Document:

Unassociated Document

    AMENDMENT
NUMBER ONE

    TO THE
OCTOBER 24, 2008 SALES AGREEMENT

    

    

    This amendment number one (“Amendment 1”), effective as of April 1, 2009 (the “Amendment 1 Effective Date”), amends the Sales Agreement dated October 24,
2008 between Zoo Publishing, Inc. (“Zoo”) and Atari, Inc. (“Atari”), in full force and effect as of the date hereof (the “Sales
Agreement”).  This Amendment 1, when fully executed, shall constitute
the further understanding between the parties with respect to the Sales Agreement, as
follows:

    

    

    Section 3 is modified as
follows:

    

    The Term is hereby extended through
April 30, 2009.

    

    

    Except as expressly or by necessary
implication modified or amended by this Amendment 1, the terms of the Sales Agreement are hereby ratified and
confirmed without limitation or exception.  Capitalized terms used in
this Amendment
1 and not otherwise defined
shall have the same meaning ascribed to them as set forth in the Sales Agreement.

    

    The parties hereto have executed this
Amendment 1, which shall be effective as of the
Amendment 1 Effective Date.

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Zoo Publishing,
      Inc.

                                    	
                                      Atari,
  Inc.

                                    
	 
      	 
      	 
      	 
      
	
                                      By:

                                    	
                                      /s/ David Fremed

                                    	
                                      By:

                                    	
                                      /s/ James Wilson

                                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                                      Name:

                                    	
                                      David Fremed

                                    	
                                       Name:

                                    	
                                      James
  Wilson

                                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                                      Title:

                                    	
                                      Chief Financial
      Officer

                                    	
                                      Title:

                                    	
                                      Chief Executive Officer and
      PresidentUnassociated Document

     

    LICENSE
AGREEMENT

     

    THIS
AGREEMENT made and entered into this 27th
day of January, 2009, by and between SCORES HOLDING COMPANY, INC., a Utah
corporation with its principal office at 533-535 West 27th Street, New York, New
York (“SCRN”), SCORES LICENSING CORP., a Delaware corporation and wholly owned
subsidiary of SCRH, with its principal office at 533-535 West 27th Street, New
York, New York (“SLC”) (SCRH and SLC jointly referred to as “Licensor”) and I.M.
Operating LLC, a New York limited liability company with its principal office at
617 Eleventh Avenue, New York NY 10036 (“Licensee”).

     

    WITNESSETH:

     

    WHEREAS,
SCRH is the owner of the SCORES trademarks and related intellectual property,
including, but not limited to the intellectual property listed on Exhibit A (the
“Scores Name Trademarks”); and

     

    WHEREAS,
SLC is the owner of the SCORES trademarks and related intellectual property,
including, but not limited to the intellectual property listed on Exhibit B (the
“Diamond Dollar Trademarks”; the Scores Name Trademarks and the Diamond Dollar
Trademarks will be referred to collectively as the “Scores Trademarks”);
and

     

    WHEREAS,
Licensee intends to own and operate an adult entertainment night club/restaurant
to be located at 536 West 280’ Street, New York New York aka 533-535 West 27th
Street, New York, New York (the “Location”) which will conduct business under
the name “Scores” (the “Business”); and

     

    WHEREAS,
Licensee will hereby receive the right and license to use the Scores Trademarks
in connection with the Business at the Location, and the sale of certain
merchandise, for the Term (as defined below).

     

    NOW,
THEREFORE, for and in consideration of the promises, covenants, and agreements
contained herein, and for other good and valuable consideration, receipt of
which is hereby acknowledged by both parties, the parties agree as
follows:

     

    1.           LICENSE
GRANT.  (a)  Business. Licensor
hereby grants to Licensee and Licensee accepts, an exclusive license to use the
Scores Trademarks in the territory specified in subparagraph (d) below (the
“Territory”), during the term of this Agreement as specified in Paragraph 12
below (the “Tern”) in connection with the Business, subject to the terms and
conditions of this License Agreement. The grant of license includes all the
Scores Trademarks necessary to conduct the Business as described
herein.

     

    (b)           Merchandising.  Licensor
hereby grants to Licensee, on the terms and conditions set forth herein, an
exclusive license in the Territory during the Term, to use the Scores Trademarks
in connection with the retail sale of commercial merchandise, including, but not
limited to, tee-shirts, sweatshirts, sweat pants, jackets, baseball hats, key
rings, and other similar merchandise (the “Merchandise”), all to be sold at and
out of the Business. This license further includes the right to sell any
merchandise utilizing the Scores Trademarks relative to the Business over the
Internet on a site maintained by the Business and by mail order, catalog or at
any other location or in any other channel specific to the Business, provided
further, that Licensee will purchase all Merchandise from Licensor on the terms
and conditions specified in Paragraph 2(b) below.

     

    
      
        
        

      

      
        - 1
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    (c)           Marketing and
Promotion.  Licensor hereby grants to Licensee, on the terms
and conditions set forth herein, the exclusive right in the Territory during the
term, to utilize the Scores Trademarks for promotion and advertising of the
Business, subject to the terms and conditions of this License
Agreement.

     

    (d)           Territorial
Exclusivity.  Licensor grants the exclusive right to use the
Scores Trademarks, sell Merchandise and market and promote the Scores Trademarks
solely within the City of New York, the Counties of Westchester and Nassau and
the State of New Jersey.  Licensor shall not grant the right to use
the Scores Trademarks, sell Merchandise and market and promote the Scores
Trademarks to any other party within the City of New York, the Counties of
Westchester and Nassau and the State of New Jersey. In the event that the
Licensee desires a license to use the Scores Trademarks for another location or
locations within the aforementioned geographical areas, the Licensee shall,
subject to Licensor’s approval, enter into an agreement with Licensor containing
terms and conditions substantially similar to the terms and conditions of this
Agreement, except that royalties shall be subject to good faith
negotiation.

     

    2.           ROYALTIES AND OTHER
PAYMENTS, Amount.  (a)  Licensee agrees to pay
Licensor a non-refundable royalty equal to three percent (3%) of the Net
Revenues of Licensee earned in connection with the Business. Net Revenues means
100% of Licensee’s receipts actually received from the operation of the Business
(“Gross Revenues), less all actual sales taxes paid, amounts specifically
designated by customers on credit card receipts as “tips for service,” credit
card discount fees, complementary food and beverage sales (subject to reasonable
limitations). Gross Revenues include all revenues from operation of the Business
including, but not limited to, Liquor Revenue, Beer Revenue, Champagne Revenue,
Shot Girl House Fees, Wine Revenue Non-Alcoholic Beverage Revenue, Food Revenue,
Party Revenue, Admission Fees Club, Admission Fees for Private Rooms, Room
Rental, Humidor Revenue, Cigar Revenue, Cigarette Revenue, Candy Revenue,
Novelty Revenue, Valet Revenue, Coat Check Revenue, Concession – Cigarette;
Concession – Bathroom, Concession – Massage, Concession – Tarot, Dressing Room
Rent, House Fees Entertainers, House Fees DJ’s, House Fees Floor Manager, House
Fees Service Personnel, Feature – Calendar, Feature – Novelty, Feature Video,
Feature – Cigar and Internet Revenue and will also include the fee charged to
customers for the purchase of Diamond Dollars’ and the fee paid by entertainers
for cashing in Diamond Dollars.

     

    (b)           Merchandise
Royalties.  Licensee will purchase all, re-sellable Merchandise
from Licensor, or Licensor’s authorized affiliate. Licensee will pay for all
such Merchandise on a cost plus twenty-five percent (25%) markup basis, unless
otherwise agreed.

     

    (c)           Royalty
Reports.  Licensee shall furnish Licensor with written reports
describing in detail all sales relative to the Business. The reports shall be
prepared and sent to Licensor not later than seven (7) days following the end of
each month. Reports will be adjusted on a quarterly basis (if necessary), not
later than ten (10) days after each calendar quarter period ending in .March,
June, September and December of each year.

     

    (d)           Payment.  Payment
of royalties due under this Paragraph shall be made within ten (10) days of the
issuance of each royalty report set forth above.

     

    
      
        
        

      

      
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    3.           APPROVAL BY
LICENSOR.  In order to preserve the value, goodwill and
reputation of the Scores Trademarks, Licensee and Licensor shall consult each
other during the Term hereof with regard to any marketing, advertising or
promotional activities pursuant to the Business and Licensor will have the right
to approve (not to be unreasonably withheld), all advertisements, promotional,
marketing and other similar materials, including but not limited to the images
and format of Diamond Dollars” for the Location. Furthermore, prior to releasing
or using any promotional, marketing, advertising or other similar materials
which have not been approved by Licensor in the twenty-four (24) month period
preceding the proposed use or in the event Licensee intends to utilize any such
materials which have been used in the past 24 months but intends to do so in a
media not used by Licensor in the 24-month period preceding the proposed use,
Licensee shall first obtain the prior written consent of Licenser for such use,
which shall not be unreasonably withheld. In connection with obtaining such
consent, Licensee shall send copies of all materials and media for the proposed
use so that Licenser can thoroughly evaluate the proposed use. Licenser agrees
to inform the Licensee of its decision regarding any approvals within
twenty-four (24) hours of receiving all materials and media for approval. In the
event Licenser fails to inform the Licensee of its decision regarding any
approvals within twenty-four (24) hours, the proposed marketing, advertising or
promotional activities shall be deemed approved.

     

    4.           COMPLIANCE WITH APPLICABLE
LAWS AND STANDARDS. Licensee is responsible for the compliance with all
applicable laws and safety standards regarding the operation of the Business,
the Location, other licensed locations and the use of the Scores Trademarks
herein. Licenser’s approval of submissions pursuant to Paragraph 3 above in no
way erects, alters, diminishes or waives Licensee’s obligations hereunder or
under Licensee’s obligation to indemnify Licenser as set forth herein below.
Licenser agrees to cooperate with Licensee and modify its standard business
practices as may be necessary to comply with local ordinances and/or laws, rules
and regulations.

     

    5.           BOOKS AND
RECORDS.  Licensee shall, for a minimum of three (3) years from
their rendition, keep full and accurate books of account, records, data and
memoranda representing Licensee’s sales. Licensee further gives Licenser the
right, at its own cost and expense, and upon prior written notice, to examine
said books and records on reasonable notice, such examination to be conducted in
such a manner as to not unreasonably interfere with the business of Licensee.
Examinations shaft not be conducted more than once in every six (6) month
period. Licensee shall reasonably cooperate with Licenser in the event the owner
of the Scores Trademarks requests an audit. Licenser or its representatives
shall not disclose to any other person, firm, or corporation any information
acquired as a result of any examination, provided, however, that nothing
contained herein shall be construed to prevent Licenser and/or its duly
authorized representatives from using or disclosing said information in any
court, arbitration, or other action instituted to enforce the rights of Licensor
hereunder.

     

    6.           INTELLECTUAL PROPERTY
RIGHTS.  (a)  All intellectual property rights in the
Scores Trademarks belong solely to Licenser and are within the scope of the
license granted herein. Upon termination of this Agreement all intellectual
property rights and rights granted herein in the Scores Trademarks immediately
revert to Licenser or the owner of the Scores Trademarks and Licensee agrees to
return to Licensor all original artwork, models, samples, prototypes, renderings
and drawings incorporating the Scores Trademarks.  Other than during
the terns hereof, all use by Licensee of the intellectual property rights of the
Scores Trademarks shall inure to the sole benefit of Licensor and the owner of
the Scores Trademarks. Licensee shall execute any and all documents necessary to
confirm said reversions of rights and hereby appoints Licensor its
attorney-in-fact for the sole and limited purpose of executing any such
documents in the event Licensee is unwilling or unable to do so unless Licensee
is relying upon the specific warranties set forth below.  Licensee
acknowledges the exclusive ownership of all intellectual property rights in and
to the Scores Trademarks by the owner of the Scores Trademarks and will not take
any action to interfere with or challenge said ownership, including but not
limited to registering or attempting to register the same or similar marks or
properties anywhere in the World, nor commence or participate in cancellation or
opposition proceedings.

     

    
      
        
        

      

      
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    7.           WARRANTIES.  All
warranties made herein are true on the date of execution hereof, shall remain
true throughout the Term hereof and shall survive the end or sooner termination
of this Agreement.

     

    (a)           Licensor
hereby represents and warrants that the granting of the license hereunder or the
subsequent commercial exploitation of the license in connection with the
Business does not violate the intellectual property or contract rights of any
third party, including the owner of the Scores Trademarks. Licensor further
warrants that it has not violated and will not during the Term violate the
rights of any third party in granting Licensee this license.

     

    (b)           Licensor
hereby represents and warrants that (i) SCRH represents and warrants that it is
the exclusive owner of the Scores Name Trademarks and has the sole and excusive
rights to license the same on the terms set forth herein and (ii) SLC is the
exclusive owner of the Diamond Dollar Trademarks and has the sole and excusive
rights to license the same on the terms set forth herein.

     

    (c)           There
are no claims, actions, proceedings, or judgments against the Licenser which
would in any way impede, hinder, impair or interfere with the Licensee’s rights
hereunder.

     

    (d)           Subject
to and in reliance upon the Licensor’s warranties above, Licensee hereby
warrants that the acceptance of the license granted hereunder or the subsequent
commercial exploitation of the license by the Licensee in connection with the
Business does not violate the intellectual property or contract rights of any
third party. Licensee further warrants that it has not intentionally violated,
and will not intentionally violate, the rights of any third party in accepting
this license.

     

    (e)           To
the knowledge of Licensor, no third party is infringing, misappropriating or
otherwise violating any material right of Licensor with respect to the Scores
Trademarks.

     

    8.           OFFENSIVE
LITIGATION.  Licensee agrees to give Licensor prompt
notification of any third party actions that would constitute an infringement of
the rights granted to it by this Agreement. Licensor shall prosecute, at its own
discretion, infringement actions against any third party infringers and any
recoveries obtained therein shall belong exclusively to Licensor. Licensee
shall, at Licensor’s expense, cooperate in all respects with Licensor’s
prosecution of said suits, including but not limited to being named as a party
in any such suit, producing documents, appearing as witnesses, etc. In the event
that Licensor declines to bring an action against any third party infringer,
Licensee may request permission to send a demand letter or bring an action at
Licensee’s sole expense, such permission not to be unreasonably withheld by
Licensor. In any such action all recoveries made shall be solely for the account
of Licensee.

     

    
      
        
        

      

      
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    9.           INDEMNIFICATION.  (a)  Licensor
agrees to indemnify, defend and hold harmless Licensee, its agents, employees
and affiliates from and against any and all damage, loss, and expense incurred
as a result of or arising out of the breach by Licensor of any term of or
warranty made in this Agreement.  Any claims made against Licensee
which would result in Licensor becoming obligated to indemnify Licensee
hereunder shall not permit Licensee to withhold any amounts due Licensor
hereunder.

     

    (b)           Licensee
agrees to indemnify, defend, and hold harmless Licensor, its agents and
employees from and against any and all loss and expense arising out of any
claims of personal injury, product liability, wrongful death, negligence, strict
liability or other similar action or the violation of any applicable law or
safety standard in connection with the operation of the Business by or on behalf
of Licensee and/or its subsidiary, affiliated or controlled company (if any).
Licensee shall maintain, at its sole cost and expense, premises liability,
liquor liability, workman’s compensation (in the amount required by the State of
New York), plate glass insurance (as per Licensee’s lease), commercial liability
coverage and other customary insurance. The premises, commercial, and liquor
policies must provide coverage of at least $3,000,000/$3,000,000, naming
Licensor as an additional insured, and providing that such policy cannot be
canceled without thirty (30) days prior written notice to Licensor. In the event
any claim is made against Licensor in excess of the limits of Licensee’s
insurance set forth above, Licensor may, at Licensee’s expense, retain counsel
of its own choosing to defend said claims. All insurance shall be primary and
not contributory. Licensee agrees to provide Licensor with a copy of the
insurance declarations and/or certificates within 20 days following the date of
this Agreement Licensee shall indemnify, defend and hold harmless Licensor, its
agents, employees and affiliates from and against any and all loss and expense
arising out of any breach by Licensee of any term of or warranty made in this
Agreement.

     

    (c)           The
obligations of the parties under this Paragraph 9 shall survive the end or
sooner termination of this Agreement.

     

    10.           TERMINATION.  (a)  In
case either party fails to perform under or commits or allows to be committed a
breach of any of the several covenants and conditions herein contained, the
other party shall notify such party in writing of such failure or default and
such party shall then have the right to remedy such failure or default within
thirty (30) days of delivery of such notice. If the default has not been cured
within (and the parties hereto hereby agree that defense of a claim is a “cure”)
said thirty (30) days of notice to the defaulting party, then the aggrieved
party may terminate this Agreement immediately by a further notice in writing.
If Licensor shall send notice of default to Licensee based on a failure to pay
royalties, then Licensee shall cure such default within ten (10) days of
delivery of written notice.

     

    (b)           Any
termination under this paragraph will be without prejudice to the rights and
remedies of either party with respect to any provisions or covenants arising out
of breaches committed prior to such termination.

     

    
      
        
        

      

      
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    (c)           If
a petition in bankruptcy is filed by or against Licensee, or Licensee becomes
insolvent, or makes an assignment for the benefit of creditors, or any other
arrangement pursuant to any bankruptcy law, or if Licensee discontinues its
business or if a receiver is appointed for it or its business, to the fullest
extent permitted by law at the time of the occurrence, the license hereby
granted shall automatically terminate without any notice whatsoever being
necessary. In the event this License is so terminated, Licensee, its receivers,
representatives, trustees, agents, administrators, successors, and/or assigns
shall have no right to sell, use, exploit or in any way deal with or in the
Scores Trademarks or anything relating to it whatsoever except with and under
the special consent and instructions of Licensor in writing, which they shall be
obliged to follow.

     

    (d)           If
a petition in bankruptcy is filed by or against Licensor, or Licensor becomes
insolvent, or makes an assignment for the benefit of creditors, or any other
arrangement pursuant to any bankruptcy law, or if Licensor discontinues its
business or if a receiver is appointed for it or its business, to the fullest
extent permitted by law at the time of the occurrence, the license hereby
granted shall not automatically terminate and this Agreement shall remain in
full force and effect.

     

    (e)           Upon
cessation of all “Adult Entertainment”‘ business operations by the Licensee at
the Location for a period of greater than one hundred eighty (180) days for any
reason other than Force Majeure (as defined in Paragraph 14), this Agreement
shall terminate automatically.

     

    (f)           This
Agreement shall also terminate should Licensee sell the Business or all or
substantially all of the assets of the Business- Licensee shall give Licensor at
least sixty (60) days advance written notice of such sale. Upon such sale, all
rights and obligations of the parties relative to this Agreement shall cease and
be of no further force or effect other than those rights and obligations which
continue by their terms.

     

    (g)           The
Licensee may terminate this Agreement upon ninety (90) days prior written notice
to Licensor.

     

    11.           CONDITIONS.  This
Agreement and Licensee’s obligations hereunder are conditioned upon the
following:

     

    (a)           Licensee
obtaining within sixty (60) days of the date hereof all permits, approvals and
consents including, but not limited to, liquor license and zoning and use
permits in order that the Licensee way lawfully operate the Business at the
Location as an adult entertainment night club and bar in the manner contemplated
herein.

     

    (b)           Licensor
acknowledges that Business is owned solely by Licensee and that, absent an
uncured default by Licensee, Licensor will not interfere with the Business or
the operation thereof and that control of the licensed business remains solely
with Licensee.

     

    
      
        
        

      

      
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    12.           TERM.  Subject
to Paragraph 10, the Term of this Agreement shall commence on the execution of
this Agreement and continue for an initial term of five (5) years with five
successive five (5) year renewals which will be automatic unless the Agreement
is terminated in accordance with its terms, or if Licensee is in default of its
payment obligations, which default has not been cured as provided in Paragraph
10(a).

     

    13.           REPRESENTATION.  It
is expressly agreed and understood that neither party hereto is the agent or
legal representative of the other and neither party has the authority, express
or implied to bind the other or pledge its credit. This Agreement does not
create a partnership or joint venture between the two parties.

     

    14.           FORCE
MAJEURE.  It is understood and agreed that in the event of an
act of the government, war, terrorism, fire, flood or other natural disaster, or
labor or manufacturing strikes (each, a “Force Majeure”) which prevent the
performance of this Agreement, such nonperformance will not be considered a
breach of this Agreement, and such nonperformance shall be excused while, but
not longer than, the conditions described herein prevail.  The period
of Force Majeure shall not exceed twelve (12) months.

     

    15.           NOTICES.  All
notices, whenever required in this Agreement, will be in writing and sent either
(a) by hand or overnight courier or (b) by certified mail, return receipt
requested to the addresses designated as the principal offices of the parties.
Notices will be deemed to have been delivered upon receipt if by hand or
overnight courier and two business days following mailing. A copy of all notices
to Licensor shall be sent to Scores Holding Company, Inc., 533-535 West 27th
Street, New York New York, attention: Curtis R. Smith and a copy of all notices
to Licensee shall be sent to I.M. Operating LLC, 617 Eleventh Avenue, New York,
NY 10036, attention: Robert M. Gans.

     

    16.           CONTROLLING
LAW.  This Agreement shall be construed in accordance with the
laws of the State of New York and jurisdiction over the parties and subject
matter over any controversy arising hereunder shall be in the Courts of the
State of New York or the Federal courts therein. Both parties hereby irrevocably
consent to said jurisdiction and venue.

     

    17.           ASSIGNMENT.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns, but neither this
Agreement, nor any of the rights, interests or obligations hereunder shall be
assigned by Licensee without the prior written consent of Licensor, and any
attempts to do so without the consent of Licensor shall be void and of no
effect.

     

    18.           ENTIRE
AGREEMENT.  This writing constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof No
other oral or written agreements or representations exist or are being relied
upon by either party, with respect to the subject matter hereof, all being
merged herein. Any modifications or additions to this Agreement must be made in
writing and signed by all parties.

     

    19.           MISCELLANEOUS.  (a)  The
paragraph headings used herein are for reference purposes only and do not effect
the meaning or interpretation of this Agreement. If any provisions of this
Agreement are for any reason declared to be invalid or illegal, the remaining
provisions shall not be affected thereby.

     

    
      
        
        

      

      
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    (b)           The
failure of either party to enforce any or all of its rights hereunder as they
accrue shall not be deemed a waiver of those rights, all of which are expressly
reserved.

     

    (c)           This
Agreement may be executed in more than one counterpart, all of which shall be
deemed to be originals.

     

     

    [Remainder
of This Page Intentionally Left Blank]

     

     

    
      
        
        

      

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

     

    
      	SCORES
      HOLDING COMPANY, INC.	 	I.M.
      OPERATING LLC
	 	 
      	 	 	 
      
	By: 	
              /s/
      Curtis R. Smith

            	 	By:	
              /s/
      Robert
      M. Gans

            
	 	
              Curtis
      R. Smith

            	 	 	
              Robert
      M. Gans

            
	As:	
              Chief
      Financial Officer and Interim Chief Executive Officer

            	 	As:	
              Managing
      Member

            
	 	 
      	 	 	 
      
	SCORES
      LICENSING CORP.	 	 	 
      
	 	 
      	 	 	 
      
	By:	
              /s/
      Curtis R. Smith

            	 	 	 
      
	 	
              Curtis
      R. Smith

            	 	 	 
      
	As:
      	
              Chief
      Financial Officer

            	 	 	 
      
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    - 9 -

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