or by failure to act, which would cause the loss of
such qualification.

 

(oo)                          Accurate Disclosure.  The statements in
the General Disclosure Package and the Final Offering Circular under the
headings “Certain United States Federal Income Tax Considerations” and “Description
of Notes,” in the Parent Guarantor’s Annual Report on Form 10-K for the
fiscal year ended January 1, 2009 under the caption “Item 3—Legal
Proceedings” and in Note 8—“Litigation and Contingencies” to the consolidated
financial statements included in Part II, Item 8 of such Form 10-K,
and in the Parent Guarantor’s Form 10-Q for the fiscal quarter ended April 2,
2009, under the caption “Item 1—Legal Proceedings” and in Note 7—“Commitments
and Contingencies” to the condensed consolidated financial statements included
in Part I, Item 1 of such Form 10-Q, insofar as such statements
summarize legal matters, agreements, documents or proceedings discussed
therein, fairly summarize in all material respects such legal matters,
agreements, documents or proceedings and present the information required to be
shown.

 

3.                          Purchase,
Sale and Delivery of Offered Securities.  On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth
herein, the Company agrees to sell to the several Purchasers, and each of the
Purchasers agrees, severally and not jointly, to purchase from the Company, at
a purchase price of 95.49850% of the principal amount thereof, the respective
principal amounts of Offered Securities set forth opposite the names of the
several Purchasers in Schedule A.

 

The Company will deliver against payment of
the purchase price the Offered Securities to or as instructed by Credit Suisse
for the accounts of the several Purchasers hereunder and to be offered and sold
by the Purchasers in reliance on Regulation S (the “Regulation S
Securities”) in the form of one or more permanent global Securities
in registered form without interest coupons (the “Regulation S
Global Securities”) deposited with the Trustee as custodian for The
Depository Trust Company (“DTC”) for the
respective accounts of the DTC participants for Euroclear Bank S.A./N.V. (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream, Luxembourg”), and registered in the name of
Cede & Co., as nominee for DTC. 
The Company will deliver against payment of the purchase price the
Offered Securities to be purchased by each Purchaser hereunder and to be
offered and sold by each Purchaser in reliance on Rule 144A under the
Securities Act (“Rule 144A” and, such
securities, the “144A Securities”) in the form of
one or more permanent global securities in definitive form without interest
coupons (the “Restricted Global Securities”)
deposited with the Trustee as custodian for DTC and registered in the name of
Cede & Co., as nominee for DTC. 
The Regulation S Global Securities and the Restricted Global Securities
shall be assigned separate CUSIP numbers. 
The Restricted Global Securities shall include the legend regarding
restrictions on transfer set forth under “Transfer Restrictions” in the Final
Offering Circular.  Until the termination
of the distribution compliance period (as defined in Regulation S) with respect
to the offering of the Offered Securities, interests in the Regulation S Global
Securities may only be held by the DTC participants for Euroclear and
Clearstream, Luxembourg.  Interests in
any permanent global Securities will be held only in book-entry form through
Euroclear, Clearstream, Luxembourg or DTC, as the case may be, except in the
limited circumstances described in the Final Offering Circular.

 

13

 

Payment for the Regulation S Securities and
the 144A Securities shall be made by the Purchasers in Federal (same day) funds
by wire transfer to an account at a bank acceptable to Credit Suisse drawn to
the order of the Company at the office of Hogan & Hartson L.L.P., One
Tabor Center, Suite 1500, 1200 Seventeenth Street, Denver, Colorado 80202,
at 9:00 a.m. (New York time), on July 15, 2009, or at such other time
not later than seven full business days thereafter as Credit Suisse and the
Company determine, such time being herein referred to as the “Closing Date,” against delivery to the Trustee as custodian
for DTC of (i) the Regulation S Global Securities representing all of the
Regulation S Securities for the respective accounts of the DTC participants for
Euroclear and Clearstream, Luxembourg and (ii) the Restricted Global
Securities representing all of the 144A Securities.  The Regulation S Global Securities and the
Restricted Global Securities will be made available for checking at least 24
hours prior to the Closing Date.

 

4.         Representations by Purchasers;
Resale by Purchasers.

 

(a)           Each
of the Purchasers severally represents and warrants to the Company and the
Guarantors that it is an “accredited investor” within the meaning of
Regulation D under the Securities Act.

 

(b)           Each
Purchaser severally acknowledges that the Offered Securities have not been
registered under the Securities Act and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons except in accordance
with Regulation S or pursuant to an exemption from the registration
requirements of the Securities Act.  Each
Purchaser severally represents and agrees that it has offered and sold the
Offered Securities, and will offer and sell the Offered Securities (i) as
part of its distribution at any time and (ii) otherwise until 40 days
after the later of the commencement of the offering and the Closing Date, only
in accordance with Rule 903 under the Securities Act or Rule 144A.  Accordingly, neither such Purchaser nor its
affiliates, nor any persons acting on its or their behalf, have engaged or will
engage in any directed selling efforts in the United States with respect to the
Offered Securities, and such Purchaser, its affiliates and all persons acting
on its or their behalf have complied and will comply with the offering
restrictions requirement of Regulation S. 
Each Purchaser severally agrees that, at or prior to confirmation of
sale of the Offered Securities, other than a sale pursuant to Rule 144A, such
Purchaser will have sent to each distributor, dealer or person receiving a
selling concession, fee or other remuneration that purchases the Offered
Securities from it during the distribution compliance period (as defined in
Regulation S) a confirmation or notice to substantially the following effect:

 

“The
Securities covered hereby have not been registered under the U.S. Securities
Act of 1933 (the “Securities Act”)
and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons (i) as part of their distribution at
any time or (ii) otherwise until 40 days after the later of the date of
the commencement of the offering and the closing date, except in either case in
accordance with Regulation S (or Rule 144A if available) under the
Securities Act.  Terms used above have
the meanings given to them by Regulation S.”

 

14

 

Terms used
in this subsection (b) have the meanings given to them by Regulation S.

 

(c)           Each
Purchaser severally agrees that it and each of its affiliates has not entered
and will not enter into any contractual arrangement with respect to the
distribution of the Offered Securities, except as contemplated by this
Agreement, without the prior written consent of the Company.

 

(d)           Each
Purchasers severally agrees that it and each of its affiliates will not offer
or sell the Offered Securities in the United States by means of any form of
general solicitation or general advertising, within the meaning of Rule 502(c)
under the Securities Act, including, but not limited to (i) any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or (ii) any
seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.  Each
Purchaser severally agrees, with respect to resales made in reliance on Rule 144A
of any of the Offered Securities, to deliver either with the confirmation of
such resale or otherwise prior to settlement of such resale a notice to the
effect that the resale of such Offered Securities has been made in reliance
upon the exemption from the registration requirements of the Securities Act
provided by Rule 144A.

 

5.         Certain Agreements of the Company
and the Guarantors.  Each of the
Company and each of the Guarantors agrees with the several Purchasers that:

 

(a)           Amendments
and Supplements to Offering Circulars.  Each of the Company and each of the
Guarantors will advise the Purchasers promptly of any proposal to amend or
supplement the Preliminary or Final Offering Circular and will not effect such
amendment or supplementation without the Purchasers’ consent. If, at any time
prior to the completion of the resale of the Offered Securities by the
Purchasers, any event occurs as a result of which the Preliminary or Final
Offering Circular, the General Disclosure Package or any Supplemental Marketing
Material would include an untrue statement of a material fact or would omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, the
Company and the Guarantors promptly will notify Credit Suisse of such event and
promptly will prepare and furnish, at their own expense, an amendment or
supplement which will correct such statement or omission.  Neither Credit Suisse’s consent to, nor its
delivery to offerees or investors of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section 7.

 

(b)           Furnishing
of Offering Circulars.  The Company and the Guarantors will furnish
to the Purchasers the Preliminary Offering Circular, each other document
comprising a part of the General Disclosure Package, all amendments and
supplements to such documents and each item of Supplemental Marketing Material,
in each case as soon as available, and will furnish to the Purchasers copies of
the Final Offering Circular and all amendments and supplements to such document
and in such quantities as the Purchasers requests.  At any time when the Parent Guarantor is not
or, if the Offered Securities or the Exchange Securities are no longer
guaranteed by the Parent Guarantor, at any time when the Company is not,
subject to Section 13 or 15(d) of the Exchange Act,

 

15

 

the Company and the Guarantors will promptly furnish or cause
to be furnished to the Purchasers and, upon request of holders and prospective
purchasers of the Securities, to such holders and purchasers, copies of the
information required to be delivered to holders and prospective purchasers of
the Securities pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto) in order to permit compliance with Rule 144A
in connection with resales by such holders of the Securities. The Company and
the Guarantors will pay the expenses of printing and distributing to the
Purchasers all such documents.

 

(c)           Blue Sky
Qualifications.  The Company and the Guarantors will arrange
for the qualification of the Securities for sale and the determination of their
eligibility for investment under the laws of such jurisdictions in the United
States and Canada as Credit Suisse designates and will continue such qualifications
in effect so long as required for the resale of the Securities by the
Purchasers provided that the Company will not be required to qualify as a
foreign corporation or to file a general consent to service of process in any
such state.

 

(d)           Reporting
Requirements.  During the period of three years hereafter,
the Company and the Guarantors will furnish to Credit Suisse, as soon as
practicable, copies of all information furnished by the Company or the
Guarantors to the Trustee or to the holders of the Securities pursuant to the
Indenture or the Trust Indenture Act and copies of any reports or financial
statements furnished to or filed with the Commission or any securities exchange
on which the Securities or any class of securities of the Company or any of the
Guarantors is listed and, in the event the stock of the Company or any of the
Guarantors is traded on any securities exchange, a copy of all reports or
communications furnished to its stockholders generally.

 

(e)           Transfer
Restrictions.  During the period of one year after the
Closing Date, the Company and the Guarantors will, upon request, furnish to
Credit Suisse, each of the other Purchasers and any holder of Securities a copy
of the restrictions on transfer applicable to the Securities.

 

(f)            No
Resales by Affiliates.  During the period of one year after the
Closing Date, the Company and the Guarantors will not, and will not permit any
of their respective affiliates (as defined in Rule 144 under the
Securities Act) to, resell any of the Securities that have been reacquired by
any of them.

 

(g)           Investment
Company. 
During the period of two years after the Closing Date, neither the
Company nor any of the Guarantors will be or become, an open-end investment
company, unit investment trust or face-amount certificate company that is or is
required to be registered under Section 8 of the Investment Company Act.

 

(h)           Payment
of Expenses.  The Company and the Guarantors will pay all
expenses incidental to the performance of their respective obligations under
this Agreement, the Registration Rights Agreement and the Indenture including (i) the
fees and expenses of the Trustee and its professional advisers; (ii) all
expenses in connection with the execution, issue, authentication, packaging and
initial delivery of the Securities,

 

16

 

the preparation and printing of this Agreement, the
Securities, the Indenture, the Registration Rights Agreement, the Preliminary
Offering Circular, any other documents comprising any part of the General
Disclosure Package, the Final Offering Circular, all amendments and supplements
thereto, each item of Supplemental Marketing Material and any other document
relating to the issuance, offer, sale and delivery of the Securities; (iii) the
cost of any advertising approved by the Company in connection with the issue of
the Offered Securities, (iv) any expenses (including fees and
disbursements of counsel to the Purchasers) incurred in connection with
qualification of the Securities for sale under the laws of such jurisdictions
as Credit Suisse designates and the preparation and printing of memoranda
relating thereto, (v) any fees charged by investment rating agencies for
the rating of the Securities, and (vi) expenses incurred in distributing
the Preliminary Offering Circular, any other documents comprising any part of
the General Disclosure Package, the Final Offering Circular (including any
amendments and supplements thereto) and any Supplemental Marketing Material to
the Purchasers.  The Company and the
Guarantors will reimburse the Purchasers for all travel expenses of the
Purchasers and the Company’s and the Guarantors’ officers and employees and any
other expenses of the Purchasers and the Company and the Guarantors in
connection with attending or hosting meetings with prospective purchasers of
the Offered Securities.

 

(i)            Use of
Proceeds. 
The Company will use the net proceeds received in connection with this
offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and, except as disclosed in the “Use of Proceeds” section of
the General Disclosure Package, the Company does not intend to use any of the
proceeds from the sale of the Offered Securities hereunder to repay any
outstanding debt owed to an affiliate of the Purchasers.

 

(j)            Absence
of Manipulation.  In connection with the offering, until Credit
Suisse shall have notified the Company and the other Purchasers of the
completion of the resale of the Offered Securities, neither the Company nor any
of the Guarantors nor any of their respective affiliates will, either alone or
with one or more other persons, bid for or purchase for any account in which it
or any of its affiliates has a beneficial interest any Offered Securities or
attempt to induce any person to purchase any Offered Securities; and neither it
nor any of its affiliates will make bids or purchases for the purpose of
creating actual, or apparent, active trading in, or of raising the price of,
the Offered Securities.

 

(k)           Restriction
on Sale of Securities.  Except pursuant to the Registration Rights
Agreement, for a period of 90 days after the date hereof, neither the Company
nor any of the Guarantors will offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, or file with the Commission a
registration statement under the Securities Act relating to, any United States
dollar-denominated debt securities issued or guaranteed by the Company or any
of the Guarantors and having a maturity of more than one year from the date of
issue of the Offered Securities, or publicly disclose the intention to make any
such offer, sale, pledge, disposition or filing, without the prior written
consent of Credit Suisse.  The Company
and the Guarantors will not at any time offer, sell, contract to sell, pledge
or otherwise dispose of, directly or indirectly, any securities under
circumstances where such offer, sale, pledge, contract or disposition

 

17

 

would cause the exemption afforded by Section 4(2) of
the Securities Act or the safe harbor of Regulation S thereunder to cease to be
applicable to the offer and sale of the Offered Securities and the Guarantees.

 

(l)            DTC.  The Company and the
Guarantors will obtain the approval of DTC for “book-entry” transfer of the
Securities and will comply with all of its agreements set forth in the
representation letters of the Company and the Guarantors to DTC relating to the
approval of the Securities by DTC for “book-entry” transfer.

 

(m)          Usury
Laws. 
The Company and the Guarantors will not voluntarily claim, and will
actively resist any attempts to claim, the benefit of any usury laws against
the holders of any Securities.

 

(n)           Registration
Rights Agreement.  The Company and the Guarantors will comply
with all of their respective agreements set forth in the Registration Rights
Agreement.

 

(o)           Further
Acts. 
The Company and the Guarantors will use their respective best efforts to
do and perform all things required or necessary to be done and performed under
this Agreement by it prior to the Closing Date and to satisfy all conditions
precedent to the delivery of the Offered Securities and the Guarantees.

 

6.        Free Writing Communications

 

(a)           Issuer
Free Writing Communications.  Each of the Company and each of the Guarantors represents and
agrees that, unless it obtains the prior consent of Credit Suisse, and each
Purchaser represents and agrees that, unless it obtains the prior consent of
the Company and Credit Suisse, it has not made and will not make any offer
relating to the Offered Securities that would constitute an Issuer Free Writing
Communication.

 

(b)           Term
Sheets. 
Each of the Company and each of the Guarantors consents to the use by any
Purchaser of a Free Writing Communication that (i) contains only (A) information
describing the preliminary terms of the Offered Securities or their offering or
(B) information that describes the final terms of the Offered Securities
or their offering and that is included in or is subsequently included in the
Final Offering Circular, including by means of a pricing term sheet in the form
of Attachment A to Schedule B hereto, or (ii) does not
contain any material information about the Company, the Guarantors or their
securities that was provided by or on behalf of the Company or the Guarantors,
it being understood and agreed that the Company and the Guarantors shall not be
responsible to any Purchaser for liability arising from any inaccuracy in such
Free Writing Communications referred to in clause (i) or (ii) as
compared with the information in the Preliminary Offering Circular or the Final
Offering Circular or the General Disclosure Package.

 

7.         Conditions of the Obligation of
the Purchasers. The obligation of the several Purchasers to
purchase and pay for the Offered Securities on the Closing Date will be subject
to the accuracy of the representations and warranties of the Company and the
Guarantors herein (as though made on the Closing Date), to the accuracy of the
statements of officers of the Company

 

18

 

and the Guarantors made
pursuant to the provisions hereof, to the performance by the Company and the
Guarantors of their respective obligations hereunder and to the following
additional conditions precedent:

 

(a)           Accountants’
Comfort Letter.  The Purchasers shall have received letters,
dated, respectively, the date hereof and the Closing Date, of each of (i) KPMG
LLP confirming that they are a registered public accounting firm and
independent public accountants with respect to the Parent Guarantor within the
meaning of the Securities Laws and substantially in the form of Exhibit D-1
hereto (except that, in any letter dated the Closing Date, the specified date
referred to in Exhibit D-1 hereto shall be a date no more than
three days prior to the Closing Date), and (ii) of Deloitte &
Touche LLP confirming that they are a registered public accounting firm and independent
public accountants with respect to National CineMedia within the meaning of the
Securities Laws and substantially in the form of Exhibit D-2 hereto
(except that, in any letter dated the Closing Date, the specified date referred
to in Exhibit D-2 hereto shall be a date no more than three days
prior to the Closing Date).

 

(b)           No
Material Adverse Change.  Subsequent to the execution and delivery of
this Agreement, there shall not have occurred, individually or in the
aggregate, (i) any change, or any development or event involving a
prospective change, in the condition (financial or other), business, properties
or results of operations of the Company, the Guarantors and their respective
subsidiaries taken as a whole which, in the judgment of the Purchasers, is
material and adverse and makes it impractical or inadvisable to proceed with
completion of the offering or the sale of and payment for the Offered
Securities; (ii) any downgrading in the rating of any debt securities of
the Company or any of the Guarantors by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g) under
the Securities Act), or any public announcement that any such organization has
under surveillance or review its rating of any debt securities of the Company
or any of the Guarantors (other than an announcement with positive implications
of a possible upgrading, and no implication of a possible downgrading, of such
rating) or any announcement that the Company or any of the Guarantors has been
placed on negative outlook; (iii) any change in U.S. or international
financial, political or economic conditions or currency exchange rates or
exchange controls, the effect of which is such as to make it, in the judgment
of the Purchasers, impractical to market or to enforce contracts for the sale
of the Offered Securities, whether in the primary market or in respect of
dealings in the secondary market; (iv) any material suspension or material
limitation of trading in securities generally on the New York Stock Exchange,
or any setting of minimum or maximum prices for trading on such exchange, (v) any
suspension of trading of any securities of the Company or any of the Guarantors
on any exchange or in the over-the-counter market; (vi) any banking
moratorium declared by any U.S. Federal or New York authorities; (vii) any
major disruption of settlements of securities, payment or clearance services in
the United States or (viii) any attack on, outbreak or escalation of
hostilities or act of terrorism involving the United States, any declaration of
war by Congress or any other national or international calamity or emergency
if, in the judgment of the Purchasers, the effect of any such attack, outbreak,
escalation, act, declaration, calamity or emergency is such as to make it
impractical or inadvisable to market the Offered Securities or to enforce
contracts for the sale of the Offered Securities.

 

19

 

(c)           Opinion
of Counsel for Company and the Guarantors.  The Purchasers shall have received opinions,
dated the Closing Date, of Hogan & Hartson L.L.P., counsel for the Company
and the Guarantors, substantially in the forms of Exhibits A-1 and A-2
hereto.

 

(d)           Opinion
of In-House Counsel for Company and the Guarantors.  The Purchasers shall
have received an opinion, dated the Closing Date, of Peter Brandow, General
Counsel to the Company, substantially in the form of Exhibit B
hereto.

 

(e)           Opinion
of Local Counsel.  The Purchasers shall have received opinions,
dated the Closing Date, from counsel in states where certain Guarantors are
incorporated and where Hogan & Hartson L.L.P. does not have an
office,  including, Bass, Berry &
Sims, PLC, special Tennessee counsel for Regal Cinemas Inc., substantially in
the form of Exhibit C hereto.

 

(f)            Opinion
of Counsel for Purchasers.  The Purchasers shall have received from
Skadden, Arps, Slate, Meagher & Flom LLP, counsel for the Purchasers,
such opinion or opinions, dated the Closing Date, with respect to such matters
as Credit Suisse may require, and the Company and the Guarantors shall have
furnished to such counsel such documents as they request for the purpose of
enabling them to pass upon such matters.

 

(g)           Officers’
Certificate.  The Purchasers shall have received a
certificate, dated the Closing Date, of the President or any Vice President and
a principal financial or accounting officer of the Company in which such
officers, to the best of their knowledge after reasonable investigation, shall
state that the representations and warranties of the Company and the Guarantors
in this Agreement are true and correct, that the Company and the Guarantors
have complied with all agreements and satisfied all conditions on their
respective parts to be performed or satisfied hereunder at or prior to the
Closing Date, and that, subsequent to the date of the most recent financial
statements in the General Disclosure Package there has been no material adverse
change, nor any development or event involving a prospective material adverse
change, in the condition (financial or other), business, properties or results
of operations of the Company, the Guarantors or their respective subsidiaries
taken as a whole except as set forth in the General Disclosure Package or
contemplated by the General Disclosure Package and that the industry,
statistical and market-related data included in the General Disclosure Package
and the Final Offering Circular has been reviewed by such persons and, subject
to the risks and limitations described in the General Disclosure Package and
the Final Offering Circular, to the best knowledge of such persons, is based on
or derived from sources which the Company and the Guarantors believe to be
reliable and accurate in all material respects.

 

The Company and the Guarantors will furnish
the Purchasers with such conformed copies of such opinions, certificates,
letters and documents as the Purchasers reasonably requests. Credit Suisse may
in its sole discretion waive on behalf of the Purchasers compliance with any
conditions to the obligations of the Purchasers hereunder.

 

20

 

8.         Indemnification and Contribution. (a) Indemnification of Purchasers.  The Company and the Guarantors, jointly and
severally, will indemnify and hold harmless each Purchaser, its officers,
employees, agents, partners, members, directors and its affiliates and each
person, if any, who controls such Purchaser within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any and all
losses, claims, damages or liabilities, joint or several, to which such
Indemnified Party may become subject, under the Securities Act, the Exchange
Act, other Federal or state statutory law or regulation or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Preliminary Offering Circular or the
Final Offering Circular, in each case as amended or supplemented, or any Issuer
Free Writing Communication or the Exchange Act Reports, or arise out of or are
based upon the omission or alleged omission of a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading, and will reimburse each Indemnified Party for
any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating, preparing or defending against any loss, claim,
damage, liability, action, litigation, investigation or proceeding whatsoever
(whether or not such Indemnified Party is a party thereto) whether threatened
or commenced and in connection with the enforcement of this provision with
respect to any of the above as such expenses are incurred; provided, however,
that the Company and the Guarantors will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with
written information furnished to the Company and the Guarantors by any
Purchaser through Credit Suisse specifically for use therein, it being
understood and agreed that the only such information consists of the
information described as such in subsection (b) below.

 

(b)           Indemnification
of Company and the Guarantors.  Each of the Purchasers, severally and not
jointly, will indemnify and hold harmless the Company, the Guarantors, each of
their respective directors and each of their respective officers and each
person, if any, who controls the Company and the Guarantors within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act
(each a “Purchaser Indemnified Party”),
against any losses, claims, damages or liabilities to which such Purchaser
Indemnified Party may become subject, under the Securities Act, the Exchange
Act, other Federal or state statutory law or regulation or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Preliminary Offering Circular or the
Final Offering Circular, in each case as amended or supplemented, or any Issuer
Free Writing Communication, or arise out of or are based upon the omission or
the alleged omission of a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Company and the Guarantors by such Purchaser through Credit Suisse
specifically for use therein, and will reimburse any legal or other expenses
reasonably incurred by such Purchaser Indemnified Party in connection with
investigating, preparing or defending against any such loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether
or

 

21

 

not such Purchaser Indemnified Party is a party thereto)
whether threatened or commenced based upon any such untrue statement or omission,
or any such alleged untrue statement or omission as such expenses are incurred,
it being understood and agreed that the only such information furnished by any
Purchaser consists of the following information in the Preliminary and Final
Offering Circular furnished on behalf of each Purchaser:  paragraphs three and nine under the caption “Plan
of Distribution”; provided  however, that the Purchasers shall not be
liable for any losses, claims, damages or liabilities arising out of or based
upon the Company’s or any Guarantor’s failure to perform its obligations under Section 5(a) of
this Agreement.

 

(c)           Actions
Against Parties; Notification.  Promptly after receipt by an indemnified
party under this Section of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under subsection (a) or (b) above, notify the
indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve it from any liability that it may have
under subsection (a) or (b) above except to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection (a) or (b) above.  In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation.  No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement includes (i) an unconditional
release of such indemnified party from all liability on any claims that are the
subject matter of such action and (ii) does not include a statement as to
or an admission of fault, culpability or failure to act by or on behalf of any
indemnified party.

 

(d)           Contribution.  If the
indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or
(b) above, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of the losses, claims,
damages or liabilities referred to in subsection (a) or (b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Guarantors on the one hand and the Purchasers on the other
from the offering of the Offered Securities or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also

 

22

 

the relative fault of the Company and the Guarantors on the
one hand and the Purchasers on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as well
as any other relevant equitable considerations. 
The relative benefits received by the Company and the Guarantors on the
one hand and the Purchasers on the other shall be deemed to be in the same
proportion as the total net proceeds from the offering (before deducting
expenses) received by the Company bear to the total discounts and commissions
received by the Purchasers from the Company under this Agreement.  The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or the Guarantors
or the Purchasers and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission.  The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which
is the subject of this subsection (d). 
Notwithstanding the provisions of this subsection (d), no Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Offered Securities purchased by it were resold exceeds
the amount of any damages which such Purchaser has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  The Purchasers’ obligations in
this subsection (d) to contribute are several in proportion to their
respective purchase obligations and not joint. 
The Company, the Guarantors and the Purchasers agree that it would not
be just and equitable if contribution pursuant to this Section 8(d) were
determined by pro rata allocation (even if the Purchasers were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 8(d).

 

9.         Default of Purchasers.  If any Purchaser or Purchasers default in
their obligations to purchase Offered Securities hereunder and the aggregate
principal amount of Offered Securities that such defaulting Purchaser or
Purchasers agreed but failed to purchase does not exceed 10% of the total
principal amount of Offered Securities that the Purchasers are obligated to
purchase on such Closing Date, Credit Suisse may make arrangements satisfactory
to each of the Company, Deutsche Bank Securities Inc., and J.P. Morgan
Securities Inc. for the purchase of such Offered Securities by other persons,
including any of the Purchasers, but if no such arrangements are made by such
Closing Date, the non-defaulting Purchasers shall be obligated severally, in
proportion to their respective commitments hereunder, to purchase the Offered
Securities that such defaulting Purchasers agreed but failed to purchase on
such Closing Date.  If any Purchaser or
Purchasers so default and the aggregate principal amount of Offered Securities
with respect to which such default or defaults occur exceeds 10% of the total
principal amount of  Offered Securities
that the Purchasers are obligated to purchase on such Closing Date and
arrangements satisfactory to Credit Suisse and the Company, Deutsche Bank
Securities Inc., and J.P. Morgan Securities Inc. for the purchase of such
Offered Securities by other persons are not made within 36 hours after
such default, this Agreement will terminate without liability on the part of
any non-defaulting Purchaser or the Company, except as provided in Section 10.  As used in this Agreement, the term “Purchaser”
includes any person substituted for a Purchaser under this Section.  Nothing herein will relieve a defaulting
Purchaser from liability for its default.

 

23

 

10.       Survival of Certain
Representations and Obligations. 
The respective indemnities, agreements, representations, warranties and
other statements of the Company, the Guarantors or their respective officers
and of the several Purchasers set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation, or
statement as to the results thereof, made by or on behalf of any Purchaser, the
Company, the Guarantors or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment
for the Offered Securities. If this Agreement is terminated pursuant to Section 9
or if for any reason the purchase of the Offered Securities by the Purchasers
is not consummated, the Company and the Guarantors shall remain responsible for
the expenses to be paid or reimbursed by them pursuant to Section 5 and
the respective obligations of the Company, the Guarantors and the Purchasers
pursuant to Section 8 shall remain in effect. If the purchase of the
Offered Securities by the Purchasers is not consummated for any reason other
than solely because of the termination of this Agreement pursuant to Section 9
or the occurrence of any event specified in clause (iii), (iv), (vi), (vii) or
(viii) of Section 7(b), the Company and the Guarantors will reimburse
the Purchasers for all out-of-pocket expenses (including fees and disbursements
of counsel) reasonably incurred by them in connection with the offering of the
Offered Securities.

 

11.       Notices.  All communications hereunder will be in
writing and, if sent to the Purchasers will be mailed, delivered or telegraphed
and confirmed to the Purchasers, c/o Credit Suisse Securities (USA) LLC at
Eleven Madison Avenue, New York, New York 10010-3629, Attention:  LCD-IBD, or, if sent to the Company or any of
the Guarantors, will be mailed, delivered or telegraphed and confirmed to it at
7132 Regal Lane, Knoxville, Tennessee 37918, Attention: General Counsel, with a
copy to Richard J. Mattera, Esq. at Hogan & Hartson L.L.P., One
Tabor Center, Suite 1500, 1200 Seventeenth Street, Denver, Colorado 80202;
provided, however, that any
notice to a Purchasers pursuant to Section 8 will be mailed, delivered or
telegraphed and confirmed to such Purchaser.

 

12.       Successors.  This Agreement will inure to the benefit of
and be binding upon the parties hereto and their respective successors and the
controlling persons referred to in Section 8, and no other person will
have any right or obligation hereunder, except that holders of Offered
Securities shall be entitled to enforce the agreements for their benefit
contained in the second and third sentences of Section 5(b) hereof
against the Company and the Guarantors as if such holders were parties hereto.

 

13.       Representation
of Purchasers.  You will act
for the several Purchasers in connection with this purchase, and any action
under this Agreement taken by you will be binding upon all the Purchasers.

 

14.       Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

 

15.       Absence
of Fiduciary Relationship.  Each of the Company and each of the
Guarantors acknowledges and agrees that:

 

24

 

(a)           No Other Relationship. 
The Purchasers have been retained solely to act as initial purchaser(s) in
connection with the initial purchase, offering and resale of the Offered
Securities and that no fiduciary, advisory or agency relationship between the
Company, any of the Guarantors and the Purchasers have been created in respect
of any of the transactions contemplated by this Agreement or the Preliminary or
Final Offering Circular, irrespective of whether the Purchasers have advised or
is advising the Company or any of the Guarantors on other matters;

 

(b)           Arm’s Length Negotiations. 
The purchase price of the Offered Securities set forth in this Agreement
was established by the Company and the Guarantors following discussions and
arms-length negotiations with the Purchasers and the Company and the Guarantors
are capable of evaluating and understanding and understands and accepts the
terms, risks and conditions of the transactions contemplated by this Agreement;

 

(c)           Absence of Obligation to Disclose.  The Company and the Guarantors have been
advised that the Purchasers and their affiliates are engaged in a broad range
of transactions which may involve interests that differ from those of the Company
and the Guarantors and that the Purchasers has no obligation to disclose such
interests and transactions to Company and the Guarantors by virtue of any
fiduciary, advisory or agency relationship; and

 

(d)           Waiver of Claims. 
Each of the Company and each of the Guarantors waives, to the fullest
extent permitted by law, any claims it may have against the Purchasers for
breach of fiduciary duty or alleged breach of fiduciary duty and agrees that
the Purchasers shall have no liability (whether direct or indirect) to the
Company or the Guarantors in respect of such a fiduciary duty claim or to any
person asserting a fiduciary duty claim on behalf of or in right of the Company
or the Guarantors, including stockholders, employees or creditors of the Company
or the Guarantors.

 

16.      Applicable Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to principles of conflicts of laws.

 

Each of the Company and each of the
Guarantors hereby submits to the non-exclusive jurisdiction of the Federal and
state courts in the Borough of Manhattan in The City of New York in any suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.  Each of the Company
and each of the Guarantors irrevocably and unconditionally waives any objection
to the laying of venue of any suit or proceeding arising out of or relating to
this Agreement or the transactions contemplated hereby in Federal and state
courts in the Borough of Manhattan in The City of New York and irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such suit or proceeding in any such court has been brought in an
inconvenient forum.

 

25

 

If the foregoing is in accordance with the
Purchasers’ understanding of our agreement, kindly sign and return to the
Company one of the counterparts hereof, whereupon it will become a binding
agreement among the Company, the Guarantors and the several Purchasers in
accordance with its terms.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGAL
  CINEMAS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David S. Ownby

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  REGAL
  CINEMAS, INC.

  
	
   

  	
  R.C.
  COBB, INC.

  
	
   

  	
  REGAL
  INVESTMENT COMPANY

  
	
   

  	
  A
  3 THEATRES OF TEXAS, INC.

  
	
   

  	
  A
  3 THEATRES OF SAN ANTONIO, LTD.,

  
	
   

  	
         by A3
  Theatres of Texas, Inc., its General Partner

  
	
   

  	
  EASTGATE
  THEATRE, INC.

  
	
   

  	
  REGAL
  CINEMAS HOLDINGS, INC.

  
	
   

  	
  EDWARDS
  THEATRES, INC.

  
	
   

  	
  HOYTS
  CINEMAS CORPORATION

  
	
   

  	
  INTERSTATE
  THEATRES CORPORATION

  
	
   

  	
  FREDERICK
  PLAZA CINEMAS, INC.

  
	
   

  	
  RCI/FSSC,
  LLC

  
	
   

  	
  RCI/RMS,
  LLC

  
	
   

  	
  REGAL
  CINEMEDIA CORPORATION

  
	
   

  	
  REGAL
  GALLERY PLACE, LLC

  
	
   

  	
  UA
  SWANSEA, LLC

  
	
   

  	
         by
  Interstate Theatres Corporation, its Sole Member

  
	
   

  	
  UNITED
  ARTISTS PROPERTIES I CORP.

  
	
   

  	
  UNITED
  ARTISTS REALTY COMPANY

  
	
   

  	
  UNITED
  ARTISTS THEATRE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David S. Ownby

  
	
   

  	
   

  	
  Title:
  Executive Vice President, Chief Financial Officer and Treasurer, or Vice
  President and Treasurer (as applicable)

  

 

26

 

	
   

  	
  CONSOLIDATED
  THEATRES MANAGEMENT, L.L.C.

  
	
   

  	
  RICHMOND
  I CINEMA, L.L.C.

  
	
   

  	
  By Regal Cinemas, Inc., its Sole Member and
  Sole Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David S. Ownby

  
	
   

  	
   

  	
  Title:
  Executive Vice President, Chief Financial Officer and Treasurer or Vice
  President and Treasurer (as applicable)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REGAL
  ENTERTAINMENT GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David S. Ownby

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  

 

27

 

	
  The foregoing Purchase Agreement is hereby
  confirmed and accepted as of the date first above written.

  	
   

  
	
   

  	
   

  
	
  CREDIT SUISSE SECURITIES (USA) LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Jerald Slowik

  	
   

  
	
   

  	
  Name: Jerald Slowik

  	
   

  
	
   

  	
  Title: Director

  	
   

  

 

28

 

SCHEDULE A

 

	
  Purchasers

  	
   

  	
  Principal Amount of

  Offered

  Securities

  	
   

  
	
  Credit Suisse Securities (USA) LLC

  	
   

  	
  $

  	
  157,580,000

  	
   

  
	
  Deutsche Bank Securities Inc.

  	
   

  	
  96,970,000

  	
   

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  77,580,000

  	
   

  
	
  Banc of America Securities LLC

  	
   

  	
  48,480,000

  	
   

  
	
  Barclays Capital Inc.

  	
   

  	
  19,390,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  400,000,000

  	
   

  

 

 

SCHEDULE B

 

1.         Issuer Free Writing Communications (included in the General
Disclosure Package)

 

1.  Pricing
term sheet, dated July 9, 2009, a copy of which is attached as Schedule
A to the Purchase Agreement.

 

2.         Other Information Included in the General Disclosure Package

 

The following information is also included in
the General Disclosure Package:

 

None.

 

 

Attachment A to SCHEDULE B

 

Pricing Term Sheet

 

See attached.

 

 

 

High Yield Capital Markets

 

	
  Issuer:

  	
   

  	
  Regal
  Cinemas Corporation

  
	
   

  	
   

  	
   

  
	
  Security
  Description:

  	
   

  	
  Senior Unsecured Notes

  
	
  Face:

  	
   

  	
  $400,000,000

  
	
  Gross
  Proceeds:

  	
   

  	
  $390,244,000

  
	
  Coupon:

  	
   

  	
  8.625%

  
	
  Maturity:

  	
   

  	
  7/15/2019

  
	
  Offering
  Price:

  	
   

  	
  $97.561

  
	
  Yield
  to Maturity:

  	
   

  	
  9.000%

  
	
  Spread
  to Treasury:

  	
   

  	
  560

  
	
  Benchmark:

  	
   

  	
  3.125% UST due
  05/15/2019

  
	
  Ratings:

  	
   

  	
  B1 /
  B-   (1)

  
	
   

  	
   

  	
   

  
	
  Interest
  Payment Dates:

  	
   

  	
  January 15 and
  July 15

  
	
  Commencing:

  	
   

  	
  1/15/2010

  
	
   

  	
   

  	
   

  
	
  Optional
  Redemption:

  	
   

  	
  Callable, on or after
  the following dates, and at the following prices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Price

  	
   

  	
   

  
	
   

  	
   

  	
  7/15/2014

  	
   

  	
  104.313

  	
  %

  	
   

  
	
   

  	
   

  	
  7/15/2015

  	
   

  	
  102.875

  	
  %

  	
   

  
	
   

  	
   

  	
  7/15/2016

  	
   

  	
  101.438

  	
  %

  	
   

  
	
   

  	
   

  	
  7/15/2017

  	
   

  	
  100.000

  	
  %

  	
   

  
	
   

  	
   

  	
  and thereafter

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Make-Whole:

  	
   

  	
  Callable prior to first
  call date at make-whole call of T+50

  
	
   

  	
   

  	
   

  
	
  Equity
  Clawback:

  	
   

  	
  Redeem until 

  	
  7/15/2012 at 108.625%

  
	
   

  	
   

  	
  for up to

  	
  35.0%

  
	
   

  	
   

  	
   

  
	
  Trade
  Date:

  	
   

  	
  7/9/2009

  
	
  Settlement
  Date:

  	
   

  	
  7/15/2009

  	
  (T+4)

  
	
   

  	
   

  	
   

  	
   

  
	
  Cusip
  Numbers:

  	
   

  	
  144 A:

  	
  758753AC1

  
	
   

  	
   

  	
  144A ISIN:

  	
  US758753AC16

  
	
   

  	
   

  	
  RegS:

  	
  U75840AB1

  
	
   

  	
   

  	
  RegS ISIN:

  	
  USU75840AB14

  
	
   

  	
   

  	
   

  
	
  Min.
  Allocation:

  	
   

  	
  $2,000

  
	
  Increments:

  	
   

  	
  $1,000

  
	
   

  	
   

  	
   

  
	
  Book-Runners:

  	
   

  	
  Credit Suisse
  Securities (USA) LLC

  
	
   

  	
   

  	
  Deutsche Bank
  Securities Inc.

  
	
   

  	
   

  	
  J.P. Morgan Securities
  Inc.

  
	
   

  	
   

  	
   

  
	
  Co-Managers:

  	
   

  	
  Banc of America
  Securities LLC

  
	
   

  	
   

  	
  Barclays Capital Inc.

  
								

 

(1)
These securities ratings  have been provided by Moody’s and S&P. Neither of these ratings is a recommendation
to buy, sell or hold these securities.
Each rating may be subject to revision or withdrawal at any time, and should be evaluated independently
of any other rating.

 

This
communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy any security. No offer to buy securities  described herein can
be accepted,
and no part of the purchase price thereof can be received, unless the person making such
investment decision has received and
reviewed the information contained in the relevant prospectus or offering circular in making their investment
decisions. This communication is not intended to be a confirmation as required under
Rule 10b-10 of the Securities Exchange Act of 1934.  A formal
confirmation will be delivered to you separately. This notice shall not
constitute an offer to sell or a solicitation of an offer to buy, nor shall there be
any sale of the notes in any
state or jurisdiction in which such offer, solicitation or sale would be unlawful. The
notes will be offered and sold to qualified institutional buyers in the United
States in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Act”), and to
persons in offshore transactions in reliance on Regulation S under
the Act. The notes have not
been registered under the Securities Act or any state securities laws, and may
not be offered or sold in the United States or in U.S. persons absent
registration or an applicable exemption from the registration requirements.

 

1

 

Supplement
to Offering Circular Disclosure

 

As of
April 2, 2009, Regal Cinemas’ subsidiaries that are not guarantors would
have accounted for approximately $265.4 million, or 9.4%, of REG’s total
revenues for the 52 weeks ended April 2, 2009, approximately $229.3
million, or 8.9%, of REG’s total assets and approximately $143.5 million, or 5.1%,
of REG’s total liabilities.

 

The Consolidated
EBITDA basket in the Restricted Payments Covenant will be calculated for the
period starting on March 28, 2009 instead of March 28, 2008.

 

2

 

SCHEDULE C

 

Supplemental Marketing Material

 

Investor Presentation dated July 9,
2009.

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