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Exhibit 10.21  

 
 

EMPLOYMENT AGREEMENT    
    

EMPLOYMENT
AGREEMENT, made as of February 8, 2005, between CKX, Inc., a Delaware corporation (the "Employer"), and Thomas P. Benson (the
"Executive"). 

        WHEREAS,
the Employer desires to retain the Executive; the Executive affirms that no obligation germane to the Executive presently precludes, or exists now and in the future may
preclude, the Executive's entry into and full and faithful performance of this agreement; and the Executive desires to accept employment with the Employer; and 

        WHEREAS,
the Board of Directors of the Employer (the "Board") has determined that it is in the Employer's interest to enter into this
agreement with the Executive in order to secure, and in the future to be assured of, the Executive's abilities, services, and judgment as a member of senior management of the Employer, upon the terms
and provisions and subject to the conditions stated in this agreement; 

        NOW,
THEREFORE, the Employer and the Executive agree as follows: 

        1.    Employment.    Upon the terms and subject to the conditions of this agreement, the Employer employs the
Executive, and the Executive accepts employment. 

        2.    Term; Dates.    The term of the Executive's employment shall commence on February 8, 2005 and continue
until the fifth annual anniversary thereof (the "Employment Agreement Term"), unless earlier terminated or renewed in accordance with this agreement. 

        2.1   This
agreement refers to the dates defined in this section, as follows: (i) the date of commencement of employment is the "Effective Date"; (ii) the period
of time during which the Executive is an employee of the Employer pursuant to and in accordance with the terms and provisions of this agreement is hereinafter referred to as the "Term"; and
(iii) the last date of employment is the "Expiration Date." 

        3.    Executive's Position, Duties, and Authority.    The Employer shall employ the Executive, and the Executive shall
serve as Executive Vice President and Chief Financial Officer of the Employer, and in such other positions with the Employer and its subsidiaries that are reasonably acceptable to the Executive. The
Executive shall have executive duties, functions, authority, and responsibilities commensurate with the office or offices he from time to time holds with the Employer in a corporation that is public,
subject, in accordance with applicable law, to the supervision and direction of the Board. 

        3.1   During
the Term and prior to the Expiration Date, the Employer shall use its best efforts to have the Executive nominated to serve on the Board or other governing body
of the Employer. If the Employer, including any successor, forms any Executive Committee of the Board, Office of the Chairman, or similar senior management committee or group which is approved or
otherwise recognized by the Board during the Term, the Executive shall be a member of such committee or group. The Executive shall have no obligation to serve or continue to serve: (i) on the
Board or any committee of the Board; or (ii) as an officer or director of any subsidiary or affiliate of the Employer, in the event that the Employer or any such subsidiary or affiliate of the
Employer or any of their respective successors fails to provide and maintain to and on behalf of the Executive indemnification rights no less beneficial to the Executive than those provided by  Section 10 of this agreement and, to the extent more beneficial to the Executive now or in the future, every right to indemnification and defense
of an officer or director of any entity formed and existing under the laws of the State of Delaware. The future occurrence of any event described in the preceding sentence, or the Employer's failure
within a reasonable time to reimburse the Executive for all expenses reasonably incurred in the course of fulfilling his duties and responsibilities as a director and/or officer of the Employer, any
subsidiary or affiliate of the Employer or any of their respective successors, additionally, and immediately, shall constitute a Constructive Termination of the Executive without Cause as such term is
defined in this agreement. 

 

        3.2   The
Executive agrees to tailor his conduct with the written employment policies which the Employer generally applies to all of its employees, and additionally agrees
that the Employer may make necessary and reasonable amendments to its policies from time to time during the Term, to the extent not inconsistent with the terms of this agreement. The Executive and the
Employer agree that these policies supplement, but do not amend or otherwise modify, the express terms of this agreement in the manner authorized by  Section 17.5 of this agreement. 

        3.3   The
Executive acknowledges that during the Term, the Employer may, without the necessity of obtaining the Executive's consent, implement one or more corporate
reorganizations for financial, tax, or related business reasons which do not constitute a Change in Control as such event is defined in  Section 12.2 of this agreement. The Executive agrees that, so
long as any such reorganization does not constitute a Change in Control, the
reorganized Employer shall be deemed the Employer for all purposes in connection with this agreement, and without a requirement that additional consideration be delivered to the Executive in
connection with the reorganization. 

        4.    Principal Occupation.    The Executive shall devote his working time to the business and affairs of the Employer
and to the fulfillment of his duties under this agreement in a diligent and competent fashion, consistent with industry standards. 

        4.1   The
Employer acknowledges and agrees that during the Term: 

        (a)   the
Executive may wish to continue, or commence, service as a director and officer (or in a similar capacity) on the governing body of other business entities whose
business is not competitive with that of the Employer or any of its subsidiaries; and 

        (b)   the
Executive agrees that his service as described in Section 4.1(a) shall be subject to the approval of the
Employer's Board, so long as the Board's discretion is not applied unreasonably. 

        Where
the Board declines to approve the commencement of the Executive's service or his continued service, or the Board withdraws its approval for the continuation of the Executive's
service as described in Section 4.1(a), the Executive agrees that he will resign from such position, or withdraw himself from consideration. The
Executive and Employer agree that nothing in this Section 4.1 applies to the Executive's membership or contribution of his
non-working time or services, in a non-remunerative capacity, to any: charitable or educational organization, foundation, or association; political organization or campaign;
religious group, foundation, or organization; or non-profit trade, professional, community, or recreational organization or club, so long as the purpose or aim of any such organization
presents no conflict with the business of the Employer, as determined by the Board. 

        4.2   The
Employer acknowledges and agrees that during the Term, the Executive may devote a portion of his business time to personal investments and outside business
commitments, provided, however that: (a) such activities do not conflict with the business of Employer, (b) such activities do not
interfere, directly or indirectly, with the performance by the Executive of his obligations under this Agreement, and (c) such activities do not result in a breach by the Employer of any
non-competition or any other similar type of agreement to which the Employer, or its officers or directors, may be a party. 

        4.3   No
provision of this agreement shall be construed to prohibit the Executive's: (a) acquisition, ownership, or trading, including without limitation the
Executive's indirect ownership, of less than five percent (5%) of the issued and outstanding stock (or comparable bonds, options, derivatives, or negotiable instruments) of a business entity having
securities publicly traded anywhere in the world; or (b) passive ownership of stock, partnership interests, or comparable ownership interests or securities in any for-profit private
business entity that is not directly competitive with the business of the Employer or any of its subsidiaries. The Employer additionally agrees that nothing in this agreement shall operate to prohibit
the Executive's acceptance of a testamentary gift, bequest, or its equivalent, nor the 

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Executive's
retention of any such gift, bequest, or its equivalent following its delivery, so long as the Executive retains the interest(s) solely for investment purposes. 

        4.4   In
addition to the foregoing, the Executive may spend a portion of his time providing services for Mr. Sillerman, the Chief Executive Officer of Employer, and/or
MJX Asset Management LLC (collectively, the "MJX Services"). The compensation committee of the Board (the "Compensation
Committee") will review the amount of time the Executive spends providing MJS Services on a quarterly basis. If the Compensation Committee determines that the Executive is
engaging in MJX Services at a level whereby he is being compensated by the Employer for time spent on such services, then the Compensation Committee will require that Executive reduce the level of MJX
Services being performed. The Compensation Committee will also require the recipient of such MJX Services to reimburse Employer for the compensation attributable to the time spent thereon during the
previous year. 

        5.    Location of Employment.    Unless the Executive otherwise consents in writing, the usual place for the
performance of his services shall be the Employer's principal office located in the Borough of Manhattan, New York, New York, or such other location within Manhattan or Nassau County, New York, as
established by the Employer. 

        6.    Base Salary.    During the Term, the Employer shall pay or cause to be paid to the Executive an initial
annualized base salary, payable in equal installments during each year of the Term (the "Base Salary") equal to (x) Four Hundred Fifty Thousand
Dollars ($450,000) (the "Base Amount.") less (y) the value of all fringe benefits, perquisites or other amounts
("Perquisites") that the Employer and the Executive agree at the beginning of each year will be provided to Executive for such year (whether or not paid
in
cash) and that the Employer is required to report as compensation to the Executive on Form W-2. If the total of the Base Salary plus the Perquisites received by the Executive in any
year of the Term exceed the Base Amount, an amount equal to the excess compensation received by the Executive for such year shall be deducted on a pro-rata basis from the Executive's Base
Salary during the fist six months of the following year. The Base Amount shall be increased upon each anniversary of the date of this agreement by an amount equal to the greater of: (a) five
percent (5%) of the Base Amount then in effect; or (b) the product derived by multiplying: (i) the Base Amount then in effect; by (ii) the percentage increase in the Consumer
Price Index published by the federal Bureau of Labor Statistics for the New York, New York metropolitan area during the previous twelve (12) full calendar months. The Board additionally shall
review the Executive's Base Amount at least annually and the Board may increase, but not decrease, the Base Amount in an amount greater than the increase required by the preceding sentence. 

        6.1   The
Executive authorizes the Employer to deduct from the Base Salary and any other consideration payable in cash to the Executive pursuant to this agreement all tax
withholdings, tax related deductions, or other governmentally imposed charges against income as may be required by law. 

        6.2   The
Executive acknowledges that his attendance and participation in executive retreats, seminars, motivational or instructional programs, and business, corporate, and
employee relations training may be requested by the Employer during the Employment Agreement Term. In such event, the Executive agrees that he in good faith will make reasonable efforts to attend and
participate in such events, provided that the Executive will not be required to attend or participate in more than two such events in any calendar year. 

        6.3   The
Executive shall be eligible to accrue the equivalent of six (6) weeks vacation during each full year of the Term, in accordance with the accrual methodology
and vacation day accrual limitations in the vacation leave policy applied by the Employer to its employees, except that the Employer will credit the
Executive for his full annual accrual at the commencement of each full year of the Term, i.e., not on a proportional basis during the course of each
year of the Term. The Executive additionally shall be entitled to remain away from work for as many or as few days as required by the Executive 

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due
to the Executive's bona fide illness, subject to the provisions of Section 13 of this agreement. The Executive may observe any legal
holidays, other holidays recognized by the Employer, and religious holidays that the Executive deems appropriate, in the sound exercise of his business judgment. 

        7.    Bonus and Option Grants.    

        7.1   The
Executive shall be eligible to receive an annual discretionary bonus payable in any combination of cash, stock or restricted stock, stock options, and/or other
consideration beneficial to the Executive during the continuance of the Executive's employment hereunder (the "Bonus"), after and pursuant to the
affirmative recommendation of the Compensation Committee of the Board. The Employer's decision to make or to not make a discretionary bonus payment to the Executive in any year (including, without
limitation, the consideration to be received or methodology applied by the Employer to a discretionary bonus eligibility determination in any year) shall have no bearing on the Executive's eligibility
to earn a bonus in any succeeding year, nor shall the amount, form, or payment timing of any such discretionary bonus in any year have any bearing on any aspect of a discretionary bonus determination
in any subsequent year. 

        8.    Expenses.    

        8.1   The
Employer shall reimburse the Executive for all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of the Executive's
services. The Employer shall make reimbursement within a reasonable time following the Executive's presentation of expense statements, vouchers, receipts, or such other supporting information as the
Employer reasonably may require from the Executive. The Executive acknowledges that the Employer's policies regarding the documentation of expenses for which reimbursement is sought may change from
time to time, and the Executive agrees that he will comply with the Employer's reasonable documentation requirements. 

        8.2   The
Executive at all times shall be entitled to: travel in first class seating (or its equivalent) on a reputable airline when the Executive travels by air in connection
with the Employer's business; to hotel accommodations while outside New York on business at a full-service hotel offering a hotel room with sufficient space, furnishings, and technological
facilities and appointments for the Executive's comfortable and productive work in the room; and private car service when required to travel in connection with the Employer's business, attend business
meetings, or work or attend functions outside of normal business hours or on weekends or holidays. 

        8.3   In
the event that the Employer's business requirements cause or require the Executive to cancel personal vacation or travel plans for which the Executive or any member
of his family is unable to obtain a full refund of any deposit or comparable amount expended by the Executive in advance, the Employer agrees that it will reimburse to the Executive the full amount
not refunded or refundable to the Executive or any such family member. 

        9.    Benefits.    

        9.1   During
the Term, the Executive shall be eligible to participate in any pension, profit sharing, incentive stock option, stock purchase, stock grant program or plan, and
retirement savings program or plan established by the Employer or any of its subsidiaries for which the Executive provides services hereunder ("Participating
Subsidiaries"), including, without limitation, any such program or plan offered by the Employer or Participating Subsidiaries to its executive or non-executive
employees. The Executive additionally shall be eligible to participate in any group life insurance, hospitalization, medical, health and accident, dental, disability, or similar plan or program made
available by the Employer or Participating Subsidiaries to its executive or non-executive employees. The Executive acknowledges that his participation in any benefit plan described in this  Section 9.1 may require, where required from other senior executives of the Employer or Participating Subsidiaries, the Executive's
co-payment of a periodic premium as a deduction from the Base Salary payable to him. The Executive additionally acknowledges that the Executive's actual ability to participate in any
program, plan, or 

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other
benefit opportunity in which the Executive otherwise is eligible to participate ultimately may be determined and governed by the terms and conditions of a third-party provider's plan or program,
and the Executive affirms that any third-party's decision denying the Executive's participation in a particular program or plan, the provision of coverage or a benefit in respect of a particular
circumstance or expense, or a comparable decision adversely affecting the Executive shall not constitute a breach of this agreement by the Employer, so long as the Employer does not offer, designate,
or select a program or plan with the actual intention of excluding the Executive's eligibility or participation in the opportunity. 

        9.2   The
Executive acknowledges that the Employer may, as it deems appropriate, seek, obtain, and maintain during all or part of the Term insurance connected with the life of
the Executive, and for the benefit of the Employer. In the event that the Employer elects to do so, the Executive agrees: to provide any medical information required by the insurer issuing such
coverage; to submit no more frequently than semi-annually to any medical examination required by the insurer in connection with the granting or renewal of such coverage; and to otherwise
cooperate reasonably with the Employer's attempts to obtain such coverage. Any insurer's rejection of an application submitted by the Employer connected with this  Section 9.2 in no event shall
constitute a breach of this agreement by the Executive, and the Employer shall not request nor in another manner
seek any information from the Executive, the insurer, or any other person(s) connected with the rejection. 

        9.3   The
Employer agrees that in the event of the Executive's death during the Term, the Employer will pay to the Executive's estate the following, which shall be distributed
in accordance with the Executive's will or testamentary plan, as directed by any court having jurisdiction over such estate, or as directed by any duly appointed administrator or executor of the
Executive's estate: 

        (a)   all
earned but unpaid Base Salary at the time of the Executive's death, plus an amount equal to three (3) times
the Base Salary in effect at the time of the Executive's death; 

        (b)   the
full costs relating to the continuation of any group health, dental, and life insurance program or plan provided through the Employer in which the Executive
participated at the time of his death, and through which coverage was provided to any dependent(s) of the Executive at the time of the Executive's death, for a period of three (3) years
following his death, without regard to the availability or expiration of any continuation option or feature provided by the program(s) or plan(s), or as otherwise provided to a lesser extent by
applicable law at the time of the Executive's death; and 

        (c)   the
Employer additionally shall cause any stock options, restricted stock or other equity-based instruments that previously were issued to the Executive to vest fully
and shall take all action necessary to cause the assignment or transfer of such options, securities or other instruments as directed by the Executive's will or testamentary plan, or as directed by any
duly appointed administrator or executor of the Executive's estate. 

The
Executive acknowledges that the Employer at its option may, in the sole exercise of its discretion, acquire and maintain a current whole life insurance policy
("Policy") on the life of the Executive from a reputable carrier which provides substantially equivalent benefits on behalf of the Executive in respect
of the amounts provided in Sections 9.3(a) and (b). Such Policy, if acquired and maintained, is
intended to meet the Employer's obligations to the Executive pursuant to Sections 9.3(a) and (b).
The Executive shall have no preferred claim on, or any beneficial ownership interest in, the Policy which will be subject to the claims of the Executive's general creditors under federal and state law
in the event of insolvency. While the Executive is an employee of the Employer, the Employer shall be the named beneficiary of the Policy and the Policy shall not be assignable. However, upon
termination without Cause, Constructive Termination without Cause or termination following a Change in Control (all as defined in Section 12
below), the Employer shall assign the Policy to the Executive and, upon the assignment, the Executive shall have all rights with respect to the Policy. Where the Employer elects to seek such insurance
coverage, the Executive agrees to provide any medical information 

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required
by the insurer issuing such coverage; to submit to any medical examination required by the insurer in connection with the granting or renewal of such coverage; and to otherwise cooperate
reasonably with the Employer's attempts to obtain such coverage. Any insurer's rejection of an application submitted by the Employer in connection with this  Section 9.3 in no event shall relieve
the Employer of any of its obligations hereunder. 

        10.    Indemnification.    The Employer shall indemnify the Executive against all losses, claims, expenses, or other
liabilities of any nature arising by reason of the fact that he: (a) is or was a director, officer, employee, or agent of the Employer or any of its subsidiaries or affiliates; or
(b) while a director, officer, employee or agent of the Employer or any of its subsidiaries or affiliates, is or was serving at the request of the Employer as a director, officer, partner,
venturer, proprietor, trustee, employee, agent or similar functionary of another corporation, partnership, joint venture, trust, employee benefit plan or other entity, in each case to the fullest
extent permitted under the Delaware General Corporation Law, as the same exists or may hereafter be amended. Without limiting the generality of the foregoing, the Executive shall be entitled in
connection with his employment and in connection with his services as an officer and director of the Employer to the benefit of the provisions relating to indemnification and advancement of defense
costs and expenses contained in the bylaws and certificate
of incorporation of the Employer, as the same in the future may be amended (not including any amendments or additions that limit or narrow, but including any that add to or broaden, the protection
afforded to the Executive), to the fullest extent permitted by applicable law. The Employer shall advance to the Executive all costs of investigation or defense incurred by the Executive in connection
with any pending or threatened claim for which the Executive may be entitled to indemnification hereunder, provided that the Executive shall agree to
return to the Employer any such reimbursed amounts, without interest, if it is determined in a final, non-appealable judgment by a Court of competent jurisdiction that the Executive is not
entitled to indemnification by the Employer for losses incurred in connection with such claim. The indemnification obligations of the Employer shall survive from the Effective Date of this agreement
and continue until three (3) months after the expiration of any applicable statute of limitations with respect to any claim made against the Executive for which the Executive is or may be
entitled to indemnification (the "Survival Period"), and shall survive after the Survival Period with respect to any indemnification claim as to which
the Employer has received notice on or prior to the end of the Survival Period. The Employer's belief regarding a statute of limitations applicable to a claim, any position taken by the Employer in
response to a claim, or the determination of any judicial, quasi-judicial, or arbitral body in connection with a claim and any statute of limitations applicable to a claim(s) shall in no event relieve
the Employer from its obligation to indemnify the Executive. The Employer shall prepay in full, and maintain fully during the Survival Period for the benefit of the Executive, on an "occurrence"
basis, a directors and officers errors and omissions insurance policy, or a similar insurance policy(ies), providing coverage from a financially reputable carrier, in form and substance reasonably
acceptable to the Executive. Anything in this agreement to the contrary notwithstanding, this Section 10 shall survive the termination of this
agreement for any reason. 

        11.    Confidential Information.    The Executive acknowledges that his employment will fully familiarize the
Executive with the trade secrets and confidential and proprietary information of the Employer (the "Confidential Information"). Examples of the
Employer's Confidential Information include, without limitation, information regarding the Employer's costs, profits, markets, sales, products, key personnel, operational methods, technical processes,
business strategies, and other information which the Employer engages in efforts to protect from disclosure or discovery by its competitors, actual and prospective clients, and other third parties.
The Executive further acknowledges that the unintentional or intentional disclosure of the Employer's Confidential Information would have a 

6

 

material
adverse effect on the operations and development of the Employer's business. The Executive therefore covenants and agrees as set forth below: 

        11.1 The
Executive will during the Term and for one (1) year thereafter, keep secret all Confidential Information, and will not intentionally disclose Confidential
Information to anyone outside of the Employer and its subsidiaries and affiliates and their respective advisors, directors, officers, employees, agents, consultants, financing sources and other
representatives, other than in connection with the Executive's performance of his duties under this agreement except with the Employer's consent, provided that: (i) the Executive shall have no
such obligation to the extent Confidential Information is or becomes publicly known, other than as a result of the Executive's breach of his obligations hereunder; and (ii) the Executive may,
after giving prior notice to the Employer to the extent practicable under the circumstances, disclose such matters to the extent required by applicable laws or governmental regulations or judicial or
regulatory process; provided, however, that if the Executive is required (by oral questions,
interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information pursuant to the foregoing clause (ii),
he agrees to use reasonable efforts to provide the Employer with prompt notice of each such request so that the Employer may seek an appropriate protective order or waive compliance by the Executive
with the provisions of this agreement or both; provided, further, that if, absent the entry of a
protective order or the receipt of a waiver under this agreement, the Executive is, in the opinion of his counsel, legally compelled to disclose such Confidential Information under pain of liability
for contempt or other censure or penalty (civil or criminal), the Executive may disclose such information to the persons and to the extent required without liability under this agreement. In such
event, the Executive shall give the Employer written notice of such disclosure, in reasonable detail, as soon as possible, but in any event not later than concurrently with making such disclosure, and
the Executive shall exercise his reasonable commercial efforts to obtain reliable assurances that confidential treatment will be accorded any such Confidential Information so disclosed. 

        11.2 The
Executive will, at his option: (i) deliver promptly to the Employer at the termination of his employment by the Employer, or at any other time the Employer
may so request, all memoranda, notes, records, reports, and other documents (including, without limitation, drafts, whole or partial copies, and information stored or maintained electronically,
magnetically, in a computer, or through any other medium invented in the future) relating to the Employer's business, which he obtained while employed by, or otherwise serving or acting on behalf of,
the Employer and which he may then possess or have under his control (the "Records"); or (ii) in lieu of subclause (i) above, the
Executive shall destroy all of the Records, return all tangible property of the Employer containing any Records which is possessed by the Executive, and shall deliver to the Employer a signed
affirmation to that effect. 

        11.3 The
Executive's duties may require that he enter into confidentiality agreements, nondisclosure agreements, or comparable agreements with third parties, and a third
party may require the Executive's entry into such an agreement(s) personally and on behalf of the Employer. In any such event, the Executive agrees to engage in reasonable efforts to perform any such
agreement. 

        11.4 During
the Term, the Employer may adopt or implement additional Confidential Information policies, procedures, or requirements in connection with the Employer's
business, and any such policies, procedures, or requirements will supplement this Section 11, without additional consideration from the Employer
to the Executive, except to the extent, if any, that they conflict with this agreement, in which event this agreement shall control and govern. 

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        12.    Termination.    The following definitions shall apply to the use of such terms in this agreement: 

        12.1 "Cause" means: 

        (a)   the
Executive is convicted of, or enters a no contest plea to (i) a felony involving moral turpitude, or (ii) a misdemeanor involving moral turpitude which
would render the Executive unable to perform his duties set forth in this agreement; 

        (b)   the
Executive engages in conduct that constitutes willful gross neglect or willful gross misconduct in carrying out his duties under this agreement, resulting in
material economic harm to the Employer; or 

        (c)   the
Executive's disloyalty, willful non-performance or willful misconduct or neglect (whether the neglect arises from an act(s) or failure(s) to act) of his
duties under this agreement after: (i) written notice to the Executive from either the Board or the Chairman of the Board, with reasonable specification of the matter(s) giving rise to the
notice, including notice of the Employer's intent to terminate the Executive's employment due to the matter(s) described in such notice, and further stating the Board's or the Chairman of the Board's
reasoned conclusion that it is impossible for the Executive to cure the matter(s) giving rise to the notice within thirty (30) days from the notice; (ii) the opportunity for the
Executive to respond in writing to the written notice, with the assistance of any counsel deemed appropriate by the Executive (but at the Executive's expense) not sooner than ten (10) regular
business days after delivery of the written notice; (iii) the opportunity for the Executive to be heard and to orally present his position during a confidential meeting of the entire Board
within ten (10) business days after the Executive's delivery to the Employer of the Executive's written response to the written notice; and (iv) a vote of not less than
662/3% of all members of the Board (not including the Executive's vote), finding that the matter(s) specified in the written notice constitute "Cause" for purposes of this agreement; or 

        (d)   any
finding by the Securities and Exchange Commission pertaining to the Executive which, in the opinion of independent counsel selected by the Employer, could reasonably
be expected to impair or impede the Employer's ability to register, list, or otherwise offer its stock to the public, or following any Initial Public Offering, to maintain itself as a publicly-traded
company. 

For
purposes of this Section 12.1, no act, or failure to act, by the Executive shall be "willful" unless committed without a reasonable belief
that the act or omission was in the best interest of the Employer. 

        12.2 A
"Change in Control" shall mean the occurrence of any of the following, as supplemented by the defined terms in  Section 12.2(g) of this agreement:

        (a)   any
"person," or "group" of related persons for purposes of Section 13(d) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act") (other than the Principal or a Related Party of the Principal), shall become, directly or indirectly, a "beneficial
owner," as such term is used in Rule 13d-3 promulgated under the Exchange Act, of Voting Stock representing more than thirty-five percent (35%) of the total voting power
of all Voting Stock of the Employer on a fully-diluted basis; 

        (b)   all
or substantially all of the assets or business of the Employer are disposed of through the consummation of a merger, consolidation, sale of assets or other
transaction (unless the shareholders of the Employer immediately prior to such merger, consolidation or other transaction beneficially own, directly or indirectly, Voting Stock representing fifty
percent (50%) or more of the voting power of the outstanding Voting Stock of the entity or entities, if any, that succeed to the business of the Employer, determined on a fully-diluted basis); 

        (c)   the
Employer combines with another entity and is the surviving corporation but, immediately after the combination, the shareholders of the Employer immediately prior to
the 

8

 

combination
beneficially own, directly or indirectly, less than fifty percent (50%) of the voting power of the outstanding Voting Stock of the combined company, determined on a fully-diluted basis; 

        (d)   the
majority of the Board consists of individuals other than "Incumbent Directors," which term means members of the Board as of the date of this Agreement, except that
any person who becomes a director subsequent to such date whose election or nomination was supported by two-thirds of the directors who then comprise the Incumbent Directors shall be
considered an Incumbent Director; 

        (e)   there
shall be consummated any consolidation or merger of the Employer in which the Employer is not the continuing or surviving entity or pursuant to which the common
stock of the Employer would be converted into cash, securities, or other property, other than a merger or consolidation of the
Employer in which the shareholders of the Employer immediately prior to the merger or consolidation beneficially own, directly or indirectly, fifty percent (50%) or more of the voting power of the
outstanding Voting Stock of the combined company, determined on a fully-diluted basis; or 

        (f)    the
approval of the shareholders or the Board of Directors of the Employer of any plan or proposal for the liquidation or dissolution of the Employer. 

        (g)   For
purposes of this Section 12.2, (i) "Voting Stock" means, with respect to any person, securities of any
class or classes of capital stock in such person, entitling the holders thereof to vote under ordinary circumstances in the election of members of the board of directors or other governing body of
such person; (ii) "Principal" means Robert F.X. Sillerman; and (iii) "Related Party" means, with respect to the Principal, (x) any spouse or immediate family member of the
Principal, (y) any trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners, owners or persons beneficially holding a fifty-one percent (51%) or
more controlling interest of which consist of the Principal and/or such other persons referred to in the immediately preceding clause (x) or (z) the trustees of any trust referred to in
the immediately preceding clause (y). 

        12.3 "Constructive Termination without Cause" means the termination of the Executive's employment at his initiative after,
without the Executive's prior written consent, one or more of the following events: 

        (a)   a
reduction in the Base Salary, or the uncured failure by the Employer to fulfill its obligations under this agreement within thirty (30) days after written
notice thereof from the Executive to the Employer; 

        (b)   the
failure to elect the Executive to any of the positions described in Section 3; any material diminution or
adverse change in the duties, authority, responsibilities, or positions of the Executive; or any attempt to remove the Executive from any executive management position in a manner contrary to this
agreement or the Employer's then effective certificate of incorporation or by-laws; 

        (c)   the
assignment to the Executive of duties or responsibilities which are materially inconsistent or different from those customarily performed by a person holding the
executive management positions to be held by the Executive pursuant to Section 3; 

        (d)   the
failure of the Employer to obtain the assumption in writing of its obligation to perform this agreement by any successor to all or substantially all of the assets or
business of the Employer after a merger, consolidation, sale, or similar transaction; or 

        (e)   the
commencement by or against the Employer or any of its material subsidiaries of a voluntary or involuntary proceeding seeking liquidation, reorganization or other
relief under any 

9

 

bankruptcy,
insolvency or other similar law now or hereafter in effect; or seeking the appointment of a trustee, receiver, liquidator, or custodian of it or any substantial part of its property,  and consent by the
Employer or any such material subsidiary to any such relief; or the making of a general assignment for the benefit of creditors, or
failure generally to pay its debts as they become due; or taking any corporate action to authorize any of the foregoing. 

        (f)    The
Executive agrees that each of the following must occur before the Executive may assert the existence of a Constructive Termination without Cause (other than with
respect to Section 12.3(e)): (i) the Executive must provide written notice to the Board or the Chairman of the Board, with reasonable
specification of the matter(s) giving rise to the notice; (ii) the Employer must have the opportunity, through the Chairman or a Board member designated by him, to respond in writing to the
written notice, with the assistance of any counsel deemed appropriate by the Employer (at its expense) not sooner than ten (10) business days after delivery of the written notice; and
(iii) the Board must have the opportunity, acting collectively or through a designee, to investigate, inquire, and otherwise inform itself of the assertion, followed by a hearing before the
Board during which the Executive is allowed the opportunity to orally present his position during a confidential meeting of the entire Board, and the Employer is allowed to respond, within ten
(10) business days after the Employer delivers to the Executive its written response to the Executive's written notice. 

        12.4    Termination by the Employer for Cause.    If the Employer terminates this agreement for Cause, the Executive
shall be paid all earned but unpaid Base Salary through the date of termination. 

        In
the event the Employer terminates the Executive's employment for Cause, the Executive shall have no further obligation or liability to the Employer in connection with his performance
of this agreement (except the continuing obligations specified in Section 11). 

        12.5    Termination without Cause or Constructive Termination without Cause.    In the event the Executive's
employment is terminated without Cause, other than due to disability or death, or in the event there is a Constructive Termination without Cause, the Executive shall be entitled to be paid by the
Employer: 

        (a)   the
Base Salary through the date of termination; 

        (b)   the
cash equivalent of the Base Salary, at the rate in effect on the date of termination (or in the event a Base Salary reduction is the basis for a Constructive
Termination without Cause, the Base Salary in effect immediately prior to such a reduction) for three (3) years following such termination
(the "Salary Payment"), with the pro rata equivalent of such amount payable from the Employer to the Executive on the Employer's ordinary paydays, but
not less frequently than once per month; or, at the Executive's option, the Employer shall pay to him the present value of the Salary Payment in a lump sum within thirty (30) days of the
effective date of such termination (using as the discount rate seventy-five percent of the prime rate (as published by The Wall Street Journal) on the first business day of the month in
which such termination occurs); 

        (c)   for
each partial or full year remaining in the then unexpired Employment Agreement Term, a cash bonus in full and complete satisfaction of any form of cash bonus or cash
incentive compensation amounts equal to the average of all Bonuses paid by the Employer to the Executive during the Term prior to termination, provided, however, that if no Bonus has been paid prior
to termination, the amount shall be $100,000 (the "Base Bonus Amount"). The Base Bonus Amount shall be payable in full on each anniversary of this
agreement for the remainder of the Employment Agreement Term; provided that, at the Executive's option, the Employer shall pay to him the present value of the aggregate Base Bonus Amounts in a lump
sum within thirty (30) days of the effective date of such termination (using as the discount rate of seventy-five percent of the 

10

 

prime
rate (as published by The Wall Street Journal) for the first business day of the month in which such termination occurs); 

        (d)   all
benefits provided in Sections 8 and 9 (except that if providing any
such benefit under the terms of a plan would cause an adverse tax effect, the Employer may provide the Executive with equivalent cash payments outside of the plan) until the end of the Employment
Agreement Term, with no additional cost or charge payable by the Executive; and 

        (e)   in
the event payment becomes due to the Executive as provided in Sections 12.5(b) or  (c), the Executive's election to receive either the Salary Payment or the
Base Bonus Amount in a lump sum shall not preclude the Executive's election to
receive the other payment(s) over time. 

11

   
        12.6    Additional Rights Following a Change in Control.    In the event of a Change in Control, the Executive
shall
be entitled: (a) at the Executive's option, to accelerate this agreement's Expiration Date to the date of the actual closing of any transaction which constitutes a Change in Control (the
"Change in Control Closing Date"); and (b) to all payments and benefits provided in  Section 12.5 in respect of a Constructive Termination without
Cause. The payments and benefits provided under  Section 12.5, together with a bona fide, good faith estimate of any amounts that may be payable
pursuant to Section 12.7, (i) shall be paid to the Executive in a lump sum on or prior to the Change in Control Closing Date, without any
discount or reduction for the present value of any monetary amount(s) payable; and (ii) in the case of non-monetary consideration or stock options or comparable consideration,
delivered to the Executive on or prior to the Change in Control Closing Date. Upon a Change in Control, all granted but unvested shares of restricted stock and all options to purchase the Employer's
capital stock or similar instruments granted to or held, directly or indirectly, by the Executive shall vest fully and immediately in the Executive and all options and similar securities held,
directly -or indirectly, by the Executive shall remain exercisable for the full maximum term of the original option grant or ten (10) years from the Change in Control Closing Date,
whichever is greater. In addition, Section 14 of this agreement immediately, and without additional action, shall be deemed and rendered null,
void, and without any effect as against the Executive upon the actual closing of any transaction which constitutes a Change in Control. The Executive shall forfeit any rights granted pursuant to this  Section 12.6 if the Executive, in his sole and absolute discretion and without any obligation whatsoever to do so, accepts in writing a written
offer to remain with the surviving company in an executive position with equivalent duties, authority, and responsibilities as the Executive held immediately prior to the transaction resulting in the
Change in Control. 

        12.7    Payment Following a Change in Control.    In the event that the aggregate of all payments or benefits made or
provided to the Executive under this agreement and under all other plans and programs of the Employer (the "Aggregate Payment") is determined to
constitute a Parachute Payment, as such term is defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the "Internal Revenue
Code"), the Employer shall pay to the Executive, prior to the time any excise tax imposed by Section 4999 of the Internal Revenue Code ("Excise
Tax") is payable with respect to such Aggregate Payment, an amount (the "Gross-Up Payment") which, after the imposition of all
excise, federal, state and local income taxes on the Aggregate Payment and the Gross-Up Payment, enables the Executive to retain a total amount equal to the Aggregate Payment. The determination of
whether the Aggregate Payment constitutes a Parachute Payment and, if so, the amount to be paid to the Executive and the time of payment pursuant to this subsection shall be made by an independent
auditor (the "Auditor") jointly selected by the Employer and the Executive and paid by the Employer. The Auditor shall be a nationally recognized United
States public accounting firm which has not, during the two years preceding the date of its selection, acted in any way on behalf of the Employer or any affiliate thereof. If the Executive and the
Employer cannot agree on the firm to serve as the Auditor, then the Executive and the Employer shall each select one accounting firm and those two firms shall jointly select the accounting firm to
serve as the Auditor. 

        12.8    Voluntary Termination.    (a) In the event of the termination of this agreement at the conclusion of
the Employment Agreement Term, or by the Executive on his own initiative other than: (a) a termination due to death or disability; (b) a
Constructive Termination without Cause; or (c) a Change in Control, the Executive shall have the same entitlements as provided in  Section 12.4 for a termination for Cause. A voluntary
termination of employment by the Executive shall be effective upon reasonable written
notice to the Employer. Written notice need not be provided in the event of a termination due to death or disability or the consummation of a Change in Control. 

        12.9    Stock Options and Restricted Stock.    (a) Upon termination of the Executive's employment with the
Employer without Cause or as a result of a Constructive Termination without Cause, all restrictions on any restricted stock, stock options or other equity-based instruments, including any 

12

 

transferability
or vesting restrictions, immediately shall lapse. The Executive additionally shall have the immediate right to exercise any Employer stock options in full (without regard to any
restriction on the underlying stock, and whether granted under this agreement or otherwise), whether or not any such option is fully exercisable on the date of termination, for the remainder of the
original full maximum term of each such stock option. In addition, in the event that the Executive's employment is terminated for any reason within one (1) year preceding or following the
consummation of a Change in Control (including, without limitation, the date of the consummation) then the Executive shall be entitled, at the Executive's option and without the preclusion or
reduction of any benefit otherwise available to him under this agreement (pursuant to Section 12.6 or otherwise), to exercise all options granted
previously to the Executive during the longest period permissible under the terms of the plan under which such options were issued from the Change in Control Closing Date, and additionally to freely
transfer any options held, directly or indirectly, by the Executive as of the Change in Control Closing Date. 

        (b)    Option Grant Terms.    The Employer agrees that it will cause the terms and conditions of any options to
purchase the Employer's shares of capital stock or any other equity-based instruments granted to the Executive during the Employment Agreement Term to conform with the provisions of this agreement.
Where the terms of any grant agreement with the Executive or any stock incentive plan or stock option plan adopted by the Employer conflict with this agreement, the Employer agrees that the terms of
this agreement shall control, apply to and determine the terms of the grant to the fullest extent permitted by applicable law. 

        12.10    No Mitigation or Offset.    At any termination of the Executive's employment, the Executive shall have no
obligation to seek other employment. There shall be no offset against amounts due the Executive under this agreement on account of any remuneration attributable to any later employment, consultancy,
partnership, or other remunerative activity connected with the Executive. However, the Employer may offset any amounts owed by the Executive to the Employer or any of its subsidiaries or affiliates
against amounts due to the Executive under this agreement. 

        13.    Disability.    

        13.1    If
during the Executive's active employment the Executive becomes physically or mentally disabled, whether totally or partially, so that he is prevented from performing
his duties for a period of six consecutive months, the Employer shall pay to the Executive his full Base Salary and Bonus in respect of the period ending on the last day of the sixth consecutive month
of disability (the "Disability Date"), and the additional provisions set forth below shall apply: 

        13.2    If
the Executive has not resumed his usual duties on or prior to the Disability Date, the Expiration Date of this agreement automatically shall accelerate to the
Disability Date, and the Employer shall pay to the Executive, or as directed by any properly appointed guardian of the Executive, seventy-five percent (75%) of his Base Salary from the
Disability Date through the end of the Employment Agreement Term (without giving effect to any early termination provisions contained in this agreement) and, the Employer shall have no obligation to
pay any Bonus, discretionary bonus, or other form of compensation or consideration to the Executive in respect of periods after the Disability Date, unless applicable law requires the Employer to do
so. Any Base Salary payable pursuant to this section shall be reduced by the amount of any benefits payable to the Executive under any group or individual disability insurance plan or policy, where
the premiums for such plan or policy are paid primarily by the Employer; 

        13.3    Unless
the Employer voluntarily exercises its option under Section 13.4 to restore the Executive to his full
compensation, duties, functions, authority and responsibilities, the Executive shall have no obligations to the Employer from and after the Disability Date (except for his obligations under  Section 11, which shall survive); and 

13

 

        13.4    If
during the Employment Agreement Term and after a Disability Date, the Executive shall recover fully from a disability, the Employer, by action of the Board, shall
have the right (exercisable within sixty (60) days after notice from the Executive of such recovery), but not the obligation, to restore the Executive to employment, full compensation, and his
full level of duties, functions, authority and responsibilities hereunder. 

        14.    Non-competition.    

        Except
as set forth in this agreement, during the Employment Agreement Term the Executive will not, without the prior written approval of the Board, (a) become employed by, or
become an officer, director, or general partner of, any partnership, corporation or other entity in the media or entertainment sectors (each a "Prohibited
Business") or (b) directly or indirectly, purchase, invest or
otherwise participate in any significant manner, in investments, businesses or commercial operations in a Prohibited Business, unless such purchase, investment or participation is conducted by and
through Employer or its subsidiaries. Nothing in this Section 14 shall prohibit the Executive from continuing to fulfill his obligations as an officer, director or partner of companies or
entities identified in Section 4.

        15.    Notices.    All notices, requests, consents and other communications, required or permitted to be given
hereunder, shall be in writing and shall be deemed to have been duly given if delivered personally or sent by prepaid telegram, or mailed first class, postage prepaid, by registered or certified mail,
as follows (or to such other or additional address as either party shall designate by notice in writing to the other in accordance herewith): 

If
to the Employer: 

CKX, Inc.

650 Madison Avenue

New York, New York 10022 

Attention:
Board of Directors 

If
to the Executive: 

Thomas
P. Benson

99 Lawrence Hill Road

Cold Spring Harbor, New York 11724 

Copies
of all communications given hereunder to the Employer shall also be delivered or sent, in like fashion, to: Alan Annex, Esq., Greenberg Traurig, 200 Park Avenue, New York, New York
10166; telephone: (212) 801-9323; facsimile: (212) 805-9323. 

        16.    Disputes.    

        16.1    Arbitration of Monetary Disputes.    Any action or claim seeking monetary damages arising between the parties
to this agreement (including, without limitation, the Executive's representative following his death and any successor to the Employer), whether based on contract, negligence, intentional tort, fraud
or misrepresentation, statutorily prohibited discrimination, including employment discrimination,
or breach of other legal duty arising from or connected in any manner with this agreement or its performance shall be resolved exclusively through final and binding arbitration, as follows: 

        (a)   The
arbitration shall proceed in accordance with the National Rules for the Resolution of Employment Disputes (the
"Rules") of the American Arbitration Association (the "AAA") in effect when the claim or dispute arose
between the parties, or in the event that the AAA no longer follows the National Rules for the Resolution of Employment Disputes, then the AAA's Commercial Arbitration Rules (if applicable, the
"Rules") in effect on the date of this agreement. 

14

 

Either
party may, but neither party must, file or docket the dispute for administration by the AAA, so long as the dispute proceeds in accordance with this  Section 16.1 and the applicable Rules.

        (b)   The
arbitrator(s) shall be selected as follows: Each party shall by written notice to the other have the right to appoint one arbitrator. If, within thirty
(30) days following the giving of such notice by one party, the other shall not, by written notice, appoint another arbitrator, the first arbitrator shall be the sole arbitrator. If two
arbitrators are so appointed, they shall appoint a third arbitrator. If thirty (30) days elapse after the appointment of the second arbitrator and the two arbitrators are unable to agree upon
the third arbitrator, then either party may, in writing, request that the AAA appoint the third arbitrator. 

        (c)   Each
party exclusively shall bear all costs, fees, and other expenses charged by or associated with the arbitrator appointed by him or it, and the parties equally shall
pay the costs and expenses of any third appointed arbitrator. All proceedings connected with the arbitration, including hearings, shall be held in New York, New York, and where a party appoints an
arbitrator who principally conducts his or her business outside of New York, New York, the appointing party exclusively shall bear that arbitrator's travel, temporary lodging, and related costs and
expenses. The general counsel of the AAA or his or her designee, after the filing of the dispute with the AAA, exclusively shall have the jurisdiction and the authority, after written application
filed by a party with the AAA and the opportunity for the other party to respond in writing, to inequitably allocate between the parties the AAA's pre-hearing filing and administrative
fees and the fees and expenses of any appointed arbitrator(s), subject to reallocation among the parties by the arbitrator(s) in any final award (or decision). 

        (d)   All
proceedings, hearings, testimony, documents, or writings related to the arbitration shall be confidential, i.e., not
disclosed by a party, a party's representative(s), or any testifying witnesses to a person or entity not a party to, or interested in, the arbitration. The parties further agree, without regard to any
AAA rule to the contrary, that where a written reasoned award(s) is made by the arbitrator(s), the arbitrator(s) also shall issue a one-page award (or decision) in a form which permits a
future need by any party to judicially enforce the award, but that the written reasoned award shall not be disclosed by the parties to any person or body not connected directly with the arbitration. 

        (e)   The
arbitrator(s) appointed exclusively shall have jurisdiction to determine any claim, including the arbitrability of any claim, submitted to him, her, or them. Each
party shall bear its or his own arbitration costs and expenses, including, without limitation, the costs and expenses associated with any attorney or other expert or representative retained by the
party in connection with a claim, without regard to any pre-award application by the AAA of the last sentence of Section 16.1(c). The
interpretation and enforceability of the arbitration agreement memorialized in this section shall be determined in accordance with the United States Federal Arbitration Act (9 U.S.C. §1,  et seq.)
(the "FAA"), unless the New York State Arbitration Act (the "New York
Act") (CPLR §7501, et seq.) would make enforceable this agreement after an appointed arbitrator(s) finds it
unenforceable under the FAA, in which case the New York Act shall be applied. Any process required or desirable in connection with any arbitration under this  Section 16.1 shall be issued and served
as authorized by the FAA, the New York Act, or any treaty to which the United States is a signatory, and
upon a party by personal or permitted substitute service anywhere in the world. The substantive law applied by the arbitrator(s) to the determination of any claim or defense not connected with the
enforceability of this arbitration agreement shall be the internal laws of the State of New York, without reference to conflicts of law principles. 

        (f)    The
parties agree that the appointed arbitrator(s) shall have no power or authority to make awards or issue orders of any kind, except as authorized by the FAA and the
internal laws of the State of New York. Any monetary award made shall be payable promptly in United States 

15

 

dollars,
free of any tax, offset, or deduction (unless required by law), and any costs, fees, or taxes incident to enforcing the award shall, to the maximum extent permitted by law, be charged against
the party resisting enforcement. 

        16.2    Claims for Equitable Relief.    Any action or proceeding initiated by any party to this agreement seeking any
form of temporary or preliminary injunctive relief, including, without limitation, specific performance, connected with this agreement or its performance may be brought against any other party in the
courts of the State of New York or, if the party has or can acquire jurisdiction, in the United States District Court for the Southern District of New York, and each of the parties consents to the
jurisdiction of such courts in any such action or proceeding, and each party waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may
be served on any party anywhere in the world. The parties agree that the pursuit of any relief described in this Section 16.2 in no way may or
shall diminish, defeat, or otherwise impair the agreement expressed in Section 16.1. 

        17.    General.    

        17.1    Governing Law.    This agreement shall be interpreted, construed, and enforced in accordance with the internal
laws of the State of New York, without regard to conflicts of law principles. 

        17.2    Captions.    This agreement contains section headings for reference only. The headings in no way affect the
meaning or interpretation of this agreement. 

        17.3    Entire Agreement.    This agreement fully memorializes the agreement and understanding of its parties relating
to its subject matter, and supersedes all prior or contemporaneous agreements, arrangements and understandings, written or oral, between the parties with respect to such subject matter. 

        17.4    Successors and Assigns.    This agreement, and the Executive's rights and obligations hereunder, may not be
assigned by the Executive, except as set forth in Section 9.3, and any prohibited assignment attempted by the Executive is void. This agreement
shall be binding on any successor to the Employer, whether by merger, acquisition of substantially all of the Employer's assets, or otherwise, as fully as if such successor were a signatory hereto and
the Employer shall cause such successor to, and such successor shall, expressly assume the Employer's obligations hereunder. Notwithstanding anything else herein contained, the term "Employer" as used
in this agreement, shall include all such successors. 

        17.5    Amendments; Waivers.    This agreement cannot be changed, modified or amended, and no provision or requirement
hereof may be waived, without an affirmative vote of the Board or its Compensation Committee and the consent in writing of the Executive and the Employer. The failure of a party at any time or times
to require performance of any provision hereof shall in no manner affect the right of such party at a later time to enforce the same. No waiver by a party of the breach of any term or covenant
contained in this agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of
the breach of any other term or covenant contained in this agreement. 

        17.6    Beneficiaries.    Whenever this agreement provides for any payment to the Executive's estate, such payment may
be made instead to such beneficiary or beneficiaries as the Executive may have designated in a writing filed with the Employer. The Executive shall have the right to revoke any such designation and to
redesignate a beneficiary or beneficiaries by written notice to the Employer (and to any applicable insurance company) to such effect. 

        17.7    Reformation.    The Executive and the Employer agree that any provision of this agreement deemed unenforceable
or invalid may be reformed to permit enforcement of the objectionable provision to the fullest permissible extent. Any provision of this agreement deemed unenforceable after 

16

 

modification
shall be deemed stricken from this agreement, with the remainder of the agreement being given its full force and effect. 

        17.8    Full Negotiation.    The Executive and the Employer each independently have made all inquiries regarding the
qualifications of the other which he or it deems necessary. The Executive and the Employer affirm that he or it fully understands this agreement's meaning and effect. Each party has participated fully
and equally in the negotiation and drafting of this agreement. Each party assumes the risk of any misrepresentation or mistaken understanding or belief relied upon by him or it in entering into this
agreement. 

        17.9    Currency.    Each and every reference to a monetary amount in this agreement means United States dollars. 

[SIGNATURE
PAGE FOLLOWS] 

17

 

        IN
WITNESS WHEREOF, the parties have duly executed this Employment Agreement as of the date first above written. 

	 	 	CKX, INC.
	

 	
 	

By:	

/s/  HOWARD J. TYTEL      
	 	 	 	

	 	 	 	Name: Howard J. Tytel
	 	 	 	Title: Senior Executive Vice President and

Director of Legal and Governmental Affairs
	

 	
 	

/s/  THOMAS P. BENSON      
 Thomas P. Benson

18

QuickLinks

EMPLOYMENT AGREEMENTFiled by Automated Filing Services Inc. (604) 609-0244 - Sterling Group Ventures, Inc. - Exhibit 10.1

 Exhibit 10.1 

 CONTRACT ON A SINO-FOREIGN EQUITY JOINT VENTURE 

 SICHUAN JIHAI LITHIUM LTD. 

THIS CONTRACT IS ENTERED INTO 

BETWEEN 

  
    
      
         Micro Express Ltd.

          A corporate entity incorporated and validly existing under the laws
          of the British Virgin Islands, holding a business license with a registration
          number 124770 

         (Hereinafter referred to as “Micro”) 

         Address: Suite 900-789 West Pender Street, Vancouver, 

          British Columbia, Canada V6C 1H2 

          Telephone: 1-604-893-8891 

          Facsimile: 1-604-408-8515 

          Legal representative: Raoul Tsakok

          Nationality: Canadian 

      

    

  

AND 

  
    
      
         Sichuan Province Mining Ltd. 

          A corporate entity incorporated and validly existing under the laws
          of the People’s Republic of China (“China”),
          holding a business license with a registration number 5100001814790
        

         (Hereinafter referred to as “SPM”) 

         Address: 11th Floor, Dikuang Building, Section 1, 25 

          Renmin Road North, Chengdu, Sichuan Province, China 

          610081 

          Telephone: 86-28-8322-9993

          Facsimile: 86-28-8322-8887

          Legal representative: Yunxin Liu

          Nationality: Chinese 

         (Each of SPM and Micro a "Party" and collectively the "Parties")
        

      

    

  

WHEREAS: 

	 A.      	 Micro is in the business of natural resource development.
        Micro is wholly owned by Micro Express Holdings Inc., which is in turn
        wholly owned by Sterling Group Ventures, Inc., a Nevada USA company with
        its common shares traded on NASD OTC Bulletin Board. 

	 
	 B.      	 SPM is a Chinese company specializing in mineral
        development. SPM has a valid mining permit on the Jiajika lithium mineral
        deposit (the “Mining Permit”) issued by Sichuan Bureau
        of Land and Resources. The No. of Mining Permit is 5100000410234, a copy
        of which is attached hereto as Schedule I. 

	 
	 C.      	 Micro and SPM have agreed to establish a Chinese-foreign
        equity joint venture company (the “Company”) in Sichuan
        for the development of Jiajika spodumene resources in Kangding District,
        Sichuan Province, China (the “Business”). The detailed
        development plan and process of the Business are described in a Joint
        Venture Feasibility Study for Jiajika Lithium Deposit (the “Feasibility
        Study Report”), a copy of which is attached hereto as Schedule
        II. 

 Now therefore, the Parties have agreed to enter into this
  Contract on the terms and conditions contained hereunder: 

 Article 1

  Establishment of the Company 

 1.1 Formation. In accordance with the Law of China
  on Chinese-foreign Equity Joint Ventures (the “Joint Venture Law”),
  its Implementing Regulations and other relevant laws, regulations and provisions
  applicable hereto, the Parties agree to form and incorporate a limited liability
  company in Kangding District, Sichuan Province, China on terms and conditions
  contained herein.

 1.2 Name of the Company. The English name of the Company
  shall be: Sichuan 

 Jihai Lithium Ltd., and the Chinese name of the Company shall
  be:  四川省集海锂业有限公司.

 1.3 Legal Address. The legal address of the Company
  shall be .

 1.4 Fiscal Year. The fiscal year of the Company shall
  be from January 1 to December 31 (the “Fiscal Year”). 

 1.5 Articles of Association. The Parties agree to complete
  the Articles of Association of the Company based on the provisions contained
  herein. 

 1.6 Limited Liability. The Company shall be a limited
  liability company with a separate legal personality, for the purposes of the
  laws and regulations of China. The liabilities of the Company shall be limited
  to its total assets. The liabilities of each Party 

 shall be limited to its respective contribution to the registered
  capital of the Company only.

 1.7 Profit Distribution. The profits generated by the
  Company shall be distributed in accordance with the Interest of each Party as
  defined in section 3.3 hereunder. 

 Article 2

  Purpose and Business Scope 

 2.1 Purpose and Business Scope. The Company shall develop
  lithium and other mineral deposits, extract and process commercially valuable
  mineral products therefrom, in Sichuan, China, using internationally advanced
  technologies. 

 2.2 Principal Business and products. The principal
  business of the Company shall be the extraction, processing, manufacturing,
  marketing and sales of commercially valuable mineral products including spodumene,
  tantalum, niobium, and beryllium concentrate, and such other related products.

 2.3 Production Scale. The Company shall develop a production
  facility, which, when fully completed, shall have an annual production capacity
  of Nine Hundred Thousand (900,000) tons (the “Project”).
  The Project will be developed in two stages. In stage I of the Project the facility
  will be developed initially to be able process Two Hundred Forty Thousand (240,000)
  tons of spodumene rock per annum. Stage I shall commence on or before May 24,
  2005 (“Initiation Date”). Within 3 months after major engineering
  of stage I starts, the Company shall start preparation work for Stage II. Stage
  II shall starts after Stage I has finished. Stage I and II shall be fully completed
  within twenty eight months after the Initiation Date. If for any reason, the
  business license is not issued to the Company on or before the Initiation Date,
  then the Parties shall still conduct such necessary work and file such documents
  so that Stage I shall commence for all practical purposes and shall be deemed
  initiated.

 Article 3

  Total Investment and Registered Capital

 3.1 Total Investment. The total amount of investment
  of the Company shall be Ninety-six Million Eight Hundred Eight-five Thousand
  Yuan (RMB ¥96,885,000).

 3.2 Registered Capital. The registered capital of the
  Company shall be Fifty-six Million Yuan (RMB ¥56,000,000).

 3.3 Interest of the Parties. The Parties agree that
  their respective Interest in the registered capital of the Company shall
  be as follows: 

 3.3.1 Micro’s Interest shall be Seventy Five Percent
  75%, with its contribution to the registered capital of the Company being foreign
  exchange equivalent of Forty-two Million Yuan (RMB ¥42,000,000).

 3.3.2 SPM’s Interest shall be Twenty Five Percent (25%),
  with its contribution to the registered capital of the Company being Fourteen
  Million Yuan (RMB ¥14,000,000). SPM’s contribution shall be in the
  form of all prior work done, all technical data and information in relation
  to the Business, and all existing permits, licenses and approvals (together
  the “SPM Contribution”). For greater clarity, it is agreed
  that the total deemed value of SPM Contribution is Twenty One Million Yuan (RMB
  ¥21,000,000).

 3.4 Construction Capital Requirement. Additional construction
  funds required for the operation of the Business over the registered capital
  shall be financed by Micro as debt of the Company..

 3.5 Contribution of Capital. The Parties agree to contribute
  to the registered capital of the Company in the following manner: 

 3.5.1 . On April 15th 2005, Micro shall contribute
  5 million Yuan. By the end of July 2005, Micro shall contribute another 10 million
  Yuan. After Stage I construction finishes, Micro shall contribute another 7
  million Yuan to pay SPM’s over contribution – 7 million Yuan according
  to section 3.3.2. The balance 20 million Yuan shall be contributed within two
  years from the date of the issuance of the business license to the Company into
  the Company’s account. Micro shall ensure that the Company shall have
  sufficient funds in place for the operation of the Business and the Company
  including Stage I and Stage II. Micro’s contribution may include all expenses
  it has incurred for the purpose of this Contract and for the incorporation of
  the Company, including any funds advanced or expended for the purposes specified
  in section 2.3 hereunder. The early contributions of Micro shall be determined
  by the independent appraisal report recognized by both parties. Before the Company
  has its account after obtaining business license, Micro shall put its contributions
  into an account monitored by both parties. 

 SPM shall transfer the mining permit to the Company after
  the business license of the Company is issued and within three months. Due to
  delay of approval authorities, the transferring time can be extended. SPM shall
  guarantee the resources requirements for the operation with capacity of 900,000
  tons per year. 

 3.5.2 SPM recognizes the importance of expeditious transfer
  of the Mining Permit to the Company for the commencement of Stage I of the Project
  and will take such steps necessary to cause the early transfer of the Mining
  Permit immediately after the business license is issued to the Company.

 3.5.3 The date for contribution to the registered capital
  by the Parties may be reasonably extended should there be any delay in the approval
  process or any occurrence of event beyond the control of the Parties, subject
  to necessary approval by the Ministry of Commerce. 

 3.5.4 For greater clarity, it is understood that, for the
  transfer and acquisition of the Mining Permit, SPM is obligated to pay Thirteen
  Million Nine Hundred Eighty Thousand Yuan (RMB ¥13,980,000) (the “Permit
  Transfer Payment”) to Sichuan Bureau of Land and Resources (“SBLR”)
  on or before September 28, 2006 (the “Date of Full Payment”),
  under an agreement between SPM and SBLR dated March 29, 2004 and RMB4,190,000
  of the Permit Transfer Payment has already been paid by SPM to SBLR. It is expressly
  agreed that full payment of the Permit Transfer Payment is the sole obligation
  of SPM. If, for any reason, SPM is unable or unwilling to pay the balance of
  Permit Transfer Payment or any portion thereof, then SPM shall deliver a written
  notice to Micro no less than six months before the Full Payment Date, and upon
  receipt of the notice Micro may elect to make such payment (the “Optional
  Payment”) and the Optional Payment shall be credited as Micro’s
  additional contribution to the registered capital of the Company, and the amount
  equal to the Optional Payment shall be deducted from SPM’s contribution
  to the registered capital of the Company. The Parties’ Interest in the
  Company shall then be adjusted pursuant to the formula set forth in section
  4.5.1 below, to reflect the changes in their respective contribution to the
  registered capital of the Company, and the Parties shall cause such adjustment
  in Interest to be properly filed and registered.

 3.6 Use of Funds. The Parties agree that all investment
  and contribution made under this Contract shall be directed solely to the development
  of the Business of the Company. 

 3.7 Verification Report. An investment verification
  report shall be obtained from a registered accountant licensed in China, based
  on which the Company shall issue the investment certificates to the Parties.

 Article 4

  Alteration of Capital and Transfer of Interest 

 4.1 Transfer Permitted. The Parties agree, subject
  only to such restrictions as may be imposed by Chinese law from time to time
  and the terms and conditions hereunder, that either Party may transfer any or
  all of its Interest to the other Party or to a third party. Before finishing
  contributing registered capital, any party shall not transfer its Interest to
  the other Party. 

 4.2 Transfer to Either Party. Either Party may transfer
  to the other Party any or all of its Interest, provided that such transfer is
  effected in a written transfer agreement between the Parties, to be effective
  upon approval by the approval authorities.

 4.3 Transfer to a Third Party. Where either Party (the
  “Transferring Party”) intends to transfer part or all its
  Interest to a third party, the other Party shall have a right of first refusal
  to acquire the Interest or any part thereof on terms and conditions identical
  to that offered by the Transferring Party to the third party, provided that
  such right of first refusal shall be exercised within 45 days of the date of
  a detailed written offer (the “Offer”) from the Transferring
  Party. 

 4.4 Deemed Consent. If the right of first refusal is
  not exercised within 45 days as provided for in section 4.3 above, the transfer
  to a third party under section 4.3 above shall be deemed to be accepted by the
  Parties and the terms of such transfer shall be as contained in the Offer. Such
  third party, or the Transferring Party acting for such third party, shall have
  the right to apply for approval by the approval authorities in relation to the
  transfer. Once approval is granted by the approval authorities, the transfer
  shall be effective and the transfer shall be considered to be in conformity
  with the provisions of this Contract and the laws and regulations applicable
  thereto.

 4.5 Interest Adjustment. A Party’s Interest in
  the Company may be adjusted if its contribution to the registered capital of
  the Company is changed pursuant to the terms hereunder.

 4.5.1 The Parties may decide at any time during the term,
  to increase the registered capital of the Company, and if so decided and approved
  by the approval authority, each Party shall contribute its share of the increased
  registered capital of the Company pro rata to its Interest in accordance with
  such payment schedule as the Parties may agree. If either Party (the “Non-Participating
  Party”) is unwilling or unable to make any or all of its contribution
  of the increased registered capital pursuant to the schedule agreed, the Non-Participating
  Party’s Interest may be adjusted downward pursuant to the following formula:

 Cumulative contributions in the registered capital by the
  Non-Participating Party 

  -------------------------------------------------------------------------------------------
  X 100% 

  Cumulative contributions in the registered capital by both Parties 

       The Participating Party’s
  Interest shall therefore be: 100% – Non-Participating Party’s Interest.

       The adjusted Interest shall
  be accepted by the Parties and filed and registered with the approval authorities.

 Article 5

  Profits and Losses 

 5.1 Profits Distribution. The Board shall in its discretion
  and in the best interest of the Company decide on the distribution of profits
  of the Company. For greater clarity, “profits” shall mean the net
  profits generated from the operations of the Company after deduction of all
  applicable funds, taxes and levies, and all such costs and expenses as may be
  deductible under the laws and accounting practice of China, as may be applicable
  to the Company. 

 5.2 Percentage. Profits from the operations of the
  Company shall be distributed to the Parties pro rata to their respective Interest.
  Profits to be distributed to Micro shall be 

 converted to US dollars or such other convertible currency
  for remittance to Micro, subject to applicable Chinese foreign exchange regulations.

 Article 6

  Board of Directors 

 6.1 Highest Authority. The Board of Directors (the
  “Board”) shall be the highest authority of the Company. It
  shall have the power to make decisions on all major operational and administration
  matters of the Company, in compliance with the relevant laws and regulations
  of China, and subject to this Contract and the Articles of Association of the
  Company. 

 6.2 Composition of Board. The Board of the Company
  shall be composed of seven (7) directors, with five (5) directors to be nominated
  by Micro and two (2) directors to be nominated by SPM. The Chairman of the Board
  shall be nominated by Micro, and the Vice Chairman shall be nominated by SPM.

 6.3 Term of Office. The term of office of a director
  shall generally be three (3) years and directors may be re-elected if so nominated
  by the respective Parties.

 6.4 Removal of Director. Any director may be removed
  by the Party that has nominated such director, or jointly by the Parties at
  any time during the term of this Contract. 

 6.5 Disqualification. No person who is a minor, has
  been convicted of any fraud or an offence under the criminal code of the jurisdiction
  of either Party, or is bankrupt shall qualify as a director of the Company.

 6.6 Resignation. A resignation by a director appointed
  shall be effective one it is submitted to the Board and the Party by which the
  director is appointed. 

 6.7 Vacancy. A vacancy created by the removal, disqualification,
  resignation or death of a director may be filled only by nominee of the Party
  by which the director was appointed. The Party appointing a new director to
  fill the vacancy shall notify in writing the other Party and all directors of
  the Board. The appointment shall become effective upon delivery of such notice.

 6.8 Unanimous Approval. Unanimous consent of all the
  directors shall be required for the following matters: 

	 	 (a)      	 amendment of this Contract; 
	 
	 	 (b)      	 increase or decrease of registered capital of the Company; 
	 
	 	 (c)      	 termination of this Contract, and dissolution and liquidation of the
      Company prior to the expiry of the term of the Contract (except dissolution
      pursuant to section 12.3(c) and (d) hereunder); 
	 
	 	 (d)      	 merger with or acquisition by other economic entity or entities; and
    
	 

 

	 	 (e)      	 any mortgage or pledge of assets of the Company. 
	 
	 	 (f)      	 approval of the business plan for xin Project 

 6.9 Other Decisions. Decisions involving all other
  matters than those listed in section 6.8 shall be adopted at any Board meeting
  by a simple majority of votes of those directors present, in person or by proxy,
  and eligible to vote at that meeting. If voting on a matter is tied, the Chairman
  shall have the deciding vote. 

 6.10 Chairman of the Board. The Chairman of the Board
  shall be the legal representative of the Company. Whenever the Chairman’s
  position is vacated by the retirement, removal, resignation or death of the
  Chairman, the Party which has appointed the Chairman shall name a new appointee
  to assume the position of Chairman for the remainder of the term. Whenever the
  Chairman is temporarily unable to perform his responsibilities due to illness
  or disability, the Vice-Chairman shall temporarily assume his responsibilities,
  until such time as a new Chairman is appointed or the Chairman is again able
  to resume his duties. 

 6.11 Meetings of the Board. The Board shall convene
  at least one (1) meeting every year. The meeting may be held via telephone or
  by electronic means. The meetings shall be called and presided over by the Chairman
  of the Board. If the Chairman is unable to attend, he shall authorize the Vice-Chairman
  or a director to chair the Board meeting. Upon a request from three or more
  directors, specifying the matters to be discussed, the Chairman shall call an
  extraordinary meeting of the Board by giving notice to all directors pursuant
  to section 6.12. A quorum for the holding of any Board meeting shall be five
  (5) directors then in office including at least one from SPM, except that if
  the meeting is properly called and SPM chooses to abstain or not attend, then
  the quorum of five directors will still stand minus the requirement for 1 director
  from SPM. Should any director be unable to attend a meeting of the Board, he
  may authorize another director or any other person to act as his representative,
  by written proxy, to attend and form part of the quorum, and vote on his behalf.

 6.12 Notice of Meeting. Directors shall be given a
  minimum of 21 days notice of a Board meeting unless such notice is waived by
  all directors.

 6.13 Meeting Venue. The venue for meetings of the Board
  will normally be the legal address of the Company. The Board however may decide
  to hold meetings at any other venue. 

 6.14 Meeting Expenses. Reasonable travel and accommodation
  expenses of the directors to attend a Board meeting shall be reimbursed by the
  Company. 

 6.15 Resolution in Lieu of Meeting. In lieu of a meeting
  of the Board, a written resolution may be adopted by the Board, if such resolution
  is sent to all directors, in both English and Chinese languages, and affirmatively
  signed by all of the directors of the Company. 

 6.16 Language of Meeting. Board meetings shall be conducted
  in Chinese and English, where necessary with an interpreter present to carry
  out interpretation. Minutes of all meetings of the Board and resolutions adopted
  in lieu of a meeting, in both Chinese and English shall be kept in the minute
  book of the Company at the Company’s legal address. 

 6.17 Preparation group 

 During construction period of the project, both parties shall
  form a preparation group. Each party has two members. The group has one director
  and vice director. If Micro’ s registered contribution is less than SPM’s
  registered contribution, then SPM appoints director. When Micro’s registered
  contribution is more than SPM’s registered contribution, then Micro appoints
  director. 

 Article 7

  Operation and Management 

 7.1 Selection and Appointment of General Manager and Deputy
  General Manager. The Company shall set up a management team to be responsible
  for the daily management of the operation of the Company. The management team
  shall have one General Manager and two or three Deputy General Managers. The
  General Manager shall be nominated by Micro and one Deputy of General Manager
  shall be nominated by SPM, to be approved by the Board. The performance of the
  General Manager and Deputy General Managers nominated by the Parties shall be
  subject to the review by the Board of Directors and their re-appointment shall
  be subject to unanimous approval of all the directors. 

 7.2 Duties of General Manager and Deputy General Managers.
  The duty of the General Manager shall be to carry out the resolutions approved
  in the meeting of the Board, and to be responsible for the daily business management
  of the Company. TheGeneral Manager shall report and be accountable to the Board.
  The Deputy General Managers shall assist the General Manager in the discharge
  of his/her duties and be responsible to the General Manager. The General Manager
  shall have the right to make decisions on all important matters in the daily
  operations of the Company. When the General Manager is not able to perform his
  duties for any reason, the General Manager may authorise a Deputy General Manager
  to act on behalf of the General Manager. Directors may be appointed as General
  Manager or other senior executives upon approval by the Board. The General Manager
  may award or discipline any senior executives upon the approval of the Board.

 7.3 Senior Executives. The Board alone shall have the
  right to hire and dismiss any senior executives. Senior executives shall report
  to the Board and be accountable to the Board. Senior executives of the Company
  (including the General Manager and the Deputy General Managers) shall not engage
  in any employment or other business activities of other economic organizations
  or business enterprises in China unless written 

 approval is given by the Board, and shall not compete directly
  or indirectly with the Business of the Company.

 7.4 Removal of Senior Executives. The Board may by
  resolutions at any time dismiss, remove, discipline or replace the General Manager,
  the Deputy General Managers or other senior executives. The Company shall sign
  an employment contract with each senior executive in accordance with the Labour
  Law of the People’s Republic of China.

 7.5 Operational Departments. The Company shall set
  up production department, sales department, testing unit, and other departments,
  units, divisions, and offices as may be required by operation of the Company.
  The Company may appoint such number of division managers to be responsible for
  each division of the Company, and report to the General Manager.

 Article 8

  Purchase of Equipment and Sale of Products 

 8.1 Purchase. The raw material, supplies, equipment,
  components, office supplies and vehicles may be purchased by the Company in
  China or abroad based on such consideration as price, quality and availability.

 8.2 Sale of Products. The Company shall sell its products
  at prevailing market prices and with competitive terms first to such affiliates
  or subsidiaries of the Company or the Parties, and then to users in China or
  abroad for best returns. 

 Article 9

  Labour Management and Trade Union 

 9.1 Labour Relations. Any decision on the recruitment,
  employment, dismissal, resignation, wages, insurance, welfare, rewards, penalties
  and other matters concerning the personnel of the Company shall be made in accordance
  with the Labour Law of China, Labour Management Regulations of China on Enterprises
  with Foreign Investment Enterprises, Labour Management Regulations of China
  on Chinese-foreign Joint Venture Enterprises and other labour and social security
  laws and regulations. The Company shall enter into an employment contract with
  the employees once the Company hires them.

 9.2 Trade Union. Workers and staff members of the Company
  may establish a trade union and participate in the activities of the trade union
  in accordance with the Labour Law and Trade Union Law of China. 

 Article 10 

  Taxes, Finance and Audit 

 10.1 Preferential Treatment. The Parties hereto agree
  that each of them shall use its best efforts to secure or cause the Company
  to obtain and become eligible for all preferential tax and other treatment permissible
  under the laws, regulations and discretionary power of relevant China central
  and local authorities. The Parties shall act in good faith and cooperate with
  each other in maximizing the tax and other preferential treatment and minimizing
  the costs and expenses of the Company. 

 10.2 Payment of Taxes. The Company shall be responsible
  for and pay all applicable taxes in accordance with Chinese laws and regulations.
  Workers and staff members of the Company shall pay individual income tax according
  to the tax laws of China. Each Party agrees to use its best efforts and to cooperate
  with the other Party to ensure that the business and affairs of the Company
  are conducted in the most cost efficient manner.

 10.3 Reserves. The Company shall deduct from its profits
  such amounts as required by Chinese law for the purpose of reserve fund, employee
  bonus and welfare fund and expansion fund. The Board of the Company shall ensure
  that the deduction, application and percentage thereof shall be established
  in accordance with the appropriate provisions of the law and regulations of
  China.

 10.4 Books and Records. The Company shall maintain
  and keep at its legal address all books and records required by this Contract
  and the laws of China. Upon reasonable notice, each Party shall have the right
  to inspect the books and records of the Company.

 10.5 Financial Supervision. Micro shall have the right
  to nominate a chief finance officer to oversee the financial matters of the
  Company so long as it holds the majority interest in the Company. SPM shall
  have the right to nominate an accounting officer to oversee the administration
  of bookkeeping and accounting matters of the Company. 

 10.6 Language of Books. All accounting records, vouchers,
  account books shall be written in Chinese. All financial statements and reports
  of the Company shall be made and kept in Chinese and English. 

 10.7 Accounting. The Company shall, according to the
  requirements for foreign investment enterprises in China, retain accountants
  registered in China to conduct auditing and report to the board and the General
  Manager.

 10.8 Foreign Exchange. The Parties agree that all matters
  relating to foreign exchanges of the Company shall be handled in compliance
  with China’s foreign exchange regulations. The Company shall open its
  foreign exchange accounts with a bank or financial institution licensed or permitted
  by the relevant authorities. 

 10.9 Audit. The Company may retain at its cost such
  external auditors as the Board may approve from time to time to audit the financial
  statements, books, and records of 

 the Company. If Micro requests any auditing by auditors it
  retains, then it may do so at its own cost and SPM shall agree to such auditing.

 10.10 Audit Requested by a Party. The Parties agree
  that where audit is necessary for a Party to comply with its reporting or disclosure
  obligations as required by any regulatory authorities, the Company and the other
  Party shall act expeditiously to facilitate such audit.

 10.11 Delivery of Financial Statements. The Company
  shall deliver to the Parties within sixty (60) days after the end of each Fiscal
  Year, an annual report containing: 

	 	 (a)      	 audited financial statements as at the end of, and
        for, such Fiscal Year (prepared in accordance with GAAP as adopted and
        consistently applied in China, with comparative financial statements as
        at the end of, and for, the immediately preceding Fiscal Year) containing
        a balance sheet; a statement of profit and loss; a statement of changes
        in financial position; and a statement of change in capital; 

	 
	 	 (b)      	 a report of the Auditors on such financial statements
        stating that such financial statements have been prepared in accordance
        GAAP as adopted and consistently applied in China; 

	 
	 	 (c)      	 a profit distribution report; 

	 
	 	 (d)      	 such other information as is required to be provided
        to the Parties or, in the opinion of the chairman of the Board, is material
        to the business of the Company; 

	 
	 	 (e)      	 such financial and other information as may be reasonably
        requested by a Party for the purpose of any regulatory compliance; and
      

	 
	 	 (f)      	 information concerning creditors and charges to
        the capital and current accounts allocated to the Parties and such other
        information as may be necessary to enable a Party to file income tax returns
        with respect to such Party’s income or loss in respect of such Fiscal
        Year. 

 Article 11

  Intellectual Property 

 11.1 Ownership of Intellectual Property. Each Party
  shall continue to own exclusively all its intellectual property rights, and
  any and all renewals, extensions, and restorations thereof, now or hereafter
  in force and effect worldwide, unless it has expressly transferred, licensed
  or assigned such intellectual property rights to the other Party or to the Company.
  Any intellectual property independently developed by the Company and any intellectual
  property rights arising therefrom shall be owned by the Company. 

 11.2 Protection of Intellectual Property. Each Party
  shall act diligently to protect the intellectual property of the other Party
  and the Company, and assist each other in taking necessary steps in remedying
  any infringement of such intellectual property rights. 

 Article 12

  Term, Dissolution and Liquidation 

 12.1 Term. The term of the Company shall be thirty
  (30) years commencing from the date on which the business license of the Company
  is issued, unless terminated sooner or extended pursuant to the terms of this
  Contract.

 12.2 Extension. The term of the Company may be extended
  for such period of time as may be agreed to by the Parties. The agreement for
  the extension shall be in writing signed by all the Parties and shall be submitted
  for approval to the approval authorities no later than six (6) months prior
  to the expiry of the term as provided herein. The extension shall become effective
  upon approval by the approval authorities. 

 12.3 Dissolution. The Company shall be dissolved when:

	 	 (a)      	 the term of the Company specified herein including
        extension has expired; 

	 
	 	 (b)      	 it becomes incapable of continuing its business
        and operations due to such serious financial losses, or force majeure;
      

	 
	 	 (c)      	 a Party is in serious breach of its obligations
        under this Contract, the Articles of Association or law and such breach
        is not remedied within a reasonable period of time after notice is given,
        such that the Company is prevented from its normal operations; 

	 
	 	 (d)      	 the Company cannot achieve its business purposes
        and no reasonable prospect of improvement therefore;. 

	 
	 	 (e)      	 the Parties mutually agree to dissolve the Company.
      

      Where any of the events under
  sections 12.3 (b), (d) and (e) occurs, the Board shall pass a resolution to
  dissolve the Company and apply for approval by the approval authorities of the
  dissolution. Where section 12.3 (c) becomes applicable, the Party not in breach
  shall have the right to apply for an approval to dissolve the Company and upon
  receipt of such approval the Company shall be dissolved pursuant to the terms
  thereof and/or the terms of this Article 12. The Party in breach of this Contract
  and/or the Articles of Association shall be responsible for the resulting losses
  to the Company. 

 12.4 Approval for Dissolution. An approval by the approval
  authorities shall be condition precedent to the dissolution of the Company except
  in the case of section 12.3 (a). The Parties agree that they shall act reasonably
  and in good faith to give effect to the intent of section 12.3 hereof. 

 12.5 Liquidation. Where the Company is dissolved pursuant
  to this Contract, the Board shall establish a liquidation committee and shall
  prepare the liquidation procedures, appoint members of the liquidation committee.

 12.6 Liquidation Committee. Members of the liquidation
  committee shall in general be appointed pursuant to the terms of the approval
  of the approval authorities, or from directors and, where necessary, from such
  professional advisers or consultants as the 

 Board may decide, provided that the number of such professional
  advisers does not exceed one-third (1/3) of the number of the members on the
  liquidation committee.

 12.7 Expenses and Remuneration. The liquidation expenses
  and remuneration for members of the liquidation committee shall be paid in priority
  out of the remaining assets of the Company. Where the Company has no sufficient
  remaining assets, the Parties hereby agree to negotiate in good faith for the
  payment of the expenses and remuneration. 

 12.8 Assets Allocation. Subject to the mandatory laws
  of China on bankruptcy and insolvency and on creditors’ rights, upon dissolution
  and liquidation of the Company the remainder assets and proceeds of liquidation
  of the Company shall be allocated in the following order of priority, to: 

	 	 (a)      	 the repayment of all outstanding debts and liabilities
        of the Company; and 

	 
	 	 (b)      	 the distribution between the Parties according to
        the ratio of their respective ownership of the registered capital of the
        Company described in Section 3.3. 

 12.9 Sale of Assets. The Parties hereto agree that
  SPM shall have an option to purchase all assets from the Company at the price
  determined through an appraisal as herein provided for, if the Company is dissolved
  under section 12.3 (a), which option shall be exercisable no later than ninety
  (90) days prior to the expiry of the term specified in section 12.1. The purchase
  price shall be determined through an appraisal by an independent appraisal firm
  selected jointly by the Parties, failing which each Party shall conduct its
  own appraisal by an appraisal firm it selects and the purchase price shall be
  the medium value of the two appraisals. 

 12.10 Sale to Third Party. If prior to the completion
  of asset purchase by SPM pursuant to section 12.3 above, a third party makes
  an offer to purchase all of the assets of the Company at a price higher than
  the price determined pursuant to section 12.9 hereof then the assets shall be
  sold to that third party, unless SPM shall purchase all the assets at a price
  no less than the price offered by the third party. 

 12.11 Sale Proceeds. Where all the assets of the Company
  are sold pursuant to sections 12.9 or 12.10, the proceeds of such sale shall
  be distributed to the Parties pro rata to its Interest of the Company as specified
  in section 3.3 hereof as may be adjusted from time to time. 

 12.12 Permit Transfer. If due to the reasons of SPM,
  the Mining Permit cannot be transferred to the Company, Section 12.3(c) and
  (d) hereunder shall deemed to apply, but any funds then held in the designated
  trust account shall be returned to Micro. 

 Article 13 

  Insurance 

 13.1 Insurance. The Company shall take out issuance
  against various risks with an insurance company of international reputation
  licensed to carry on business in China. The type, value and duration of the
  insurance shall be decided by the Board in accordance with generally accepted
  international standards for such coverage. The insurance premium paid by the
  Company shall be recorded as operational expenses of the Company.

 Article 14

  Representations and Warranties 

 14.1 Full Authority. The Parties represent and warrant
  to each other that the entering into of the contract and their performance of
  the terms and conditions hereof do not and will not violate the laws, regulations
  and decrees of their respective jurisdictions. All shareholder and board approvals,
  consents and permissions necessary for entering into this Contract have been
  or will be obtained by the Parties respectively.

 14.2 Ownership of Assets. SPM represents and warrants
  that it lawfully and fully owns or holds all assets that it is obligated to
  transfer to the Company as its contribution to the registered capital, including
  all SPM Contribution and all permits, licenses and approvals in relation to
  the Business, free from any claims, lien, mortgages, security, litigation, charges
  or any other encumbrance except those expressly disclosed to Micro in writing.
  Such permits, licenses or approvals can and shall be transferred to the Company
  subject only to necessary approval of the approval authorities. SPM is not aware
  of any conflicting claim to any assets or property covered by the licenses,
  permits or approvals. SPM has duly paid all fees, charges or levies in relation
  to the licenses, permits and approvals, except those expressly disclosed to
  Micro in writing. There is nothing under any Chinese laws, regulations or contract
  preventing SPM from entering into this Contract or performing any of its obligations
  or completing any of the transactions contemplated hereunder. 

 14.3 Environmental Protection. SPM represents and warrants,
  to its best knowledge and belief, and having made reasonable inquiries, that
  that there has been no material spill, discharge, leak, emission, ejection,
  escape, dumping, or any release or threatened release of any kind, of any toxic
  or hazardous, substance or waste (as defined by applicable Chinese law) from,
  on or under the mining or exploration property or into the environment, except
  releases permitted or otherwise authorized by such law; no toxic or hazardous
  substance or waste has been disposed of or is located on the property comprising
  the mining and exploration property as a result of activities of SPM or its
  predecessors in interest; and no toxic or hazardous substance or waste has been
  treated on or is now stored on the property comprising the mining and exploration
  property.

 Article 15

  Further Covenants

 15.1 Best Interests. The Parties shall at all times
  act in good faith and in the best interests of the Company.

 15.2 Both parties to Secure. The Parties shall make
  best efforts to obtain and secure all decisions, approvals, permits, rights
  and licenses as may be required by the incorporation, operations and development
  of the Company. 

 15.3 Confidentiality. The Parties, on their own behalf
  and on behalf of their respective shareholders, directors, officers, employees,
  and agents, shall keep in confidence all information acquired by them concerning
  the affairs of the other Party and the Company except disclosure to their professional
  advisors, who shall likewise agree to keep all such information in confidence,
  and disclosure as may be required by law or any regulatory authorities. 

 15.4 Adjustment. If circumstances are such that reasonable
  adjustment or change of any schedule, time frame or dates hereunder is warranted,
  then the Parties shall, after discussions in good faith, make such adjustment
  or change, to the extent permitted at law and subject to necessary regulatory
  approval. 

 Article 16 

  Liabilities for Default 

 16.1 If Micro does not contribute according to section 3.5.1:
  on April 15, 2005, Micro does not contribute 5 million Yuan, SPM has right to
  terminate the contract from the 7th day of delay date; If Micro does
  not contribute 10 million Yuan before the end of July 2005, SPM has right to
  terminate the contract from the 30th day of the delay date. SPM has
  right to take action for any loss. If Micro breaches section 3.4 and 3.5.1,
  and section 2.3 cannot be finished and production design capacity cannot be
  reached due to this reason, Micro shall compensate any loss due to this reason.
  If SPM does not transfer the Mining Permit into the Company according to section
  3.5.1 in time, SPM shall compensate Micro for double of all loss arising as
  a result of such default. 

 Article 17 

  Applicable Law 

 17.1 Applicable Law. This Contract and its interpretations
  shall be governed by the published laws of China known to the public. 

 Article 18 

  Dispute Resolution 

 18.1 Consultation and Arbitration. In the event a dispute
  arises in connection with the interpretation or implementation of this Contract
  or any terms therein, the Parties shall attempt in the first instance to resolve
  such dispute through friendly consultations. If the dispute is not resolved
  in this manner within thirty (30) days after the commencement of consultations,
  then either Party may submit the dispute for arbitration to China International
  Economic Trades Arbitration Committee pursuant to its rules. The languages used
  in the arbitration shall be Chinese and English. All the materials, affidavits,
  statement of claim, statement of defense, arbitration award and supporting reasons
  shall be in both Chinese and English. There shall be three (3) arbitrators.
  The award shall be final, and binding on the Parties.

 18.2 Continuing Performance. Where disputes are dealt
  with pursuant to section 19.1, the Parties shall continue to be bound by this
  Contract and to perform their respective duties and obligations under the provisions
  of this Contract not in dispute. 

 Article 19 

  Force Majeure 

 19.1 Force Majeure. Where the occurrence of any earthquake,
  typhoon, flood, fire, war, terrorist attack, epidemic outbreak, change of law,
  or other events of force majeure which can not be foreseen, prevented and avoided,
  directly affects the performance of this Contract or any terms herein, a Party
  encountering such force majeure shall immediately notify the other Party by
  fax or e-mail and shall within fifteen (15) days provide details of such force
  majeure and valid documents stating the reasons why the Contract cannot be performed,
  or cannot be fully performed or the performance has been delayed. The documentary
  proof shall be issued by competent authorities where the force majeure event
  has occurred. The Parties may decide whether to rescind the Contract, to perform
  the Contract in part or delay the performance in light of the extent to which
  such force majeure event affects the performance. 

 Article 20 Supplementary Provisions 

 20.1 Currency. Unless otherwise specified in this Contract,
  all unit of currency in this Contract shall be Renminbi (RMB¥). 

 20.2 Further Actions. The Parties shall execute, file
  and submit all documents and instruments necessary to comply with the requirements
  of laws, decrees, rules and regulations of China and shall execute, file, consent
  to and submit all documents and instruments necessary for the establishment
  and maintenance of the Company. The Parties further agree that each of them
  shall, upon reasonable request of the other, do or cause to be done all further
  acts and agree to execute or cause to be executed all further documents and
  instruments as may be required to give effect to the intent and purpose of 

 this Contract. It is the express understanding of the Parties
  that the provisions contained in this section shall apply to the matters provided
  for in section 4.1 of this Contract. 

 20.3 Language. This Contract shall be written in both
  Chinese and English languages with both versions having the same legal force
  and effect. In the event of any discrepancy in the interpretation of this Contract
  or any term herein, Chinese version prevails. 

 20.4 Approvals. The contents of this Contract shall
  be subject to the approval of the approval authorities and shall become effective
  upon such approval. The contents and agreements that do not need approval by
  the approval authorities shall become effective upon signed by both parties.

 20.5 Notices. Parties may communicate through fax or
  email. If the correspondences are related to the rights and obligations of the
  Parties, the correspondences shall be sent through registered courier or mail.
  The legal addresses of the Parties listed in the Contract are the addresses
  of the Parties 

 20.6 Waivers. No express or implied waiver by either
  Party of any provision of this Contract or of any breach or default of the other
  shall be a continuing waiver or be effective unless in writing. 

 20.7 Copies. This Contract is executed in eight (8)
  copies in each of the Chinese and English versions. 

 20.8 Signature. This Contract is signed by the legal
  representatives of the Parties on April 5, 2005. If the agreements signed before
  by both parties have any discrepancy with this Contract, this Contract prevails.

	 Micro Express Ltd.  	 	 Sichuan Province Mining Ltd. 
      
	 By its authorized signatory:  	 	 By its authorized signatory:  
	  	 	 
	 /s/ Richard Shao” 
    	 	 /s/ Yunxin Liu” 
    
	 Signature  	 	 Signature  
	 Richard Shao  	 	 Yunxin Liu  
	 	 	 
	  	 	 
	 Printed Name  	 	 Printed Name  
	 President  	 	 President  
	 	 	 
	  	 	 
	 Title  	 	 Title  
	 April 5, 2005  	 	 April 5, 2005  
	 	 	 
	  	 	 
	 Date  	 	 Date  

Schedule I 

      List of Mining Permits 

The No. of Mining Permit is 5100000410234 

Schedule II 

Feasibility Study Report

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