Document:

Exhibit 4.8

 

SUBLEASE AGREEMENT

 

THIS SUBLEASE AGREEMENT
(this “Sublease Agreement”) is made and entered into on this 7th day of April, 2015 by and
between Texas Heart Institute, a Texas non-profit corporation (herein “Sublessor”) and Essa Pharmaceuticals
Corp., a Texas corporation (referred to herein “Sublessee”).

 

WITNESSETH THAT:

 

WHEREAS, Sublessor,
as tenant, entered into that certain Lease Agreement Life Science Plaza, with Sheridan Hills Developments, L.P., as landlord (the
“Landlord”), dated effective February 20, 2009, and that certain First Amendment to Lease Agreement
dated June 2, 2009, copies of which are attached hereto as Exhibit “A” and incorporated herein
by reference for all purposes (as amended, the “Master Lease”);

 

WHEREAS, the
Master Lease is stipulated to currently cover 9,363 square feet of Net Rentable Area known as Suite 900 located on the ninth (9th)
floor (herein the “Leased Premises”) of that certain medical office building located at 2130 West Holcombe
Boulevard, Houston, Texas 77030 (the “Building”); and

 

WHEREAS, Sublessee
desires to sublease all of the Leased Premises from Sublessor and Sublessor desires to sublease all of the Leased Premises to Sublessee.

 

NOW THEREFORE,
in consideration of the foregoing recitations, the mutual covenants hereinafter set forth and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.         Definitions.
Except as otherwise defined in this Sublease Agreement, terms defined in the Master Lease and used herein shall have the meaning
assigned to them in the Master Lease. To the extent this Sublease Agreement conflicts with any terms of the Master Lease, the terms
of this Sublease Agreement shall control.

 

2.         Sublease
Premises. Sublessor does hereby sublease to Sublessee, and Sublessee does hereby sublease from Sublessor, upon and subject
to the terms and conditions, covenants and agreements set forth in this Sublease Agreement and the Master Lease, all of the Leased
Premises which is stipulated to consist of 9,363 square feet of Net Rentable Area as is depicted as the cross-hatched area on Exhibit
“B” attached hereto and incorporated herein by reference (collectively, the “Sublease Premises”),
together with the Conveyed Personal Property transferred to Sublessee by Sublessor pursuant to Paragraph 10.

 

3.         Sublease
Term. This Sublease Agreement shall be effective upon its execution by both parties and written receipt of Landlord’s
consent to this Sublease Agreement, (the “Effective Date”), but the term shall commence on May 1,
2015 (the “Commencement Date”) and shall expire on December 31, 2019, unless otherwise sooner terminated
in accordance with the provisions of this Sublease Agreement (the “Sublease Term”). Sublessor agrees
not to exercise its Early Termination Option without Sublessee’s prior written consent.

 

     

     

    

  

4.         Base
Rent. Effective as of the Commencement Date, Sublessee agrees to pay to Sublessor monthly Base Rent in accordance with
the following table:

 

	RENTAL PERIOD	 	ANNUAL BASE
 RENT RATE	 	 	MONTHLY
 BASE RENT	 
	 	 	 	 	 	 	 
	May 1, 2015 – April 30, 2016	 	$	17.00	 	 	$	13,264.25	 
	May 1, 2016 – April 30, 2017	 	$	17.50	 	 	$	13,654.38	 
	May 1, 2017 – April 30, 2018	 	$	18.00	 	 	$	14,044.50	 
	May 1, 2018 – April 30, 2019	 	$	18.50	 	 	$	14,434.63	 
	May 1, 2019 – December 31, 2019	 	$	19.00	 	 	$	14,824.75	 

 

Monthly Base Rent shall be payable in advance
on the first day of each calendar month without prior notice or demand provided that payments of Monthly Base Rent paid with respect
to any partial months occurring during the Sublease Term shall be prorated based on the actual number of days in said partial month.
Sublessee shall pay the first month’s Monthly Base Rent payment to Sublessor upon execution of this Sublease. The term “Rent”
as used in this Sublease Agreement means Monthly Base Rent, Sublessee’s Portion (as hereinafter defined) of Operating Expenses,
Parking Fees pursuant to Paragraph 15 of this Sublease Agreement, and any and all other sums payable by Sublessee pursuant
to this Sublease Agreement. All Rent shall be payable to Sublessor at the address set forth in Paragraph 16 of this Sublease
Agreement without deduction or offset of any kind, except as otherwise expressly set forth herein. Sublessor shall timely and fully
pay all Rent due under the Master Lease throughout the Sublease Term.

 

If Sublessee shall
fail to pay any installment of monthly Base Rent or any other amount due hereunder within five (5) days of becoming due, Sublessee
shall pay as additional Rent hereunder to Sublessor, a late charge in the amount of five percent (5%) of the amount due,
as well as interest on any such amount calculated from the due date through the date of payment at the default interest rate provided
for in the Master Lease. The late charges payable pursuant hereto shall be (i) payable within ten (10) days of Sublessor’s
notice and (ii) without prejudice to any of Sublessor’s rights and remedies hereunder at law or in equity for such failure
and in addition to any such rights and remedies. No failure by Sublessor to insist upon the strict performance by Sublessee of
Sublessee’s obligations to pay late charges as provided herein shall constitute a waiver by Sublessor of its right to enforce
the provisions hereof in any instance thereafter occurring. The provisions of this paragraph shall not be construed in any way
to extend the grace periods or notice periods provided for elsewhere in this Sublease Agreement.

 

5.         Sublessee
Additional Rental and Utility Charges. (a) Commencing on the Commencement Date, Sublessee shall also pay in addition to
Base Rent its pro rata share of Operating Expenses pursuant to Section 6 of the Master Lease (“Sublessee’s Portion”),
prorated for the Fiscal Year during which the Commencement Date occurs, such that Sublessee is responsible for paying Sublessee’s
Portion for the part of such Fiscal Year that the Commencement Date occurs. Sublessee’s Portion shall be equal to one hundred
percent (100%) of Sublessor’s pro rata share of Operating Expenses under the Master Lease. Sublessee shall pay Sublessee’s
Portion to Sublessor on an estimated monthly basis together with its Base Rent payment and otherwise in accordance with Section
6 of the Master Lease. Sublessee shall have no right to audit Landlord’s records as to Operating Expenses; provided, however,
at Sublessee’s request and reasonable cost and expense, Sublessor will exercise its rights under Section 6 of the Master
Lease as required for Sublessee to conduct an audit of such records as to Operating Expenses. If Sublessee’s audit reveals
any overcharges, Sublessor will make commercially reasonable efforts to enforce its rights under the Master Lease on Sublessee’s
behalf, and to the extent successful, pay Sublessee’s Portion to Sublessee of the overcharges refunded to Sublessor (but
only to the extent such overcharges relate to period(s) of time following the Commencement Date); (b) commencing on the Commencement
Date, Sublessee shall pay Sublessor on a monthly basis in arrears for all actual costs charged by Landlord for utilities provided
to the Leased Premises pursuant to Section 7.E. of the Lease. Such utility costs shall be payable by Sublessee on or before the
first day of the following calendar month, along with Monthly Base Rent.

 

    	 	2	 

     

    

  

6.         Security
Deposit. Upon execution of this Sublease Agreement, Sublessee shall pay Sublessor a security deposit in an amount equal
to the last month’s Base Rent payment set forth in Paragraph 4. And the monthly estimated payment for Sublessee’s
Portion of Operating Expenses (the “Security Deposit”). The Security Deposit shall be held by Sublessor,
but otherwise subject to the provisions of the Master Lease with respect to Sublessor’s security deposit with Landlord.

 

7.         Delivery/Construction.
Sublessor will deliver the Sublease Premises in good order and repair and in broom clean condition ready for Sublessee’s
construction on or before May 1, 2015 and Sublessee agrees to accept the Sublease Premises in its current “as is”,
“where is” and “with all faults” condition, and, Sublessor shall not be required to make any alterations,
decorations, installations, additions, or improvements of any kind whatsoever to prepare the Sublease Premises for Sublessee’s
occupancy for Sublessee’s use. Upon receipt of Landlord’s written consent to this Sublease Agreement, and delivery
of the Sublease Premises to Sublessee, Sublessee may enter and take possession of the Sublease Premises. By occupying the Sublease
Premises, Sublessee acknowledges and agrees that SUBLESSOR HAS NOT MADE ANY REPRESENTATION OR WARRANTY WITH RESPECT TO THE SUBLEASE
PREMISES OR THIS SUBLEASE AGREEMENT, EXCEPT TO THE EXTENT EXPRESSLY MADE IN THIS SUBLEASE AGREEMENT, INCLUDING, WITHOUT LIMITATION
ANY REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE
MERCHANTABILITY OF THE SUBLEASE PREMISES ITS FITNESS FOR ANY PARTICULAR PURPOSE, OR THE HABITABILITY OF THE SUBLEASE PREMISES AND,
AS TO SUBLESSEE, THE SUBLESSEE TAKES THE SUBLEASE PREMISES “AS IS, WHERE IS, WITH ALL FAULTS”, AND (C) ACKNOWLEDGES
AND AGREES THAT THE SUBLEASE PREMISES ARE SUBJECT TO THE LIMITATIONS, ENCUMBRANCES AND OTHER MATTERS DESCRIBED IN THE MASTER LEASE.
Sublessor represents to Sublessee that Sublessor has no actual knowledge of any defects in the Sublease Premises that will
impede Sublessee’s use of the Sublease Premises. Sublessor shall, prior to May 1, 2015, remove the furniture, file cabinets,
tables, chairs, audio/visual and other electronic equipment, and other personal property owned by Sublessor (except as provided
in Paragraph 10 below).

 

    	 	3	 

     

    

 

8.         Insurance.
Sublessee will, at its own expense, carry and maintain in full force and effect during the Sublease Term the insurance required
under the Master Lease to be obtained by Sublessor. Sublessee’s commercial general liability insurance policy must name Sublessor
(and Landlord) as an additional insured and Sublessee’s property insurance policy must be endorsed to provide a waiver of
subrogation in favor of the Sublessor. Sublessee’s liability insurance policies must be endorsed to obligate the insurer
not to cancel coverage without first giving thirty (30) days’ written notice to Sublessor. Sublessee must furnish Sublessor
with certificates of insurance evidencing the required commercial general liability insurance coverage prior to the Commencement
Date and thereafter prior to each policy renewal date. However, the amount of such insurance shall not limit Sublessee’s
liability, nor relieve Sublessee of any obligation under the terms of this Sublease Agreement.

 

9.         Incorporation
of Master Lease. Insofar as the provisions of the Master Lease do not conflict with the specific provisions herein, they
and each of them are incorporated into this Sublease Agreement as fully as if completely rewritten herein, and Sublessee agrees
to be bound to Sublessor as if it were lessee and Sublessor were landlord therein, by all of the terms, conditions and covenants
of the Master Lease insofar as they relate to the Sublease Premises, except as otherwise provided in this Sublease Agreement. Except
as expressly stated in this Sublease Agreement, Sublessee shall be entitled to receive the benefit of all such terms, conditions
and covenants of the Master Lease that are intended by their terms to benefit Sublessor, provided that Sublessor shall not have
any liability to Sublessee as a result of a breach of failure to perform by Landlord under the Master Lease; provided, however,
Sublessor agrees to (i) use its commercially reasonable efforts to enforce Landlord’s obligations under the Master Lease
and (ii) request such above Building standard services on behalf of Sublessee (to the extent Landlord will not accept such requests
directly from Sublessee) as are available pursuant to the terms and provisions of the Master Lease, and Sublessee shall pay for
such above Building standard services in the amount(s) required per the terms and provisions of the Master Lease. To the extent
Sublessor receives written notice from Master Landlord that pertains to or otherwise relates to the Sublease Premises, Sublessor
shall provide a copy of such written notice to Sublessee within two (2) business days following Sublessor’s receipt of same.
In addition, to the extent Sublessor’s obligation to pay rent or other sums under the Master Lease with respect to the Sublease
Premises are abated, Sublessee’s obligation to pay Rent with respect to the Sublease Premises under this Sublease Agreement
shall be abated.

 

Sublessor represents
and warrants to Sublessee that (a) Sublessor has delivered to Sublessee a full and complete copy of the Master Lease, (b) the
Master Lease is, as of the Effective Date hereof, in full force and effect, and (c) no Event of Default has occurred under the
Master Lease and, to Sublessor’s knowledge, no event has occurred and is continuing which would constitute an Event of Default
but for the requirement of the giving of notice and/or the expiration of the period of time to cure. Sublessor further represents,
warrants and covenants that it shall not take or permit to be taken by those under Sublessor’s control any action or omission
that could constitute an Event of Default under the Master Lease and that Sublessor shall maintain the Master Lease in full force
and effect throughout the Sublease Term.

 

    	 	4	 

     

    

  

10.         Personal
Property. On the Commencement Date, (a) Sublessor shall convey to Sublessee by bill of sale, the personal property
located in the Leased Premises as described on Exhibit “C” attached hereto (the “Conveyed
Personal Property”), and (b) Sublessee shall make simultaneous payment to Sublessor of an amount equal to $30,000.00,
all in accordance with a bill of sale to be executed by Sublessor and Sublessee that is substantially in the form attached hereto
as Exhibit “C-1” (“Bill of Sale”). Sublessee agrees to accept the Conveyed
Personal Property in its “as is, where is” condition. SUBLESSEE ACKNOWLEDGES AND AGREES THAT SUBLESSOR HAS NOT MADE
ANY REPRESENTATION OR WARRANTY WITH RESPECT TO THE CONVEYED PERSONAL PROPERTY.

 

11.         Indemnification.

 

(a)         SUBLESSEE
AGREES TO INDEMNIFY, DEFEND AND HOLD Sublessor and its affiliates, and any officer, director,
trustee, fiduciary, employee, shareholder, partner, manager or member of Sublessor or any of its affiliates (each, an “Indemnitee”)
HARMLESS FROM AND AGAINST ALL suits, claims, actions, proceedings, damages, liabilities,
costs and expenses of every kind, including reasonable attorneys’ fees (the “Indemnifiable Matters”) ASSERTED
AGAINST AN INDEMNITEE ON ACCOUNT OF INJURIES OR DEATH TO PERSONS OR DAMAGE TO PROPERTY TO THE EXTENT THAT ANY SUCH DAMAGE OR INJURY
WAS CAUSED, EITHER PROXIMATELY OR REMOTELY, BY ANY ACT OR OMISSION, WHETHER NEGLIGENT OR NOT, OF SUBLESSEE
OR ANY of its affiliates, and any officer, director, trustee, fiduciary, employee, shareholder, partner, manager, member, agent,
representative, servants, invitees, contractor or subcontractor of Sublessee or of any of Sublessee’s affiliates (collectively,
the “Sublessee Related Parties”) OR OF ANY OTHER PERSON ENTERING UPON THE SUBLEASE PREMISES UNDER OR
WITH THE EXPRESSED OR IMPLIED INVITATION OF SUBLESSEE, OR IF ANY SUCH INJURY OR DAMAGE MAY IN ANY OTHER WAY ARISE FROM OR OUT OF
THE OCCUPANCY OR USE OF SUBLESSEE OR ANY SUBLESSEE RELATED PARTY, OF THE SUBLEASE PREMISES OR CONVEYED PERSONAL PROPERTY, EXCEPT
TO THE EXTENT CAUSED BY THE FAILURE TO COMPLY WITH THE LAW BY, OR THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF, AN INDEMNITEE.

 

(b)         SUBLESSOR
HEREBY AGREES THAT IT WILL INDEMNIFY, DEFEND AND HOLD HARMLESS SUBLESSEE AND ITS AFFILIATES, AND ANY OFFICER, DIRECTOR, TRUSTEE,
FIDUCIARY, EMPLOYEE, SHAREHOLDER, PARTNER, MANAGER, MEMBER, AGENT, REPRESENTATIVE, SERVANT, INVITEE, CONTRACTOR OR SUBCONTRACTOR
OF SUBLESSEE OR ANY OF ITS AFFILIATES (EACH, A “SUBLESSEE INDEMNITEE”) FROM AND AGAINST ALL INDEMNIFIABLE
MATTERS ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF ANY BREACH, VIOLATION OR NONPERFORMANCE OF ANY TERM OR CONDITION
ON THE PART OF SUBLESSOR HEREUNDER OR UNDER THE MASTER LEASE. ADDITIONALLY, SUBLESSOR AGREES TO INDEMNIFY, DEFEND AND HOLD EACH
SUBLESSEE INDEMNITEE HARMLESS FROM AND AGAINST ALL INDEMNIFIABLE MATTERS ASSERTED AGAINST A SUBLESSEE INDEMNITEE ON ACCOUNT OF
INJURIES OR DEATH TO PERSONS OR DAMAGE TO PROPERTY TO THE EXTENT THAT ANY SUCH DAMAGE OR INJURY WAS CAUSED, EITHER PROXIMATELY
OR REMOTELY, BY ANY ACT OR OMISSION, WHETHER NEGLIGENT OR NOT, OF SUBLESSOR OR ANY OR ANY OF ITS AFFILIATES, AND ANY OFFICER, DIRECTOR,
TRUSTEE, FIDUCIARY, EMPLOYEE, SHAREHOLDER, PARTNER, MANAGER, MEMBER, AGENT, REPRESENTATIVE, SERVANTS, INVITEES, CONTRACTOR OR SUBCONTRACTOR
OF SUBLESSOR OR OF ANY OF SUBLESSOR’S AFFILIATES (COLLECTIVELY, THE “SUBLESSOR RELATED PARTIES”), EXCEPT
TO THE EXTENT CAUSED BY THE FAILURE TO COMPLY WITH THE LAW BY, OR THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF A SUBLESSEE INDEMNITEE.

 

    	 	5	 

     

    

 

12.         Pass
Through of Rights. Notwithstanding anything to the contrary herein, the services, rights and remedies to which Sublessee
is entitled to hereunder are those to which Sublessor is entitled under the Master Lease. Sublessor shall not have any liability
for the failure of Landlord to perform its obligations under the Master Lease; provided, however, Sublessor agrees to cooperate
with Sublessee in order to require Landlord to comply with the terms and provisions of the Master Lease, and, if necessary, enforce
Sublessor’s rights thereunder on behalf of Sublessee.

 

13.         Landlord’s
Consent. This Sublease Agreement is expressly conditioned upon Landlord’s
written consent to this Sublease Agreement. If such consent is refused or if the same is not obtained in writing by the
date that is ten (10) business days after the full execution of this Sublease Agreement, either Sublessor or Sublessee may terminate
this Sublease Agreement by delivering written notice to the other prior to Landlord providing its written consent to the Sublease,
in which event this Sublease Agreement shall be null and void, of no force or effect, and all sums that Sublessee shall have paid
or delivered hereunder to Sublessor shall be promptly returned to Sublessee. 

 

14.         Default.
Should Sublessee fail to timely perform any of its obligations under this Sublease Agreement or fail to timely perform any of Sublessor’s
obligations under the Master Lease which Sublessee has agreed herein to perform, then Sublessor shall have all of the rights and
remedies under the Master Lease which are available to Landlord, the same as though Sublessor was the landlord under the Master
Lease and Sublessee was the tenant thereunder. The parties agree that with respect to this Sublease Agreement and the Master Lease,
time is of the essence. In addition to any remedies outlined in the Master Lease, Sublessor shall have the right to terminate this
Sublease Agreement if Sublessee is delinquent in its monthly payment of Base Rent or Additional Rent for more than ten (10) business
days on two (2) occasions within any twelve (12) month period during the Sublease Term.

 

15.         Parking.
Sublessee shall pay for and take throughout the Sublease Term, three (3) reserved parking spaces and thirteen (13) unreserved
parking spaces (collectively “Parking Spaces”) in the Garage, subject to the terms and conditions
of Exhibit “C” to the Master Lease and any rules in effect for the Garage. Sublessee shall pay Sublessor
the parking rentals for the Parking Spaces and Sublessor shall timely and fully pay Landlord the parking rental under the Master
Lease on a monthly basis together with Base Rent.

 

    	 	6	 

     

    

 

16.         Notices.
No notice, approval, consent or other communication authorized or required by this Sublease Agreement shall be effective unless
same shall be in writing and personally delivered, or by a recognized overnight courier service (i.e., FedEx), or sent postage
prepaid by United States registered or certified mail, return receipt requested, directed to the other party at its address hereinafter
provided or such other address as either party may designate by notice given from time to time in accordance herewith:

 

	Sublessor:	Texas Heart Institute
	 	Attention:  Mr. Marc Mattsson, CEO
	 	6770 Bertner Ave., Suite C 550
	 	Houston, TX  77030
	 	 
	With a copy to:	Texas Heart Institute
	 	Attention:  Mr. Fred Zeidman
	 	Treasurer/Chief Financial Officer
	 	6770 Bertner Ave., Suite C 550
	 	Houston, TX  77030
	 	 
	Sublessee:	Essa Pharmaceuticals Corp.
	 	Attention:  David Wood
	 	2130 West Holcombe
	 	Suite 900
	 	Houston, Texas  77030
	 	 
	With a copy to:	Jackson Walker L.L.P.
	 	Attention:  Patrick T. Sharkey
	 	1401 McKinney
	 	Suite 1900
	 	Houston, Texas  77010

  

The Rent payable by Sublessee hereunder
shall be paid to Sublessor at the same place where a notice to Sublessor is herein required to be directed.

 

17.         Brokerage
Commissions. Each party hereto warrants to the other that no agent, finder or broker other than Colliers Appelt Womack,
Inc. (d/b/a Colliers International), which represents Sublessor, and Transwestern which represents Sublessee, both of whose fees
and commissions, if any, are to be paid by Sublessor pursuant to separate agreements, have been involved with the introduction
of Sublessor and Sublessee and/or the sublease of the Sublease Premises. In the event of a breach of the foregoing warranty, the
breaching party agrees to save, defend, indemnify and hold harmless the other party hereto from and against any claims, losses,
damages, liabilities and expenses, including but not limited to, reasonable attorneys’ fees.

 

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18.         OFAC
Compliance. Both Sublessor and Sublessee are currently in compliance with and shall at all times during the term of this
Sublease Agreement remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”)
of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) and any
statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

 

19.         Rights
Personal to Sublessor Under Master Lease. Notwithstanding anything herein or in the Master Lease to the contrary, in no
event shall Sublessee have the right to exercise any of the rights of Sublessor in the Master Lease to renew the Lease.

 

20.         Binding
Effect. This Sublease Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

21.         Governing
Law. This Sublease Agreement shall be construed and interpreted in accordance with the laws of the State of Texas.

 

22.         Modification
and Non-Waiver. This Sublease Agreement may not be modified or amended, except by an agreement in writing signed by both
parties. The parties may waive any of the conditions contained herein or any of the obligations of the other party hereunder, but
any such waiver shall be effective only if in writing and signed by the party waiving such conditions or obligations.

 

23.         Entire
Agreement. This Sublease Agreement (including any exhibits hereto) embodies the entire agreement between the parties concerning
the subject matter hereof and replaces and supersedes any prior and contemporaneous negotiations, agreements or understandings
among the parties hereto.

 

24.         Headings.
The headings of paragraphs herein are for convenience of reference only, do not constitute a part of this Sublease Agreement, and
shall not be deemed to limit or alter any of the provisions hereof.

 

25.         Counterparts.
This Sublease Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one and the same instrument.

 

26.         Assignment.
Sublessee may not assign this Sublease Agreement or further sublet all or any part of the Sublease Premises without the prior written
consent of Sublessor and Landlord.

 

27.         Severability.
In the event any one or more of the provisions contained in this Sublease Agreement shall for any reason be judicially declared
to be invalid, illegal, unenforceable or void in any respect, such declaration shall not have the effect of invalidating or voiding
the remainder of this Sublease Agreement, and the parties hereto agree that the part or parts of this Sublease Agreement so held
to be invalid, illegal, unenforceable or void will be deemed to have been stricken here from and the remainder will have the same
force and effectiveness as if such part had never been included herein.

 

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28.         Attorney
Fees. In the event either party becomes involved in legal proceedings against the other to enforce such party’s respective
rights or interests under this Sublease Agreement, the prevailing party shall be entitled to receive from the non-prevailing party
reasonable attorneys’ fees incurred in connection with any such proceedings. “Prevailing party”
shall mean and is hereby defined by the parties to mean that party which the court finds and/or declares is the prevailing party,
whether or not that party obtains monetary, declaratory, injunctive, equitable or nominal relief. With respect to any monetary
claim, no award of damages shall be necessary in order for a party to be found by the court to have prevailed. With respect to
any non-monetary claim, no equitable relief shall be necessary in order for a party to be found by the court to have prevailed.

 

[Signatures
on Following Page]

 

    	 	9	 

     

    

  

SIGNATURE PAGE TO THAT CERTAIN

SUBLEASE AGREEMENT BY AND BETWEEN

TEXAS HEART INSTITUTE, AS SUBLESSOR AND

ESSA PHARMACEUTICALS CORP., AS SUBLESSEE

 

IN WITNESS WHEREOF,
the parties have caused this Sublease Agreement to be executed on the day and year first above written.

 

	 	SUBLESSOR:
	 	 	 	 
	 	TEXAS HEART INSTITUTE,
	 	a Texas non-profit corporation
	 	 	 	 
	 	By:	/s/ Marc C. Mattsson
	 	 	Name:	Marc C. Mattsson
	 	 	Title:	CEO
	 	 	 	 
	 	SUBLESSEE:
	 	 
	 	ESSA PHARMACEUTICALS CORP.,
	 	a Texas corporation
	 	 	 	 
	 	By:	/s/ Robert W. Rieder
	 	 	Name:	Robert W. Rieder
	 	 	Title:	CEO

 

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EXHIBIT “C”

 

THE CONVEYED PERSONAL PROPERTY

 

Reception Area:

1 reception desk chair

4 upholstered chairs, 1 sofa

1 small coffee table

2 end tables

 

Boardroom:

1 table

14 executive chairs

 

CEO office:

3 bookcase/file cabinets

1 L-Shape Desk

1 small coffee table

2 upholstered chairs

 

6 Office Spaces:

1 - L-shaped desk, with hutch and tack board

1 – executive chair

2 guest chairs

1 - 5 shelf bookcase

 

Administrative Assistant Area:

1 – Ushape desk with hutch and tackboard

1 bookcase

2 guest chairs

 

Kitchen Area:

1 laminate rectangular table with 12 chairs

1 refrigerator

2 microwaves

1 dishwasher

1 ice machine

 

     

     

    

 

EXHIBIT “C-1”

 

FORM OF BILL OF SALE

 

[See Attached]

     

     

    

 

EXHIBIT “C”

 

FORM OF BILL OF SALE

 

Texas Heart Institute,
a Texas non-profit corporation (“Grantor”), in consideration of the sum of Twenty Thousand and 00/100
Dollars ($30,000.00) paid to Grantor by Essa Pharmaceuticals Corp., a Texas corporation (“Grantee”),
the receipt and sufficiency of which is hereby acknowledged, does hereby sell, convey, transfer, assign and deliver unto Grantee
effective this 7th day of April, 2015, certain personal property located at the premises known as Suite 900 located
on the ninth (9th) floor of that certain medical office building located at 2130 West Holcombe Boulevard, Houston, Texas 77030
and described in detail on Schedule 1 attached hereto and incorporated herein by reference (collectively, the “Personal
Property”) “AS IS, WHERE IS, WITH ALL FAULTS” AND IN ITS EXISTING CONDITION AS OF THE DATE HEREOF.

 

TO HAVE AND TO HOLD
the Personal Property, together with all and singular the rights and appurtenances thereto in anywise belonging, unto Grantee,
its successors and assigns, forever. Grantor does hereby bind itself, its successors and assigns, to forever warrant and defend
title to the Personal Property unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to
claim the same or any part thereof, by, through or under Grantor, but not otherwise.

 

GRANTOR IS NOT MAKING
ANY WARRANTY OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR QUALITY, WITH RESPECT TO ANY OF THE PERSONAL
PROPERTY BEING TRANSFERRED, OR AS TO THE CONDITION OR WORKMANSHIP THEREOF OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT
OR PATENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, GRANTOR IS NOT MAKING ANY REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL, STATUTORY,
EXPRESS OR IMPLIED, CONCERNING THE PERSONAL PROPERTY.

 

Grantor hereby covenants
that it will execute and deliver such documents requested by Grantee necessary to evidence and effect the sale, transfer, conveyance
and assignment of the Personal Property to Grantee.

 

The terms and conditions
of this Bill of Sale shall be governed and construed in accordance with the laws of the State of Texas.

 

[Signatures on Following Page]

 

     

     

    

 

IN
WITNESS WHEREOF, Grantor and Grantee have caused this Bill of Sale to be executed effective as of the date first set forth above.

 

	 	GRANTOR:
	 	 
	 	TEXAS HEART INSTITUTE, a Texas non-profit corporation
	 	 
	 	By: 	/s/ Marc C. Mattsson
	 	Name: 	Marc C. Mattsson
	 	Title: 	CEO

 

Acknowledged and agreed.

 

	GRANTEE:	 
	 	 
	ESSA PHARMACEUTICALS CORP.,	 
	a Texas corporation	 
	 	 
	By:	/s/ Robert W. Rieder	 
	Name:	Robert W. Rieder	 
	Title	CEO	 

 

    	 	C-1	 

     

    

Schedule 1

 

DESCRIPTION OF THE PERSONAL PROPERTY

 

Reception Area:

1 reception desk chair

4 upholstered chairs, 1 sofa

1 small coffee table

2 end tables

 

Boardroom:

1 table

14 executive chairs

 

CEO office:

3 bookcase/file cabinets

1 L-Shape Desk

1 small coffee table

2 upholstered chairs

 

6 Office Spaces:

1 - L-shaped desk, with hutch and tack board

1 – executive chair

2 guest chairs

1 - 5 shelf bookcase

 

Administrative Assistant Area:

1 – Ushape desk with hutch and tackboard

1 bookcase

2 guest chairs

 

Kitchen Area:

1 laminate rectangular table with 12 chairs

1 refrigerator

2 microwaves

1 dishwasher

1 ice machine

 

    	 	C-2	 

    

 

LANDLORD’S
CONSENT TO SUBLEASE

 

	DATE:	April 7, 2015
	 	 
	LANDLORD:	Sheridan Hills Developments LP, a Texas Limited Partnership 
	 	 
	SUBLESSOR:	Texas Heart Institute, a Texas non-profit corporation
	 	 
	SUBLESSEE:	Essa Pharmaceuticals Corp., a Texas corporation

 

	SUBLEASED PREMISES:	The portion of the Premises (as defined in the Prime
Lease) shown on Exhibit A attached hereto

 

		PRIME LEASE:	Lease Agreement dated as of February 20, 2009, by and
between Sheridan Hills Developments LP, a Texas Limited Partnership (“Landlord”), and Texas Heart Institute (“Sublessor”),
as amended by a First Amendment to Lease Agreement between Landlord and Sublessor, dated June 2, 2009.

 

Landlord hereby consents
to Sublessor subleasing the Subleased Premises to Sublessee as described above pursuant to the form of Sublease Agreement attached
hereto as Exhibit B (the “Sublease Agreement”), provided that (i) such consent shall never be deemed
to constitute Landlord’s approval of any terms or provisions of the documents evidencing such Sublease Agreement; (ii) such
consent shall never be construed as creating privity between Landlord and Sublessee [other than through this Landlord’s Consent
to Sublease (this “Consent”)]; (iii) the Sublease Agreement is subordinate to the Prime Lease and shall terminate
upon termination of the Prime Lease; (iv) nothing contained herein or in the Sublease Agreement shall be deemed a release of Sublessor
with respect to its obligations under the Prime Lease; (v) Sublessor shall remain fully liable for the performance of all of Sublessor’s
obligations under the Prime Lease, including, without limitation, payment of all rent, parking charges, and other amounts payable
by Sublessor under the Prime Lease; (vi) no further subletting or assignment of the Premises by Sublessor or the Subleased Premises
by Sublessee will be made without the prior written consent of Landlord, which consent may be granted or withheld in accordance
with the terms and provisions of the Prime Lease; (vii) any violation by Sublessee of the terms and conditions of the Prime Lease
shall constitute a default thereunder for which Sublessor shall be fully liable following the expiration of any applicable notice
and cure periods provided; (viii) upon Sublessee’s receipt of written notice from Landlord setting forth that Sublessor is
in default of the Prime Lease beyond all applicable notice and cure periods, Sublessee shall thereafter be required to pay all
rent and other sums payable under the Sublease Agreement directly to Landlord, provided that Landlord’s receipt of such rent
from the Sublessee shall not be deemed to release the Sublessor from its obligations under the Prime Lease, or constitute an acceptance
by Landlord of the Sublessee as a direct tenant; (ix) specifically, but not by way of limitation of any other matter referred to
in this Consent or in the Sublease Agreement, Sublessee agrees that the terms and provisions of Sections 28 and 29 of the Prime
Lease are incorporated into this Consent by reference and Sublessee agrees that it shall be bound by all waivers and shall fulfill
all obligations thereunder as if Sublessee were “Tenant” under said Sections 28 and 29 of the Prime Lease, including,
without limitation, the obligation to indemnify and save harmless Landlord in accordance with Section 28 of the Prime Lease and
the obligation to obtain and maintain throughout the term of the Sublease Agreement, with respect to the Subleased Premises, the
insurance required to be maintained by “Tenant” under Section 29 of the Prime Lease, and Sublessee shall name Landlord
(and all other parties required under said Section 29 of the Prime Lease to be named as an additional insured) as an additional
insured on all such policies; (x) fifty percent (50%) of any excess rent payable to Sublessor by Sublessee pursuant to the Sublease
Agreement shall be paid by Sublessor to Landlord in accordance with Section 12 of the Prime Lease; and (xi) Sublessor shall pay
Landlord, simultaneously with Sublessor’s execution of this Consent, a review fee of $750.00; provided that if Landlord’s
actual reasonable costs and expenses (including reasonable attorney’s fees) exceed $750.00, Sublessor shall reimburse Landlord
for Landlord’s actual reasonable costs and expenses in lieu of the fixed review fee.

 

    	 	1	 

     

    

 

Sublessor hereby expressly
and irrevocably waives the Termination Option as set out in section 51 of the Original Lease.

 

To the extent the Prime
Lease shall be terminated prior to the expiration of the term of the Sublease Agreement for any reason other than a termination
by Landlord due to condemnation, fire or other damage in accordance with the terms of the Prime Lease, the Sublease Agreement,
if then in existence, at Landlord’s option, which option may be exercised in Landlord’s sole discretion by delivering
written notice to Sublessee, shall continue as a lease between Landlord, as lessor, and Sublessee, as lessee, with the same force
and effect as if Landlord and Sublessee had entered into a lease as of the date of the termination of the Prime Lease containing
the same terms, covenants and conditions as those contained in the Sublease Agreement, for a term equal to the unexpired term of
said Sublease Agreement, provided that in such situation, Landlord shall not be (a) liable for previous acts or omissions of Sublessor,
(b) bound by any rent previously paid by Sublessee, unless actually received by Landlord, (c) bound by any amendment to the Sublease
Agreement made subsequent to the date hereof without Landlord’s consent or (d) liable for any obligations of Sublessor under
the Sublease Agreement to make any improvements to the Subleased Premises. If Landlord elects to continue the Sublease in effect
after the termination of the Prime Lease but Landlord fails to cure any existing defects under the Sublease by Sublessor, Sublessee,
at Sublessee’s option, may terminate the Sublease by providing Landlord with written notice of termination.

 

Sublessee acknowledges
and agrees that any rights Sublessee has under the Sublease Agreement are derived through Sublessor and therefore, if Sublessor’s
rights under the Prime Lease are terminated, Sublessee’s rights will be automatically terminated under the Sublease Agreement
(except as set forth in the preceding paragraph). In addition, except where Landlord elects to continue the Sublease after the
termination of the Prime Lease (as a direct lease with Sublessee), Sublessee has no rights against Landlord, but, rather must look
to Sublessor in the event of any alleged breach of the Prime Lease or of the Sublease Agreement. Capitalized terms not defined
herein shall have the same meanings assigned to such terms in the Prime Lease. Sublessor and Sublessee represent and warrant that
the Sublease Agreement attached hereto as Exhibit B is a true and complete copy of the Sublease Agreement, and that such
Sublease Agreement constitutes the sole agreement between the Sublessor and Sublessee in relation to the subletting of the Subleased
Premises. In the event that there shall be any conflict between the terms, covenants and conditions of this Consent and the terms,
covenants and conditions of the Sublease Agreement, then the terms, covenants and conditions of this Consent shall prevail in each
instance, and any conflicting terms, covenants or conditions of the Sublease Agreement shall be deemed modified to conform with
the terms, covenants and conditions of this Consent. This Consent in no way modifies, waives, impairs, or affects the terms of
the Prime Lease, nor increases any obligation of the Landlord under the Prime Lease.

 

[END OF TEXT]

 

    	 	2	 

     

    

  

Executed as of the date first written above.

 

	 	LANDLORD:
	 	 
	 	Sheridan Hills Developments LP,
	 	a Texas Limited Partnership
	 	 
	 	By: FOUNCET SHERIDAN INC. (G.P.)
	 	 
	 	By:	/s/ SHOEL SILVER
	 	Name:	SHOEL SILVER
	 	Title:	PRESIDENT
	 	 
	 	SUBLESSOR:
	 	 
	 	Texas Heart Institute,
	 	a Texas non-profit corporation
	 	 
	 	By:	/s/ Mark C. Mattsson
	 	Name:	Marc C. Mattsson
	 	Title:	4/9/15 CEO
	 	 
	 	SUBLESSEE:
	 	 
	 	Essa Pharmaceuticals Corp.,
	 	a Texas corporation
	 	 
	 	By:	/s/ Robert W. Riedar
	 	Name:	Robert W. Rieder
	 	Title:	CEO

 

    	 	3	 

     

    

 

EXHIBIT
A

 

Diagram of the Location of the Subleased
Premises

 

 

 

    	 	4	 

     

    

 

EXHIBIT
B

 

Form of Sublease Agreement

 

(See attached)

 

    	 	5Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 14th day of December 2015, by and between AMC Entertainment Holdings, Inc., a Delaware corporation (the “Company”), and Adam M. Aron (the “Officer”).

 

RECITALS

 

THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions:

 

A.                                    The Company desires to obtain the services of the Officer on the terms and conditions set forth in this Agreement.

 

B.                                    This Agreement shall govern the employment relationship between the Officer and the Company and supersedes and negates all previous agreements with respect to such relationship.

 

C.                                    The Officer desires to be employed by the Company on the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:

 

1.                                      Retention and Duties.

 

1.1                               Retention.  The Company does hereby hire, engage and employ the Officer beginning on January 4, 2016, or another mutually agreeable date before February 15, 2016 (such actual first date of employment, the “Effective Date”), and concluding on the last day of the Period of Employment (as such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement.  The Officer does hereby accept and agree to such hiring, engagement and employment, on the terms and conditions expressly set forth in this Agreement.

 

1.2                               Duties.  During the Period of Employment, the Officer shall serve the Company as its Chief Executive Officer and President and shall have the powers, authorities, duties and obligations of management usually vested in such position of a company of a similar size and similar nature as the Company, including its status as a company whose shares are publicly traded on a national securities exchange, and such other powers, authorities, duties and obligations commensurate with such position as the Company’s Board of Directors (the “Board”) may reasonably and lawfully assign from time to time, all subject to such directives of the Board and the corporate policies of the Company as they are in effect from time to time throughout the Period of Employment (including, without limitation, the Company’s business conduct and ethics policies, as they may change from time to time).  The Company shall also nominate, and re-nominate, as applicable, the Officer to be a member of the Board.

 

1.3                               No Other Employment; Minimum Time Commitment.  During the Period of Employment, the Officer shall (i) devote substantially all of the Officer’s business time,

 

1

 

energy and skill to the performance of the Officer’s duties for the Company, (ii) perform such duties in a faithful, effective and efficient manner to the best of his abilities, and (iii) hold no other employment, except as provided herein.  The Officer is permitted to serve on two public company boards of directors during the Period of Employment, including, but not limited to, fulfilling his duties under a consulting arrangement with respect to his board service for Norwegian Cruise Line Holdings, Ltd., at the outset of employment.  Notwithstanding the foregoing, the Company shall have the right to require the Officer to resign from any board or similar body (including, without limitation, any association, corporate, civic or charitable board or similar body) on which he may then serve if the Board reasonably determines that the Officer’s service on such board or body materially interferes with the effective discharge of the Officer’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 Affiliates (as such term is defined in Section 5.5), successors or assigns.

 

1.4                               No Breach of Contract.  The Officer hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Officer and the Company and the performance by the Officer of the Officer’s duties hereunder do not and shall not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or policy to which the Officer is a party or otherwise bound or any judgment, order or decree to which the Officer is subject; (ii) the Officer has no information (including, without limitation, confidential information and trade secrets) relating to any other Person (as such term is defined in Section 5.5) which would prevent, or be violated by, the Officer entering into this Agreement or carrying out his duties hereunder; (iii) except as set forth above, and as disclosed to the Company with regard to the Officer’s prior employment by email on November 19, 2015, the Officer is not bound by any employment, consulting, non-compete, confidentiality, trade secret or similar agreement with any other Person; and (iv) the Officer understands the Company will rely upon the accuracy and truth of the representations and warranties of the Officer set forth herein and the Officer consents to such reliance.

 

1.5                               Location and Travel.  The Officer’s principal place of employment shall be in Leawood, Kansas.  The Officer agrees that he will be regularly present at that office.  The Officer acknowledges that he will be required to undertake reasonable travel from time to time in the course of performing his duties for the Company including periodically to Beijing, China.  The Officer may fly commercially in first class or use the Company’s corporate jet (“Netjets”) for business travel but shall not use Netjets for personal or recreational use without prior approval from the Company’s Audit Committee.

 

2.                                      Period of Employment.  The “Period of Employment” shall be a period of three (3) years commencing on the Effective Date and ending at the close of business on the third anniversary of the Effective Date (the “Termination Date”); provided, however, that this Agreement shall be automatically renewed, and the Period of Employment shall be automatically extended, for one (1) additional year on the Termination Date and each anniversary of the Termination Date thereafter, unless either party gives written notice at least ninety (90) days prior to the expiration of the Period of Employment (including any renewal thereof) of such party’s desire to terminate the Period of Employment (such notice to be delivered in accordance with Section 16).  The term “Period of Employment” shall include any extension thereof pursuant to the preceding sentence.  Provision of notice that the Period of Employment shall not be extended or further extended, as the case may be, shall not constitute a breach of this Agreement and shall not constitute “Good

 

2

 

Reason” for purposes of this Agreement.  Notwithstanding the foregoing, the Period of Employment is subject to earlier termination as provided below in this Agreement.

 

3.                                      Compensation.

 

3.1                               Base Salary.  During the Period of Employment, the Company shall pay the Officer a base salary (the “Base Salary”), which shall be paid in accordance with the Company’s regular payroll practices in effect from time to time, but not less frequently than monthly.  The Officer’s Base Salary shall be at an annualized rate of Nine Hundred Ninety-five Thousand Dollars ($995,000).  The Board (or Compensation Committee) will review the Officer’s Base Salary and other compensation on an annual basis on the same basis as other executive officers being reviewed and may, in its sole discretion, increase (but not decrease) the following year’s amounts.

 

3.2                               Incentive Bonus.  The Officer shall be eligible to receive an annual incentive plan bonus for each fiscal year of the Company that occurs during the Period of Employment (“Incentive Bonus”); provided that the Officer must be employed by the Company at the end of the fiscal year in order to be eligible for an Incentive Bonus with respect to that fiscal year, except as provided in Section 5.3 below.  Except as provided in Section 5.3 below, if the Officer is not so employed at such time, he shall not be considered to have “earned” any Incentive Bonus with respect to the fiscal year in question.  Any Incentive Bonus shall be paid to the Officer in the immediately following fiscal year at the same time that the Company pays its annual bonuses to officers generally.  The Officer’s actual target Incentive Bonus amount for a particular fiscal year of the Company shall be determined by the Company in its sole discretion, based on reasonable performance objectives (which may include corporate, business unit or division, financial, strategic, individual or other objectives) established in consultation with the Officer with respect to that particular fiscal year by Company.  The Officer’s Incentive Bonus opportunity at target for each fiscal year during the Period of Employment shall equal 125% of his Base Salary.

 

3.3                               Long Term Incentives.  For each fiscal year during the Period of Employment the Company shall award the Officer $4,000,000 of value in long-term incentive equity compensation under the Company’s 2013 Equity Incentive Plan, or a successor plan (“Long Term Incentives”), subject to performance, vesting and other terms and conditions established by the Board (or Compensation Committee) for the long term incentive plan generally (“LTIP”), 50% of which shall be Restricted Stock Units (“RSUs”) that vest based on time (ratably over 3 years) and 50% of which shall be Performance Stock Units (“PSUs”) that vest after three (3) years based on reasonable performance criteria set in consultation with the Officer.  The Officer’s grant in 2016 shall be made on the later of a) the Effective Date, or b) the date the Board otherwise approves Company’s 2016 LTIP equity grants, but the underlying equity awards shall be priced as of the 8-K announcement date of this Agreement using the 5-day trailing average price formula set forth in Company’s LTIP documents.  Subsequent grants shall be made at the time the Company’s other executive officers receive their awards.

 

3.4                               Clawback.  Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation or any other compensation paid to the Officer pursuant to this Agreement or any other agreement or arrangement with the Company which is or becomes subject to recovery under any law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law,

 

3

 

government regulation or stock exchange listing requirement or otherwise), whether such law, government regulation, stock exchange listing requirement or policy is in existence as of the Effective Date or is later adopted, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement or policy.

 

4.                                      Benefits.

 

4.1                               Retirement, Welfare and Fringe Benefits.  During the Period of Employment, the Officer shall be entitled to participate in all retirement and welfare benefit plans and programs, and fringe benefit plans and programs, made available by the Company to the Company’s executive officers generally, in accordance with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time.

 

4.2                               Reimbursement of Business Expenses; Relocation.  The Officer is authorized to incur reasonable expenses in carrying out the Officer’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business expenses that the Officer incurs during the Period of Employment in connection with carrying out the Officer’s duties for the Company, subject to the Company’s expense reimbursement policies and any pre-approval policies in effect from time to time.  The Company shall reimburse the Officer for temporary living expenses (no more than 60 days) and movement of furniture and automobiles to the Company’s current location.  The Officer will not be entitled to the cost of disposition of a residence outside of Kansas, if any, or any costs associated with the acquisition of a residence in Kansas.

 

4.3                               Vacation and Other Leave.  During the Period of Employment, the Officer’s annual rate of vacation accrual shall conform to the Company’s vacation policies in effect from time to time, but at the maximum level of vacation for any other executive officer.  The Officer shall also be entitled to all other holiday and leave pay generally available to other Officers of the Company.

 

5.                                      Termination.

 

5.1                               Termination by the Company.  The Officer’s employment by the Company, and the Period of Employment, may be terminated at any time by the Company: (i) with Cause (as such term is defined in Section 5.5), or (ii) without Cause, or (iii) in the event of the Officer’s death, or (iv) in the event that the Board determines in good faith that the Officer has a Disability (as such term is defined in Section 5.5).

 

5.2                               Termination by the Officer.  The Officer’s employment by the Company, and the Period of Employment, may be terminated by the Officer with no less than ninety (90) days’ advance written notice to the Company (such notice to be delivered in accordance with Section 16); provided, however, that in the case of a termination with Good Reason, the Officer may provide immediate written notice of termination once the applicable cure period (as contemplated by the definition of Good Reason) has lapsed if the Company has not reasonably cured the circumstances that gave rise to the basis for the termination with Good Reason.

 

5.3                               Benefits Upon Termination.  If the Officer’s employment by the Company is terminated during the Period of Employment for any reason by the Company or by the Officer, or

 

4

 

upon or following the expiration of the Period of Employment (in any case, the date that the Officer’s employment by the Company terminates is referred to as the “Severance Date”), the Company shall have no further obligation to make or provide to the Officer, and the Officer shall have no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

(a)                                 The Company shall pay the Officer (or, in the event of his death, the Officer’s estate) any Accrued Obligations (as such term is defined in Section 5.5);

 

(b)                                 If the Officer’s employment with the Company terminates (i) as a result of an Involuntary Termination during the Period of Employment or (ii) as a result of the Company giving notice prior to the expiration of the Period of Employment of the Company’s desire to terminate the Period of Employment as specified in Section 2, or not to renew the Period of Employment on at least comparable terms, (“Nonrenewal by Company”), the Company shall pay the Officer (in addition to the Accrued Obligations), subject to tax withholding and other authorized deductions, an amount equal to (x) 1.5 times his Base Salary plus (y) the Applicable Bonus, plus (z) $6,000,000 of value in the form of RSU equity vesting and supplemental cash payments.  More specifically, as to the $6,000,000 of equity vesting/supplemental cash payments, Company shall provide for the scheduled annual vesting of all of Officer’s unvested RSUs and for supplemental cash payments to effect an annual $2,000,000 blend of stock and cash payments to Officer at the beginning of each of the first three calendar years following his Severance Date as specified in more detail in Section 5.3(c) below.  Such Base Salary, Applicable Bonus, equity vesting and supplemental cash amounts, together with the medical benefit described below, are referred to collectively hereinafter as the “Severance Benefit.”  Subject to Section 5.8(a), and except as provided in Section 5.3(c) as to the timing of the equity vesting and supplemental cash payments, the Company shall pay the Severance Benefit to the Officer in substantially equal installments in accordance with the Company’s standard payroll practices over a period of twenty-four (24) consecutive months, with the first installment payable on the last day of the month following the month in which the Officer’s Separation from Service (as such term is defined in Section 5.5) occurs.  (For purposes of clarity, each such installment shall equal the applicable fraction of the aggregate Severance Benefit.  For example, if such installments were to be made on a monthly basis, each installment would equal 1/24th of the Severance Benefit.)  In addition, if the Officer timely elects to continue coverage under the Company’s group medical plan within the meaning of Code Section 4980B(f)(2), the Company shall pay the Officer an amount equal to the full cost, including a tax equivalency bonus such that the Officer retains that full cost after all taxes and related charges are paid, of the continuation coverage premium for the same type and level of coverage elected by the Officer for a period of 18 months.

 

(c)                                  The $6,000,000 of value to be conveyed to Officer over three (3) years in the form of equity vesting plus supplemental cash payments shall be conferred principally through Company’s LTIP.  Section 3.3 of this Agreement provides for an annual LTIP award of $4,000,000 to Officer, 50% of which ($2,000,000) are RSUs that vest ratably over three (3) years’ time.  Within several days of Company announcing its 2017 earnings (i.e., by the end of February of 2018), Company will have made three (3) $2,000,000 RSU grants to Officer with (before taking underlying equity price fluctuations into account) $4,000,000 of RSUs outstanding and scheduled to vest ratably over three (3) years’ time.  Company agrees to provide for the uninterrupted ratable annual vesting of all of Officer’s outstanding RSUs such that the typical $4,000,000 of

 

5

 

RSU outstanding value (aside from equity price fluctuations) is conveyed to Officer over the three years following his Separation Date.  Alongside the prescribed RSU vesting, Company agrees to pay Officer the supplemental cash payments set forth on Exhibit A, to effect three (3) $2,000,000 payments (aside from equity price fluctuations) following Officer’s termination.  The parties recognize that the supplemental cash payments will be larger in years 1 and 2 while the RSU grants are accumulating.  Should Company’s LTIP plan design change, such that the RSU grants are made or vesting occurs at a different time of the year, the mechanics of the RSU vesting and the supplemental cash payments set forth herein shall be adjusted to effect the purposes of the foregoing arrangement, namely, that Officer receive the equity value plus supplemental cash payments designed to deliver $2,000,000 of value (aside from equity price fluctuation) at the beginning of each calendar year after the Severance Date.  Officer and Company appreciate that the RSUs are priced as of the date of grant and that the value of the underlying shares may increase or decrease by the vesting date.  Accordingly, the value conferred to Officer through annual RSU vesting will fluctuate.  The supplemental cash payments are fixed amounts.  Accordingly, the $2,000,000 of value conferred annually will likely be more or less than $2,000,000 depending on the fluctuations in equity price between the grant and vesting dates.  The parties agree further that all PSUs (as opposed to RSUs) not vested as of the Severance Date shall be canceled and forfeited on the Severance Date.  The parties also acknowledge that RSU vesting will be subject to a cash flow from operations or other financial metric for 162(m) purposes.

 

(d)                                 Notwithstanding the foregoing provisions of this Section 5.3, if the Officer breaches his obligations under Section 6 or under any other agreement that imposes restrictions with respect to the Officer’s activities at any time, from and after the date of such breach and not in any way in limitation of any right or remedy otherwise available to the Company, the Officer will no longer be entitled to, and the Company will no longer be obligated to pay, vest, confer, assign or otherwise transfer any remaining unpaid portion of the Severance Benefit; provided that, if the Officer provides the release contemplated by Section 5.4, in no event shall the Officer be entitled to a Severance Benefit payment of less than $5,000, which amount the parties agree is good and adequate consideration, standing alone, for the Officer’s release contemplated by Section 5.4.

 

(e)                                  The foregoing provisions of this Section 5.3 shall not affect: (i) the Officer’s receipt of any benefits otherwise due terminated employees under group insurance coverage consistent with the terms of an applicable Company welfare benefit plan; (ii) the Officer’s rights to continued health coverage under COBRA; or (iii) the Officer’s receipt of benefits otherwise due in accordance with the terms of the Company’s 401(k) plan (if any).  If the Board terminates Officer within the timeframes designed for the determination of a Disability, it shall not prejudice in any way the Officer’s eligibility for Long Term Disability Insurance benefits arising at the 150 day mark when Company’s Short Term Disability coverage expires.

 

5.4                               Release; Exclusive Remedy.

 

(a)                                 This Section 5.4 shall apply notwithstanding anything else contained in this Agreement or any stock option or other equity-based award agreement to the contrary.  As a condition precedent to payment of the Severance Benefit, the Officer shall, prior to the last day of the month following the month in which Executive’s Separation from Service (as such term is defined in Section 5.5) occurs, provide the Company and its

 

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Affiliates with a valid, executed release agreement in a form acceptable to the Company, and such release agreement shall have not been revoked or remain revocable by the Officer pursuant to any revocation rights afforded by applicable law.  Exhibit B sets forth the current form of release used by the Company, but the Company has discretion to specify the form to be used if and when a release is to be executed making only such changes which its outside legal counsel opines are necessary to comply with applicable law.

 

(b)                                 The Officer agrees that the payments and benefits contemplated by Section 5.3 shall constitute the exclusive and sole remedy for any termination of his employment and the Officer covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment.  The Officer agrees to resign, on the Severance Date, as an officer and director of the Company and any Affiliate of the Company, and as a fiduciary of any benefit plan of the Company or any Affiliate of the Company, and to promptly execute and provide to the Company any further documentation, as requested by the Company, to confirm such resignation.

 

5.5                               Certain Defined Terms.

 

(a)                                 As used herein, “Accrued Obligations” means:

 

(i)                                     any Base Salary that had accrued but had not been paid on or before the Severance Date;

 

(ii)                                  any Incentive Bonus for a completed fiscal year that has not yet been paid, to the extent the Officer is eligible for any such Incentive Bonus for such fiscal year in accordance with the performance criteria set for such fiscal year; and, in the case of the Officer’s death, termination on account of a Disability, without Cause or for Good Reason, a pro rata Incentive Bonus for the year of termination equal to the number of days in the fiscal year prior to the Severance Date divided by 365 and multiplied by the amount of the Incentive Bonus that would otherwise have been paid to Officer, in accordance with the Incentive Bonus program, but for his termination.  This Accrued Obligation shall be paid to the Officer, or his estate, at the same time that the Company pays its annual bonuses to officers generally; and

 

(iii)                               any reimbursement due to the Officer pursuant to Section 4.2 for expenses reasonably incurred by the Officer on or before the Severance Date and documented and pre-approved, to the extent applicable, in accordance with the Company’s expense reimbursement policies in effect at the applicable time.

 

(b)                                 As used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company.  As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.  The term “Affiliate” shall not include any entity that would not otherwise be an Affiliate of the Company but for the controlling ownership interest of Dalian Wanda Group Co., Ltd. or its successors or related investment funds (the “Wanda Group”).

 

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(c)                                  As used in this Agreement, “Applicable Bonus” means

 

(i)                                     On and prior to December 31, 2016, 1.875 times Base Salary;

 

(ii)                                  On and after January 1, 2017 and until December 31, 2017, 1.5 times the Incentive Bonus paid to the Officer for the fiscal year ended December 31, 2016; and

 

(iii)                               On after January 1, 2018, 1.5 times the average of the Incentive Bonuses paid to the Officer during the 24 months preceding the Severance Date.

 

(d)                                 As used herein, “Cause” shall mean, as reasonably determined by the Board (excluding the Officer, if he is then a member of the Board) based on the information then known to it, that one or more of the following has occurred:

 

(i)                                     the Officer has committed a felony (under the laws of the United States or any relevant state, or a similar crime or offense under the applicable laws of any relevant foreign jurisdiction);

 

(ii)                                  the Officer has engaged in material acts of fraud, dishonesty, gross negligence or other misconduct including abuse of controlled substances, that is injurious to the Company, its Affiliates or any of their customers, clients or employees;

 

(iii)                               the Officer willfully fails to perform or uphold his duties under this Agreement and/or willfully fails to comply with reasonable and lawful directives of the Board, in either case, that is not remedied by the Officer within fifteen (15) days after written notice thereof has been delivered to the Officer; or

 

(iv)                              any material breach by the Officer of any provision of Section 6, or any material breach by the Officer of any other contract he is a party to with the Company or any of its Affiliates including the code of ethics or another material written policy.

 

(e)                                  As used herein, “Change of Control” shall mean the occurrence of one of the following events:

 

(i)                                     Any Person, other than Wanda Group or any of its subsidiaries, becomes the beneficial owner, directly or indirectly, of more than thirty-five percent (35%) of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of its directors (the “Outstanding Company Voting Securities”) including by way of merger, consolidation or otherwise; provided, however, that for purposes of this definition, the following acquisitions shall not constitute a Change in Control: (i) any acquisition of voting securities of the Company directly from the Company, including without limitation, a public offering of securities or (ii) any acquisition by the Company or any of its subsidiaries of Outstanding Company Voting Securities, including an acquisition by any employee benefit plan or related trust sponsored or maintained by the Company or any of its subsidiaries.

 

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(ii)                                  During any period of two consecutive years, individuals who constitute the Board as of the beginning of such period (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the beginning of such period whose election to the Board, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the Incumbent Directors (including directors whose election or nomination was previously so approved), shall be considered as though such individual were a member of the Board as of the beginning of such two-year period, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election or removal of any members of the Board or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; provided, further, that any individual becoming a member of the Board subsequent to the Effective Date who was designated as a Board member by Wanda Group shall be considered as though such individual was an Incumbent Director.

 

(iii)                               Consummation of a reorganization, merger, or consolidation to which the Company is a party, or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, following such Business Combination: (i) any individuals and entities who were the beneficial owners of Outstanding Company Voting Securities immediately prior to such Business Combination are the beneficial owners, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors (or election of members of a comparable governing body) of the entity resulting from the Business Combination (including, without limitation, an entity which as a result of such transaction owns all or substantially all of the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) (the “Successor Entity”) in substantially the same proportions as their ownership immediately prior to such Business Combination; (ii) no Person (excluding any Successor Entity or any employee benefit plan or related trust of the Company, such Successor Entity, or any of their subsidiaries) is the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or comparable governing body) of the Successor Entity, except to the extent that such ownership existed prior to the Business Combination; and (iii) at least a majority of the members of the board of directors (or comparable governing body) of the Successor Entity were Incumbent Directors (including persons deemed to be Incumbent Directors) at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination.

 

Notwithstanding the foregoing, to the extent necessary to comply with Section 409A of the Code with respect to the payment of “nonqualified deferred compensation”, “Change of Control” shall be limited to a “change in control event” as defined under Section 409A of the Code.

 

(f)                                   As used herein, “Good Reason” shall mean a termination of the Officer’s employment by means of resignation by the Officer after the occurrence (without the Officer’s consent) of any one or more of the following conditions:

 

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(i)                                     a material diminution in the Officer’s rate of Base Salary, Incentive Bonus or Long Term Incentives;

 

(ii)                                  a material diminution in the Officer’s authority, duties, or responsibilities or removal from, or failure to be nominated to be elected to, the Board;

 

(iii)                               a material change in the geographic location of the Officer’s principal office with the Company (for this purpose, in no event shall a relocation of such office to a new location that is not more than fifty (50) miles from the current location of the Company’s executive offices constitute a “material change”); or

 

(iv)                              a material breach by the Company of this Agreement;

 

provided, however, that any such condition or conditions, as applicable, shall not constitute grounds for a termination with Good Reason unless (x) the Officer provides written notice to the Company of the condition claimed to constitute grounds for a termination with Good Reason within sixty (60) days after the initial existence of such condition(s) (such notice to be delivered in accordance with Section 16), and (y) the Company fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof; and (z) the termination of the Officer’s employment with the Company shall not constitute a termination with Good Reason unless such termination occurs not more than one hundred and twenty (120) days following the initial existence of the condition claimed to constitute grounds for a termination with Good Reason.

 

(g)                                  As used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Officer unable to perform the essential functions of his employment with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 90 days in any 180 day period, unless a longer period is required by federal or state law, in which case that longer period would apply.

 

(h)                                 As used herein, “Involuntary Termination” shall mean (i) a termination of the Officer’s employment by the Company without Cause (and other than due to Officer’s death or in connection with a good faith determination by the Board that the Officer has a Disability), (ii) a termination of the Officer’s employment by the Company without Cause (and other than due to Officer’s death or in connection with a good faith determination by the Board that the Officer has a Disability) in conjunction with a Change of Control, or (iii) a termination with Good Reason.

 

(i)                                     As used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

(j)                                    As used herein, a “Separation from Service” occurs when the Officer dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.

 

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5.6                               Notice of Termination.  Any termination of the Officer’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party.  This notice of termination must be delivered in accordance with Section 16 and must indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

 

5.7                               Limitation on Benefits.

 

(a)                                 To the extent that any payment, benefit or distribution of any type to or for the benefit of the Officer by the Company or any of its Affiliates, whether paid or payable, provided or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (including, without limitation, any accelerated vesting of stock options or other equity-based awards or incentives) (collectively, the “Total Payments”) would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then the Company shall submit for the vote of the stockholders of the Company (the “Stockholders”) the payments to the Officer in a manner that complies with the requirements of Section 280G(b)(5)(B) of the Code and the Treasury Regulations promulgated thereunder.  It shall be a prerequisite to the Company’s obligations under this Section 5.7(a) that the Officer shall have executed a valid waiver in a form reasonably satisfactory to the Company and sufficient to enable the Stockholders’ approval to have the effect that no payments to the Officer would be subject to the excise tax under Section 4999 of the Code.  If the exemption described in Section 280G(b)(5)(B) of the Code and the Treasury Regulations promulgated thereunder does not apply (other than due to the shareholders not approving the payment), then the procedures set forth in Section 5.7(b) and Section 5.7(c) hereof shall apply.

 

(b)                                 Notwithstanding anything contained in this Agreement to the contrary, to the extent that the Total Payments would be subject to Section 4999 of the Code, then the Total Payments shall be reduced (but not below zero) so that the maximum amount of the Total Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Total Payments to be subject to the excise tax imposed by Section 4999 of the Code but no such reduction shall apply unless the actual amount of Total Payments to be received by the Officer after such reduction is greater than the amount the Officer would receive if no such reduction were made to the Total Payments and the Officer were subject to the tax imposed by Section 4999 of the Code .  Unless the Officer shall have given prior written notice to the Company to effectuate a reduction in the Total Payments that complies with the requirements of Section 409A of the Code to avoid the imputation of any tax, penalty or interest thereunder, the Company shall reduce or eliminate the Total Payments by first reducing or eliminating any cash severance benefits (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of stock options or similar awards, then by reducing or eliminating any other remaining Total Payments.  The preceding provisions of this Section 5.7(b) shall take precedence over the provisions of any other plan, arrangement or agreement governing the Officer’s rights and entitlements to any benefits or compensation.

 

(c)                                  Any determination that Total Payments to the Officer must be reduced or eliminated in accordance with Section 5.7(b) and the assumptions to be utilized in arriving at such determination, shall be made by the Board in the exercise of its reasonable, good faith discretion based upon the advice of such professional advisors it may deem appropriate in the circumstances.  As a result of the uncertainty in the

 

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application of Section 4999 of the Code at the time of the initial determination by the Board hereunder, it is possible that Total Payments to the Officer which will not have been made by the Company should have been made (“Underpayment”).  If an Underpayment has occurred, the amount of any such Underpayment shall be promptly paid by the Company to or for the benefit of the Officer.  In the event that any Total Payment made to the Officer shall be determined to otherwise result in the imposition of any tax under Section 4999 of the Code (“Overpayment”), then the Officer shall promptly repay to the Company the amount of any such Overpayment together with interest on such amount (at the same rate as is applied to determine the present value of payments under Section 280G of the Code or any successor thereto), from the date the reimbursable payment was received by the Officer to the date the same is repaid to the Company.

 

5.8                               Section 409A.

 

(a)                                 If the Officer is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Officer’s Separation from Service and the Severance Benefit or any other amount payable under this Agreement constitutes deferred compensation within the meaning of Section 409A of the Code, the Officer shall not be entitled to such Severance Benefit or other amount until the earlier of (i) the date which is six (6) months after his Separation from Service for any reason other than death, or (ii) the date of the Officer’s death.  The provisions of this paragraph shall apply only if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code after taking into account all applicable exemptions available thereunder.  Any amounts otherwise payable to the Officer upon or during the six (6) month period following the Officer’s Separation from Service that are not so paid by reason of this Section 5.8(a) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Officer’s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Officer’s death).

 

(b)                                 It is intended that any amounts payable under this Agreement and the Company’s and the Officer’s exercise of authority or discretion hereunder shall comply with and avoid the imputation of any tax, penalty or interest under Section 409A of the Code.  This Agreement shall be construed and interpreted consistent with that intent.  Nothing contained herein is intended to provide a guarantee of tax treatment to the Officer.  For purposes of Section 409A of the Code, the Officer’s right to receive installment payments pursuant to Section 5.3(b) shall be treated as a right to receive a series of separate and distinct payments.

 

6.                                      Protective Covenants.

 

6.1                               Confidential Information; Inventions.

 

(a)                                 The Officer shall not disclose or use at any time, either during the Period of Employment or thereafter, any confidential information (as defined below) of which the Officer is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure or use is directly related to and required by the Officer’s performance in good faith of duties for the Company.  The Officer will take all appropriate steps to safeguard confidential information in his possession and to protect it against disclosure, misuse, espionage, loss and theft.  The Officer shall deliver to the Company at the termination of the Period of Employment, or at any time the Company

 

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may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the confidential information or the Work Product (as hereinafter defined) of the business of the Company or any of its Affiliates which the Officer may then possess or have under his control.  Notwithstanding the foregoing, the Officer may truthfully respond to a lawful and valid subpoena or other legal process, but shall give the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist the Company and such counsel in resisting or otherwise responding to such process.

 

(b)                                 As used in this Agreement, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company or its Affiliates in connection with their respective businesses, including, but not limited to, information, observations and data obtained by the Officer while employed by the Company or any predecessors thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company or its Affiliates (or such predecessors), (ii) products or services, (iii) fees, costs, compensation and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients and customer or client lists, (xiii) other copyrightable works, (xiv) all production methods, processes, technology and trade secrets, and (xv) all similar and related information in whatever form.  Confidential Information will not include any information that has been published (other than a disclosure by the Officer in breach of this Agreement) in a form generally available to the public prior to the date the Officer proposes to disclose or use such information.  Confidential Information will not be deemed to have been published merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.

 

(c)                                  As used in this Agreement, the term “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable, copyrightable, registerable as a trademark, reduced to writing, or otherwise) which relates to the Company’s or any of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by the Officer (whether or not during usual business hours, whether or not by the use of the facilities of the Company or any of its Affiliates, and whether or not alone or in conjunction with any other person) while employed by the Company (including those conceived, developed or made prior to the Effective Date) together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.  All Work Product that the Officer may have discovered, invented or originated during his employment by the Company or any of its Affiliates prior to the Effective Date, that he may discover, invent or originate during the Period of Employment or at any time in the period of twelve (12) months after the Severance Date, shall be the exclusive property of the Company and its Affiliates, as applicable, and Officer hereby assigns all of Officer’s right, title and interest in and to such Work Product

 

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to the Company or its applicable Affiliate, including all intellectual property rights therein.  Officer shall promptly disclose all Work Product to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem necessary to protect or perfect its (or any of its Affiliates’, as applicable) rights therein, and shall assist the Company (or any of its Affiliates, as applicable), at the Company’s expense, in obtaining, defending and enforcing the Company’s (or any of its Affiliates’, as applicable) rights therein.  The Officer hereby appoints the Company as his attorney-in-fact to execute on his behalf any assignments or other documents deemed necessary by the Company to protect or perfect the Company’s (and any of its Affiliates’, as applicable) rights to any Work Product.

 

6.2                               Restriction on Competition.  The Officer agrees that if the Officer were to become employed by, or substantially involved in, the business of a competitor of the Company or any of its Affiliates during the twenty-four (24) months following the Severance Date, it would be very difficult for the Officer not to rely on or use the Company’s and its Affiliates’ trade secrets and confidential information.  Thus, to avoid the inevitable disclosure of the Company’s and its Affiliates’ trade secrets and confidential information, and to protect such trade secrets and confidential information and the Company’s and its Affiliates’ relationships and goodwill with customers, during the Period of Employment and for a period of twenty-four (24) months after the Severance Date, the Officer will not directly or indirectly through any other Person engage in, enter the employ of, render any services to, have any ownership interest in, nor participate in the financing, operation, management or control of, any Competing Business; provided, however, that the restrictions set forth in this Section 6.2 shall not be applicable if the Officer is no longer employed by reason of the Company’s providing notice that it desires to not extend, or further extend, as the case may be, the Period of Employment pursuant to Section 2.  For purposes of this Agreement, the phrase “directly or indirectly through any other Person engage in” shall include, without limitation, any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise.  For purposes of this Agreement, “Competing Business” means a Person anywhere in the continental United States or elsewhere in the world where the Company or any of its Affiliates engage in business, or reasonably anticipate engaging in business, on the Severance Date (the “Restricted Area”) that at any time during the Period of Employment has competed, or at any time during the twelve (12) month period following the Severance Date competes, with the Company or any of its Affiliates in any of its or their businesses, including, without limitation, theatrical exhibition, digital cinema, internet ticketing and virtual box office for theatrical exhibitions, IMAX or other three dimensional screened entertainment, pre-show content, cinema or lobby advertising products, meeting and event services or special in-theater events.  Nothing herein shall prohibit the Officer from (i) being a passive owner of not more than 2% of the outstanding stock of any class of a corporation that is publicly traded, so long as the Officer has no active participation in the business of such corporation, (ii) providing services to a Person otherwise engaged in a Competing Business, provided the Officer provides no services to any business operated, managed or controlled by such Person that causes such Person to constitute a Competing Business, or (iii) providing services to a Person the business or businesses of which are unrelated to theatrical exhibition.

 

6.3                               Non-Solicitation of Employees and Consultants.  During the Period of Employment and for a period of twenty-four (24) months after the Severance Date, the Officer will not

 

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directly or indirectly through any other Person (i) induce or attempt to induce any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable, of the Company or such Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand, or (ii) hire any person who was an employee of the Company or any Affiliate of the Company until twelve (12) months after such individual’s employment relationship with the Company or such Affiliate has been terminated.

 

6.4                               Non-Solicitation of Customers.  During the Period of Employment and for a period of twenty-four (24) months after the Severance Date, the Officer will not directly or indirectly through any other Person influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents, or partners of the Company or any Affiliate of the Company to divert their business away from the Company or such Affiliate, and the Officer will not otherwise interfere with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Company or any Affiliate of the Company, on the one hand, and any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers, partners, members or investors, on the other hand.

 

6.5                               Nondisparagement.  For the Period of Employment and five years thereafter, the Officer and the Company (acting through any of its executive officers or directors), acknowledge and agree that neither party will defame, disparage or publicly criticize, directly or through another Person, the services, business or reputation of the Company or any of its officers, directors, partners, employees, Affiliates or agents, on the one hand, or the Officer, on the other, in either a professional or personal manner.

 

6.6                               Understanding of Covenants.  The Officer acknowledges that, in the course of his employment with the Company and/or its Affiliates and their predecessors, he has become familiar, or will become familiar, with the Company’s and its Affiliates’ and their predecessors’ trade secrets and with other confidential and proprietary information concerning the Company, its Affiliates and their respective predecessors and that his services have been and will be of special, unique and extraordinary value to the Company and its Affiliates.  The Officer agrees that the foregoing covenants set forth in this Section 6 (together, the “Restrictive Covenants”) are reasonable and necessary to protect the Company’s and its Affiliates’ trade secrets and other confidential and proprietary information, good will, stable workforce, and customer relations.

 

Without limiting the generality of the Officer’s agreement in the preceding paragraph, the Officer (i) represents that he is familiar with and has carefully considered the Restrictive Covenants, (ii) represents that he is fully aware of his obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its Affiliates currently conducts business throughout the Restricted Area, and (v) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above in this Section 6 regardless of whether the Officer is then entitled to receive severance pay or benefits from the Company.  The Officer understands that the Restrictive Covenants may limit his ability to earn a livelihood in a business similar to the business of the Company and any of its Affiliates, but he nevertheless believes that he has received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify such

 

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restrictions which, in any event (given his education, skills and ability), the Officer does not believe would prevent him from otherwise earning a living.  The Officer agrees that the Restrictive Covenants do not confer a benefit upon the Company disproportionate to the detriment of the Officer.

 

6.7                               Enforcement.  The Officer agrees that the Officer’s services are unique and that he has access to Confidential Information and Work Product.  Accordingly, the Officer agrees that a breach by the Officer of any of the covenants in this Section 6 would cause immediate and irreparable harm to the Company that would be difficult or impossible to measure, and that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach.  Therefore, the Officer agrees that in the event of any breach or threatened breach of any provision of this Section 6 or any similar provision, the Company shall be entitled, in addition to and without limitation upon all other remedies the Company may have under this Agreement, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Section 6 or any similar provision, as the case may be, and/or require the Officer to account for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of this Section 6 or any similar provision, as the case may be, if and when final judgment of a court of competent jurisdiction or arbitrator is so entered against the Officer.  The Officer further agrees that for the applicable period of time any Restrictive Covenant is in effect following the Severance Date, as determined pursuant to the foregoing provisions of this Section 6, such period of time shall be extended by the same amount of time that Officer is in breach of any Restrictive Covenant.  Any action to enforce this Agreement pursuant to this Section 6.7 shall be instituted in the United States Federal Court for the District of Kansas or the courts of the State of Kansas located in Johnson County, Kansas, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.  Service of process, summons, notice or other document by mail to such party’s address set forth herein shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

6.8                               The Officer agrees to execute any additional documentation as may reasonably be requested by the Company in furtherance of the enforcement of any Restrictive Covenant.

 

7.                                      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 federal, state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

8.                                      Successors and Assigns.

 

8.1                               This Agreement is personal to the Officer and without the prior written consent of the Company shall not be assignable by the Officer otherwise than by will or the laws of

 

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descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Officer’s legal representatives.

 

8.2                               This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any assignee or successor to all or substantially all of the Company’s assets, as applicable, which assumes this Agreement by operation of law or otherwise.

 

9.                                      Number and Gender; Examples.  Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.

 

10.                               Section Headings.  The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

11.                               Governing Law; Arbitration; Waiver of Jury Trial.

 

11.1                        THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED.  IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

11.2                        Except for the limited purpose provided in Section 6.7, any legal dispute related to this Agreement and/or any claim related to this Agreement, or breach thereof, shall, in lieu of being submitted to a court of law, be submitted to arbitration, in accordance with the applicable employment dispute resolution procedures of the American Arbitration Association. The award of the arbitrator shall be final and binding upon the parties.  The parties hereto agree that (i) one arbitrator shall be selected pursuant to the rules and procedures of the American Arbitration Association, (ii) the arbitrator shall have the power to award injunctive relief or to direct specific performance, (iii) each of the parties, unless otherwise required by applicable law, shall bear its own attorneys’ fees, costs and expenses and an equal share of the arbitrator’s and administrative fees of arbitration and the arbitrator shall award to the prevailing party a sum equal to that party’s share of the arbitrator’s and administrative fees of arbitration, and (iv) the arbitration shall be conducted in Johnson County, Kansas.  Nothing in this Section 11 shall be construed as providing the Officer a cause of action, remedy or procedure that the Officer would not otherwise have under this Agreement or the law.

 

17

 

11.3                        EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

12.                               Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated by an arbitrator or court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

13.                               Entire Agreement.  This Agreement embodies the entire agreement of the parties hereto respecting the matters within its scope.  This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof, including, without limitation, any term sheet prepared in connection herewith.  Any prior negotiations, correspondence, agreements, proposals or understandings relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein.  Notwithstanding the foregoing integration provisions, the Officer acknowledges having received and read the Company’s code of ethics and agrees to conduct himself in accordance therewith as in effect from time to time.

 

14.                               Modifications.  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.

 

15.                               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.

 

16.                               Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other

 

18

 

person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder and received when delivered personally, when received if transmitted via telecopier, five days after deposit in the U.S. mail and one day after deposit on a weekday with a reputable overnight courier service.

 

if to the Company:

 

AMC Entertainment Holdings, Inc.

11500 Ash Street

Leawood, KS 66211

Facsimile: 913-213-2059

Attn:                    Board of Directors

General Counsel

 

if to the Officer, to the address most recently on file in the payroll records of the Company.

 

17.                               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.

 

18.                               Legal Counsel; Mutual Drafting.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  Each party has cooperated in the drafting, negotiation and preparation of this Agreement.  Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language.  The Officer agrees and acknowledges that he 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 had ample opportunity to do so.

 

19.                               Indemnification. During the Officer’s employment and thereafter, the Company agrees to 1) indemnify and hold the Officer harmless in connection with actual, potential or threatened actions or investigations related to the Officer’s services for, or employment by, the Company and/or its Affiliates to the maximum extent provided in the Company’s articles and by-laws, and 2) provide Officer D&O insurance to the maximum extent, and length, of coverage of any other officer or director of the Company during his employment with the Company and thereafter, as in effect as of the Separation Date.

 

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

 

[The remainder of this page has intentionally been left blank.]

 

19

 

IN WITNESS WHEREOF, the Company and the Officer have executed this Agreement as of the day and year first set forth above.

 

	
 
    	
“COMPANY”
    
	
 
    	
 
    
	
 
    	
AMC   Entertainment Holdings, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Craig R. Ramsey
    
	
 
    	
Craig R. Ramsey
    
	
 
    	
Interim Chief Executive   Officer and President,
    
	
 
    	
Executive Vice   President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
“OFFICER”
    
	
 
    	
 
    
	
 
    	
/s/ Adam M. Aron
    
	
 
    	
Adam   M. Aron
    

 

20

 

Exhibit A

 

Schedule of Supplemental Cash Payments under Section 5.3(c)(1)(2)

 

	
Termination Under
   Section 5.3(B)
    	
 
    	
Supplemental Cash Payment at Beginning of:
    	
 
    
	
Occurs:
    	
 
    	
2017
    	
 
    	
2018
    	
 
    	
2019
    	
 
    	
2020
    	
 
    	
2021
    	
 
    	
2022
    	
 
    	
Total
    	
 
    
	
After 2016 RSU   grants/before 2017 vesting
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
1,333,333
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2017   vesting/before 2017 RSU grants
    	
 
    	
 
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
2,000,000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4,666,666
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2017 RSU   grants/before 2018 vesting
    	
 
    	
 
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
1,300,000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2,666,666
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2018   vesting/before 2018 RSU grants
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
2,000,000
    	
 
    	
 
    	
 
    	
$
    	
4,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2018 RSU   grants/before 2019 vesting
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
1,333,333
    	
 
    	
 
    	
 
    	
$
    	
2,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2019   vesting/before 2019 RSU grants (and for subsequent years)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
2,000,000
    	
 
    	
$
    	
4,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
After 2019 RSU   grants/before 2020 vesting (and for subsequent years)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
0
    	
 
    	
$
    	
666,666
    	
 
    	
$
    	
1,333,333
    	
 
    	
$
    	
2,000,000
    	
 
    

 

(1) LTIP grants are typically made after annual earnings are announced at the end of February.

(2) RSU vesting typically occurs at the beginning of each calendar year.

 

 

Exhibit B

 

FORM OF OFFICER RELEASE(3)

 

1.                                      Release by Officer.                          (the “Officer”), on his own behalf, on behalf of any entities he controls and on behalf of his descendants, dependents, heirs, executors, administrators, assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue AMC ENTERTAINMENT HOLDINGS, INC. (“Holdings”), AMC ENTERTAINMENT INC., a Delaware corporation (“AMCE,” and collectively with Holdings, the “Company”), its and their divisions, subsidiaries, parents, or affiliated corporations, and each of its and their employees, officers and directors, past and present, and each of them, as well as its and their assignees and successors (individually and collectively, “Company Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected, arising out of or in any way connected, in whole or in part, with the Officer’s employment, the termination thereof, or any other relationship with or interest in the Company, including without limiting the generality of the foregoing, any claim for severance pay, profit sharing, bonus or similar benefit, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability, or any other claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected, resulting from or arising out of, in whole or in part, any act or omission by or on the part of Company Releasees committed or omitted prior to the date of this release agreement (this “Agreement”), including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act, or any other federal, state or local law, regulation or ordinance; provided, however, that the foregoing release does not apply to any obligation of the Company to the Officer pursuant to the benefits due, or the indemnification to be provided, to the Officer in connection with the execution and delivery of this Release Agreement pursuant to his employment agreement with                            dated as of                        , 20    by and between the Company and the Officer, or to his rights as a shareholder of the Company or any Affiliate.  In addition, this release does not cover any claim that cannot be released as a matter of applicable law.

 

2.                                      Waiver of Civil Code Section 1542.  This Agreement is intended to be effective as a general release of and bar to each and every claim, agreement, obligation, demand and cause of action hereinabove specified (collectively, the “Claims”).  Accordingly, the Officer hereby expressly waives any rights and benefits conferred by Section 1542 of the California Civil Code as to the Claims.  Section 1542 of the California Civil Code provides:

 

“A GENERAL RELEASE DOES NOT EXTEND TO A CLAIM WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

The Officer acknowledges that he later may discover claims, demands, causes of action or facts in addition to or different from those which the Officer now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms.  Nevertheless, the Officer hereby waives, as to the Claims, any claims, demands, and causes of action that might arise as a result of such different or additional claims, demands, causes of action or facts.

 

(3) Subject to revision to the extent advisable based on changes in law or legal interpretation.

 

Exhibit B – Page 1

 

 

3.                                      ADEA Waiver.  The Officer expressly acknowledges and agrees that by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before the date of execution of this Agreement.  The Officer further expressly acknowledges and agrees that:

 

(a)                                 In return for this Agreement, he will receive consideration beyond that to which he would have been entitled had he not entered into this Agreement;

 

(b)                                 He is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;

 

(c)                                  He was given a copy of this Agreement on [          , 20  ] and informed that he had twenty-one (21) days within which to consider the Agreement; and

 

(d)                                 He was informed that he has seven (7) days following the date of execution of the Agreement in which to revoke the Agreement.

 

4.                                      No Transferred Claims.  The Officer represents and warrants to the Company that he has not heretofore assigned or transferred to any person other than the Company any released matter or any part or portion thereof.(4)

 

The undersigned has read and understand the consequences of this Agreement and voluntarily sign it.  The undersigned declares under penalty of perjury under the laws of the State of [Delaware] that the foregoing is true and correct.

 

EXECUTED this          day of          20  , at                      County, [State].

 

	
 
    	
“Officer”
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name
    
	
 
    	
 
    
	
Acknowledged   and agreed:
    	
 
    
	
 
    	
AMC   ENTERTAINMENT HOLDINGS, INC.,
    
	
 
    	
on   behalf of itself and its divisions, subsidiaries, parents, and affiliated   companies, past and present, and each of them
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(4) If requested by the Company, the Officer shall provide a separate release from the Officer’s spouse at the time of execution.

 

Exhibit B – Page 2

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