Document:

Exhibit 10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of November 17, 2020, by and among DRAGON
VICTORY INTERNATIONAL LIMITED, a company formed and existing under the laws of Cayman Islands (the
“Company”), and YA II PN, Ltd., a Cayman Islands exempt limited partnership (the
“Investor”).

 

WHEREAS:

 

A.
In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor up to $1,500,000 of convertible debentures (the “Convertible Debentures”),
which shall be convertible into the Company’s Ordinary Shares, par value $0.0001 per share (the “Ordinary Shares”)
(as converted, the “Conversion Shares”). Capitalized terms not defined herein shall have the meaning ascribed
to them in the Securities Purchase Agreement.

 

B.
To induce the Investors to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the “Securities Act”), and applicable state securities laws and other rights as provided for
herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.
DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

(a)
“Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, the 90th calendar
day following the filing thereof, provided, however, in the event the Company is notified by the U.S. Securities and Exchange
Commission (“SEC”) that one of the Registration Statements, as defined below, will not be reviewed or is no
longer subject to further review and comments, the Effectiveness Deadline as to such Registration Statement shall be the fifth
calendar day following the date on which the Company is so notified if such date precedes the date required above.

 

(b)
“Filing Deadline means, with respect to a Registration Statement required hereunder, 21 days from the date hereof.

 

(c)
“Person” means a corporation, a limited liability company, an association, a partnership, an organization,
a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

     

     

    

 

(d)
Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A or Rule 430B promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

(e)
“Registrable Securities” means all of (i) the Ordinary Shares issuable upon conversion of the Convertible Debentures,
(ii) Ordinary Shares issuable in connection with any anti-dilution provisions of the Convertible Debentures (without giving effect
to any limitations on exercise set forth in the Convertible Debentures), (iii) any Ordinary Shares issued or issuable with respect
to the Conversion Shares as a result of any stock split, dividend or other distribution, recapitalization or similar event or
otherwise (in each case without giving effect to any limitations on exercise set forth in the Convertible Debentures), and (iv)
the Commitment Shares (as defined in the Securities Purchase Agreement).

 

(f)
“Registration Statement” means a registration statement required to be filed hereunder, including (in each
case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such
registration statement.

 

(g)
“Required Registration Amount” means (i) with respect to the initial Registration Statement at least 1,050,000
Ordinary Shares issued or to be issued upon conversion of the Convertible Debentures and the Commitment Shares, and (ii) with
respect to subsequent Registration Statements at least such number of Ordinary Shares as the number of Registrable Securities
not covered under the initial Registration Statement), in each case subject to any cutback set forth in Section 2(d).

 

(h)
“Rule 415” means Rule 415 promulgated by the U.S. Securities and Exchange Commission (“SEC”)
pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC having substantially the same purpose and effect as such Rule.

 

(i)
“Trading Day” shall have the meaning set forth in the Convertible Debentures.

 

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2.
REGISTRATION.

 

(a)
The Company’s registration obligations set forth in this Section 2 including its obligations to file one or more
Registration Statements, obtain effectiveness of such Registration Statements, and maintain the continuous effectiveness of
such Registration Statements that have been declared effective shall begin on the date hereof and continue until all the
Registrable Securities have been sold or may permanently be sold without any restrictions pursuant to Rule 144, as determined
by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the
Company’s transfer agent and the affected Holders (the “Registration Period”).

 

(b)
Subject to the terms and conditions of this Agreement, the Company shall, on or prior to the Filing Deadline, prepare and file
with the SEC a Registration Statement on Form F-1 or Form F-3 covering the resale by the Investor of Registrable Securities. Each
Registration Statement prepared pursuant hereto shall register for resale at least the number of Ordinary Shares equal to the
Required Registration Amount as of date the Registration Statement is initially filed with the SEC. Each Registration Statement
shall contain the “Selling Shareholders” and “Plan of Distribution”. The Company shall use
its commercially reasonable efforts to have each Registration Statement declared effective by the SEC as soon as practicable,
but in no event later than the Effectiveness Deadline. Within two days following the date of effectiveness,, the Company shall
file with the SEC in accordance with Rule 424 under the 1933 Act the final Prospectus to be used in connection with sales pursuant
to such Registration Statement. Prior to the filing of the Registration Statement with the SEC, the Company shall furnish a draft
of the Registration Statement to the Investor for their review and comment in accordance with the procedures set forth in Section
3(a) hereof. The Investor shall furnish comments (if any) on the Registration Statement to the Company within twenty-four (24)
hours of the receipt thereof from the Company.

 

(c)
During the Registration Period the Company shall (i) promptly prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to each Registration Statement and Prospectus used in connection with a
Registration Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be
necessary to keep each such Registration Statement effective at all times during the applicable times in the Registration
Period, (ii) prepare and file with the SEC additional Registration Statements in order to register for resale under the
Securities Act all of the Registrable Securities (to the extent not previously covered by a Registration Statement filed and
declared effective in the applicable times in the Registration Period)); (iii) cause the Prospectus for each Registration
Statement filed and declared effective in the applicable times in the Registration Period to be amended or supplemented by
any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented or amended to be filed
pursuant to Rule 424; (iv) respond as promptly as reasonably possible to any comments received from the SEC with respect to a
Registration Statement or any amendment thereto and as promptly as reasonably possible provide the Investors true and
complete copies of all correspondence from and to the SEC relating to a Registration Statement (provided that the Company may
excise any information contained therein which would constitute material non-public information as to any Investor which has
not executed a confidentiality agreement with the Company); and (v) comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered by each effective Registration Statement
until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and
supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this
Section 2(c)) by reason of the Company’s filing a report on Form 20-F, or Form 6-K or any analogous report under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company shall incorporate such
report by reference into the Registration Statement, if applicable, or shall file such amendments or supplements with the SEC
on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or
supplement the Registration Statement.

 

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(d)
Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in
the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement
in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be obligated
to include in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw a
Registration Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the
Registrable Securities as the SEC shall permit. Any Registrable Securities that are excluded in accordance with the foregoing
terms are hereinafter referred to as “Cut Back Securities.” To the extent Cut Back Securities exist, as soon
as may be permitted by the SEC, the Company shall be required to file a Registration Statement covering the resale of the Cut
Back Securities (subject also to the terms of this Section) and shall use best efforts to cause such Registration Statement to
be declared effective as promptly as practicable thereafter.

 

3.
RELATED OBLIGATIONS.

 

(a)
The Company shall, not less than three (3) Trading Days prior to the filing of each Registration Statement and not less than one
(1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for annual
reports on Form 20-F), furnish to each Investor copies of all such documents proposed to be filed, which documents (other than
those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of such Investors.
The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the
Investors shall reasonably object in good faith; provided that, the Company is notified of such objection in writing no
later than two (2) Trading Days after the Investors have been so furnished copies of such document.

 

(b)
To the extent required by applicable laws, the Company shall use its commercially reasonable efforts to (i) register and
qualify the Registrable Securities covered by a Registration Statement under such other securities or “blue sky”
laws of such jurisdictions in the United States as any Investor reasonably requests, (ii) prepare and file in those
jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications
as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as
may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and
(iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to
(w) make any change to its articles of incorporation or by-laws, (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(b), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify
each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the
suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or
“blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or
threat of any proceeding for such purpose.

 

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(c)
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing
of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall
such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver a copy of such supplement or amendment to each Investor. The
Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification
of such effectiveness shall be delivered to each Investor by facsimile on the same day of such effectiveness), (ii) of any request
by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of
the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

(d)
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
within the United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension
at the earliest possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such
order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(e)
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Investor may
reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and
substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in
form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors. Upon the request
of the documents discussed above pursuant to this Section 3(e), the Investor shall provide documents to the Company typically
provided by an underwriter of its securities in form, scope and substance as is customarily given in an underwritten public offering,
including an opinion of counsel representing the Investor for purposes of such Registration Statement, addressed to the Company.

 

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(f)
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available for
inspection by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively, the
“Inspectors”) all pertinent financial and other records, and pertinent corporate documents and properties of
the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and cause
the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request; provided,
however, that each Inspector shall agree, and each Investor hereby agrees, to hold in strict confidence and shall not make any
disclosure (except to an Investor) or use any Record or other information which the Company determines in good faith to be confidential,
and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act, (b) the release
of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure
in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor agrees that it
shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction
or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.

 

(g)
The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with U.S. federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information
concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give
prompt written notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

 

(h)
The Company shall either cause all the Registrable Securities covered by a Registration Statement (i) to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange or (ii) to be included for quotation on the Nasdaq Capital
Markets for such Registrable Securities.

 

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(i)
The Company shall cooperate with each Investor who holds Registrable Securities being offered and, to the extent applicable,
to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the
Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the
Investors may request. The Company shall pay all fees and expenses in connection with satisfying its obligation under this
Section 3(i).

 

(j)
The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate
the disposition of such Registrable Securities.

 

(k)
The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the
SEC in connection with any registration hereunder.

 

(l)
Within two (2) business days after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver to the transfer agent for such Registrable Securities (with copies to the Investor whose Registrable
Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective
by the SEC in the form attached hereto as Exhibit A.

 

(m)
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of Registrable
Securities pursuant to a Registration Statement.

 

4. OBLIGATIONS
OF THE INVESTORS.

 

(a)
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(c) such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering
such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(c) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended certificates for shares to a transferee of an Investor in accordance
with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which
an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening
of any event of the kind described in Section 3(c) and for which the Investor has not yet settled.

 

(b)
The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5. EXPENSES
OF REGISTRATION.

 

All
expenses incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers, legal and accounting fees, except (i) legal fees of Investor’s
counsel associated with the review of the Registration Statement and any comment letters issued by the SEC relating to such Registration
Statement or (ii) fees incurred by any Inspectors associated with their review of Records as contemplated in Section 3(f), shall
be paid by the Company.

 

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6. INDEMNIFICATION.

 

With
respect to Registrable Securities which are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, and each Person, if any, who controls any Investor within the meaning of the Securities
Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint or
several (collectively, “Claims”) incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or
other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) any untrue statement
or alleged untrue statement of a material fact contained in any final Prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being,
collectively, “Violations”). The Company shall reimburse the Investors and each such controlling person promptly
as such expenses are incurred and are due and payable, for any legal fees or disbursements or other reasonable expenses incurred
by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the
Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such
amendment thereof or supplement or Prospectus related thereto; (y) shall not be available to the extent such Claim is based on
a failure of the Investor to deliver or to cause to be delivered the Prospectus made available by the Company, if such Prospectus
was timely made available by the Company pursuant to Section 3(b); and (z) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person.

 

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(b)
In connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers,
employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of the Securities Act
or the Exchange Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any of
them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent
shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b) for
only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale
of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6(b) with respect to any prospectus shall not inure to the benefit of
any Indemnified Party if the untrue statement or omission of material fact contained in the prospectus was corrected and such
new prospectus was delivered to each Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the reasonable fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified
Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

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(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7. CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8. REPORTS
UNDER THE EXCHANGE ACT.

 

With
a view to making available to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule
or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”), and as a material inducement to the Investor’s purchase of the Convertible Debentures,
the Company represents, warrants, and covenants to the following:

(a)
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the
issuer was required to file such reports), other than Form 6-K reports.

 

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(b)
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or
15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Securities
Purchase Agreement) and such reports shall conform to the requirements of the Exchange Act and the SEC for filing thereunder.

 

(c)
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual
report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be
reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9. AMENDMENT
OF REGISTRATION RIGHTS.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and Investors who then hold at least two-thirds
(2/3) of the Registrable Securities. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon
each Investor and the Company. No such amendment shall be effective to the extent that it applies to fewer than all of the holders
of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

10. MISCELLANEOUS.

 

(a)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns such Registrable Securities. If the Company
receives conflicting instructions, notices or elections from two (2) or more Persons with respect to the same Registrable Securities,
the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable
Securities.

 

(b) Piggy-Back
Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable Securities
and the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own
account or the account of others under the Securities Act of its Ordinary Shares, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or
other employee benefit plans, then the Company shall send to each Investor a written notice of such determination and, if
within fifteen (15) days after the date of such notice, any such Investor shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable Securities such Investor requests to be
registered; provided, however, that, the Company shall not be required to register any Registrable Securities
pursuant to this Section 10(b) that are eligible for resale pursuant to Rule 144 promulgated under the Securities Act or that
are the subject of a then effective Registration Statement.

 

    - 11 -

     

    

 

(c)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by email (provided confirmation of transmission is electronically generated and kept on file by the sending party); or (iii)
one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to
the party to receive the same. The addresses and email for such communications shall be:

 

	If
    to the Company, to:	DRAGON
    VICTORY INTERNATIONAL LIMITED
	 	Hanshi
                                         Tower 22nd Floor, No. 1786 Binsheng Road, Binjiang

                                                                                                                                        District,
                                         Hangzhou, Zhejiang Province

        Peoples
        Republic of China

        Telephone:
        +86 137-3814-6896

        Attention:
        Amanda Yang

        E-Mail:
        yangy@dvintinc.com

	 

        With
        Copy to:
	 

        Hunter
        Taubman Fisher & Li LLC

        800
        Third Avenue, Suite 2800

        New
        York NY 10022

        Attention:
        Ying Li, Esq.

        Telephone:
        (202) 347-9090

        Email:
        yli@htflawyers.com

	 

        If
        to the Investor(s):
	 

        YA
        II PN, Ltd.

	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Attention:	Mark
    Angelo
	 	 	Portfolio
    Manager
	 	Telephone:	(201)
    985-8300
	 	Email:
    mangelo@yorkvilleadvisors.com
	 

        With
        a Copy (which shall not Constitute notice or delivery of process) to:
	
David
                                         Fine, Esq.
	 	

        1012
        Springfield Avenue

	 	Mountainside,
    NJ 07092
	 	Telephone:	(201)
    985-8300
	 	Email:	legal@yorkvilleadvisors.com

 

or
to such other address and/or email and/or to the attention of such other person as the recipient party has specified by written
notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A)
given by the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender’s
email service provider containing the time, date, and recipient email or (C) provided by a courier or overnight courier service
shall be rebuttable evidence of personal service, receipt by e-mail or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    - 12 -

     

    

 

(d)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(e)
The laws of New York shall govern all issues concerning the relative rights of the Company and the Investors as its shareholders.
All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Supreme Court
of the State of New York, sitting in New York County, New York and federal courts for the Southern District of New York sitting
in New York, New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction
or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

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

 

    - 13 -

     

    

 

(h)
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as an attachment
to an email of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(i)
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

(k)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    - 14 -

     

    

 

IN WITNESS WHEREOF, the Investor and the
Company have caused their signature page to this Registration Rights Agreement to be duly executed as of the date first above written.

 

	 	COMPANY:
	 	 
	 	Dragon
Victory International Limited
	 	 
	 	By:	/s/ Liu Limin
	 	Name: 	Liu Limin
	 	Title:	CEO & Chairman of the Board
	 	 
	 	INVESTOR:
	 	 
	 	YA II PN, Ltd.
	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 	 
	 	 	By:	Yorkville Advisors Global II, LLC
	 	 	Its:	General Partner
	 	 	 
	 	 	By:	/s/ David Gonzalez
	 	 	Name: 	David Gonzalez
	 	 	Title:	Managing Member & 

General  Counsel

 

    - 15 -

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF
EFFECTIVENESS

 OF REGISTRATION STATEMENT

  

Attention:

 

		Re:	DRAGON VICTORY INTERNATIONAL LIMITED

 

Ladies and Gentlemen:

 

We
are U.S. securities counsel to DRAGON VICTORY INTERNATIONAL LIMITED, a Cayman Islands company (the
“Company”), and have represented the Company in connection with that certain Securities Purchase Agreement
(the “Securities Purchase Agreement”) entered into by and between the Company and the Investor named
therein (the “Investor”) pursuant to which the Company issued to the Investor up to $1,500,000 of
convertible debentures (the “Convertible Debentures”), which are convertible into the Company’s
ordinary shares, par value $0.0001 per share (the “Ordinary Shares”) (as converted, the
“Conversion Shares”). Pursuant to the Securities Purchase Agreement, the Company also has entered into a
Registration Rights Agreement with the Investor (the “Registration Rights Agreement”) pursuant to which
the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights
Agreement) under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the
Company’s obligations under the Registration Rights Agreement, on
                         ,
the Company filed a Registration Statement on Form                          (File
No. 333-                                 )
(the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”)
relating to the Registrable Securities which names each of the Investors as a selling shareholder thereunder.

 

In
connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on
[ENTER DATE OF EFFECTIVENESS] and to our knowledge based solely on a review of the portion of the SEC website pertaining
to stop orders available at http://www.sec.gov/litigation/stoporders.shtml, no stop order suspending its effectiveness has been
issued and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration Statement.

 

	 	Very truly yours,
	 	 
	 	[Law Firm]
	 	 
	 	By:	                  

 

		cc:	[LIST NAMES OF INVESTORS]Exhibit 10.3

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (AND THE ORDINARY SHARES ISSUABLE PURSUANT TO SUCH SECURITIES) HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND NEITHER THESE SECURITIES NOR THE ORDINARY
SHARES ISSUABLE PURSUANT THERETO MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED TO ANY PERSON OTHER THAN THE ISSUER OF
THESE SECURITIES IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR APPLICABLE
STATE SECURITIES LAWS, OR PURSUANT TO AN APPLICABLE EXEMPTION THEREUNDER, AS EVIDENCED BY AN OPINION OF COUNSEL, IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT SUCH OPINION
OF COUNSEL SHALL NOT BE REQUIRED IN THE CASE OF A RESALE PURSUANT TO RULE 144 UNDER THE SECURITIES ACT (“RULE 144”)
IF SUCH RESALE IS NOT MADE BY AN “AFFILIATE” (WITHIN THE MEANING OF RULE 144) OF THE ISSUER OF THESE SECURITIES.

 

DRAGON
VICTORY INTERNATIONAL LIMITED

 

CONVERTIBLE
DEBENTURE

 

Principal
Amount: $500,000

Debenture
Issuance Date: November 20 , 2020

Debenture Number: LYL-1

 

FOR
VALUE RECEIVED, DRAGON VICTORY INTERNATIONAL LIMITED, a Cayman Islands corporation (the “Company”),
hereby promises to pay to the order of YA II PN, Ltd., or its registered assigns (the “Holder”) the amount
set out above as the Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or
otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined below), acceleration,
redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”)
on any outstanding Principal at the applicable Interest Rate from the date set out above as the Debenture Issuance Date (the
“Issuance Date”) until the same becomes due and payable, whether upon an Interest Date (as defined below),
the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof).
This Convertible Debenture (including all debentures issued in exchange, transfer or replacement hereof, this
“Debenture”) was originally issued pursuant to the Securities Purchase Agreement dated November 17, 2020, as
amended (the “Securities Purchase Agreement”) between the Company and YA II PN, Ltd. Certain capitalized
terms used herein are defined in Section (14).

 

     

     

    

 

(1)
GENERAL TERMS

 

(a)
Maturity Date. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding
Principal, accrued and unpaid Interest, and any other amounts outstanding pursuant to the terms of this Debenture. The “Maturity
Date” shall be November 20 , 2021, as may be at the option of the Holder. Other than as specifically permitted
by this Debenture, the Company may not prepay or redeem any portion of the outstanding Principal and accrued and unpaid Interest

 

(b)
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof at an annual rate
equal to 5% (“Interest Rate”), which Interest Rate shall increase to an annual rate of 15% for so long as any
Event of Default remains uncured. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed,
to the extent permitted by applicable law.

 

(c)
Triggering Event. If, any time after the Issuance Date, and from time to time thereafter, the daily VWAP is less than the
Floor Price for a period of 5 consecutive Trading Days (each such occurrence, a “Triggering Event”), then the
Interest Rate shall increase to an annual rate of 15%. The Interest Rate shall return to the rate set forth in Clause 1(b) if
any time after a Triggering Event the daily VWAP is greater than the Floor Price for a period of 5 consecutive Trading Days, unless
a subsequent Triggering Event occurs.

 

(2)
Early Redemption. The Company shall have the right, but not the obligation, to redeem (“Optional Redemption”)
early a portion or all amounts outstanding under this Debenture as described in this Section; provided that (i) the trading
price of the Ordinary Shares is less than the Fixed Conversion Price and (ii) the Company provides the Holder with at least 10
Business Days’ prior written notice (each, a “Redemption Notice”) of its desire to exercise an Optional
Redemption on the date fixed for early redemption in such notice (“Redemption Date”). Each Redemption Notice
shall be irrevocable and shall specify the outstanding balance of the Convertible Debenture to be redeemed and the applicable
Redemption Premium. The “Redemption Amount” shall be equal to the outstanding Principal balance being redeemed
by the Company, plus the applicable Redemption Premium, plus all accrued and unpaid interest. After receipt of the Redemption
Notice, the Holder shall have until the Trading Day prior to the Redemption Date to elect to convert all or any portion of Convertible
Debentures. On the Redemption Date, the Company shall deliver to the Holder the Redemption Amount with respect to the Principal
amount redeemed after giving effect to conversions effected during such period.

 

(3)
EVENTS OF DEFAULT.

 

(a)
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and
whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

(i)
the Company’s failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Debenture
within five (5) Business Days after such payment is due;

 

    2

     

    

 

(ii)
The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any
subsidiary of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor
thereto, or the Company or any subsidiary of the Company commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there is commenced against the
Company or any subsidiary of the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a
period of sixty-one 61 days; or the Company or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the
Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial
part of its property which continues undischarged or unstayed for a period of sixty-one (61) days; or the Company or any
subsidiary of the Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the
Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they
become due; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent
to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any
subsidiary of the Company for the purpose of effecting any of the foregoing;

 

(iii)
The Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage,
credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued,
or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or
factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness
now exists or shall hereafter be created and such default is not cured within five (5) Business Days;

 

(iv)
The Ordinary Shares shall cease to be quoted or listed for trading, as applicable, on any Primary Market for a period of 10 consecutive
Trading Days;

 

(v)
The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section (14))
unless in connection with such Change of Control Transaction this Debenture is retired;

 

(vi)
the Company’s (A) failure to cure a Conversion Failure by delivery of (I) the required number of Ordinary Shares (II) or the Buy-In
Price within five (5) Business Days after the applicable Conversion Failure or (B) notice, written or oral, to the Holder, including
by way of public announcement, at any time, of its intention not to comply with a request for conversion of this Debentures into
Ordinary Shares, other than pursuant to Section (5)(d);

 

(vii)
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five (5)
Business Days after such payment is due;

 

    3

     

    

 

(viii)
The Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise commit
any material breach or default of any provision of this Debenture (except as may be covered by Section (3)(a)(i) through (3)(a)(viii)
hereof) or any Transaction Document (as defined in Section (14)) which is not cured within the time prescribed.

 

(ix)
any Event of Default (as defined in the Other Debentures) occurs with respect to any Other Debentures.

 

(b)
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred and is continuing, the
full unpaid Principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date
of acceleration shall become at the Holder’s election, immediately due and payable in cash. Furthermore, in addition to any other
remedies, the Holder shall have the right (but not the obligation) to convert this Debenture (subject to the beneficial ownership
limitations set out in Section (4)(c)) at any time after (x) an Event of Default (provided that such Event of Default is continuing)
or (y) the Maturity Date at the Conversion Price. The Holder need not provide and the Company hereby waives any presentment, demand,
protest or other notice of any kind, (other than required notice of conversion) and the Holder may immediately enforce any and
all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be
rescinded and annulled by Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon.

 

(4)
CONVERSION OF DEBENTURE. This Debenture shall be convertible into the Company’s Ordinary Shares on the terms and conditions
set forth in this Section (4).

 

(a) Conversion
Right. Subject to the provisions of Section (4)(c), at any time or times on or after the Issuance Date, the Holder shall
be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable Ordinary Shares in accordance with Section (4)(b), at the Conversion Rate (as defined below). Upon each
conversion and upon receipt of the appropriate notice from the Holder as set forth in Section (4)(b)(i) herein, the Company
shall issue the applicable Ordinary Shares to the Holder. The number of Ordinary Shares issuable upon conversion of any
Conversion Amount pursuant to this Section (4)(a) shall be determined by dividing (x) such Conversion Amount by (y) the
Conversion Price (the “Conversion Rate”). No fraction of an Ordinary share will be delivered upon any
conversion. All calculations under this Section (4) shall be rounded to the nearest $0.0001. If the issuance would result in
the issuance of a fraction of an Ordinary Share, the Company shall round such fraction of a share up to the nearest whole
share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance
and delivery of shares upon conversion of any Conversion Amount.

 

(i)
“Conversion Amount” means the portion of the Principal and accrued Interest to be converted, redeemed or otherwise
with respect to which this determination is being made.

 

    4

     

    

 

(ii)
“Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination the lower
of (i) $2.69 (the “Fixed Conversion Price”), or (ii) 88% of the lowest daily VWAP during the 10 consecutive
Trading Days immediately preceding the Conversion Date or other date of determination (the “Variable Conversion Price”),
but not lower than the Floor Price. The Conversion Price shall be adjusted from time to time pursuant to the other terms and conditions
of this Debenture.

 

(b)
Mechanics of Conversion.

 

(i)
Optional Conversion. To convert any Conversion Amount into Ordinary Shares on any date (a “Conversion Date”),
the Holder shall (A) transmit by email, for receipt on or prior to 11:59 p.m., New York Time, on such date, a copy of an executed
notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company
and (B) if required by Section (4)(b)(iii), surrender this Debenture to a nationally recognized overnight delivery service for
delivery to the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Debenture
in the case of its loss, theft or destruction). On or before the third Business Day following the date of receipt of a Conversion
Notice, Instrument of Transfer, and Letter of Transmittal (the “Share Delivery Date”), the Company shall cause
the issuance of the underlying Ordinary Shares and (X) if legends are not required to be placed on the shares certificates and
provided that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities
Transfer Program, instruct the Depositary Bank to credit such aggregate number of Ordinary Shares to which the Holder shall be
entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal and Custodian system or (Y)
if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, instruct the Transfer Agent
to deliver to the address as specified in the Conversion Notice, a share certificate, registered in the name of the Holder or
its designee, for the number of Ordinary Shares to which the Holder shall be entitled which certificates shall not bear any restrictive
legends unless required pursuant to rules and regulations of the Commission. If this Debenture is physically surrendered for conversion
and the outstanding Principal of this Debenture is greater than the Principal portion of the Conversion Amount being converted,
then the Company shall as soon as practicable and in no event later than three (3) Business Days after receipt of this Debenture
and at its own expense, issue and deliver to the holder a new Debenture representing the outstanding Principal not converted.
The Person or Persons entitled to receive Ordinary Shares issuable upon a conversion of this Debenture shall be treated for all
purposes as the record holder or holders of such Ordinary Shares upon the transmission of a Conversion Notice.

 

(ii)
Company’s Failure to Timely Convert. If within three (3) Trading Days after the Company’s receipt of an email copy of a
Conversion Notice the Company shall fail to issue the underlying Ordinary Shares and cause the issuance and deliver a share certificate
to the Holder or credit the Holder’s balance account with DTC for the number of Ordinary Shares to which the Holder is entitled
upon such holder’s conversion of any Conversion Amount (a “Conversion Failure”), and if on or after such Trading
Day the Holder purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by
the Holder Ordinary Shares issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay
cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions) for the Ordinary
Shares so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such
certificate (and to issue such Ordinary Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder
a certificate or certificates representing such Ordinary Shares and pay cash to the Holder in an amount equal to the excess (if
any) of the Buy-In Price over the product of (A) such number of Ordinary Shares, times (B) the Closing Bid Price on the Conversion
Date.

 

    5

     

    

  

(iii)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless
(A) the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with
prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical
surrender of this Debenture. The Holder and the Company shall maintain records showing the Principal and Interest converted and
the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not
to require physical surrender of this Debenture upon partial conversion.

 

(c)
Limitations on Conversions.

 

(i)
Beneficial Ownership. The Holder shall not have the right to convert any portion of this Debenture or otherwise receive
Ordinary Shares hereunder to the extent that after giving effect to such conversion or receipt of such Ordinary Shares, the Holder,
together with any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act
and the rules promulgated thereunder) in excess of 4.99% of the number of Ordinary Shares outstanding immediately after giving
effect to such conversion. Since the Holder will not be obligated to report to the Company the number of Ordinary Shares it may
hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of Ordinary Shares representing
beneficial ownership in excess of 4.99% of the then outstanding Ordinary Shares without regard to any other Ordinary Shares which
may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine
whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder
determines that the limitation contained in this Section applies, the determination of which portion of the Principal amount of
this Debenture is convertible shall be the responsibility and obligation of the Holder, provided however, upon the request of
the Company, the Holder shall report its holdings in Ordinary Shares to the Company. If the Holder has delivered a Conversion
Notice for a Principal amount of this Debenture that would result in the issuance in excess of the permitted amount hereunder,
the Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal amount permitted to
be converted on such Conversion Date in accordance with Section 3(a) and any Principal amount tendered for conversion in excess
of the permitted amount hereunder shall remain outstanding under this Debenture. The Holder (but only as to itself and not to
any other Holder) may elect to increase the beneficial ownership limitation set forth herein from 4.99% to 9.99% upon not less
than 65 days prior written notice to the Company.

 

(ii)
Principal Market Limitation. Notwithstanding anything in this Agreement to the contrary, the Company shall not issue any
Ordinary Shares pursuant to the transactions contemplated hereby or any other Transaction Documents if the issuance of such Ordinary
Shares would exceed the aggregate number of Ordinary Shares that the Company may issue in this transaction in compliance with
the Company’s obligations under the rules or regulations of Nasdaq Stock Market LLC (the “Nasdaq”) (the
number of shares which may be issued without violating such rules and regulations is 2,283,136 (which is 19.99% of 1,421,393 outstanding
Ordinary Shares) and shall be referred to as the “Exchange Cap”), except that such limitation shall not apply
in the event that the Company (A) obtains the approval of its shareholders as required by the applicable rules of the Nasdaq for
issuances of shares in excess of such amount or (B) obtains a written opinion from counsel to the Company that such approval is
not required, which opinion shall be reasonably satisfactory to the Buyers. The Exchange Cap shall be appropriately adjusted for
any stock dividend, stock split, reverse stock split or similar transaction.

 

    6

     

    

 

(iii) Sales
Limitations. The Holder shall not sell such number of Ordinary Shares in any calendar month (being the 1st of
the month through the last day of the same month) that would result in gross proceeds received by the Holder in excess of the
greater of (a) 30% of the dollar trading volume of the Ordinary Shares during such calendar month, of (b) $500,000. This
limitation shall not apply (i) at any time after the occurrence of an Event of Default, and (ii) with respect to any sales of
Ordinary Shares at prices greater than or equal to the Fixed Conversion Price. This limitation may be waived with the written
consent of the Company.

 

(d)
Other Provisions.

 

(i)
The Company shall at all times reserve and keep available out of its authorized Ordinary Shares the full number of Ordinary Shares
issuable upon conversion of all outstanding amounts under this Debenture; and within three (3) Business Days following the receipt
by the Company of a Holder’s notice that such minimum number of Underlying Shares is not so reserved, the Company shall promptly
reserve a sufficient number of shares to comply with such requirement.

 

(ii)
All calculations under this Section (4) shall be rounded to the nearest $0.0001 or whole share.

 

(iii)
Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section (3) herein
for the Company’s failure to deliver certificates representing shares upon conversion within the period specified herein
and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security.
The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof
or under applicable law.

 

(5)
Adjustments to Conversion Price

 

(a)
Adjustment of Conversion Price upon Issuance of Ordinary Shares. If the Company, at any time while this Debenture is outstanding,
issues or sells any Ordinary Shares or Convertible Securities, for a consideration per share (the “New Issuance Price”)
less than a price equal to the Fixed Conversion Price in effect immediately prior to such issue or sale (such price the “Applicable
Price”) (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance the Fixed
Conversion Price then in effect shall be reduced to an amount equal to the New Issuance Price. For the purposes hereof, if the
Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one Ordinary Share is
issuable upon such conversion or exchange or exercise thereof is less than the Applicable Price, then such Ordinary Share shall
be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible
Securities for such price per share. No further adjustment of the Conversion Price shall be made upon the actual issuance of such
Ordinary Shares upon conversion or exchange or exercise of such Convertible Securities.

 

    7

     

    

  

(b)
Adjustment of Conversion Price upon Subdivision or Combination of Ordinary Shares. If the Company, at any time while this
Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on its Ordinary Shares
or any other equity or equity equivalent securities payable in shares which results in an increase in the number of outstanding
Ordinary Shares, (b) subdivide its outstanding shares of Ordinary Shares into a larger number of Ordinary Shares, (c) combine
(including by way of reverse share split) outstanding Ordinary Shares into a smaller number of Ordinary Shares, or (d) issue additional
Ordinary Shares by reclassification of Ordinary Shares or any shares of capital stock of the Company, then each of the Fixed Conversion
Price and the Floor Price shall be multiplied by a fraction of which the numerator shall be the number of Ordinary Shares (excluding
treasury shares, if any) outstanding before such event and of which the denominator shall be the number of Ordinary Shares outstanding
after such event (c) of this Section. Any adjustment made pursuant to this Section shall become effective immediately after the
record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

 

(c)
Other Events. If any event occurs of the type contemplated by the provisions of this Section (5) but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other
rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the Conversion Price
so as to protect the rights of the Holder under this Debenture; If the Company issues any Convertible Securities with a variable
conversion formula that is more favorable than this Debenture, then at the option of the Holder, the Variable Conversion Price
formula shall be changed to match that of the new Convertible Securities.

 

(d)
Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation
of any Fundamental Transaction pursuant to which holders of Ordinary Shares are entitled to receive securities or other assets
with respect to or in exchange for Ordinary Shares (a “Corporate Event”), the Company shall make appropriate
provision to ensure that the Holder will thereafter have the right to receive upon a conversion of this Debenture, at the Holder’s
option, (i) in addition to the Ordinary Shares receivable upon such conversion, such securities or other assets to which the Holder
would have been entitled with respect to such Ordinary Shares had such shares been held by the Holder upon the consummation of
such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Debenture) or
(ii) in lieu of the Ordinary Shares otherwise receivable upon such conversion, such securities or other assets received by the
holders of Ordinary Shares in connection with the consummation of such Corporate Event in such amounts as the Holder would have
been entitled to receive had this Debenture initially been issued with conversion rights for the form of such consideration (as
opposed to the Ordinary Shares) at a conversion rate for such consideration commensurate with the Conversion Rate. Provision made
pursuant to the preceding sentence shall be in a form and substance satisfactory to the Required Holders. The provisions of this
Section shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations
on the conversion or redemption of this Debenture.

 

    8

     

    

 

(e)
Whenever the Conversion Price is adjusted pursuant to Section (5) hereof, the Company shall promptly mail to the Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

(6)
REISSUANCE OF THIS DEBENTURE.

 

(a)
Transfer. If this Debenture is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Debenture (in accordance with Section (6)(d)), registered
in the name of the registered transferee or assignee, representing the outstanding Principal being transferred by the Holder (along
with any accrued and unpaid interest thereof) and, if less than the entire outstanding Principal is being transferred, a new Debenture
(in accordance with Section (6)(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and
any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of Section (4)(b)(iii)
following conversion or redemption of any portion of this Debenture, the outstanding Principal represented by this Debenture may
be less than the Principal stated on the face of this Debenture.

 

(b)
Lost, Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Debenture, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company reasonably satisfactory to the Company and, in the case of mutilation, upon surrender
and cancellation of this Debenture, the Company shall execute and deliver to the Holder a new Debenture (in accordance with Section
(6)(d)) representing the outstanding Principal.

 

(c)
Debenture Exchangeable for Different Denominations. This Debenture is exchangeable, upon the surrender hereof by the Holder
at the principal office of the Company, for a new Debenture or Debentures (in accordance with Section (6)(d)) representing in
the aggregate the outstanding Principal of this Debenture, and each such new Debenture will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d)
Issuance of New Debentures. Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture,
such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new
Debenture, the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section (6)(a) or Section
(6)(c), the Principal designated by the Holder which, when added to the Principal represented by the other new Debentures issued
in connection with such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to
such issuance of new Debentures), (iii) shall have an issuance date, as indicated on the face of such new Debenture, which is
the same as the Issuance Date of this Debenture, (iv) shall have the same rights and conditions as this Debenture, and (v) shall
represent accrued and unpaid Interest from the Issuance Date.

 

    9

     

    

  

(7)
NOTICES. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof
must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt, when
delivered personally or (ii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified,
in each case, properly addressed to the party to receive the same and (B) receipt, when sent by electronic mail. The addresses
and e-mail addresses for such communications shall be:

 

	If
    to the Company, to:	DRAGON
    VICTORY INTERNATIONAL LIMITED
	 	Hanshi
    Tower 22nd Floor, No. 1786 Binsheng Road, Binjiang
	 	District,
    Hangzhou, Zhejiang Province
	 	Peoples
    Republic of China
	 	Telephone:
    +86 137-3814-6896
	 	 
	 	Telephone:
    +86 137-3814-6896
	 	Attention:
    Amanda Yang
	 	Email:
    yangy@dvintinc.com
	 	 
	 	Hunter
    Taubman Fischer & Li LLC
	With
    Copy to:	800
    Third Avenue, Suite 2800
	 	New
    York, NY 10022
	 	Attention:
    Ying Li, Esq. Telephone: (202) 530-2206
	 	Email:
    yli@htflawyers.com
	 	 
	If
    to the Holder:	YA
    II PN, Ltd
	 	c/o
    Yorkville Advisors Global, LLC
	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Attention:
    Mark Angelo
	 	Telephone:
    201-985-8300
	 	Email:
    Legal@yorkvilleadvisors.com

 

or
at such other address and/or email and/or to the attention of such other person as the recipient party has specified by written
notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver or other communication, (ii) electronically generated by the sender’s
email service provider containing the time, date, recipient email address or (iii) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    10

     

    

 

(8)
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company,
which are absolute and unconditional, to pay the Principal of, interest and other charges (if any) on, this Debenture at the
time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Company.
As long as this Debenture is outstanding, the Company shall not and shall cause their subsidiaries not to, without the
consent of the Holder, (i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely
affect any rights of the Holder; or (ii) repay, repurchase or offer to repay, repurchase or otherwise acquire its Ordinary
Shares or other equity securities; or (iii) enter into any agreement with respect to any of the foregoing.

 

(9)
This Debenture shall not entitle the Holder to any of the rights of a shareholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of shareholders
or any other proceedings of the Company.

 

(10)
This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Supreme Court of the State of New York located
in the City of New York, Borough of Manhattan, and the U.S. District Court for the Southern District of New York in connection
with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions. THE PARTIES HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’
ACCEPTANCE OF THIS AGREEMENT.

 

(11)
If any party shall commence an action or proceeding to enforce any provisions of this Debenture, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred
in the investigation, preparation and prosecution of such action or proceeding.

 

(12)
Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to
be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the
Company or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this
Debenture. Any waiver must be in writing.

 

(13)
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable
laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted
rate of interest.

 

    11

     

    

 

(14)
CERTAIN DEFINITIONS. For purposes of this Debenture, the following terms shall have the following meanings:

 

(a)
“Applicable Price” shall have the meaning set forth in Section 5(a).

 

(b)
“Bloomberg” means Bloomberg Financial Markets.

 

(c)
“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in
the United States or a day on which banking institutions are authorized or required by law or other government action to close.

 

(d)
“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty
percent (50%) of the voting power of the Company (except that the acquisition of voting securities by the Holder or any other
current holder of convertible securities of the Company shall not constitute a Change of Control Transaction for purposes hereof),
(b) a replacement at one time or over time of more than one-half of the members of the board of directors of the Company (other
than as due to the death or disability of a member of the board of directors) which is not approved by a majority of those individuals
who are members of the board of directors on the date hereof (or by those individuals who are serving as members of the board
of directors on any date whose nomination to the board of directors was approved by a majority of the members of the board of
directors who are members on the date hereof), (c) the merger, consolidation or sale of fifty percent (50%) or more of the assets
of the Company or any subsidiary of the Company in one or a series of related transactions with or into another entity, or (d)
the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the
events set forth above in (a), (b) or (c). No transfer to a wholly-owned subsidiary shall be deemed a Change of Control Transaction
under this provision.

 

(e)
“Closing Bid Price” means the price per share in the last reported trade of the Ordinary Shares on the Primary
Market or on the exchange which the Ordinary Shares are then listed as quoted by Bloomberg.

 

(f)
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Ordinary Shares.

 

(g)
“Commission” means the Securities and Exchange Commission.

 

(h)
“Dilutive Issuance” shall have the meaning set forth in Section 5(a).

 

    12

     

    

 

(i)
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(j)
“Floor Price” means $0.50 per share.

 

(k)
“Fundamental Transaction” means any of the following: (1) the Company effects any merger or consolidation
of the Company with or into another Person and the Company is the non-surviving company (other than a merger or consolidation
with a wholly owned subsidiary of the Company for the purpose of redomiciling the Company), (2) the Company effects any sale
of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to tender
or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the
Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares are effectively converted into or
exchanged for other securities, cash or property.

 

(l)
“New Issuance Price” shall have the meaning set forth in Section 5(a).

 

(m)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Ordinary Shares or
Convertible Securities.

 

(n)
“Ordinary Shares” means the Company’s Ordinary Shares, par value $0.0001 par value per share, and any
capital stock into which such shares shall have been changed or any share capital resulting from a reclassification of such
Ordinary Shares.

 

(o)
“Other Debentures” means any other debentures issued pursuant to the Securities Purchase Agreement and any
other debentures, notes, or other instruments issued in exchange, replacement, or modification of the foregoing.

 

(p)
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government
or political subdivision thereof or a governmental agency.

 

(q)
“Primary Market” means the Nasdaq Capital Market and any successor to any of the foregoing markets or exchanges.

 

(r)
“Redemption Premium” means 15% of the Principal amount being redeemed.

 

(s)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

(t)
“Trading Day” means a day on which the Ordinary Shares are quoted or traded on a Primary Market on which the
shares are then quoted or listed; provided, that in the event that the Ordinary Shares are not listed or quoted, then Trading
Day shall mean a Business Day.

 

    13

     

    

 

(u)
“Transaction Document(s)” shall mean this Debenture, along with the Securities Purchase Agreement, and any
other documents or agreements entered into in connection with the foregoing.

 

(v)
“Underlying Shares” means the Ordinary Shares issuable upon conversion of this Debenture in accordance with
the terms hereof.

 

(w)
“Underlying Shares Registration Statement” means a registration statement meeting the requirements set forth
in the Registration Rights Agreement, covering among other things the resale of the Ordinary Shares, and naming the Holder as
a “selling shareholder” thereunder.

 

(x)
“VWAP” means, for the Ordinary Shares as of any date, the daily dollar volume-weighted average price for such
security on the Primary Market as reported by Bloomberg through its “Historical Prices – Px Table with Average Daily
Volume” functions, or, if no dollar volume-weighted average price is reported for such security by Bloomberg.

 

[Signature
Page Follows]

 

    14

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Debenture to be duly executed by a duly authorized officer as of
the date set forth above.

 

	 	COMPANY:
	 	DRAGON VICTORY INTERNATIONAL
	 	LIMITED
	 	 	 
	 	By:	/s/ Liu Limin
	 	Name: 	 Liu Limin
	 	Title:	 CEO & Chairman of the Board

 

     

     

    

  

EXHIBIT
I

CONVERSION
NOTICE

 

(To
be executed by the Holder in order to Convert the Debenture)

 

TO:
DRAGON VICTORY INTERNATIONAL LIMITED

 

Via
Email:

 

The
undersigned hereby irrevocably elects to convert a portion of the outstanding and unpaid Conversion Amount of Debenture No. LYL-1
into Ordinary Shares of DRAGON VICTORY INTERNATIONAL LIMITED, according to the conditions stated therein, as of the
Conversion Date written below.

 

	Conversion
    Date:
	 
	Principal
    Amount to be Converted:
	 
	Accrued
    Interest to be Converted:
	 
	Total
    Conversion Amount to be converted:
	 
	Fixed
    Conversion Price:
	 
	Variable
    Conversion Price:
	 
	Applicable
    Conversion Price:
	 
	Number
    of Ordinary Shares to be Issued:
	 

        Please
        issue the Ordinary Shares in the following name and to the following address:

	[________________]

 

	Authorized Signature:	 	 
	Name:	 	 
	Title:	 	 
	Broker DTC Participant Code:  	 	 
	Account Number:

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