Document:

Exhibit 4.1

 

Execution Version

 

PERMITTED SECURED REFINANCING AGREEMENT

 

This PERMITTED SECURED REFINANCING AGREEMENT (this “Agreement”), dated as of December 2, 2016, is entered into among REGAL CINEMAS CORPORATION, a Delaware corporation (the “Borrower”), the GUARANTORS (as defined in the Credit Agreement referred to below), REGAL ENTERTAINMENT HOLDINGS, INC., a Delaware corporation (“Holdings”), the LENDERS party hereto, and CREDIT SUISSE AG, as administrative agent (the “Administrative Agent”) for (and on behalf of) the lenders under the Credit Agreement referred to below.

 

RECITALS

 

WHEREAS, the Borrower, the Administrative Agent and the Lenders from time to time party thereto entered into that certain Seventh Amended and Restated Credit Agreement, dated as of April 2, 2015 (as amended by that certain Permitted Secured Refinancing Agreement, dated as of June 1, 2016, and as further amended, restated, amended and restated, supplemented or otherwise modified and in effect immediately prior to the effectiveness of this Agreement, the “Existing Credit Agreement”; and the Existing Credit Agreement as modified by this Agreement, the “Credit Agreement”);

 

WHEREAS, the Borrower will consummate a Permitted Secured Refinancing of the Term Loans outstanding under the Existing Credit Agreement in the principal amount of $956,120,508.08, and in accordance therewith the Lenders party hereto and listed on Schedule 1 as having a commitment to make Refinancing Term Loans (as defined below) (the “Refinancing Term Lenders”) will advance Term Loans in an aggregate principal amount of $956,120,508.08, the proceeds of which will be used, together with other amounts provided by the Borrower, to repay and replace all of the outstanding principal and accrued and unpaid interest on all of the Term Loans under the Existing Credit Agreement and to pay fees and expenses incurred in connection therewith (such existing Term Loans, the “Existing Term Loans”; and such repayment and replacement, the “Term Loan Refinancing”) (it being understood that a portion of such amount may be advanced through continuations or rollovers of Existing Term Loans in accordance with procedures agreed to by the Borrower, the Administrative Agent and such Lenders holding Existing Term Loans so continued or rolled over);

 

WHEREAS, concurrently with the Term Loan Refinancing, Holdings, the Borrower, the Guarantors, the Lenders party hereto and the Administrative Agent will make certain amendments to the Existing Credit Agreement as provided herein;

 

NOW, THEREFORE, in consideration of the covenants made hereunder, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.                            Definitions.  Except as expressly provided herein, capitalized terms used in this Agreement but not defined in this Agreement shall have the meanings set forth for such terms in the Credit Agreement.

 

SECTION 2.                            Permitted Secured Refinancing of the Existing Term Loans.

 

(a)                                 After giving effect to the Term Loan Refinancing, pursuant to which the Existing Term Loans shall be refinanced and replaced with loans made under Section 6.2(j) of the Existing Credit Agreement (the “Refinancing Term Loans”), the Refinancing Term Lenders shall be the only Lenders under the Credit Agreement holding Term Loan Exposure.

 

 

(b)                                 The Refinancing Term Lenders listed on Schedule I shall advance an aggregate principal amount of $956,120,508.08 as Refinancing Term Loans pursuant to the terms and conditions hereof, in the amounts (with respect to each Lender listed on Schedule I hereto) set forth opposite its name on Schedule I hereto (it being understood that a portion of such amount may be advanced through continuations or rollovers of Existing Term Loans in accordance with procedures agreed to by the Borrower, the Administrative Agent and such Lenders holding Existing Term Loans so continued or rolled over).

 

(c)                                  The terms of the Refinancing Term Loans shall be as set forth for Term Loans in the Credit Agreement.

 

SECTION 3.                            Joinder to Credit Agreement. Each Lender listed on Schedule I acknowledges and agrees that, upon the effectiveness of this Agreement, it shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof; and shall perform all the obligations of and shall have all rights of a Lender thereunder.

 

SECTION 4.                            Amendments to Credit Agreement.  Immediately and automatically effective as of the effectiveness of this Agreement pursuant to Section 5 below and the occurrence of the Term Loan Refinancing, the Existing Credit Agreement shall be amended as follows:

 

(a)                                 Section 1.1 of the Existing Credit Agreement is hereby amended by replacing the definitions of “Applicable Margin” and “Repricing Transaction” in their entirety to read as follows:

 

“Applicable Margin” means (a) with respect to any Term Loans (other than New Term Loans), (i) 2.50% for Eurodollar Rate Loans and (ii) 1.50% for ABR Rate Loans, (b) with respect to any Revolving Loans, (i) 3.00% for Eurodollar Rate Loans and (ii) 2.00% for ABR Rate Loans and (c) with respect to any New Term Loans, the Applicable Margin shall be as provided for in the Joinder Agreement related to the New Term Loan Commitments in respect of such New Term Loans.

 

“Repricing Transaction” means (i) the prepayment or refinancing of all or a portion of the Term Loans with the incurrence by Parent, Borrower or any of their respective Subsidiaries of any long-term bank debt financing incurred for the primary purpose of repaying, refinancing, substituting or replacing the Term Loans (but not in connection with a change of control transaction not otherwise permitted hereunder or for consummating an acquisition not otherwise permitted under this Agreement)  and having an effective interest cost or weighted average yield (as reasonably determined by the Administrative Agent consistent with generally accepted financial practice (it being understood that OID and upfront fees shall be equated to interest rate assuming a four-year life to maturity) and, in any event, excluding any arrangement or commitment fees in connection therewith) that is less than the interest rate for or weighted average yield (as reasonably determined by the Administrative Agent on the same basis) of the Term Loans, or (ii) any amendment to this Agreement or any other Loan Document relating to the interest rate for, or weighted average yield of, the Term Loans which has the effect of lowering the interest cost or weighted average yield (as reasonably determined by the Administrative Agent consistent with generally accepted financial practice (it being understood that OID and upfront fees shall be equated to interest rate assuming a four-year life to maturity) and, in any event, excluding any arrangement or commitment fees in connection therewith) of the Term Loans from that in effect on the Second Amendment Effective Date; at the request of Borrower, the Administrative Agent shall provide to Borrower such determinations.

 

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(b)                                 Section 1.1 of the Existing Credit Agreement is hereby further amended by adding the following terms in proper alphabetical order:

 

“Second Amendment” means the Permitted Secured Refinancing Agreement, dated as of the Second Amendment Effective Date, among the Borrower, the Guarantors, Holdings, the Lenders party thereto and the Administrative Agent.

 

“Second Amendment Effective Date” means December 2, 2016.

 

(c)                                  Section 2.11 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

2.11                        Scheduled Payments.  The principal amounts of the Term Loans of each Lender (other than New Term Loans, for which scheduled payments shall be made as provided for in the Joinder Agreement relating to such New Term Loan) shall be repaid in consecutive quarterly installments (each, an “Installment”) in an amount equal to such Lender’s Pro Rata Share (determined with respect to Term Loans other than New Term Loans) of an amount equal to 0.25% of the aggregate principal amount of the Term Loans outstanding on the Second Amendment Effective Date after giving effect to the Second Amendment and the transactions contemplated thereby, commencing March 30, 2017. Notwithstanding the foregoing, (x) such Installments shall be reduced in connection with any voluntary or mandatory prepayments of the Term Loans, as the case may be, in accordance with Sections 2.12, 2.13 and 2.14, as applicable; (y) such Installments shall be reduced on a pro rata basis in connection with any assignment of Term Loans to Borrower (and subsequent cancellation and extinguishment of such Term Loans) in accordance with Section 9.6(l); and (z) the Term Loans, together with all other amounts owed hereunder with respect thereto, shall, in any event, be paid in full no later than the Term Loan Maturity Date.

 

(d)                                 Section 2.21 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

2.21                        Repricing Protection.  In the event that, after the Second Amendment Effective Date, but on or prior to the six-month anniversary thereof, any Repricing Transaction occurs, Borrower shall pay to the Administrative Agent, for the ratable account of each of the applicable Lenders holding Term Loans, (A) in the case of a prepayment or refinancing constituting a Repricing Transaction a premium of 1.00% of the aggregate amount of the Term Loans being prepaid and (B) in the case of an amendment constituting a Repricing Transaction, a payment equal to 1.00% of the aggregate amount of the applicable Term Loans outstanding immediately prior to such amendment. As a condition to effectiveness of any required assignment by any Nonconsenting Lender of its Term Loans pursuant to Section 2.20 in respect of any amendment, amendment and restatement or modification to this Agreement effective prior to the six-month anniversary of the Second Amendment Effective Date that has the effect of reducing the Applicable Margin or interest rate for any Term Loans from the Applicable Margin or interest rate in effect on the Second Amendment Effective Date, Borrower shall pay to such Nonconsenting Lender its ratable portion of such payment referred to in clause (B) above. For purposes of clarity, Borrower shall have no obligation to make any such payment referred to in clause (B) above to any Replacement Lender that is assigned such Nonconsenting Lender’s Term Loans pursuant to Section 2.20.

 

SECTION 5.                            Conditions to Effectiveness of this Agreement.  This Agreement, and, for the avoidance of doubt, the Term Loan Refinancing contemplated hereunder, shall become effective when all the conditions set forth in this Section 5 shall have been satisfied (provided that such conditions are satisfied no later than 5:00

 

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p.m. (New York time) on December 2, 2016) (the date such conditions are satisfied being the “Agreement Effective Date”).

 

(a)                                 Execution of Counterparts. The Administrative Agent shall have executed this Agreement, in its capacity as Administrative Agent, and shall have received (i) counterparts of this Agreement executed by Holdings, the Borrower and each Guarantor and (ii) counterparts of this Agreement executed by each Refinancing Term Lender.

 

(b)                                 Satisfaction of Credit Suisse.  Credit Suisse shall be satisfied that after giving effect to the Refinancing Term Loans, repayment of all Existing Term Loans and payment of all accrued and unpaid interest on the Existing Term Loans, the principal amount of Term Loans outstanding under the Credit Agreement shall not exceed $956,120,508.08.

 

(c)                                  Second Amendment Effective Date Certificate.  The Administrative Agent shall have received a certificate dated the Agreement Effective Date and executed by a Financial Officer of the Borrower that the conditions set forth in Section 5(e) have been satisfied.

 

(d)                                 Fees.  The Administrative Agent (and its Affiliates) shall have received all fees required to be paid to the Administrative Agent or its Affiliates, and all expenses (including the reasonable fees and expenses of legal counsel) for which invoices have been presented, on or before the Agreement Effective Date.

 

(e)                                  Agreement Effective Date Representations and Warranties; Absence of Defaults.

 

(i)             As of the Agreement Effective Date, the representations and warranties contained herein, in the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the Agreement Effective Date (it being understood and agreed that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on the Agreement Effective Date), except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date (it being understood and agreed that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such earlier date).

 

(ii)          As of the Agreement Effective Date, no event shall have occurred and be continuing or would result from the consummation of the transactions contemplated by this Agreement on the Agreement Effective Date that would constitute an Event of Default or a Default.

 

(f)                                   Organizational Documents; Incumbency.  The Administrative Agent shall have received (i) a copy of each Organizational Document of Holdings and each Loan Party, and, to the extent applicable, certified as of a recent date by the appropriate governmental official, each dated the Agreement Effective Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of such Person executing the Loan Documents to which it is a party; (iii) resolutions of the board of directors or similar governing body of Holdings and each Loan Party approving and authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, certified as of the Agreement Effective Date by its secretary or an assistant secretary as being in full force and effect without modification or amendment; (iv) a good standing certificate from the applicable Governmental Authority of Holdings’ and the Borrower’s jurisdiction of incorporation, organization or formation, dated a recent date prior to the Agreement Effective Date; and (v) such other documents as the Administrative Agent may reasonably request; provided that, in the case of Holdings and any Loan Party in lieu of the attachments referred to in clauses (i) and (ii) of this Section

 

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5(f), such certificate (1) may certify that (A) since the First Amendment Effective Date (as defined in the Existing Credit Agreement), there have been no changes to Organizational Documents of such Person, and (B) no changes have been made to the incumbency certificate of the officers of such Person delivered on the Closing Date or the First Amendment Effective Date (as applicable and each as defined in the Existing Credit Agreement) by such Loan Party.

 

(g)                                  Governmental Authorizations and Consents.  Each Loan Party and Holdings shall have obtained all Governmental Authorizations and all consents of other Persons, in each case that are necessary or advisable in connection with the transactions contemplated by the Loan Documents, and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to the Administrative Agent.  All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on this Agreement or the other Loan Documents, the Term Loan Refinancing or the other transactions contemplated hereby and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

 

(h)                                 Opinions of Counsel to Loan Parties and Holdings.  The Administrative Agent and Lenders and their respective counsel shall have received an originally executed copy of the favorable written opinion of Hogan Lovells US LLP, as counsel for the Borrower, dated as of the Agreement Effective Date and otherwise in form and substance reasonably satisfactory to the Administrative Agent (and the Borrower hereby instructs Hogan Lovells US LLP to deliver such opinion to the Administrative Agent and the Lenders).

 

(i)                                     Solvency Certificate.  On the Agreement Effective Date, the Administrative Agent shall have received a Solvency Certificate from the Borrower, dated the Agreement Effective Date, and addressed to the Administrative Agent and the Lenders, in form, scope and substance satisfactory to the Administrative Agent, demonstrating that after giving effect to the consummation of the transactions to occur on the Agreement Effective Date and after giving effect to any applicable rights of contribution of such Person in respect of Guarantied Obligations, Borrower and its Subsidiaries are and will be Solvent.

 

(j)                                    No Litigation.  There shall not exist any action, suit, investigation, litigation or proceeding or other legal or regulatory developments, pending or threatened in any court or before any arbitrator or Governmental Authority that, in the opinion of the Administrative Agent, singly or in the aggregate, could reasonably be expected to restrain, prevent or impose materially burdensome conditions on any of the transactions contemplated by this Agreement and the other Loan Documents or that could have a Material Adverse Effect.

 

(k)                                 No Material Adverse Effect.  Since December 31, 2015, there shall not have occurred a Material Adverse Effect and there shall have been no development or event that could reasonably be expected to have a Material Adverse Effect.

 

(l)                                     Information for Regulators.  The Administrative Agent shall have received, sufficiently in advance of the Agreement Effective Date, all documentation and other information required by Governmental Authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including the Patriot Act.

 

(m)                             Completion of Proceedings.  All partnership, corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incidental thereto shall be satisfactory in form and substance to the Administrative Agent and its counsel, and the Administrative Agent

 

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and such counsel shall have received all such counterpart originals or certified copies of such documents as the Administrative Agent may reasonably request.

 

(n)                                 Funding Notice. The Administrative Agent shall have received a fully executed and delivered Funding Notice.

 

SECTION 6.                            Representations and Warranties.  Holdings, the Borrower and each other Loan Party represents and warrants as follows:

 

(a)                                 Power; Authorization; Enforceable Obligations. Holdings, the Borrower and each other Loan Party has the requisite power and authority, and the legal right, to enter into this Agreement.  Holdings, the Borrower and each other Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Agreement.  This Agreement constitutes a legal, valid and binding obligation of Holdings, the Borrower and each other Loan Party signatory hereto, enforceable against Holdings, the Borrower and each other Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).  The Credit Agreement and each other Loan Document constitutes a legal, valid and binding obligation of Holdings, the Borrower and each other Loan Party, in each case, to the extent party to such Loan Document, enforceable against Holdings, the Borrower and each other Loan Party in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

(b)                                 No Legal Bar. The execution, delivery and performance of this Agreement will not violate any Requirement of Law or any material Contractual Obligation of Holdings, the Borrower and each other Loan Party, nor result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Loan Documents).

 

(c)                                  Accuracy of Representations and Warranties. The representations and warranties of Holdings, the Borrower and each other Loan Party set forth in the Loan Documents (including, for avoidance of doubt, in the Credit Agreement) are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date (it being understood and agreed that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on the applicable date).

 

(d)                                 No Default or Event of Default. As of the date hereof, after giving effect to this Agreement, no event has occurred and is continuing that would constitute an Event of Default or a Default.  No Default or Event of Default shall result from the effectiveness of this Agreement, the Term Loan Refinancing and the other transactions contemplated hereby.

 

SECTION 7.                            Validity of Obligations and Liens; Reaffirmation.

 

(a)                                 Validity of Obligations.  Holdings, the Borrower and each other Loan Party acknowledges and agrees that, both before and after giving effect to this Agreement, the Borrower and each other Loan Party (and, as provided in the Guaranty and Pledge Agreement, Holdings) is, jointly and severally, indebted to the Lenders and the other Secured Parties for the Obligations, without defense, counterclaim or offset of any kind, and

 

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Holdings, the Borrower and each other Loan Party hereby ratifies and reaffirms the validity, enforceability and binding nature of such Obligations.  It is acknowledged and agreed that all references to “Obligations” in this Agreement or in the Credit Agreement, the Guaranty and Collateral Agreement, the Guarantee and Pledge Agreement, any Mortgage or any other Loan Document shall include, without limitation, all Obligations under or related to the Refinancing Term Loans, the Loans, Letters of Credit and all other Obligations under the Credit Agreement.

 

(b)                                 Validity of Guarantees.  Holdings and each Guarantor hereby (i) acknowledges and agrees to the terms of this Agreement and (ii) confirms and agrees that, its guarantee under the Guaranty and Collateral Agreement (or in the case of Holdings, under the Guaranty and Pledge Agreement) is, and shall continue to be, in full force and effect, and shall apply to all Obligations and such guarantee is hereby ratified and confirmed in all respects.

 

(c)                                  Validity of Liens and Credit Documents.  Holdings, the Borrower and each other Loan Party hereby ratifies and reaffirms the validity and enforceability (without defense, counterclaim or offset of any kind) of the Liens and security interests granted to the Administrative Agent for the benefit of the Secured Parties to secure any of the Obligations by Holdings, the Borrower or any other Loan Party pursuant to the Loan Documents to which any of Holdings, the Borrower or any other Loan Party is a party and hereby confirms and agrees that notwithstanding the effectiveness of this Agreement, and except as expressly amended by this Agreement, each such Loan Document is, and shall continue to be, in full force and effect and each is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of this Agreement, each reference in the Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” (and each reference in the Existing Credit Agreement to this “Agreement”, “hereunder” or “hereof”) or words of like import shall mean and be a reference to the Credit Agreement.  Except as expressly set forth herein, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

 

(d)                                 Reaffirmation.

 

(i)             The Borrower and each Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Agreement and the Credit Agreement and consents to the amendments and modifications effected hereby and thereby.  The Borrower and each Guarantor hereby agrees and confirms, both before and after giving effect to the amendments to the Existing Credit Agreement effected by this Agreement, that it is a party to and is bound by the Guaranty and Collateral Agreement as a grantor of collateral under the Guaranty and Collateral Agreement and (except in the case of the Borrower) as a guarantor thereunder, by virtue of its having been an original signatory thereto, a successor to such an original signatory or a signatory to a supplement thereto.  The Guaranty and Collateral Agreement is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed.  Without limiting the generality of the foregoing, the Guaranty and Collateral Agreement and all of the Collateral described therein do and shall continue to secure the payment of all Obligations under and as defined therein.  The Borrower hereby reaffirms its grant of, and hereby grants, a security interest in the Collateral (as defined in the Guaranty and Collateral Agreement) to the Administrative Agent for the ratable benefit of the Secured Parties, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations.  Each Guarantor hereby reaffirms its grant of, and hereby grants, a security interest in the Collateral (as defined in the Guaranty and Collateral Agreement) to the Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security for the prompt and complete payment and performance when due (whether at

 

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stated maturity, by acceleration or otherwise) of the Guarantied Obligations (as defined in the Guaranty and Collateral Agreement).

 

(ii)          Holdings hereby acknowledges that it has reviewed the terms and provisions of this Agreement and the Credit Agreement and consents to the amendments and modifications effected hereby and thereby.  Holdings hereby agrees and confirms, both before and after giving effect to the amendments to the Existing Credit Agreement effected by this Agreement, that it is a party to and is bound by the Guaranty and Pledge Agreement and as a guarantor thereunder, by virtue of its having been an original signatory thereto, a successor to such an original signatory or a signatory to a supplement thereto.  The Guaranty and Pledge Agreement is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed.  Without limiting the generality of the foregoing, the Guaranty and Pledge Agreement and all of the Collateral described therein do and shall continue to secure the payment of all Guarantied Obligations under and as defined therein.  Holdings hereby reaffirms its grant of, and hereby grants, a security interest in the Collateral described in the Guaranty and Pledge Agreement to the Administrative Agent for the ratable benefit of the Secured Parties, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Guarantied Obligations.

 

SECTION 8.                            Post-Closing Obligations.  The Borrower shall deliver or perform, or cause to be delivered or performed, the documents and other agreements set forth on Schedule II within the time frames specified therein.

 

SECTION 9.                            Lender Consent and Authorization to Amend Other Loan Documents.  Each of the Lenders party hereto hereby consents to, and authorizes Holdings, the Borrower, each other Loan Party and the Administrative Agent to enter into such amendments, restatements, amendment and restatements, replacements, supplements and modifications to the Notes, the Guaranty and Collateral Agreement, the Guaranty and Pledge Agreement, the Intellectual Property Security Agreement, the Control Agreements and the other Security Documents and Loan Documents as the Administrative Agent deems reasonably necessary or desirable in connection with this Agreement.

 

SECTION 10.                     Governing Law.  This Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York.

 

SECTION 11.                     Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different 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.  Delivery of an executed counterpart of this Agreement by telecopier or electronic image scan transmission (e.g., PDF via electronic mail) shall be effective as delivery of an original executed counterpart of this Agreement.

 

SECTION 12.                     Execution of Agreement.  This Agreement shall be executed by Holdings, the Borrower, each Guarantor, the Administrative Agent, in its capacity as Administrative Agent under the Existing Credit Agreement and each of the Lenders party hereto.  Execution of this Agreement by any Person constitutes the agreement of such Person to the terms of (and results in such Person being bound by) this Agreement and, on the Agreement Effective Date, the Credit Agreement.

 

SECTION 13.  Severability.  In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

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SECTION 14.  Integration.  This Agreement, the Existing Credit Agreement, the Credit Agreement, the other Loan Documents and any separate letter agreements among the Borrower and the Administrative Agent or its affiliates or any other agent or arranger with respect to the Credit Agreement relating to this Agreement or the transactions contemplated hereby or with respect to fees payable to the Administrative Agent (or its affiliates) or such other agent or arranger constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. For the avoidance of doubt, this Agreement is a Loan Document.

 

SECTION 15.                     No Discharge.  This Agreement shall not discharge or release the priority of any Loan Document or any other security therefor.  Nothing herein contained shall be construed as a substitution or novation of the instruments, documents and agreements securing the Obligations, which shall remain in full force and effect.  Nothing in this Agreement shall be construed as a release or other discharge of Holdings, the Borrower or any other Loan Party from any of its obligations and liabilities under the Existing Credit Agreement or the other Loan Documents (other than the Existing Term Loans after giving effect to the Term Loan Refinancing contemplated hereby), all of which are continued on the terms set forth in the Credit Agreement.  It is further acknowledged and agreed that no Discharge of Obligations has occurred for purposes of any Loan Document, whether in connection with this Agreement, the Credit Agreement, the Term Loan Refinancing or the other transactions contemplated hereby.

 

SECTION 16.CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST A PARTY TO THIS AGREEMENT ARISING OUT OF OR RELATING HERETO SHALL ONLY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS, (b) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 9.1 OF THE CREDIT AGREEMENT, (d) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c) OF THIS SECTION 16 IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT, AND (e) AGREES THAT EACH PARTY TO THIS AGREEMENT RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

SECTION 17.                     WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17.

 

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SECTION 18.                     Headings.  Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.

 

SECTION 19.                     Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Holdings, the Borrower and each other Loan Party party hereto and their respective successors and assigns, and upon the Administrative Agent and the Lenders and each of their respective successors and assigns.  Neither Holdings’, the Borrower’s nor any other Loan Parties’ rights and obligations hereunder and any interest therein may be assigned or delegated by Holdings, the Borrower or any other Loan Party without the prior written consent of all Lenders.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

 

	
 
    	
HOLDINGS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
REGAL   ENTERTAINMENT HOLDINGS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ David Ownby
    
	
 
    	
 
    	
 
    	
 
    	
Name: David Ownby
    
	
 
    	
 
    	
 
    	
 
    	
Title: Chief Financial   Officer and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
REGAL   CINEMAS CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ David Ownby
    
	
 
    	
 
    	
 
    	
 
    	
Name: David Ownby
    
	
 
    	
 
    	
 
    	
 
    	
Title: Chief Financial   Officer and Treasurer
    

 

[Regal Cinemas Corporation – Permitted Secured Refinancing Agreement]

 

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A 3 THEATRES OF TEXAS, INC.
    
	
 
    	
 
    	
A 3 THEATRES OF SAN ANTONIO,   LTD.,
    
	
 
    	
 
    	
by: A3 THEATRES OF TEXAS, INC., ITS GENERAL   PARTNER
    
	
 
    	
 
    	
CONSOLIDATED THEATRES   MANAGEMENT, L.L.C.
    
	
 
    	
 
    	
EASTGATE THEATRE, INC.
    
	
 
    	
 
    	
EDWARDS THEATRES, INC.
    
	
 
    	
 
    	
FREDERICK PLAZA CINEMA, INC.
    
	
 
    	
 
    	
HOYTS CINEMAS CORPORATION
    
	
 
    	
 
    	
INTERSTATE THEATRES CORPORATION
    
	
 
    	
 
    	
R.C. COBB II, LLC
    
	
 
    	
 
    	
R.C. COBB, INC.
    
	
 
    	
 
    	
RCI/FSSC, LLC
    
	
 
    	
 
    	
RCI/RMS, LLC
    
	
 
    	
 
    	
REGAL CINEMAS HOLDINGS, INC.
    
	
 
    	
 
    	
REGAL CINEMAS II, LLC
    
	
 
    	
 
    	
REGAL CINEMEDIA CORPORATION,
    
	
 
    	
 
    	
REGAL GALLERY PLACE, LLC
    
	
 
    	
 
    	
REGAL INVESTMENT COMPANY
    
	
 
    	
 
    	
RICHMOND I CINEMA, L.L.C.
    
	
 
    	
 
    	
UA SWANSEA, LLC
    
	
 
    	
 
    	
UNITED ARTISTS PROPERTIES I   CORP.
    
	
 
    	
 
    	
UNITED ARTISTS REALTY COMPANY
    
	
 
    	
 
    	
UNITED ARTISTS THEATRE COMPANY
    
	
 
    	
 
    	
WALLACE THEATER HOLDINGS, INC.
    
	
 
    	
 
    	
WALLACE   THEATERS – GUAM
    
	
 
    	
 
    	
WALLACE   THEATERS – SAIPAN, INC.
    
	
 
    	
 
    	
CROWN   THEATRE CORPORATION
    
	
 
    	
 
    	
PACIFIC   RIM BUSINESS DEVELOPMENT CORPORATION
    
	
 
    	
 
    	
HOLLYWOOD THEATERS, INC.
    
	
 
    	
 
    	
HOLLYWOOD THEATERS III, INC.
    
	
 
    	
 
    	
LOIS   BUSINESS DEVELOPMENT CORPORATION
    
	
 
    	
 
    	
RAGAINS   ENTERPRISES LLC
    
	
 
    	
 
    	
MCINTOSH   PROPERTIES, LLC
    
	
 
    	
 
    	
GREAT   ESCAPE THEATRES, LLC
    
	
 
    	
 
    	
GREAT   ESCAPE LLC
    
	
 
    	
 
    	
GREAT   ESCAPE THEATRES OF BOWLING GREEN, LLC
    
	
 
    	
 
    	
GREAT   ESCAPE LAGRANGE LLC
    
	
 
    	
 
    	
GREAT ESCAPE THEATRES OF   LEBANON, LLC
    
	
 
    	
 
    	
GREAT ESCAPE OF O’FALLON, LLC
    
	
 
    	
 
    	
GREAT ESCAPE THEATRES OF NEW   ALBANY, LLC
    
	
 
    	
 
    	
GREAT ESCAPE OF NITRO, LLC
    
	
 
    	
 
    	
GREAT ESCAPE THEATRES OF   HARRISBURG, LLC
    
	
 
    	
 
    	
VALEENE CINEMAS, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ David Ownby
    
	
 
    	
 
    	
 
    	
Name:
    	
David Ownby
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President and   Treasurer
    

 

[Regal Cinemas Corporation – Permitted Secured Refinancing Agreement (November 2016)]

 

 

	
 
    	
REGAL CINEMAS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Ownby
    
	
 
    	
 
    	
Name: David Ownby
    
	
 
    	
 
    	
Title: Chief Financial   Officer and Treasurer
    
				

 

[Regal Cinemas Corporation – Permitted Secured Refinancing Agreement (November 2016)]

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William O’Daly
    
	
 
    	
 
    	
Name: William O’Daly
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ D. Andrew Maletta
    
	
 
    	
 
    	
Name: D. Andrew Maletta
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
				

 

[Regal Cinemas Corporation – Permitted Secured Refinancing Agreement (November 2016)]

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH,
    
	
 
    	
as a Refinancing Term   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William O’Daly
    
	
 
    	
 
    	
Name: William O’Daly
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ D. Andrew Maletta
    
	
 
    	
 
    	
Name: D. Andrew Maletta
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
				

 

[Regal Cinemas Corporation – Permitted Secured Refinancing Agreement (November 2016)]

 

 

SCHEDULE I

 

REFINANCING TERM LOANS
  ON THE AGREEMENT EFFECTIVE DATE

 

	
LENDER
    	
 
    	
REFINANCING TERM LOAN AMOUNT ($)
    	
 
    
	
Credit Suisse AG
    	
 
    	
$
    	
956,120,508.08
    	
 
    
					

 

 

SCHEDULE II

 

POST-CLOSING OBLIGATIONS

 

1.              Within forty-five (45) days following the Agreement Effective Date (or such longer period as may be agreed by Administrative Agent in its sole and absolute discretion), Administrative Agent shall have received (a) recorded copies of mortgage amendments reflecting the Term Loan Refinancing with respect to each of the Existing Mortgages, which such mortgage amendments are to be approved by Administrative Agent prior to recording, and (b) ALTA 11-06 mortgage modification endorsements (or other comparable title endorsement for those Mortgaged Properties located in the state of Florida) with respect to each of the Existing Mortgages (provided that no such endorsement will be required for the Mortgaged Property located at 901 Little Texas Lane, Austin, TX 78745 due to the lack of availability of such endorsement, and the relative cost of obtaining an additional title policy for such property); provided, further, that no such mortgage amendment described in clause (a) above or endorsement described in clause (b) above will be required for any Mortgaged Property currently held for sale and located at one of the following addresses:

 

a.              3131 Muldoon Road, Anchorage, AK 99504;

b.              255 W. Birch Street, Brea, CA 92821;

c.               755 S. Rand Road, Lake Zurich, IL 60047;

d.              6420 Camden Avenue North, Brooklyn Center, MN 55430;

e.               120 Banks Drive, Chapel Hill, NC 27514;

f.                963 Houston Northcutt Blvd., Mt. Pleasant, SC 29464; and

g.               100 Regal Way, Victory Center, Newport News, VA 23602,

 

in each case, prior to June 30, 2017 (or such longer period as may be agreed by Administrative Agent in its sole and absolute discretion).Exhibit 10.3

 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of August 1, 2016 by
and between Dragon Victory International Limited, a company incorporated and existing under the laws of the Cayman Islands (the
“Company”), and Yu Han, an individual (the “Executive”). The
term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include
the Company and all of its direct or indirect parent companies, subsidiaries, affiliates, or subsidiaries or affiliates of its
parent companies (collectively, the “Group”).

RECITALS

 

The
Company desires to employ the Executive and to assure itself of the services of the Executive during the term of Employment (as
defined below).

 

The
Executive desires to be employed by the Company during the term of Employment and upon the terms and conditions of this Agreement.

 

AGREEMENT

The
parties hereto agree as follows:

 

	 	1.	POSITION

 

The
Executive hereby accepts a position of Chief Executive Officer of the Company (the “Employment”).

 

	 	2.	TERM

 

Subject
to the terms and conditions of this Agreement, the initial term of the Employment shall be three years, commencing on August
1, 2016 (the “Effective Date”), unless terminated earlier pursuant to the terms of this Agreement. Upon
expiration of the three-year term, the Employment shall be automatically extended for successive one -year terms unless either
party gives the other party hereto a three-month prior written notice to terminate the Employment prior to the expiration of such
one-year term or unless terminated earlier pursuant to the terms of this Agreement.

 

	 	3.	PROBATION

 

No
probationary period.

 

	 	4.	DUTIES AND RESPONSIBILITIES

 

The
Executive’s duties at the Company will include all jobs assigned by the Company’s Board of Directors (the “Board”)
and/or the Chief Executive Officer of the Company.

 

The
Executive shall devote all of his/her working time, attention and skills to the performance of his/her duties at the Company and
shall faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of
Association of the Company (the “Articles of Association”), and the guidelines, policies and procedures of
the Company approved from time to time by the Board.

 

     

    	 	 	 

    

  

	 	5.	NO BREACH OF
    CONTRACT

 

The
Executive shall use his/her best efforts to perform his/her duties hereunder. The Executive shall not, without prior consent
of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall
not be concerned or interested in any business or entity that directly or indirectly competes with the Group (any such business
or entity, a “Competitor”), provided that nothing in this clause shall preclude the Executive from holding
shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere, provided
however, that the Executive shall notify the Company in writing prior to his/her obtaining a proposed interest in such
shares or securities in a timely manner and with such details and particulars as the Company may reasonably require. The
Company shall have the right to require the Executive to resign from any board or similar body which he/she may then serve if
the Board reasonably determines in writing that the Executive’s service on such board or body interferes with the effective
discharge of the Executive’s duties and responsibilities to the Company or that any business related to such service is
then in competition with any business of the Company or any of its subsidiaries or affiliates.

 

The
Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the
performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene,
the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements that are
required to be entered into by and between the Executive and any member of the Group pursuant to applicable law of the jurisdiction
where the Executive is based, if any; (ii) that the Executive has no information (including, without limitation, confidential
information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering
into this Agreement or carrying out his/her duties hereunder; (iii) that the Executive is not bound by any confidentiality,
trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group,
as the case may be.

 

	 	6.	LOCATION

 

The
Executive will be based in [Hangzhou, the People’s Republic of China], until both parties hereto agree to change otherwise.
The Executive acknowledges that he/she may be required to travel from time to time in the course of performing his/her duties
for the Company.

 

	 	7.	COMPENSATION
    AND BENEFITS

 

	 	(a)	Compensation. The
    Executive’s cash compensation (inclusive of the statutory welfare reserves that the Company is required to set aside
    for the Executive under applicable law) shall be provided by the Company in a separate schedule A attached herein (“Schedule
    A”) or as specified in a separate agreement between the executive and the company’s designated subsidiary or affiliated
    entity, subject to annual review and adjustment by the Company or the compensation committee of the Board. The cash
    compensation may be paid by the Company, a subsidiary or affiliated entity or a combination thereof, as designated
    by the Company from time to time.

 

	 	(b)	Equity
    Incentives. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible
    to participate in such plan pursuant to the terms thereof.

 

	 	(c)	Benefits. The
    Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may
    be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance
    plan and travel/holiday plan.

 

     

    	 	 	 

    

  

	 	8.	TERMINATION OF
    THE AGREEMENT

 

	 	(a)	By
    the Company. The Company may terminate the Employment for cause, at any time, without notice or remuneration, if
    the Executive (1) commits any serious or persistent breach or non-observance of the terms and conditions of your employment;
    (2) is convicted of a criminal offence other than one which in the opinion of the Board does not affect the executive’s
    position as an employee of the Company, bearing in mind the nature of your duties and the capacity in which the executive
    is employed; (3) willfully disobeys a lawful and reasonable order; (4) misconducts himself/herself and such conduct
    being inconsistent with the due and faithful discharge of the Executive’s material duties; (5) is guilty of fraud
    or dishonesty; or (6) is habitually neglectful in his/her duties. The Company may terminate the Employment without cause
    at any time with a three-month prior written notice to the Executive or by payment of three months’ salary in lieu of
    notice.

 

	 	(b)	By
    the Executive. The Executive may terminate the Employment at any time with a three-month prior written notice to
    the Company or by payment of three months’ salary in lieu of notice. In addition, the Executive may resign prior
    to the expiration of the Agreement if such resignation or an alternative arrangement with respect to the Employment is approved
    by the Board.

 

	 	(c)	Notice
    of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated by
    written notice of termination from the terminating party to the other party. The notice of termination shall indicate
    the specific provision(s) of this Agreement relied upon in effecting the termination.

 

	 	9.	CONFIDENTIALITY
    AND NONDISCLOSURE

 

	 	(a)	Confidentiality
    and Non-disclosure. The Executive hereby agrees at all times during the term of his/her employment and after termination,
    to hold in the strictest confidence, and not to use, except for the benefit of the Group, or to disclose to any person, corporation
    or other entity without written consent of the Company, any Confidential Information. The Executive understands that “Confidential
    Information” means any proprietary or confidential information of the Group, its affiliates, their clients, customers
    or partners, and the Group’s licensors, including, without limitation, technical data, trade secrets, research and development
    information, product plans, services, customer lists and customers (including, but not limited to, customers of the Group
    on whom the Executive called or with whom the Executive became acquainted during the term of his/her employment), supplier
    lists and suppliers, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering,
    hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures,
    licensors, licensees, distributors and other persons with whom the Group does business, information regarding the skills and
    compensation of other employees of the Group or other business information disclosed to the Executive by or obtained by the
    Executive from the Group, its affiliates, or their clients, customers or partners either directly or indirectly in writing,
    orally or by drawings or observation of parts or equipment, if specifically indicated to be confidential or reasonably expected
    to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally
    available and known to the public through no fault of the Executive.

 

	 	(b)	Company
    Property. The Executive understands that all documents (including computer records, facsimile and e-mail) and
    materials created, received or transmitted in connection with his/her work or using the facilities of the Group are property
    of the Group and subject to inspection by the Group, at any time. Upon termination of the Executive’s employment with
    the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents
    and materials of any nature pertaining to his/her work with the Company and will provide written certification of his compliance
    with this Agreement. Under no circumstances will the Executive have, following his/her termination, in his/her possession
    any property of the Group, or any documents or materials or copies thereof containing any Confidential Information.

 

     

    	 	 	 

    

  

	 	(c)	Former
    Employer Information. The Executive agrees that he has not and will not, during the term of his/her employment, (i) improperly
    use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the
    Executive has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into
    the premises of the Group any document or confidential or proprietary information belonging to such former employer, person
    or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the
    Group and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys’
    fees and costs of suit, arising out of or in connection with any violation of the foregoing.

 

	 	(d)	Third
    Party Information. The Executive recognizes that the Group may have received, and in the future may receive, from
    third parties their confidential or proprietary information subject to a duty on the Group’s part to maintain the confidentiality
    of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the
    Group and such third parties, during the Executive’s employment by the Company and thereafter, a duty to hold all such
    confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use
    it in a manner consistent with, and for the limited purposes permitted by, the Group’s agreement with such third party.

 

This
Section 9 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 9,
the Company shall have right to seek remedies permissible under applicable law.

 

	 	10.	WITHHOLDING TAXES

 

Notwithstanding
anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts
otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment,
or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

	 	11.	NOTIFICATION
    OF NEW EMPLOYER

 

In
the event that the Executive leaves the employ of the Company, the Executive hereby grants consent to notification by the Company
to his/her new employer about his/her rights and obligations under this Agreement.

 

	 	12.	ASSIGNMENT

 

This
Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or
transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in
the event of a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to
any other individual(s) or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the
benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations
of the Company hereunder.

 

	 	13.	SEVERABILITY

 

If
any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or
applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions
of this Agreement are declared to be severable.

 

     

    	 	 	 

    

 

	 	14.	ENTIRE AGREEMENT

 

This
Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the
Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter, other than any
such agreement under any employment agreement entered into with a subsidiary of the Company at the request of the Company to the
extent such agreement does not conflict with any of the provisions herein. The Executive acknowledges that he/she has not
entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any
amendment to this Agreement must be in writing and signed by the Executive and the Company.

 

	 	15.	REPRESENTATIONS

 

The
Executive hereby agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement.
The Executive hereby represents that the Executive’s performance of all the terms of this Agreement will not breach any
agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to his/her employment
by the Company. The Executive has not entered into, and hereby agrees that he/she will not enter into, any oral or written agreement
in conflict with this Section 18. The Executive represents that the Executive will consult his/her own consultants for tax
advice and is not relying on the Company for any tax advice with respect to this Agreement or any provisions hereunder.

 

	 	16.	GOVERNING LAW

 

This
Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

	 	17.	ARBITRATION

 

Any
dispute arising out of, in connection with or relating to, this Agreement shall be resolved through arbitration pursuant to this
Section 20. The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration
Centre (the “Centre”) in accordance with the rules of the United Nations Commission of International Trade Law (“UNCITRAL
Rules”) in effect at the time of the arbitration. There shall be one arbitrator. The award of the arbitration tribunal shall
be final and binding upon the disputing parties, and any party may apply to a court of competent jurisdiction for enforcement
of such award.

 

	 	18.	AMENDMENT

 

This
Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly
referring to this Agreement, which agreement is executed by both of the parties hereto.

 

	 	19.	WAIVER

 

Neither
the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other
or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power
or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

     

    	 	 	 

    

  

	 	20.	NOTICES

 

All
notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor,
or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

 

	 	21.	COUNTERPARTS

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose
signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals
for any purpose.

 

	 	22.	NO INTERPRETATION
    AGAINST DRAFTER

Each
party recognizes that this Agreement is a legally binding contract and acknowledges that such party has had the opportunity to
consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed
against either party on the basis of that party being the drafter of such terms. The Executive agrees and acknowledges that
he/she has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel
prior to entering into this Agreement and has ample opportunity to do so.

 

 

 

[Remainder
of this page has been intentionally left blank.]

 

 

 

 

 

     

    	 	 	 

    

 

 

IN
WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

 

	Dragon Victory International Limited	 
	 	 	 
	By:	 	
        /s/ Xiaohua Gu
	 
	Name:	 	Xiaohua Gu	 
	Title:	 	Chief Financial Officer	 

 

Executive

 

	Signature:	 	
        /s/ Yu Han
	 
	Name:	 	Yu Han	 

 

 

 

[Signature
Page to Employment Agreement]

 

 

 

     

    	 	 	 

    

 

Schedule
A

 

Annual compensation is $240,000.

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