EX-10.31



 





Amendment No. 1 to License Agreement

between

Muhammad Ali Enterprises LLC

and

FX Luxury Realty, LLC




     This Amendment No. 1 (“Amendment No. 1”) to the License Agreement by and between
MUHAMMAD ALI ENTERPRISES LLC, a California limited liability company, having its principal office
at 8105 Kephart Lane, Berrien Springs, Michigan 49103 (“Licensor”), and FX LUXURY REALTY,
LLC, a Delaware limited liability company, having its principal office at 650 Madison Avenue, New
York, New York, 10022 (“Licensee”) (each, a “party” and collectively, the
“parties”), is made and effective as of November 16, 2007 with reference to the following
recitals:



RECITALS




     WHEREAS, the parties entered into that certain License Agreement, dated as of June 1, 2007
(the “License Agreement”); and



     WHEREAS, the parties wish to make certain amendments to the License Agreement pursuant to
Section 26.07 thereof to extend the payment date for the Guaranteed Minimum Royalty (as defined in
the License Agreement) for the calendar year ending December 31, 2007;



     NOW, THEREFORE, for the consideration set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:



1.      Amendment to Section 6.07 of the License Agreement. Section 6.07 of the License
Agreement is hereby amended by deleting such section in its entirety and replacing it with the
following:



“Section 6.07 Guaranteed Minimum Royalties. Licensee shall pay Licensor the below
guaranteed minimum royalties for each calendar year within thirty (30) days of the end of such
calendar year (i.e., by January 30th of the immediately following year) during the Term
(“Guaranteed Minimum Royalties”), except that the Guaranteed Minimum Royalty for the
calendar year ending December 31, 2007 (the “2007 Guaranteed Minimum Royalty”) shall be due
upon the earlier of (i) the date of Licensee’s receipt of funds from the closing of the Rights
Offering and, if required, the Back-Stop (each as defined in the Membership Interest Purchase
Agreement dated as of June 1, 2007 by and among Licensee, CKX, Inc., and Flag Luxury Properties,
LLC, as amended) or (ii) April 1, 2008, provided that if the 2007 Guaranteed Minimum
Royalty is paid to Licensor after December 1, 2007 it shall bear interest as set forth in the table
below.



The Guaranteed Minimum Royalty shall be non-refundable but actual royalties paid during the
applicable calendar year shall be applied against the Guaranteed Minimum Royalty. Notwithstanding
any of the foregoing, any direct payments made by a Project Company or other Person that holds a
Site License to Licensor shall be applied against the Guaranteed Minimum Royalties due to Licensor
hereunder.



 









 












	 	 	 
	Calendar Year	 	Amount
	 
	 	 
	Calendar year ending December 31, 2007
	 	$1,000,000, plus interest
on any amount thereof paid
after December 1, 2007,
from December 1, 2007 until
the date of payment at the
following interest rates:
	 
	 	 
	
	 	From December 1, 2007
through December 31, 2007 -
the then current prime rate
as quoted in The Wall
Street Journal (the “Prime
Rate”) plus 3% per annum;
	 
	 	 
	 	 	From January 1, 2008
through January 31, 2008 —
the then current Prime Rate
plus 3.5% per annum;

	 
	 	 
	 	 	From February 1, 2008
through February 29, 2008 -
the then current Prime Rate
plus 4.0% per annum; and 
	 
	 	 
	 	 	From and after March 1,
2008 — the then current
Prime Rate plus 4.5% per
annum.
	 
	 	 
	Calendar year ending December 31, 2008
	 	$1,000,000
	 
	 	 
	Calendar year ending December 31, 2009
	 	$1,000,000
	 
	 	 
	Calendar year ending December 31, 2010
	 	$2,000,000
	 
	 	 
	Calendar year ending December 31, 2011
	 	$2,000,000
	 
	 	 
	Calendar year ending December 31, 2012
	 	$2,000,000
	 
	 	 
	Calendar year ending December 31, 2013
	 	$3,000,000
	 
	 	 
	Calendar year ending December 31, 2014
	 	$3,000,000
	 
	 	 
	Calendar year ending December 31, 2015
	 	$3,000,000
	 
	 	 
	Calendar year ending December 31, 2016
	 	$3,000,000
	 
	 	 
	Every calendar year thereafter during the Term 
	 	The Guaranteed Minimum
Royalty for the immediately
previous calendar year plus
five percent (5%)”











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2.     Amendment to Section 6.12 of the License Agreement. Section 6.12 of the License
Agreement is hereby amended by deleting such section in its entirety and replacing it with the
following:




“Section 6.12 Late Payments. Any past due amount by Licensee whether due pursuant to this
Article 6 or any other Section in this Agreement shall bear interest at the then current Prime Rate
plus 3% per annum, which is applicable from the due date until the date of payment,
provided that any amount of the 2007 Guaranteed Minimum Royalty paid after December 1, 2007
shall bear interest as provided in Section 6.07 hereof. Any outstanding amount found in an audit
pursuant to Section 7.02 shall be deemed a “late payment” and shall be subject to the interest
described herein.”



3.      Effect of Amendment. Except as expressly set forth in this Amendment No. 1, the License
Agreement shall remain in full force and effect as originally written, and shall constitute the
legal, valid, binding and enforceable obligation of the parties thereto.



4.      Governing Law. This Amendment No. 1 and the obligations of the parties hereunder shall
be construed and enforced in accordance with the laws of the State of California, excluding any
conflicts of law rule or principle which might refer such construction to the laws of another state
or country. Each party hereby (i) submits to personal jurisdiction in the State of California for
the enforcement of this Amendment No. 1 and (ii) waives any and all personal rights under the law
of any state or country to object to jurisdiction within the State of California for the purposes
of litigation to enforce this Amendment No. 1.



5.      Execution in Counterparts. This Amendment No. 1 may be executed in two or more
counterparts, each of which shall be considered an original instrument, but all of which shall be
considered one and the same agreement, and shall become binding when one or more counterparts have
been signed by each of the parties hereto and delivered to the parties. Copies of executed
counterparts transmitted by facsimile or other electronic transmission shall be considered original
executed counterparts for the purposes of this Amendment No. 1, provided that receipt of copies of
such counterparts is confirmed. Originals of any counterparts transmitted by facsimile or other
electronic transmission shall be promptly provided to the other parties hereto.



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     IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be executed by their
authorized representatives on the date set forth above.



	 	 	 	 	 
	 	“LICENSOR”



MUHAMMAD ALI ENTERPRISES LLC

 	 
	 	By:  	/s/ Thomas P. Benson
 	 
	 	 	Name:  	Thomas P. Benson 	 
	 	 	Title:  	Authorized Officer 	 
	 



	 	 	 	 	 
	 	“LICENSEE”



FX LUXURY REALTY, LLC

 	 
	 	By:  	FX Real Estate and Entertainment Inc.,
 	 
	 	 	Managing Member 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Paul C. Kanavos
 	 
	 	 	Name:  	Paul C. Kanavos 	 
	 	 	Title:  	President 	 
	 











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