Document:

Exhibit 10.32

 

THIS
AGREEMENT is made this 28th day of November 2005

 

BETWEEN:

 

(1)                                  19  RECORDINGS LIMITED
of 33 Ransome’s Dock, 35-37 Parkgate Road, London SW11 4NP (“19”) and

 

(2)                                  RONAGOLD LIMITED of Bedford house, (69-79 Fulham High
Street. London SW6 3JW (“Ronagold”).

 

WHEREAS

 

(A)                              Reference
is made to the following agreements:

 

(i)                                   between
19 and Ronagold dated 8th February 2002 (“the Agreement”) as the
same has been amended by clauses 15 to 18 and Exhibit B of the agreement
between 19 and Ronagold and BMG UK & Ireland Limited dated 14th
October 2004 (“the Settlement Agreement”) (the Agreement and the Settlement
Agreement shall together be called “the Original Agreement”);

 

(ii)                                between
19 and 19 TV Limited and Simco Limited t/a Syco Music (“Syco”) and 19
Entertainment Limited and CKX UK Holdings Limited and Sony BMG Entertainment
(UK) Limited dated of even date herewith (“the Syco Agreement”).

 

(B)                                The
parties have agreed to vary and supplement the terms of the Original Agreement
on the terms contained herein.

 

NOW IT IS AGREED as follows:

 

1.1                               In
consideration of the sum of one pound (£1) paid by Ronagold to 19 (receipt of
which 19 hereby acknowledges) (and other good and valuable consideration the
validity and sufficiency of which 19 hereby acknowledge) 19 hereby agrees to
extend the terms of clause 3 of the Agreement so as to give and grant to the
ROW Designee in each Relevant Territory (excluding the UK and USA) the option
to become the Local Record Company in relation to further Series beyond the fourth
Series in such Relevant Territory in accordance with clause 2 below.

 

1.2                               The
said option shall apply to each Qualifying Series for each Relevant Territory
(on a Qualifying Series by Qualifying Series and Relevant Territory by Relevant
Territory basis).

 

1.3                               For
the purposes hereof “Qualifying Series” shall mean each Series in each Relevant
Territory (after the first, second, third and fourth Series which are dealt
with in the Original Agreement) made during the Term of the Syco Agreement (as
defined therein) PROVIDED THAT if the Term expires during production of a
particular Series in any Relevant Territory then if more than fifty per cent
(50%) 

 

 

of the
television programmes in such Series have been made during the Term then such
Series shall be a Qualifying Series.

 

2.1                               19
hereby grants to ROW Designee for a Relevant Territory an exclusive irrevocable
(subject to clause 13 of the Agreement) option to designate the Local Record
Company in relation to each Qualifying Series in such Relevant Territory (an a
Qualifying Series by Qualifying Series and Relevant Territory by Relevant
Territory basis) upon the same terms and conditions (set out in clauses 3.2 to
3.10 of the Agreement as amended) as for the first Series in that Relevant
Territory.

 

2.2.                            All other
terms and conditions of the Original Agreement shall apply as if the options
contained herein for additional Series beyond the fourth Series in each
Relevant Territory were contained in the Original Agreement in the first place
(save as the same may be expressly varied herein).

 

3.                                     The
parties agree to further vary and amend the terms of the Original Agreement
with effect from the date hereof as follows:-

 

3.1                               clause
12.2 shall be amended so that “the Group” shall in lieu of the 19 Management
Limited group of companies refer to the 19/CKX UK Holdings group of companies;

 

4.                                     The
parties further agree to clarify and confirm the following matters:

 

4.1                               in
clause 18 of the Settlement agreement the Override Royalty for singles and
audio visual devices (including DVD’s) of recordings referred to therein shall
he a flat rate of six per cent (6%) with a twenty- five per cent (25%)
packaging deduction;

 

4.2                               where
the Local Record Company for a particular Relevant Territory has been
designated then in respect of further Series in such Relevant Territory 19
shall simultaneously serve the notice specified in clause 3.2 of the Agreement
on both Ronagold and the ROW Designee concerned and either Ronagold (on behalf
of the ROW Designee) or the ROW Designee may exercise the option in clause 3.1.

 

5.1                               Words
and phrases used herein shall unless separately defined herein bear the
meanings attributed thereto in the Original Agreement.

 

5.2                               “Relevant
Territory” shall mean the country or countries for which Television Rights are
granted to a Local TV Company but excluding any such countries in which a
Series has been broadcast prior to the date hereof in respect of which Ronagold
has failed to exercise its right to designate the Local Record Company in such
Series pursuant to clause 3.1 of the Agreement or in respect of which the ROW
Designee has failed to exercise its right to become the Local Record Company
for a subsequent Series in such country.

 

 

6.                                     Save
as varied and supplemented herein the Original Agreement shall remain in full
farce and effect.

 

7.                                     This
agreement shall be governed by the laws of England whose courts shall have
exclusive jurisdiction.

 

	
  IN WITNESS WHEREOF

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
  /s/ 

  	
   

  	
  )

  
	
  for and on
  behalf of)

  	
   

  	
  )

  
	
  19
  RECORDINGS LIMITED

  	
   

  	
  )

  
	
  in the presence
  of:-

  	
   

  	
  )

  
	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
  /s/ 

  	
   

  	
  )

  
	
  for and on
  behalf of)

  	
   

  	
  )

  
	
  RONAGOLD
  LIMITED)

  	
   

  	
  )

  
	
  in the
  presence of:- 

  	
   

  	
  )

  
	
   

  	
   

  	
   

  
	
  /s/Exhibit 10.33

 

Binding
Heads of Terms

 

	
  Between:

  	
   

  	
  Fox Broadcasting Company (“Fox”)

  
	
   

  	
   

  	
  FremantleMedia North America Inc. (“FM”)

  
	
   

  	
   

  	
  19 TV Limited (“19”) together (“the parties”)

  
	
   

  	
   

  	
  regarding the television series “American Idol” (“AI”)

  

 

1.                                     Fox agrees to guarantee
production through and including AI 10 and the terms of this deal apply to each
season beginning with AI5, Fox’s commitment to AI9 is subject to AI8 having a
minimum average Nielsen rating of 8.0 in the 18-49 category.  Fox’s commitment to AI 10 is subject to AI9
having a minimum average Nielsen rating of 8.0 in the 18-49 category.

 

2.                                     Fox agrees to
order a minimum of 37 hours and a maximum of 45 hours of AI programming each
season as long as all hours adhere to the established series format.

 

3.                                     l9/FM will produce
for Fox Reality Channel at Fox Reality Channel’s cost, two post AI shows per
week during the last 10 weeks of the season for broadcast on the Fox Reality
Channel.  19/FM will produce programming
linked to Al for TV Guide Channel, at TV Guide Channel’s cost, it being agreed
that the production of mutually acceptable programming for TV Guide Channel is
part of this Heads of Terms.  The lengths
budget and nature of the programming shall be mutually approved, such approval
not to be unreasonably withheld or delayed.

 

4.                                     Internet — The
official website will be americanidol.com which will be built and hosted by Fox
on a News Corp. portal to be agreed, at Fox’s expense.  Fox will provide and control a rich content
site subject to mutual creative approvals. 
19/FM has the right to offer premium services including non-show footage
and other items to the site in 19/FM’s reasonable good faith judgment.  If there are legal, technical or practical
reasons to prevent the use of “americanidol.com” in relation to AI5 the parties
will agree to use “idolonfox.com” for A15.

 

5.                                     Telephony - 19/FM
will provide Fox the rights to wireless and can offer to third parties the
content described on the attached schedule.

 

6.                                     Fox agrees to
pickup two original shows produced jointly by 19/FM over the next five
years.  Such shows are to have a minimum
of 13 episodes if scripted (1 series arc if unscripted) and will be intended by
19/FM to be aired immediately following AI. 
Fox does not commit to airing such shows immediately following AI.  Commercial terms to be negotiated in good
faith and subject to Fox paying a $l.5 million per show penalty in the event
Fox chooses not to pick-up or broadcast such show.

 

7.                                     In addition to all
existing contractual payments relating to AI, Fox will pay additional annual
licence fees beginning with AI5 as follows:

 

	
  AI5

  	
   

  	
  $18.0 million

  	
   

  
	
  AI6

  	
   

  	
  $21.5 million

  	
   

  
	
  AI7

  	
   

  	
  $25.5 million

  	
   

  
	
  AI8

  	
   

  	
  $30.5 million

  	
   

  
	
  A19

  	
   

  	
  $35.5 million

  	
   

  
	
  AI 10

  	
   

  	
  $35.5 million

  	
   

  

 

 

The additional
licence fees will be payable in equal quarterly instalments commencing on 15
January  in each broadcast season.

 

8.                                     Fox agrees to pay
19/FM 2/3 of net Internet revenues generated by Fox above $5.0 million for AI5,
$7.0 million for AI6, $8.0 million for AI7, $10.0 million for AI8, $12.0 million
for AI9 and $12.0 million for AI 10. 
19/FM retains 100% of income from its premium services offered on the
americanidol.com website.

 

9.                                     Fox agrees to pay
19/FM 50% of telephony revenues generated by Fox above $3.0 million for AI5,
$4.5 million for AI6, $6.0 million for AI7, $10.0 million for AI8, $14.0
million for A19 and $14.0 million for AI 10.

 

10.                               19/FM have the right to
retain two 30 second spots per hour in all AI shoulder programming including
the previously described programming for the Fox Reality Channel.

 

11.                               Fox agrees to pay 50% of
any additional executive producer fees to Ken and Nigel beyond the amounts they
receive under their current deals.

 

12.                               Unless otherwise
directed by 19/FM all payments to 19/FM under this agreement shall be divided
equally between 19 and FM and paid direct to each of them by Fox.

 

13.                               This agreement shall be
legally binding on the parties unless and until replaced by a long form
agreement.  The parties shall negotiate
in good faith to agree as soon as possible a detailed long form agreement
incorporating the commercial terms set out in these Heads following, in each
instance, the principles set out in this paragraph 13.  In negotiating a long form agreement, the
intention of the parties is:

 

(a)                                to share ideas and work
together to maximize the commercial potential of AI for the benefit of all
parties;

 

(b)                               to work immediately arid
in good faith to agree to a clearly defined rights package for Fox that allows
Fox a real opportunity to recoup the advances payable to 19 and FM for Internet
rights (including, but not limited to, the rights set forth in the Request for
Proposal drafted by 19/FM) and wireless telephony rights (including, but not
limited to, the rights set forth in paragraph 5 above) and to generate further
revenues from those and other sources for the mutual financial benefit of the
parties; and

 

(c)                                to maintain a regular
and open dialogue to resolve any issues arising between the parties

 

 

The parties
confirm their agreement to the above terms by signing below.

 

	
  /s/

  	
   

  
	
  Fox
  Broadcasting Company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/

  	
   

  
	
  FremantleMedia
  North America Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/

  	
   

  
	
  19 TV
  Limited

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