Document:

EX-10.30

 

Exhibit 10.30

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this “Agreement”) is made as of December                     , 2007 by and
between FX Real Estate and Entertainment Inc., a Delaware corporation (the “Employer”), and
Barry Shier (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 and its subsidiaries named herein, 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 with the Employer and its
subsidiaries named in Section 3.1 below.

     2. Term; Dates.

          2.1 The term of the Executive’s employment shall commence on the Effective Date (as defined
below) and continue until the fifth annual anniversary thereof (the “Employment Agreement
Term”), unless earlier terminated in accordance with this Agreement.

          2.2 This Agreement refers to the dates defined in this section, as follows: (i) the date of
commencement of employment is the “Effective Date”, which date shall be deemed the date of this
Agreement; (ii) the period of time during which the Executive is an employee of the Employer or any
of its subsidiaries named in Section 3.1 below or otherwise 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.

          3.1 The Employer shall employ the Executive, and the Executive shall serve as the Chief
Operating Officer of the Employer and the Chief Executive Officer of each of FX Luxury Realty, LLC,
a Delaware limited liability company and a direct subsidiary of the Employer, and BP Parent LLC, a
Delaware limited liability company and an indirect subsidiary of the Employer (“BP
Parent”), and in such other positions with the Employer and these and its other 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 and its subsidiaries, subject, in accordance with applicable law, to
the supervision and direction of the Chairman of the Board (the “Chairman”). Without
limiting the generality of the foregoing, the Executive shall be

 

 

responsible for the execution, design, construction, pre-opening and operations of the
Employer’s hotels, casinos, retail and entertainment properties located in Las Vegas, Nevada and
Memphis, Tennessee and such other markets as designated by the Chairman. As soon as practicable
after the effective date of the Registration Statement (as defined in Section 7.2 below), the Board
shall appoint the Executive as a member of the Board, subject to removal and re-election in
accordance with the provisions of the Employer’s certificate of incorporation and by-laws
applicable to all members of the Board, as in effect during the Term.

          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
amend 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 substantially all of 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. The Executive
represents and warrants that he has the ability to be found suitable as an officer and key employee
of the Employer by the Gaming Authorities of the State of Nevada and any other state or
jurisdiction in which the Employer shall conduct gaming operations.

          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 Chairman, so long as the Chairman’s discretion is not applied unreasonably.

     Where the Chairman declines to approve the commencement of the Executive’s service or his
continued service, or the Chairman withdraws his 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

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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 reasonably determined by the Chairman.

          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 any of its
consolidated subsidiaries or any of their respective officers or directors, may be a party.

          4.3 No provision of this Agreement shall be construed to prohibit the Executive’s: (a) passive
acquisition, ownership, or trading, including without limitation the Executive’s direct or indirect
ownership, of less than five percent (5%) of the issued and outstanding stock (or comparable bonds,
options, derivatives, negotiable instruments or securities) of a business entity that is directly
or indirectly competitive with the business of the Employer and whose securities are publicly
traded anywhere in the world or registered under the Investment Company Act of 1940, as amended; 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 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 Notwithstanding anything contained in this Section 4, the Employer acknowledges and agrees
that the Executive shall be entitled to continue to participate in the ownership and management of
the company “Belly Wash” to the extent, but only to the extent, such participation is incidental
and does not interfere with the Executive’s performance of his duties and responsibilities
hereunder.

     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 offices located in Las
Vegas, Nevada, or such other location within Nevada, as established by the Employer. The Employer
shall provide the Executive at such office with an executive assistant dedicated to his needs and
with professional skills and experience reasonably satisfactory to the Executive, and such other
staff as the Executive deems reasonably necessary to perform his duties and responsibilities
hereunder. Employer shall also maintain an office for the Executive at its principal New York
office similar to the offices provided to other senior executives of the Employer.

     6. Base Salary. During the Term, the Employer shall pay and, subject to Section 17.10
below, shall cause BP Parent to pay, to the Executive an initial annualized base salary, payable in
equal installments during each year of the Term (the “Base Salary”) equal to Two

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Million Dollars ($2,000,000) (the “Base Amount”). 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 compensation committee of the Board (the
“Compensation Committee”) additionally shall review the Executive’s Base Amount at least
annually and the Compensation Committee 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 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 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 Equity 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 as determined by the Compensation Committee. The Compensation
Committee’s decision to cause the Employer 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 Compensation Committee 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. The Executive acknowledges and agrees that the Compensation Committee may, in its sole and
absolute discretion, establish from

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time to time one or more annual or long-term bonus plans under which the Executive may be an
eligible participant and that are based on the attainment of performance goals, subject to
stockholder approval and that shall otherwise comply with the requirements of Section 162(m) of
the Code.

          7.2 Within five (5) calendar days of the effective date of the Employer’s Registration
Statement on Form S-1 (Registration No. 333-145672) on file with the Securities and Exchange
Commission (the “Registration Statement”), the Employer shall sell to the Executive, and
the Executive shall purchase from the Employer, 500,000 shares of the common stock, par value $.01
per share (the “Common Stock”), of the Employer (the “Purchased Shares”) at a price
of $5.14 per share for an aggregate purchase price of Two Million Five Hundred Seventy Thousand
Dollars ($2,570,000), payable by the Executive in immediately available funds, and subject to such
other terms and conditions to be set forth in a mutually agreed upon subscription agreement. The
parties agree that such subscription agreement shall provide, among other things, that the
Executive shall not be permitted to sell or otherwise dispose of any of the Purchased Shares for a
period of two (2) years from the date of purchase, except for estate planning purposes subject to
the advance written consent of the Employer (which consent shall not be unreasonably withheld,
delayed or conditioned). The subscription agreement shall further provide that on the second
anniversary of the date of purchase or as soon thereafter as the Company is eligible to use a Form
S-3 registration statement (or any successor registration statement then in effect), the Employer
shall register with the SEC the Purchased Shares for resale on such a registration statement.

          7.3 On the Effective Date, or as soon thereafter as the Employer’s 2007 Executive Equity
Incentive Plan has been adopted by the Compensation Committee (or the Board), the Employer shall
grant the Executive a stock option thereunder, which shall be deemed an incentive stock option to
the extent permitted under Section 422 of the Code (as defined in Section 12.7 below) and otherwise
a non-qualified stock option under Section 83 of the Code, to purchase up to One Million Five
Hundred Thousand (1,500,000) shares of Common Stock (the “Plan Option”). The Plan Option
shall be approved by the Compensation Committee (or the Board) in accordance with Rule 16b-3
promulgated under the Exchange Act (as defined in Section 12.2 below), vest ratably over the two
(2) year period following the date of grant (i.e., 1/2 on each anniversary of the date of
grant) and become exercisable on the second anniversary of the date of grant at a price of Ten
Dollars ($10.00) per share for a term of eight (8) years. The Plan Option shall contain cashless
exercise provisions permitting payment of any portion of the exercise price (x) pursuant to
broker-assisted “cashless” exercise procedures, (y) by the withholding of shares issuable upon
exercise of the Plan Option and/or (z) by the delivery of shares held by the Executive to the
extent held for such period of time, if any, required to avoid a charge to the earnings of the
Employer for financial accounting purposes, and otherwise be governed by the provisions of a stock
option agreement substantially in the same form as is used for option grants to its other senior
executives. As soon as practicable after the Effective Date, Employer shall register with the SEC
the shares of Common Stock issuable upon exercise of the Plan Option on a Form S-8 registration
statement (or any successor registration form then in effect).

     7.4 During each calendar year of the Term beginning in 2008, the Employer shall grant the
Executive an annual option under an equity incentive compensation plan of the

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Employer then in effect at the same time the Employer grants annual options to its other
senior executives under such compensation plan or otherwise, provided that if the Employer does not
grant annual options to its senior executives in any calendar year within sixty (60) days of the
beginning on such calendar year, the Employer shall grant the Executive an annual option within
seventy-five (75) days of the beginning of such calendar year (each an “Annual Option”).
Each such Annual Option shall be deemed an incentive stock option to the extent permitted under
Section 422 of the Code and otherwise a non-qualified stock option under Section 83 of the Code, to
purchase up to Two Hundred Thousand (200,000) shares of Common Stock (subject to adjustment as
described below) at an exercise price equal to the fair market value (as defined under such equity
incentive compensation plan) per share of Common Stock on the date of grant. Each such Annual
Option shall be approved by the Compensation Committee (or the Board) in accordance with Rule 16b-3
promulgated under the Exchange Act, vest ratably over the five year period following the date of
grant (i.e., 1/5th on each anniversary of the date of grant) and be exercisable
for a term of ten (10) years, provided that if an Annual Option is granted in the last calendar
year of the Employment Agreement Term, such Annual Option shall vest in full upon expiration of the
Employment Agreement Term so long as this Agreement has not been terminated theretofore pursuant to
either Sections 12.1 or 12.5. Each Annual Option shall contain cashless exercise provisions
permitting payment of any portion of the exercise price (x) pursuant to broker-assisted “cashless”
exercise procedures, (y) by the withholding of shares issuable upon exercise of such Annual Option
and/or (z) by the delivery of shares held by the Executive to the extent held for such period of
time, if any, required to avoid a charge to the earnings of the Employer for financial accounting
purposes, and otherwise be governed by the provisions of a stock option agreement substantially in
the same form as is used for option grants to its other senior executives. For the avoidance of
doubt, at the time of grant of each Annual Option, the Two Hundred Thousand (200,000) shares of
Common Stock comprising such Annual Option shall be adjusted to give effect to any stock dividends,
stock splits, recapitalizations or any other similar events affecting the Company’s Common Stock at
or prior to the grant of such Annual Option. As soon as practicable after the grant date of each
such Annual Option, Employer shall register with the SEC the shares of Common Stock issuable upon
exercise of such Annual Option on a Form S-8 registration statement (or any successor registration
form then in effect).

     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. In no event shall expenses be reimbursed later than the end of the first quarter of
the calendar year immediately after the calendar year in which the expenses were incurred by the
Executive.

          8.2 The Executive at all times shall be provided, at the Employer’s expense, with the use of a
private jet plane for business travel and be entitled to: hotel accommodations

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while outside Las Vegas 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 or any
such family member 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. In no event shall
such amounts be reimbursed later than the end of the first quarter of the calendar year immediately
after the calendar year in which the amounts were incurred by Executive or such family member.

          8.4 Subject to the Executive providing the Employer with advanced written notice, the Employer
shall pay all fees and expenses associated with the Executive’s application for any license or
approval required by the Nevada Gaming Authorities and other governmental authorities from whom
approval, if any, is required under the laws of the State of Nevada and/or in any other state or
jurisdiction in which the Employer intends to conduct gaming operations. Alternatively, the
Executive may seek reimbursement from the Employer for such expenses pursuant to the terms of
Section 8.1.

     9. Benefits.

          9.1 During the Term, the Executive shall be eligible to participate in any pension, profit
sharing, incentive stock option, non qualified stock option, deferred share, performance share and
performance unit, 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 Employer acknowledges and agrees that it shall bear all expenses
associated with the Executive’s participation in any such group life insurance, hospitalization,
medical, health and accident, dental, disability, or similar plan or program. The Executive
acknowledges that the Executive’s actual ability to participate in any program, plan, or 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.

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          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, medical, 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;

               (c) the cash portion of all declared but unpaid Bonus through the time of the Executive’s
death;

               (d) all reimbursable business expenses incurred by the Executive through the time of his
death; and

               (e) the Employer additionally shall cause any stock options, restricted stock or other
equity-based instruments (collectively “Equity Awards”) that previously were issued by the
Employer or any of the Participating Subsidiaries to the Executive to vest fully and/or cause any
Equity Awards that were approved for issuance by the Employer or any of the Participating
Subsidiaries to the Executive and not so issued through the time of the Executive’s death to be
issued and fully vested. The Employer shall take all action necessary to cause the assignment or
transfer of such Equity Awards 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 or term insurance policy (“Policy”)
on

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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
Employer’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 within thirty (30) days following
his termination of employment 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 reasonably required by the insurer issuing such coverage;
to submit to any medical examination reasonably 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/or
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, each in effect as of the Effective Date and thereafter as may be amended from time
to time (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 advanced 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

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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 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.

10

 

          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.

     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;

               (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, 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’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

11

 

written notice; (iii) the opportunity for the Executive to be heard and to orally present his
position, with the assistance of any counsel deemed appropriate by the Executive (but at the
Executive’s expense), 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;

               (d) any finding by the SEC 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 to maintain itself as a
publicly-traded company;

               (e) the Gaming Authorities of the State of Nevada or any other state or jurisdiction in which
the Employer shall conduct gaming operations shall determine or indicate in writing to the Employer
that the Executive’s continued employment as an executive would adversely impact the Company’s
licensing status or gaming operations in any jurisdiction in which it is seeking to be licensed or
is so licensed.

     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; provided, however, the acquisition of beneficial
ownership of more than thirty-five percent (35%) of the total voting power of all Voting Stock of
the Employer on a fully-diluted basis in connection with a primary issuance of Voting Stock by the
Employer that has been approved by the Board shall not constitute a Change in Control for purposes
of this Agreement;

               (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 assets or business of the Employer, determined on a fully-diluted basis);

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

12

 

prior to the combination beneficially own, directly or indirectly, less than fifty percent
(50%) of the voting power of the outstanding Voting Stock of the combined entity, 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 Effective Date, 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; or

               (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 entity, determined on a
fully-diluted basis; or

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

               (g) For purposes of this Section 12.2, (i) “Voting Stock” means, with respect to any person,
equity securities of any class or classes 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) or 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 (unless such reduction is part of an overall and
nondiscriminatory reduction by the Employer to the base salaries of all of its senior executives
and such reduction is proportional in amount to the reductions suffered by all of such other senior
executives), 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 3.1;

13

 

               (c) 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;

               (d) 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 3.1;

               (e) 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, provided that such
transaction does not constitute a “Change in Control”;

               (f) 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
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, provided
that such relief does not constitute a “Change in Control”; or

               (g) 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,
with the assistance of any counsel deemed appropriate by the Executive (but at the Executive’s
expense), 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 (x) all earned but unpaid Base Salary through the date of
termination, (y) the cash portion of all declared but unpaid Bonus through the date of termination
and (z) all reimbursable business expenses incurred by the Executive 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 Sections 11 and 14
hereof).

          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

14

 

or death, 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 portion of all declared but unpaid Bonus through the date of termination;

               (c) all reimbursable business expenses incurred by the Executive through the date of
termination;

               (d) the Employer additionally shall cause any Equity Awards that previously were issued by the
Employer or any of the Participating Subsidiaries to the Executive to vest fully and/or cause any
Equity Awards that were approved for issuance by the Employer or any of the Participating
Subsidiaries to the Executive and not so issued through the date of termination to be issued and
fully vested;

               (e) 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 the lesser of (i) three (3)
years or (ii) the remaining portion of the Employment Agreement Term 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 such later date as may be necessary to avoid any adverse tax consequences under Section
409A of the Internal Revenue Code as described in Section 12.8 below);

               (f) 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, the Employer shall pay to him the present value of the aggregate
Base Bonus Amount 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 prime rate (as published by The Wall
Street Journal) for the first business day of the month in which such termination occurs) (or such
later date as may be necessary to avoid any adverse tax consequences under Section 409A of the
Internal Revenue Code as described in Section 12.8 below);

               (g) all benefits provided in Section 9 for the lesser of (i) three (3) years or (ii) the
remaining portion of the Employment Agreement Term following such termination (except that if
providing any such benefit under the terms of a plan is not permissible under the terms of the plan
or would cause an adverse tax effect, the Employer shall reimburse the Executive’s expenses
incurred in obtaining similar coverage on his own with such

15

 

reimbursement being paid no later than the end of the calendar year such expenses are incurred
by Executive); and

               (h) 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 Sections 11
and 14 hereof).

          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 12.5, (i) shall be paid to the Executive in
a lump sum on or prior to the Change in Control Closing Date (or such later date as may be
necessary to avoid any adverse tax consequences under Section 409A of the Internal Revenue Code as
described in Section 12.8 below), 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.

          (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Employer to or for the benefit of the Executive,
whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise in connection with or arising out of, the Executive’s employment with the Employer or a
change in ownership or effective control of the Employer or a substantial portion of its assets (a
“Payment”), would be nondeductible by the Employer for Federal income tax purposes under the rules
set forth in Section 280G of the Code as in effect on the Effective Date (the “Effective Date
Section 280G Rules”), then the aggregate present value of amounts payable or distributable to or
for the benefit of the Executive pursuant to this Agreement (such payments or distributions
pursuant to this Agreement are hereinafter referred to as “Agreement Payments”) shall be reduced to
the Reduced Amount. The “Reduced Amount” shall be an amount expressed in present value which
maximizes the aggregate present value of Agreement

16

 

Payments and that would not cause any Payment to be nondeductible by the Employer under the
Effective Date Section 280G Rules. Anything to the contrary notwithstanding, if the Reduced Amount
is zero and it is determined further that any Payment which is not an Agreement Payment under the
Effective Date Section 280G Rules would nevertheless be nondeductible by the Employer under the
Effective Date Section 280G Rules, then the aggregate present value of Payments which are not
Agreement Payments shall also be reduced (but not below zero) to an amount expressed in present
value which maximizes the aggregate present value of Payments without causing any Payment to be
nondeductible by the Employer under the Effective Date Section 280G Rules. For purposes of this
Section 12.7(a), present value shall be determined in accordance with Section 280G(d)(4) of the
Code and the Treasury Regulations promulgated thereunder, under the Effective Date Section 280G
Rules. The Executive shall determine which and how much of the Payments shall be eliminated or
reduced consistent with the requirements of this Section 12.7(a), provided that, if the Executive
does not make such determination within ten business days of the receipt of the calculations made
by the Accounting Firm, the Employer shall elect which and how much of the Payments shall be
eliminated or reduced consistent with the requirements of this Section 12.7(a) and shall notify the
Executive promptly of such election. Within five business days thereafter, or at such later time
as such amounts otherwise would be payable under this Agreement, the Employer shall pay to or
distribute to or for the benefit of the Executive such amounts as are then due to the Executive
under this Agreement.

          (b) If after any reduction pursuant to paragraph (a) of this Section 12.7, it shall be
determined that any Payment would be subject to the excise tax imposed by Section 4999 of the Code
as in effect at the time such Payment is to be made, or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Employer shall
make a payment to the Executive (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, the Executive
retains (or has had paid to the Internal Revenue Service on his behalf) an amount of the Gross-Up
Payment equal to the sum of (i) the Excise Tax imposed upon the Payments and (ii) the product of
any deductions disallowed because of the inclusion of the Gross-Up Payment in the Executive’s
adjusted gross income and the highest applicable marginal rate of federal income taxation for the
calendar year in which the Gross-Up Payment is to be made. For purposes of determining the amount
of the Gross-Up Payment, the Executive shall be deemed to (x) pay federal income taxes at the
highest marginal rates of federal income taxation for the calendar year in which the Gross-Up
Payment is to be made, and (y) pay applicable state and local income taxes at the highest marginal
rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained from deduction of such state and
local taxes.

          (c) Any initial determinations required pursuant to this Agreement shall be made at the
Employer’s expense by the Employer’s regular outside auditors (the “Accounting Firm”). The
Accounting Firm shall provide its determination (the “Determination”), together with
detailed supporting calculations and documentation, to the Employer and the Executive within ten
days of the Termination Date, if applicable, or promptly upon request by the Employer or by the
Executive (provided the Executive reasonably believes that any of the Payments may be subject to
the Excise Tax) and if the Accounting Firm determines that there is a Reduced Amount or that no
Excise Tax is payable by the Executive with respect to a Payment

17

 

or Payments, it shall furnish the Executive with an opinion reasonably acceptable to the
Executive that supports its Determination[s]. Within ten days of the delivery of the Determination
to the Executive, the Executive shall have the right to dispute the Determination (the
“Dispute”). The Reduced Amount, if any, and the Gross-Up Payment, if any, as determined
pursuant to this Section 12.7(b) shall be paid by the Employer to the Executive, within ten days of
the receipt of the Accounting Firm’s determination notwithstanding the existence of any Dispute, or
in the case of the Reduced Amount, such later dates as the Payments comprising the Reduced Amounts
otherwise would have been payable pursuant to this Agreement. If there is no Dispute, the
Determination shall be binding, final and conclusive upon the Employer and the Executive subject to
the application of clause (iii) below. The Employer and the Executive shall resolve any Dispute in
accordance with the terms of this Agreement. Notwithstanding the foregoing, in no event shall
payment of the Gross-Up Payment occur later than the end of the Executive’s taxable year following
the Executive’s taxable year in which the Executive pays the taxes giving rise to the Gross-Up
Payment.

          (d) As a result of the uncertainty in the application of Sections 4999 and 280G of the Code,
the Employer and the Executive acknowledge that it is possible that a Gross-Up Payment (or a
portion thereof) will be paid that should not have been paid (an “Excess Payment”) or that
either a reduction in the Payments to the Reduced Amount will be made that should not have been
made or that a Gross-Up Payment (or a portion thereof) that should have been paid will not have
been paid (in each case an “Underpayment”). An Underpayment shall be deemed to have
occurred (i) upon notice (formal or informal) to the Executive from any governmental taxing
authority that the Executive’s tax liability (whether in respect of the Executive’s current taxable
year or in respect of any prior taxable year) may be increased by reason of the imposition of the
Excise Tax on a Payment or Payments with respect to which the Employer has failed to make a
sufficient Gross-Up Payment, (ii) upon a determination by a court, (iii) by reason of determination
by the Employer (which shall include the position taken by the Employer, together with its
consolidated group, on its federal income tax return) or (iv) upon the resolution of the Dispute to
the Executive’s satisfaction. If an Underpayment occurs, the Executive shall promptly notify the
Employer and the Employer shall promptly, but in any event, at least five days prior to the date on
which the applicable government taxing authority has requested payment, pay to the Executive an
additional Gross-Up Payment equal to the amount of the Underpayment attributable to an underpayment
of the Gross-Up Payment plus any interest and penalties (other than interest and penalties imposed
by reason of the Executive’s failure to file timely a tax return or pay taxes shown to be due on
the Executive’s return) imposed on the Underpayment, and pay to the Executive any Underpayment that
is attributable to any reduction in Payments that was not required pursuant to Section 12.7(a)
hereto. An Excess Payment shall be deemed to have occurred upon a “Final Determination” (as
hereinafter defined) that the Excise Tax shall not be imposed upon a Payment or Payments (or
portion thereof) with respect to which the Executive had previously received a Gross-Up Payment. A
“Final Determination” shall be deemed to have occurred when the Executive has received from the
applicable government taxing authority a refund of taxes or other reduction in the Executive’s tax
liability by reason of the Excise Payment and upon either (x) the date a determination is made by,
or an agreement is entered into with, the applicable governmental taxing authority which finally
and conclusively binds the Executive and such taxing authority, or in the event that a claim is
brought before a court of competent jurisdiction, the date upon which a final determination has
been made by such court and either all appeals have been taken and finally resolved or the time

18

 

for all appeals has expired or (y) the statute of limitations with respect to the Executive’s
applicable tax return has expired. If an Excess Payment is determined to have been made, the
Executive shall pay to the Employer on demand (but not less than ten days after the determination
of such Excess Payment and written notice has been delivered to the Executive) the amount of the
Excess Payment. The Employer’s obligation to pay the Executive an Underpayment, and the
Executive’s obligation to pay the Employer an Excess Payment, shall expire 30 days following the
expiration of the applicable statute of limitations with respect to the Parachute Payment.

          (e) Notwithstanding anything contained in this Agreement to the contrary, in the event that,
according to the Determination, an Excise Tax will be imposed on any Payment or Payments, the
Employer shall pay to the applicable government taxing authorities as Excise Tax withholding, the
amount of the Excise Tax that the Employer has actually withheld from the Payment or Payments or
the Gross Up Payment.

          12.8 Impact of Section 409A. Notwithstanding the foregoing, if any amount payable to
the Executive under this Agreement on account of the Executive’s termination of employment
constitutes a “deferral of compensation” within the meaning of United States Treasury Regulation
(“Treasury Regulation”) Section 1.409A-1(b) (“Deferred Compensation”), the payment
of such Deferred Compensation shall commence no later than 90 days after Executive incurs a
Separation from Service (as defined below); provided, however, if on the date of the Executive’s
Separation from Service (as defined below), the Executive is a “specified employee” within the
meaning of Section 409A of the Code, any Deferred Compensation payable under this Agreement on
account of the Executive’s Separation from Service and within the first six (6) months following
the Executive’s Separation from Service, shall instead be paid in a lump sum on the first business
day of the seventh (7th) month following the Executive’s Separation from Service. Each payment of
Deferred Compensation shall be considered a separate payment for purposes of Treasury Regulation
Sections 1.409A-1(b)(4) and 1.409A-2(b)(2).  For purposes of this Agreement, “Separation from
Service” shall have the meaning set forth in Treasury Regulation Section 1.409A-1(h), and a
Separation from Service will be deemed to occur if the Employer and the Executive reasonably
anticipate that Executive shall perform no further services for the Employer (whether an employee
or an independent contractor) or that the level of bona fide services Executive will perform in the
future (whether as an employee or an independent contractor) will permanently decrease to no more
than 49 percent of the average level of bona fide services performed (whether as an employee or
independent contractor) over the immediately preceding 36-month period.

          12.9 Voluntary Termination. 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: (i) a termination due to death or disability; (ii) a Constructive
Termination without Cause; or (iii) 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.

19

 

          12.10 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 Equity Award granted or issued by the Employer or any of the
Participating Subsidiaries to the Employee after the Effective Date, including any 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 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.

          12.11 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

20

 

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

          13.4 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. For a period of one (1) year following the Expiration Date, 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 residential, media, entertainment, luxury hotel or casino 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 permitted under Section 4 above or 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:

FX Real Estate and Entertainment Inc.

650 Madison Avenue

New York, New York 10022

Attention: Board of Directors

If to the Executive:

21

 

Barry Shier

1641 Enclave Court

Las Vegas, NV 89134

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.

Copies of all communications given hereunder to the Executive shall also be delivered or sent, in
like fashion, to William Urga, Esq., Jolley Urga Wirth Woodbury & Standish, 3800 Howard Hughes
Parkway, Sixteenth Floor, Las Vegas, Nevada 89109; telephone: (                    ) [                    ]-[                    ]; facsimile:
(                    ) [                    ]-[                    ].

     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. 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 Las Vegas, Nevada, and where a party appoints an arbitrator
who principally conducts his or her business outside of Las Vegas, Nevada, 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

22

 

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 Nevada Arbitration Act of 2000
(the “Nevada Act”) would make enforceable this Agreement after an appointed arbitrator(s)
finds it unenforceable under the FAA, in which case the Nevada 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 Nevada 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 Nevada, 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 Nevada. Any monetary award made shall be payable promptly in United States 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 Nevada or, if the party has or can acquire
jurisdiction, in the United States District Court for the District of Nevada, 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

23

 

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

24

 

          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.

          17.10 Joinder of BP Parent, LLC. BP Parent joins in the execution of this Agreement
solely for the purpose of paying the Executive such portion of the Base Amount under Section 6
above and bearing such portion of the expenses associated with providing benefits to the Executive
as prescribed by Section 9 above, which are allocable, as determined by the Employer’s Chief
Financial Officer, to BP Parent by reason of the Executive providing services directly to BP Parent
and its direct subsidiaries in his capacity as Chief Executive Officer of BP Parent. During the
Term, the Employer’s Chief Financial Officer shall determine such an allocation for each of BP
Parent’s payroll cycles at least two business days in advance thereof and, unless BP Parent objects
to such allocation within twenty-four hours of receipt thereof, BP Parent shall be deemed to have
accepted each such allocation and pay to the Executive such allocable portion of the Base Amount
and bear such portion of the allocable expenses at the applicable payroll cycle. To the extent that
BP Parent objects in a timely manner to any such allocation, BP Parent and the Employer’s Chief
Financial Officer shall cooperate in good faith to resolve the matter before the applicable payroll
cycle.

[SIGNATURE PAGE FOLLOWS]

25

 

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

	 	 	 	 	 	 	 
	 	 	FX REAL ESTATE AND ENTERTAINMENT INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Barry Shier	 	 

	 	 	 	 	 	 	 
	 	 	BP PARENT, LLC, SOLELY FOR PURPOSES
OF SECTION 17.10
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

26EX-10.31

 

Exhibit 10.31

SHARED SERVICES AGREEMENT

Dated                     , 2007

     The parties to this agreement are FX Real Estate and Entertainment Inc. a Delaware corporation
(“FXREE”), CKX, Inc., a Delaware corporation (“CKX”), and 19X, Inc., a Delaware
corporation (“19X”). FXREE, CKX and 19X are sometimes referred to collectively hereinafter
as the “parties” or individually as a “party.”

     FXREE,
through its subsidiary FX Luxury Realty, LLC (“FXLR”), owns interests in
subsidiaries that are engaged in various activities, including real estate development. CKX is
engaged in the ownership, development and commercial utilization of entertainment content. Shares
of CKX common stock are registered for public trading under the Securities Exchange Act of 1934.

     CKX and 19X are parties to a Merger Agreement dated June 1, 2007, as subsequently amended (as
so amended, the “19X Merger Agreement”), pursuant to which 19X will acquire CKX through the
merger of a wholly owned subsidiary of 19X with and into CKX (the “CKX Acquisition Merger”)
with CKX surviving such merger as a wholly owned subsidiary of 19X. Concurrently with the
execution and delivery of the 19X Merger Agreement, CKX and Flag Luxury Properties, LLC, a Delaware
limited liability company (“Flag” ), entered into a Membership Interest Purchase Agreement
(as amended, the “Purchase Agreement”) pursuant to which CKX acquired 50% of the membership
interests in FXLR.

     On September 26, 2007, certain members of FXLR contributed their common membership interests
in FXLR to FXREE in exchange for shares of common stock of FXREE, as a result of which such
members, including CKX and Flag, together with an existing stockholder, owned 100% of the
outstanding shares of common stock of FXREE and FXREE owned 100% of the common membership
interests of FXLR .

     Through a series of distribution transactions effected or to be effected pursuant to the 19X
Merger Agreement or the Purchase Agreement, 50.25% of the outstanding common stock of FXREE will be
distributed to the stockholders of CKX, with the remaining 49.75% of the outstanding common stock
of FXREE to be distributed to the members and certain employees of Flag.

     Each of FXREE and CKX (and, after the CKX Acquisition Merger, 19X) has certain capabilities by
virtue of its management, employees, expertise and other resources, and the parties have determined
that certain of such capabilities are complementary to those of the other party. Accordingly, each
of FXREE, on the one hand, and CKX (and, after the CKX Acquisition Merger, 19X), on the other hand,
wishes to obtain certain services from the other party, and is willing to perform certain services
for the other party, on the terms and conditions set forth in this Agreement.

 

 

     In consideration of the mutual agreements, provisions and covenants contained in this
Agreement and for other good and valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

     1. Shared Services.

     1.1 Each Party to Provide Services. Subject to Section 1.5 hereof and Section 1.6
hereof, during the Term (as hereinafter defined), CKX shall perform services described on
Schedule A to this Agreement (the “Provided Services”) for FXREE, and FXREE shall
perform Provided Services for CKX, in each case as determined pursuant to Section 1.2 hereof. In
performing any Provided Services pursuant to this Agreement, a party shall use the same attention,
skill and timeliness that it uses in conducting its own business, so long as the overall standard
of care is, at a minimum, commercially reasonable.

     1.2 Determination of Services to be Performed. Monthly, or with such other frequency
as the parties may mutually determine, at least one Services Representative (as hereinafter
defined) from CKX and at least one Services Representative from FXREE shall meet either in person,
at a time and place mutually determined, or by telephone, at a time mutually determined, to review
the needs and capabilities of the parties hereto with respect to Provided Services and to allocate
to the parties hereto their respective responsibilities for performing Provided Services hereunder
for the other party. Each of the parties hereto shall use its reasonable commercial efforts to
undertake the performance for the other party of any and all Provided Services as may be reasonably
needed by the other party for the fulfillment of its business objectives, including, without
limitation, its ordinary course business operations, any non-ordinary course initiatives that may
be approved by its board of directors, managing member or other applicable governing body, group or
person, and the satisfaction of its respective duties under the 19X Merger Agreement, the Purchase
Agreement and any and all agreements, documents and instruments executed and delivered in
connection therewith. However, neither party shall be required to agree to perform any Provided
Services to the extent doing so would be materially disruptive to its business; if a party
determines that it will be unable to perform any Provided Services that may be requested hereunder,
it shall promptly inform the other party of such determination..

     1.3 Services Representatives. Each party shall maintain two (2) representatives,
either of whom may be relied upon exclusively in dealing with the other party under this Agreement
for purposes of determining the Provided Services to be performed hereunder (each, a “Services
Representative”). Concurrently with the execution and delivery of this Agreement, each party
is identifying its initial Services Representatives to the other party in a written notice. Either
Party may change either or both of its Services Representatives at any time by giving written
notice to the other party. In performing its obligations with respect to Provided Services under
this agreement, a party shall be entitled to rely upon any instructions, authorizations, approvals
or other information provided by a Services Representative of the other party.

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     1.4 Personal Nature of Services.

     (a) The Provided Services to be provided by each party hereunder are personal in nature.
Except as expressly contemplated in Section 1.5 hereof, neither party may assign or encumber this
Agreement or any of its rights or obligations hereunder or delegate or subcontract any performance
or other obligation hereunder without the prior written consent of the other party.

     (b) If a party, in performing any Provided Services hereunder, in its reasonable judgment
deems it to be expedient or appropriate to use the services of consultants, professionals,
independent contractors and other third parties (including without limitation law firms or
accounting firms) to perform in whole or in part any of such Provided Services, the performing
party shall first request the written approval of the other party to use the services of such third
party. The performing party shall not use the services of such third party without the other
party’s written consent, which may be withheld in the other party’s sole discretion. The parties
shall use their reasonable commercial efforts to cause all invoices with respect to the fees and
expenses of third party service providers to be sent directly to the party for whom such services
were performed, and (regardless of the addressee of the invoice) that party shall pay such fees and
expenses directly.

     1.5 Substitution of 19X. Promptly after the consummation of the CKX Acquisition
Merger, CKX shall notify FXREE of such consummation and such notice shall be deemed to be an
assignment to 19X, and an assumption by 19X, of all of CKX’s substantive rights and obligations
under this Agreement, and from and after such notice: (i) references in this Agreement to CKX
relating to the substantive rights and obligations of CKX hereunder shall be deemed to be
references to 19X, (ii) 19X shall be entitled to all of the substantive rights of CKX hereunder and
shall be bound by and shall perform all of the substantive obligations of CKX in this Agreement,
and (iii) CKX shall have no further substantive rights or obligations under this Agreement.

     1.6 Modification of Services. Anything to the contrary in this Agreement
notwithstanding, if a majority of the Independent Representatives (as defined in Section 2.2
hereof) of a party to this Agreement determine in good faith that any specific Provided Services
being performed hereunder have had or are likely to have an adverse effect on such party or its
assets, financial condition, prospects, legal rights or responsibilities, reputation or operations
(including, without limitation, in whole or in part as a result of any of the relationships between
the parties (including, without limitation, any of those relationships described in the recitals at
the head of this Agreement)), then such party shall give the other parties to this Agreement notice
of such determination (which notice shall include a description in reasonable detail of the
specific Provided Services with respect to which the determination has been made), and promptly
upon and after the receipt of such notice the specific Provided Services shall no longer be
performed.

     1.7 Employment Contracts of Key Personnel. From time to time after the date hereof
the parties may enter into employment agreements with employees who may be expected to perform
Provided Services hereunder. Each of the parties shall use its

-3-

 

reasonable commercial efforts to cause any such employment agreement to contain an appropriate
provision whereby the employee acknowledges and agrees that performing such Provided Services under
this agreement may be part of the employee’s duties from time to time as directed by the employer.

     1.8 Compliance with Laws. Each party shall comply with all applicable laws, codes,
regulations, ordinances and rules with respect to the Provided Services to be performed hereunder,
and shall procure and maintain all permits or licenses that may be required at any time in
connection with the performance of the Provided Services.

     1.9 No Additional Resources. In providing Provided Services hereunder, no party shall
be obligated to hire any additional employees, maintain the employment of any specific employee or
purchase, lease or license any additional equipment or materials.

     1.10 Cooperation. To the extent required in the reasonable determination of a party
performing Provided Services hereunder, the party receiving such services shall cooperate with the
performing party in all reasonable respects in the provision of such Provided Services.

     1.11 Force Majeure. Each party shall be excused from its obligations pursuant to this
Agreement to the extent performance thereof is prevented by any act of God, war, riot, fire,
explosion, accident, flood, sabotage or acts of terrorism, lack of (despite reasonable efforts to
obtain) adequate labor or material, compliance with governmental requests, laws, regulations,
orders or actions, breakage or failure of machinery or apparatus, failure of a third party to
perform, or any other cause or circumstances beyond the reasonable control of the performing party.

     2. Term.

     2.1 Term and Termination. This Agreement is effective on the date hereof and shall
remain in force and effect until December 31, 2010 (the “Term”); provided,
however, that the Term may be extended or earlier terminated by the mutual written
agreement of the parties, or may be earlier terminated upon 90 days written notice from either
party together with a certificate from an officer or manager (as applicable) of the terminating
party that a majority of the Independent Representatives (as defined in Section 2.2 hereof) of such
party have determined in good faith that the terms and/or provisions of this agreement are not in
all material respects fair and consistent with the standards reasonably expected to apply in
arms-length agreements between affiliated parties; provided further,
however, that in any event either party may terminate this Agreement in its sole discretion
upon 180 days prior written notice to the other party.

     2.2 Independent Representative. For purposes of this Agreement, an “Independent
Representative” of a party shall mean:

     (i) in the case of any party with securities that are registered
pursuant to the Securities Exchange Act of 1934 and that are publicly
traded on a recognized United States securities market or exchange, any
individual that is an “Independent Director” of

-4-

 

such party for purposes of the rules of the principal United States
market or exchange on which such securities trade; and for purposes of
this item (i) a determination of the “Independent Representatives” of
such party shall mean the determination of a majority of such
Independent Directors; and

     (ii) in the case of any other party, any individual who, in the
reasonable, good-faith agreement of the parties hereto, is no less
independent of such party than would be required of an Independent
Director under the rules of the NASD, Inc.; and for purposes of this
item (ii) the parties hereto shall from time to time agree upon a group
of Independent Representatives for each party to this agreement to which
this item (ii) is applicable, and a determination of the “Independent
Representatives” of such party shall mean the determination of a
majority of such Independent Representatives.

     3. Compensation.

     3.1 Compensation Factors.

     (a) The compensation to be paid in respect of all Provided Services to be performed under this
Agreement shall be based on any and all factors that the parties hereto shall in their reasonable,
good-faith discretion consider to be relevant and appropriate under the particular circumstances,
including without limitation the fair market value of the services performed and/or the value of
the benefit received by the party for whom the services were performed, the time required in
performing such services by the officers, employees or other personnel of the performing party and
the value of such time, calculated based on the overall compensation received by such person
(including salary and benefits, etc., paid or given to such person, but excluding any stock options
or other equity-based compensation that may be granted, awarded, issued or otherwise conferred upon
such person) and an amount attributable to “overhead” to account for the additional resources, such
as rent, utilities and similar costs, associated with the performance of the Provided Services by
each party hereunder and reasonably allocable for this purpose based on common cost accounting
practices.

     (b) Each party shall require its officers, employees and other personnel who perform Provided
Services hereunder to maintain records of the time allocated (including a description of the
services rendered during such time) to each project and in connection with any ongoing services.

     (c) Prior to the date of this Agreement, the parties hereto may have performed certain of the
services contemplated hereunder. Promptly after the execution and delivery of this Agreement, each
party shall deliver to the other parties a description of all such services previously performed,
and the parties shall in good faith determine and pay the net compensation due using the factors
described in this Section 3.1.

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     3.2 Quarterly Determination of Net Payment.

     (a) On one or more mutually convenient days during the last 15 days of each October, January,
April and July, commencing January 2008, each of the parties hereto shall cause a duly authorized
representative (who need not be a Services Representative) to meet with the other party’s duly
authorized representative to (i) determine the net payment due from one party to the other for
Provided Services performed by the parties during the calendar quarter ended on the last day of the
preceding month, and (ii) prepare a report in reasonable detail with respect to the Provided
Services so performed, including the value of such services and the net payment due. At or prior
to such meetings, each party shall (if requested) furnish the other party with copies of
documentation of the time expended by its officers, employees or other personnel in performing
Provided Services during the preceding calendar quarter. The parties hereto shall, through such
meetings of their respective representatives, use their reasonable, good-faith efforts to determine
the net payments due in accordance with the factors described in Section 3.1(a) hereof.

     (b) The parties shall promptly present the report prepared pursuant to Section 3.2 hereof to
their respective Independent Representatives for their review as promptly as practicable. If the
Independent Representatives of either party raise questions or issues with respect to the report,
the parties shall cause their duly authorized representatives to meet promptly to address such
questions or issues in good faith and, if appropriate, prepare a revised report. If the report is
approved by the Independent Representatives of each party, then the net payment due as shown in the
report shall be promptly paid, but in any event not more than 30 days after approval by the
Independent Representatives; provided, however, that, the foregoing
notwithstanding, in the case of any net amounts that may be determined to be payable by FXREE, the
first payment by FXREE shall be made on the earlier to occur of the date of closing of the Rights
Offering (as hereinafter defined) and April 1, 2008. The “Rights Offering” shall have the
meaning provided such term in the Purchase Agreement (as defined in the recitals to this
Agreement).

     4. Confidentiality.

     (a) In the course of performance of the Provided Services hereunder, the parties will disclose
or deliver to each other Confidential Information (as hereinafter defined), and nothing in this
Agreement shall prohibit the possession by a party hereto of any such Confidential Information of
the other party or the use by such party of any such Confidential Information, in each case as may
be reasonably necessary in the performance by such party of the Provided Services contemplated
hereunder, subject in all events to all of the provisions set forth below in this Section 4. The
parties wish to assure that all Confidential Information is protected from unwanted disclosures.
Therefore, during the Term and for a period of two (2) years thereafter, the Receiving Party (as
hereinafter defined) shall, and shall cause all of its Representatives (as hereinafter defined) to,
keep the Confidential Information strictly confidential, not disclose any of the Confidential
Information to any person outside its organization, not exploit such Confidential Information for
its own benefit or the benefit of another, and only use the Confidential

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Information as shall be strictly necessary in the performance of the Provided Services
hereunder, unless in each case the Protected Party (as hereinafter defined) gives its express,
prior written consent to the contrary.

     (b) Without limiting the foregoing, the Receiving Party shall disclose Confidential
Information only to individuals within its organization (including legal, accounting, financial and
other professional advisers) only if such individuals have a need to know such Confidential
Information in the course of the performance of their duties and who are bound by a written
agreement or applicable codes of professional conduct to protect the confidentiality of such
Confidential Information. The Receiving Party shall promptly report to the Protected Party any
actual or suspected violation of the terms of this Section 4 and will take all reasonable further
steps requested by the Protected Party to prevent, control or remedy any such violation. In
addition, the parties acknowledge that each of the other parties is or may be a public company.
Therefore, each party shall advise each of its employees, representatives and advisors that may be
involved in performing Provided Services hereunder that the federal and state securities laws
prohibit any person who has material, non-public information about a company from purchasing or
selling securities of such a company or from communicating such information to any other person
under circumstances in which it is reasonably foreseeable that such person is likely to purchase or
sell such securities.

     (c) The obligations of the Receiving Party under this Section 4 shall not apply to the extent
that such Confidential Information:

     (i) is generally known to the public at the time of disclosure or
becomes generally known without the Receiving Party violating this
Section 4;

     (ii) is in the Receiving Party’s possession at the time of
disclosure otherwise than as a result of Receiving Party’s breach of any
legal obligation;

     (iii) becomes known to the Receiving Party through disclosure by
sources other than the Protected Party having the legal right to
disclose such Confidential Information;

     (iv) is, and can be conclusively shown to have been, independently
developed by the Receiving Party without reference to or reliance upon
the Confidential Information; or

     (v) is required to be disclosed by the Receiving Party in order
for the Receiving Party to comply with applicable laws and regulations,
provided that the Receiving Party provides prior written notice of such
required disclosure to the Protected Party.

     (d) The Receiving Party shall not by virtue of this Agreement receive any right, title or
interest in, or any license or right to use, the Confidential Information of the

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Protected Party or any patent, copyright, trade secret, trademark or other intellectual
property rights therein, by implication or otherwise.

     (e) The Receiving Party shall, upon the termination of this Agreement or the request of the
Protected Party, deliver to the Protected Party all Confidential Information of the Protected Party
(and all copies and reproductions thereof). In addition, the Receiving Party shall destroy: (i)
any notes, reports or other documents prepared by the Receiving Party which contain Confidential
Information of the Protected Party; and (ii) any Confidential Information of the Protected Party
(and all copies and reproductions thereof) which is in electronic form or cannot otherwise be
returned to the Protected Party.

     (f) Each of the parties acknowledges and agrees that money damages would not be a sufficient
remedy to any Protected Party hereunder for any breach of this Section 4 by the Recipient Party,
and that the Protected Party shall be entitled to equitable relief, including injunction and
specific performance, in the event of any breach of any of the provisions this confidentiality
agreement, without being required to post any bond or other security in connection with such
relief. Such remedies shall not be deemed to be the exclusive remedies for a breach of this
confidentiality agreement but shall be in addition to all other remedies available at law or
equity.

     (g) Each of the parties hereto acknowledges that it engages in a similar business as the other
party; namely, the exploitation of certain intellectual property rights related to Elvis Presley
and Muhammad Ali which rights are owned by CKX indirectly through its subsidiaries Elvis Presley
Enterprises, Inc. and Muhammad Ali Enterprises LLC, respectively, and are licensed by such
subsidiaries for certain purposes to FXREE.

     (h) As used herein:

     (i) “Confidential Information” means all trade secrets or
confidential or proprietary information relating to a party (as used in
this Section 4, the “Protected Party”) that may be disclosed or
delivered to, received by or discovered by another party hereto (as used
in this Section 4, the “Receiving Party”). Without limitation,
the term “Confidential Information” shall include any notes, analyses,
compilations, studies, interpretations, memoranda or other documents
prepared by or on behalf of the Receiving Party that contain, reflect or
are based upon, in whole or in part, any Confidential Information
obtained by the Receiving Party.

     (ii) “Representative” means, with respect to any Person,
the directors, officers, partners, trustees, employees, Affiliates,
subsidiaries, agents, representatives, consultants, accountants,
financial advisors, experts, legal counsel, and other advisors to such
Person.

     (iii) A “Person” means an individual, corporation, limited
partnership, general partnership, limited liability company,

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societe anonyme, association, organization, sole proprietorship, or
any other entity whatsoever, wherever formed or wherever located, or a
government (or political subdivision thereof), or governmental agency.

     (iv) An “Affiliate” means, when used with reference to a
specified Person, (i) any Person who directly or indirectly through one
or more intermediaries controls, is controlled by, or is under common
control with the specified Person, or (ii) any Person who is a member of
the immediate family of such Person.

     5. Indemnification.

     5.1 Indemnification by the Party Receiving Services.

     (a) Each party receiving Provided Services hereunder (the “Indemnifying Party”) from
the other party shall protect, indemnify and hold harmless the party performing such services, and
such performing party’s employees (including without limitation each and every employee who
actually performs such services), shareholders, officers, directors, affiliates, and subsidiaries,
and their respective successors and assigns (each, an “Indemnified Party”), from and
against any and all losses, damages, liabilities, claims, demands, causes of action and expenses of
any kind (collectively, “Losses”) arising from the performance of Provided Services for the
Indemnifying Party pursuant to this Agreement, except to the extent any such Losses resulted solely
from the gross negligence or willful misconduct of an Indemnified Party; provided,
however, that any indemnification hereunder shall be limited as provided in Section 5.3
hereof, including but not limited to Section 5.3(d) hereof. The indemnification obligations of
each Indemnifying Party under this Section 5.1 shall survive any termination of this Agreement.

     (b) If any claim shall be made or proceeding instituted (collectively, a “Claim”)
against any Indemnified Party for which indemnity will be sought pursuant to this Agreement, such
Indemnified Party shall promptly notify the Indemnifying Party in writing (an “Indemnification
Notice”). The Indemnifying Party, within ten (10) days following receipt of the
Indemnification Notice, shall retain counsel reasonably satisfactory to the Indemnified Party to
represent the Indemnified Party. The approval of counsel by the Indemnified Party shall not be
unreasonably withheld or delayed. The Indemnifying Party shall be responsible for and shall pay
the fees and disbursements of such counsel directly related to the Claim. Notwithstanding the
foregoing, any Indemnified Party shall have the right to retain its own counsel, but the fees and
disbursements of such counsel shall be at the expense of the Indemnified Party unless: (i) the
Indemnifying Party shall have failed to retain counsel as required herein, or (ii) counsel retained
by the Indemnifying Party is inappropriate due to actual or potential conflicting interests between
the Indemnified Party and any other party represented by such counsel in the Claim. The
Indemnifying Party shall not be liable for the fees and disbursements of more than one law firm
qualified to act as counsel for the Indemnified Parties in connection with a Claim.

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     (c) The Indemnifying Party shall not be liable for payment of any settlement of a Claim
without the Indemnifying Party’s prior written consent. The Indemnified Party also shall have the
right to consent in writing prior to settlement of a Claim involving the Indemnified Party, but
such consent shall not be unreasonably withheld or delayed by the Indemnified Party.

     5.2 Indemnification by the Party Performing Services. Each party performing Provided
Services hereunder (the “Performing Party”) for the other party shall protect, indemnify
and hold harmless the other party from and against any and all Losses arising from the gross
negligence or willful misconduct of the Performing Party or any of its officers, employees or other
representatives in the performance of Provided Services for the other party pursuant to this
Agreement; provided, however, that any indemnification hereunder shall be limited
as provided in Section 5.3 hereof, including but not limited to Section 5.3(d) hereof. The
indemnification obligations of the Performing Party under this Section 5.2 shall survive any
termination of this Agreement. All of the provisions of Section 5.1(b) hereof shall apply,
mutatis mutandis (with the Performing Party for purposes of this Section 5.2 deemed
to be equivalent to the Indemnifying Party under Section 5.1(b) for this purpose), to the
indemnifications obligations of the Performing Party under this Section 5.2.

     5.3 Certain Limitations.

     (a) In no event shall a party, or its employees, shareholders, officers, directors,
affiliates, and subsidiaries, and successors and assigns, be liable or responsible for any
inability, failure or delay to provide Provided Services hereunder resulting from the delay,
incompleteness or inaccuracy of records, data or information furnished by the requesting party or
any deficiency of assets transferred by the requesting party to the performing party.

     (b) In no event shall a party, or its employees, shareholders, officers, directors,
affiliates, and subsidiaries, and successors and assigns, be liable or responsible, whether in
contract, tort (including negligence), warranty, strict liability or any other legal theory for any
special, indirect, incidental or consequential damages of any nature (including without limitation
any lost profits) in connection with the Provided Services provided pursuant to this Agreement.

     (c) Except as expressly set forth in this Agreement, no warranties, representations,
indemnities or guarantees with respect to the Provided Services to be performed hereunder are made
by either party, whether express or implied, or arising by law, custom or otherwise.

     (d) Anything to the contrary notwithstanding, in any claim for indemnification hereunder, no
party shall be entitled to recover from any other party hereunder any amount in excess of the sum
of (i) the amount of insurance recoverable and ultimately recovered by the indemnifying party in
respect of the act, omission, fact, event or circumstances on which the claim for indemnification
was based and (ii) the amount, if any, actually paid (or deemed to be paid by virtue of any
quarterly determinations of net

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payments) by the indemnified party to the indemnifying party in respect of the Provided
Services performed in connection with the act, omission, fact, event or circumstances on which the
claim for indemnification was based.

     5.4 Adequate Insurance.

     (a) Concurrently with the execution and delivery of this Agreement, each party is furnishing
to the other party a certificate of insurance demonstrating that the furnishing party has one or
more policies, from reputable and solvent United States insurers, of liability, property, casualty
and or other insurance coverage with respect to its performance of the Provided Services hereunder.
Each party furnishing such a certificate of insurance hereby represents, warrants and covenants to
the other party that the furnishing party has in full force and effect all such insurance described
in such certificate of insurance, and shall at all time during the Term maintain such insurance in
full force and effect. Each party shall upon request of the other party from time to time promptly
deliver to the requesting party a certificate of insurance demonstrating its compliance with the
covenant set forth in the preceding sentence.

     (b) Each party hereto hereby represents, warrants and covenants to the other party hereto that
the party has examined the certificate of insurance furnished by the other party and that the
coverage, coverage amount limits, deductibles and other terms and conditions described in such
certificate of insurance appear to be adequate, reasonable and appropriate in connection with the
performance by the furnishing party of the Provided Services hereunder.

     6. Miscellaneous.

     6.1 Notices. Any notice or communication of any kind to any party hereto (or to such
party’s Services Representatives) in connection with this Agreement shall be at the address of such
party set forth below, or to such other mailing address of which such party shall advise the other
party in writing:

If to FXREE, to:

FX Real Estate and Entertainment Inc.

650 Madison Avenue, 16th Floor

New York, New York 10022

Facsimile No.: (212) 319-6517

Attention:                     

If to CKX or 19X, to:

CKX, Inc.

650 Madison Avenue, 16th Floor

New York, New York 10022

Facsimile No.: (212) 319-6517

Attention: Howard J. Tytel, Esq.

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Any notice hereunder shall be in writing and shall be deemed to have been duly given if personally
delivered, sent by overnight courier or sent by United States mail, or by facsimile transmission,
and will be deemed received, unless earlier received, (i) if sent by certified or registered mail,
return receipt requested, when noted as received by the Postal Service, (ii) if sent by overnight
courier, when actually received, (iii) if sent by facsimile transmission (which transmission is
confirmed), on the date confirmed by the sending machine, and (iv) if delivered by hand, on the
date of receipt.

     6.2 Amendments. This Agreement may not be modified, amended, altered or supplemented,
except by a written agreement executed by each of the parties hereto.

     6.3 Waiver. Any waiver by a party hereto of any breach of or failure to comply with
any provision or condition of this Agreement by another party hereto shall not be construed as, or
constitute, a continuing waiver of such provision or condition, or a waiver of any other breach of,
or failure to comply with, any other provision or condition of this Agreement, any such waiver to
be limited to the specific matter and instance for which it is given. No waiver of any such breach
or failure or of any provision or condition of this Agreement shall be effective unless in a
written instrument signed by the party granting the waiver and delivered to the other party hereto
in the manner provided for in Section 6.1 hereof. No failure or delay by any party to enforce or
exercise its rights hereunder shall be deemed a waiver hereof, nor shall any single or partial
exercise of any such right or any abandonment or discontinuance of steps to enforce such rights,
preclude any other or further exercise thereof or the exercise of any other right

     6.4 Agreement Binding Upon Successors and Assigns. This Agreement shall be binding
and inure to the benefit of the parties hereto and to their respective successors, but the rights
and obligations of the parties hereunder shall not be assignable, transferable or delegable except
as may be permitted by the express provisions hereof (including without limitation Section 1.4(b)
hereof), and any attempted assignment, transfer or delegation thereof which is not made in
accordance with such express provisions shall be void.

     6.5 Severability. If any provision of this Agreement or the application of any such
provision to any person or entity or to any circumstance shall be held invalid, the remainder of
this Agreement or the application of such provision to persons or entities or to such circumstances
other than those to which it is held invalid shall not be affected thereby.

     6.6 Costs and Expenses. Except as otherwise provided herein, each party shall bear
the costs and expenses incurred by it in connection with the performance of its duties pursuant to
this Agreement.

     6.7 Arbitration. Except as may be otherwise expressly provided in this Agreement
(including without limitation Section 6.9 hereof), any dispute or controversy between the parties
arising out of this Agreement shall be submitted to a mutually-agreed upon JAMS arbitrator pursuant
to the American Arbitration Association’s Expedited

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Procedures for arbitration in New York, New York. The costs of the arbitration, including any
administration fee, the arbitrator’s fee, and costs for the use of facilities during the hearings,
shall be borne equally by the parties to the arbitration. Attorneys’ fees may be awarded to the
prevailing or most prevailing party at the discretion of the arbitrator. The arbitrator shall not
have any power to alter, amend, modify or change any of the terms of this Agreement nor to grant
any remedy that is either prohibited by the terms of this Agreement, or not available in a court of
law. The arbitrator shall issue a written reasoned award and decision that shall be consistent with
and supported by the facts and the law within 90 days from the date the arbitration proceedings are
initiated. Judgment on the award of the arbitrator may be entered in any court referred to in
Section 6.9 hereof.

     6.8 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties to this Agreement in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same
Agreement.

     6.9 Governing Law; Forum for Certain Purposes. This Agreement is to be governed by
and construed in accordance with the laws of the State of New York other than any conflicts of laws
principles thereof that would result in the application of the laws of any other jurisdiction. Any
part (and only that part) of any dispute or controversy between the parties arising out of this
Agreement that involves a party seeking an injunction, restraining order or other equitable relief,
or the enforcement of an arbitration award, shall be brought in and resolved exclusively in the
state or federal courts sitting in the State of New York and the parties hereto hereby waive and
covenant not to raise any claim or defense that such forum is not convenient or proper. Each party
hereby agrees that any such court shall have im personam jurisdiction over it with respect to the
matters described in the preceding sentence, consents to service of process pursuant to the notice
provisions of Section 6.1 hereof or in any other manner that may be authorized by New York law, and
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner specified by law.

     6.10 Entire Agreement. This Agreement contains the entire understanding and agreement
of the parties relating to the subject matter hereof and supersedes all prior and/or
contemporaneous understandings and agreements of any kind and nature (whether written or oral)
among the parties with respect to such subject matter, all of which are merged herein.

     6.11 Headings. The section headings contained in this Agreement are inserted for
reference purposes only and shall not affect in any way the meaning, construction or interpretation
of this Agreement. Any reference to the masculine, feminine, or neuter gender shall be a reference
to such other gender as is appropriate. References to the singular shall include the plural and
vice versa

     6.12 Drafting History. This Agreement shall be construed and interpreted without
regard to any presumption against the party causing this Agreement to be drafted. The parties
acknowledge that this Agreement was negotiated and drafted with each party

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being represented by competent counsel of its choice and with each party having an equal
opportunity to participate in the drafting of the provisions hereof and shall therefore be
construed as if drafted jointly by the parties.

     6.13 Relationship of the Parties. Each of the parties shall be performing Provided
Services hereunder only as an independent contractor, and under no circumstances shall either
party, or any of its employees, agents or subcontractors, be deemed employees, partners, agents or
joint venturers of the other Party. Nothing in this Agreement and no action taken by the parties
under this Agreement shall be construed to create a joint venture, trust, partnership or agency
relationship, or any other association of any kind, between the parties. Neither party shall act
or represent or hold itself out as having authority to act as an agent or partner of the other
party, or in any way bind or commit the other party to any obligations.

     6.14 No Third Party Beneficiary. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon
any other Person other than a Person entitled to indemnity under Section 5 hereof.

[The remainder of this page is intentionally blank.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective as
of the date and year first above written.

	 	 	 	 	 
	 	FX REAL ESTATE AND

ENTERTAINMENT INC.

 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CKX, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	19X, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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SCHEDULE A

LIST OF ADMINISTRATIVE SERVICES

     1. Management and related executive services, either with respect to specific projects,
ongoing services in specific areas or with respect to a party’s general business and operations.

     2. Accounting and bookkeeping services, including without limitation services relating to:
the establishment of accounting procedures, controls and systems; the keeping of books, records and
accounts; the preparation of financial statements and the coordination of the audit and review
financial statements; and preparation and filing of tax returns.

     3. Legal counsel services and related support.

     4. Finance services, including: establishing and maintaining deposit accounts and investments
in banks and other financial institutions; and deposit, control, investment, payment and handling
of funds.

     5. Employment services, including: administer payroll and personnel services; establish and
administer employee insurance and other benefits; establish and manage human resources programs
including hiring and training.

     6. General administrative services.

Schedule A

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