Document:

exv10w1

EXHIBIT
10.1

DATED   January 2010

(1) 19 ENTERTAINMENT LIMITED

and

(2) SIMON ROBERT FULLER

 

CONSULTANCY DEED

 

Paul, Hastings, Janofsky & Walker (Europe) LLP

Solicitors and Registered Foreign Lawyers

Ten Bishops Square

Eighth Floor

London E1 6EG

Telephone: 020 3023 5100

Fax: 020 3023 5109

Ref: CB/09092.00005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.
	 	INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	TERM OF ENGAGEMENT	 	 	3	 
	 
	 	 	 	 	 	 
	3.
	 	DUTIES	 	 	3	 
	 
	 	 	 	 	 	 
	4.
	 	FEES	 	 	4	 
	 
	 	 	 	 	 	 
	5.
	 	EXPENSES	 	 	5	 
	 
	 	 	 	 	 	 
	6.
	 	OTHER ACTIVITIES	 	 	5	 
	 
	 	 	 	 	 	 
	7.
	 	CONFIDENTIAL INFORMATION AND COMPANY PROPERTY	 	 	5	 
	 
	 	 	 	 	 	 
	8.
	 	DATA PROTECTION	 	 	6	 
	 
	 	 	 	 	 	 
	9.
	 	INTELLECTUAL PROPERTY	 	 	6	 
	 
	 	 	 	 	 	 
	10.
	 	INSURANCE AND LIABILITY	 	 	8	 
	 
	 	 	 	 	 	 
	11.
	 	TERMINATION	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	OBLIGATION UPON TERMINATION	 	 	9	 
	 
	 	 	 	 	 	 
	13.
	 	STATUS, INDEMNITY AND REIMBURSEMENT	 	 	10	 
	 
	 	 	 	 	 	 
	14.
	 	NOTICES	 	 	10	 
	 
	 	 	 	 	 	 
	15.
	 	ENTIRE AGREEMENT AND PREVIOUS CONTRACTS	 	 	11	 
	 
	 	 	 	 	 	 
	16.
	 	VARIATION	 	 	11	 
	 
	 	 	 	 	 	 
	17.
	 	COUNTERPARTS	 	 	11	 
	 
	 	 	 	 	 	 
	18.
	 	THIRD PARTIES	 	 	11	 
	 
	 	 	 	 	 	 
	19.
	 	GOVERNING LAW AND JURISDICTION	 	 	12	 
	 
	 	 	 	 	 	 
	SCHEDULE            SERVICES AND FEES	 	 	13	 

- -

 

THIS
CONSULTANCY DEED is made on January 2010

BY:

	(1)	 	19 ENTERTAINMENT LIMITED, (Company number 01886042) whose registered office is at 100 New
Bridge Street, London, EC4V 6JA (the “Company”); and
	 
	(2)	 	SIMON ROBERT FULLER of 19 The Mall, East Sheen, London, SW14 7EN (the “Consultant”).

BACKGROUND

The Consultant created the television format “Pop Idol” (including “American Idol” and
other versions), co-created the television format “So You Think You Can Dance” and created
the internet project “If I Can Dream”. Prior to the date hereof the Consultant has acted
as executive producer, supervised the creative direction and overseen the commercial
exploitation of these formats and projects on behalf of the Company and the Company and the
Consultant have agreed to terminate the Consultant’s employment with the Company. Now, the
Company desires to retain access to the Consultant’s skill, talent and experience, and
wishes to enter into this Deed to provide for the supervision of these formats and projects
upon the terms set out in this Deed.

AGREED TERMS

1. INTERPRETATION

	 	1.1	 	The definitions and rules of interpretation in this clause apply in this Deed (unless
the context requires otherwise).
	 
	 	 	 	“Advance” means each non-returnable sum referred to in paragraph 2.3 of the Schedule to
this Deed.
	 
	 	 	 	“Board” means the board of directors of the Company (including any committee of the board
duly appointed by it).
	 
	 	 	 	“Budget” means an annual budget with respect to each element of each of the Programmes, as
determined by the Company.
	 
	 	 	 	“Business Opportunities” means any opportunities which the Consultant conceptualizes,
develops, creates or becomes aware of during the Engagement which relate to the business of
the Company or any Group Company or to the Programmes or other Intellectual Property Rights
of the Company or any Group Company.

 

 

	 	 	 	“Capacity” means as agent, consultant, director, employee, owner, partner, shareholder or
in any other capacity.
	 
	 	 	 	“Commencement Date” means January 2010.
	 
	 	 	 	“Confidential Information” means information (whether or not recorded in documentary form,
or stored on any magnetic or optical disk or memory) relating to the business, products,
affairs and finances of the Company or any Group Company for the time being confidential to
the Company or any Group Company and trade secrets including, without limitation, technical
data and know-how relating to the business of the Company or of any Group Company or any of
its or their business contacts.
	 
	 	 	 	“Engagement” means the engagement of the Consultant by the Company on the terms of this
Deed.
	 
	 	 	 	“Executive Producer” means the supervision of all aspects of the creation and exploitation
of the Programmes, consistent with the Consultant’s previous practice when acting as an
executive producer of and managing the exploitation of the Programmes.
	 
	 	 	 	“Fee” is as defined in clause 4 of this Deed and in clause 2 of the Schedule.
	 
	 	 	 	“Group Company” means any one of CKX, Inc. and the Company, and their respective
subsidiaries, holding companies or any subsidiary of a holding company (in each case as
defined by the Companies Act 2006) and the “Group” has the corresponding meaning.
	 
	 	 	 	“Idol” means the television format “Pop Idol” and all overseas versions of the format
(including, without limitation, “American Idol”), all programmes based on the format, all
ancillary exploitation of the format (including all format, programme and artist related
recording, touring, management, merchandising and sponsorship opportunities) and all other
business opportunities using Intellectual Property Rights associated with Idol.
	 
	 	 	 	“If I Can Dream” means the internet project scheduled to begin production in 2010 currently
entitled “If I Can Dream”, all ancillary exploitation of the project (including all project
and talent related recording, touring, management, merchandising and sponsorship
opportunities) and all other business opportunities using Intellectual Property Rights
associated with If I Can Dream.
	 
	 	 	 	“Intellectual Property Rights” means patents, rights to Inventions, copyright and related
rights, trade marks, trade names and domain names, rights in get-up, rights in goodwill or
to sue for passing off, rights in designs, rights in computer software, database rights,
rights in confidential information (including know-how and trade secrets) and any other
intellectual property rights, in each case whether registered or unregistered and including
all applications (or rights to apply) for,

 

 

	 	 	 	and renewals or extensions of, such rights and all similar or equivalent rights or forms of
protection which may now or in the future exist in any part of the world.
	 
	 	 	 	“Invention” means any invention, discovery, development, improvement or innovation made by
the Consultant in connection with or during the provision of the Services, whether or not
patentable or capable of registration, and whether or not recorded in any medium.
	 
	 	 	 	“Net Profits” means total revenue received by the Group Companies from the Programmes less
(i) actual operating expenses from the Programmes (including direct costs of all Group
Company employees assigned to such projects consistent with historical practice and
budgets); (ii) a fair and reasonable allocation of Group Company overhead relating to
services and employees provided in respect of the Programmes based on the proportion of
employees at a given location providing services on behalf of the Programmes to the total
number of employees at such location; (iii) a fair and reasonable allocation of Group
Company employees’ salaries and costs relating to services provided in respect of the
Programmes; (iv) a fair and reasonable amortization charge for any unrecouped historical
development costs in connection with If I Can Dream such costs to be amortized in 5 equal
amounts over a 5 year period. With respect to the determination of Net Profits relating to
Idol, it is acknowledged that operating expenses will include (x) a charge for each of
2010, 2011 and 2012 of $15 million less an amount equal to the amount that the Fox
Broadcasting Company or American Idol Productions, Inc. pays to any Group Company in
relation to the services of Ryan Seacrest as a host of “American Idol” for each such year;
and (y), a charge for each of 2010, 2011 and 2012 equal to the amount of travel costs paid
by any Group Company for the services of Ryan Seacrest on “American Idol” less any amount
reimbursed to any Group Company by any third party. In calculating Net Profits, the
amortization charges or other costs incurred in relation to If I Can Dream shall not reduce
Net Profits in relation to Idol or So You Think You Can Dance. In calculating Net Profits
payments of advances or Fee to the Consultant shall not be treated as operating expenses or
otherwise deducted from total revenue.
	 
	 	 	 	“Pre-Contractual Statement” means any undertaking, promise, assurance, statement,
representation. warranty or understanding (whether in writing or not) of any person
(whether party to this Deed or not) relating to the Engagement other than as expressly set
out in this Deed or any documents referred to in it.
	 
	 	 	 	“Programmes” means Idol, So You Think You Can Dance and If I Can Dream including all
format, project, programme, artist and talent related ancillary exploitations thereof for
which the Company or any Group Company receives remuneration (e.g. touring, recording,
management, sponsorship, merchandise, and licensing).
	 
	 	 	 	“Services” means non-exclusive services as Executive Producer and non-exclusive services to
be provided by the Consultant in a consultancy capacity for

 

 

	 	 	 	the Company or any Group Company as more particularly described in the Schedule.
	 
	 	 	 	“So You Think You Can Dance” means the television format “So You Think You Can Dance” and
all overseas versions of the format, all programmes based on the format, all ancillary
exploitation of the format (including all format, programme and talent related recording,
touring, management, merchandising and sponsorship opportunities) and all other business
opportunities using Intellectual Property Rights associated with So You Think You Can
Dance.
	 
	 	 	 	“Termination Date” means the date of termination of this Deed howsoever arising.
	 
	 	 	 	“Treaty” means the Convention between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and Northern Ireland for the
Avoidance of Double Taxation and the Prevention of Fiscal Earnings with respect to Income
and Capital gains.
	 
	 	 	 	“Works” means all records, reports, documents, papers, drawings, designs, transparencies,
photos, graphics, logos, typographical arrangements, software programs, inventions, ideas,
discoveries, developments, improvements or innovations and all materials embodying them in
whatever form, including but not limited to hard copy and electronic form, prepared by the
Consultant in connection with the Programmes during the provision of the Services.

	 	1.2	 	The headings in this Deed are inserted for convenience only and shall not affect its
construction.
	 
	 	1.3	 	A reference to a particular law is a reference to it as it is in force for the time
being taking account of any amendment, extension, or re-enactment and includes any
subordinate legislation for the time being in force made under it.
	 
	 	1.4	 	A reference to one gender includes a reference to the other gender.
	 
	 	1.5	 	The schedule(s) to this Deed form part of (and are incorporated into) this Deed.

2. TERM OF ENGAGEMENT

	 	2.1	 	The Company shall engage the Consultant and the Consultant shall provide the Services
on the terms of this Deed.

	2.2	 	In relation to the Executive Producer services, the Engagement shall be deemed to have
commenced on the Commencement Date and (unless terminated earlier pursuant to Clause 11 below)
shall continue in relation to each Programme for the life of that Programme, the Consultant
being “locked for life” in respect of each Programme, except to the extent that this Deed is
terminated in accordance with the terms hereof.

 

 

	2.3	 	In relation to the Services other than Executive Producer services, the Engagement shall be
deemed to have commenced on the Commencement Date and continue for a period of 6 months.

3. DUTIES

	 	3.1	 	During the Engagement the Consultant shall:

	 	(a)	 	provide the Services with all due care, skill and ability and use his best
endeavours to promote the interests of the Company and any Group Company in respect of
the Programmes; and
	 
	 	(b)	 	promptly give to the Board all such information and reports as it may reasonably
require in connection with matters relating to the provision of the Services or the
business of the Company and any Group Company in relation to the Programmes.

	 	3.2	 	If the Consultant is unable to provide the Services due to illness or injury he shall
advise the Company of that fact as soon as reasonably practicable and shall provide such
evidence of his illness or injury as the Company may reasonably require.
	 
	 	3.3	 	The Consultant shall comply with all reasonable standards of safety and comply with the
Company’s health and safety procedures from time to time in force at the premises where the
Services are provided and report to the Company any unsafe working conditions or practices.
	 
	 	3.4	 	The Consultant undertakes to the Company that during the Engagement he shall take all
reasonable steps to offer (or cause to be offered) to the Company any Business
Opportunities in respect of the Programmes or any Intellectual Property Rights of the Group
Companies as soon as practicable after the same shall have come to his knowledge and in any
event before the same shall have been offered by the Consultant (or caused by the
Consultant to be offered) to any other party provided that nothing in this clause shall
require the Consultant to disclose any Business Opportunities to the Company if to do so
would result in a breach by the Consultant of any obligation of confidentiality or of any
fiduciary duty owed by him to any other person, firm or company. Notwithstanding the
foregoing, the Consultant shall be permitted to produce a movie (and any subsequent
prequels or sequels) based on the life and times of Elvis Presley, subject to the
Consultant’s entry into definitive documentation with the Company or any Group Company, as
appropriate, regarding appropriate licensing of any Group Company’s Intellectual Property
Rights related to Elvis Presley to be used in such movie (and any subsequent prequels or
sequels).
	 
	 	3.5	 	The Consultant may use another person, firm, company or organisation to perform any
administrative, clerical or secretarial functions which are reasonably incidental to the
provision of the Services provided that the

 

 

	 	 	 	Company will not be liable to bear the cost of such functions. The Company will bear
the cost of the Consultant working with any Company professional advisor or agent in
relation to the Programmes to the extent that the retention and use of such professional
or agent is approved by the Company.

	 	3.6	 	The Consultant shall not (and shall use reasonable endeavours to ensure that his agents
and employees shall not):

	 	(a)	 	make or publish any statement to a third party (including but
not limited to any journalists or other persons connected in any way with the
media, any clients, customers, employees or ex-employees of any Group Company)
concerning the terms of this Agreement; or
	 
	 	(b)	 	make or publish any derogatory or disparaging statement or do
anything in relation to any Group Company or any members, partners, directors,
officers, employees, ex-employees, clients, customers or agents of any other
Group Company which is intended to or which might be expected to damage or
lower their respective reputations,

	 	 	 	provided that the parties will not be prevented from making a disclosure:

	 	3.6.b.1 	 	 for the purposes of seeking legal or other professional advice
from an adviser in relation to this Agreement provided that any
such adviser is bound by the same duty of confidence;
	 
	 	3.6.b.2  	 	to the proper authorities as required by law;
	 
	 	3.6.b.3  	 	in the case of the Consultant, to an immediate family member,
provided such person agrees to maintain confidentiality on the
same terms; or
	 
	 	3.6.b.4  	 	to confirm the authority of the Consultant.

	 	3.7	 	The Consultant warrants that he has not done or failed to do anything of
which the Company is unaware, including, without limitation, published any statement
or authorised or permitted anyone else to do so prior to the date of this Agreement,
which would constitute a breach of clause 3.6 if it had occurred after the date of
this Agreement.

4. FEES

	 	4.1	 	In consideration of the Services to be provided by the Consultant under this Agreement,
the Company shall pay the Consultant (i) a non-returnable and non-recoupable signing fee on
the date hereof in the amount £250,000 and (ii) the fee set out in the Schedule attached
hereto (the “Fee”).

 

 

	 	4.2	 	The Company shall be entitled to deduct from the Fee (and any other sums) due to the
Consultant any sums that the Consultant may owe to the Company or any Group Company at any
time.

5. EXPENSES

	 	5.1	 	The Consultant hereby acknowledges and agrees that from time to time the Services will
require that he will travel, including travel necessary to attend meetings relating to the
Programmes with third party partners, contractual counterparties or other parties,
including the Company. The Consultant acknowledges that the Company’s policies regarding
the pre-booking and documentation of travel arrangements and expenses for which
reimbursement may be sought by the Consultant (which policies and procedures may from time
to time be changed by the Company). The Consultant agrees that he will comply with the
Company’s policies and procedures in this regard and that any reimbursement due hereunder
shall be requested by the Consultant not later than two months after being incurred.
	 
	 	5.2	 	The Company agrees that when the Services reasonably require that the Consultant
travel, the Consultant shall be entitled to first class flights, first class hotel suite
accommodation when traveling to a destination where the Consultant does not have a
residence, private car service, private air travel within North America and within Europe;
provided however, that any travel costs to be reimbursed hereunder shall be
fairly allocated between the Services and to any other business not related to the Company,
that the Consultant may be undertaking at the time of such travel. Private air travel
between North America and Europe shall be approved by the Company on a case by case basis.
	 
	 	5.3	 	If the Consultant is required to travel abroad in connection with the provision of the
Services, he shall be responsible for any necessary insurances, inoculations and
immigration requirements.

6. OTHER ACTIVITIES

	 	 	 	Nothing in this Deed shall prevent the Consultant from being engaged, concerned or having
any financial interest in any Capacity in any other business, trade, profession or
occupation during the Engagement provided that such activity does not cause a breach of any
of the Consultant’s obligations under this Deed.

7. CONFIDENTIAL INFORMATION AND COMPANY PROPERTY

	 	7.1	 	The Consultant acknowledges that in the course of the Engagement he will have access to
Confidential Information. The Consultant has therefore agreed to accept the restrictions in
this clause.
	 
	 	7.2	 	The Consultant shall not (except in the proper course of his duties) either during the
Engagement or at any time after the Termination Date, use or

 

 

	 	 	 	disclose to any firm, person or company (and shall use his best endeavours to prevent
the publication or disclosure of) any Confidential Information. This restriction does
not apply to:

	 	(a)	 	any use or disclosure authorised by the Company or required by law; or
	 
	 	(b)	 	any information which is already in, or comes into, the public domain otherwise
than through the Consultant’s unauthorised disclosure; or
	 
	 	(c)	 	information which the Consultant reasonably determines is necessary or required
to be shared with the Company’s business partners in the Programmes; or
	 
	 	(d)	 	information disclosed to the Company’s or the Consultant’s professional
advisors on a confidential basis.

	 	7.3	 	All documents, manuals, hardware and software provided for the Consultant’s use by the
Company, and any data or documents (including copies) produced, maintained or stored on the
Company’s computer systems or other electronic equipment (including mobile phones provided
by the Company), remain the property of the Company.

8. DATA PROTECTION

	8.1	 	The Consultant consents to the Company and any Group Company holding and processing data
relating to him for legal, personnel, administrative and management purposes and in particular
to the processing of any “sensitive personal data” (as defined in the Data Protection Act
1998) relating to the Consultant.
	 
	8.2	 	The Consultant consents to the Company making such information available to, and the transfer
of such information outside the European Economic Area to, any Group Company for legal,
personnel, administrative and management purposes.

9. INTELLECTUAL PROPERTY

	 	9.1	 	The Consultant hereby assigns to the Company all future Intellectual Property Rights in
the Works and the Inventions and all materials embodying such rights to the fullest extent
permitted by law. Insofar as they do not so vest automatically by operation of law or under
this Deed, the Consultant holds legal title in such rights and inventions on trust for the
Company.
	 
	 	9.2	 	The Consultant undertakes:

	 	(a)	 	to notify to the Company in writing full details of all Works and Inventions
promptly on their creation;
	 
	 	(b)	 	to keep confidential the details of all Inventions;

 

 

	 	(c)	 	whenever requested to do so by the Company and in any event on the termination of
the Engagement, promptly to deliver to the Company all correspondence, documents, papers
and records on all media (and all copies or abstracts of them), recording or relating to
any part of the Works and the process of their creation which are in his possession,
custody or power;
	 
	 	(d)	 	not to register nor attempt to register any of the Intellectual Property Rights
in the Works, nor any of the Inventions, unless requested to do so by the Company; and
	 
	 	(e)	 	to do all acts necessary to confirm that absolute title in all Intellectual
Property Rights in the Works and the Inventions has passed, or will pass, to the
Company.

	 	9.3	 	The Consultant warrants that:

	 	(a)	 	save where the Work or Invention is incorporated into one of the Programmes he
will not give permission to any third party to use any of the Works or the Inventions,
nor any of the Intellectual Property Rights in the Works; and
	 
	 	(b)	 	the use of the Works or the Intellectual Property Rights in the Works by the
Company will not infringe the rights of any third party.

	 	9.4	 	The Consultant waives any moral rights in the Works to which he may at any future time
be entitled under Chapter IV of the Copyright Designs and Patents Act 1988 or any similar
provisions of law in any jurisdiction, including (but without limitation) the right to be
identified, the right of integrity and the right against false attribution, and agrees not
to institute, support, maintain or permit any action or claim to the effect that any
treatment, exploitation or use of such Works or other materials, infringes the Consultant’s
moral rights; provided that nothing contained in this clause shall prevent the Consultant
receiving his “Created by..” credits or Executive Producer credits on the Programmes.
	 
	 	9.5	 	The Consultant acknowledges that no further remuneration or compensation other than
that provided for in this Deed is or may become due to the Consultant in respect of the
performance of his obligations under this clause.
	 
	 	9.6	 	The Consultant undertakes, at the expense of the Company, at any time either during or
after the Engagement, to execute all documents, make all applications, give all assistance
and do all acts and things as may, in the opinion of the Company, be necessary or desirable
to vest the Intellectual Property Rights in, and register or obtain patents or registered
designs in, the name of the Company and to defend the Company against claims that works
embodying Intellectual Property Rights or Inventions infringe third party rights, and
otherwise to protect and maintain the Intellectual Property Rights in the Works and the
Inventions.

 

 

	 	9.7	 	The Consultant hereby irrevocably appoints the Company to be his attorney to execute
and do any such instrument or thing and generally to use his name for the purpose of giving
the Company or its nominee the benefit of this clause and acknowledges in favour of a
third party that a certificate in writing signed by any director or the secretary of the
Company that any instrument or act falls within the authority conferred by this clause
shall be conclusive evidence that such is the case.

10. [INTENTIONALLY OMITTED]

11. TERMINATION

	 	11.1	 	Notwithstanding the provisions of clause 2.2, the Company may terminate the Engagement
with immediate effect without notice and without any liability to make any further payment
to the Consultant (including the Fee, compensation or damages, other than in respect of
amounts accrued prior to the Termination Date) if at any time the Consultant:

	 	(a)	 	is guilty of gross misconduct affecting the business of the Company or any Group
Company; or
	 
	 	(b)	 	commits any serious breach of the Consultant’s obligations under this Deed,
including failure to perform the Services as set forth herein, and fails to remedy such
breach within 30 days after receipt of notice from the Company specifying the breach and
requiring remedy of the same; or
	 
	 	(c)	 	is convicted of any criminal offense (other than an offense under any road
traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial
penalty is imposed); or
	 
	 	(d)	 	is declared bankrupt or makes any arrangement with or for the benefit of his
creditors or has a county court administration order made against him under the County
Court Act 1984; or
	 
	 	(e)	 	is unable (including by reason of illness or accident) to provide the Services
for an aggregate period of 160 working days in any 52 week period; or
	 
	 	(f)	 	is guilty of any fraud or dishonesty or brings the Company or any Group Company
into disrepute.

	 	11.2	 	This Agreement may also be terminated (i) by the Company as provided in Clause 2.4 of
the Fee Schedule attached hereto, and (ii) by the Consultant with respect to certain
Services as provided in Clause 2.3 of the Fee Schedule attached hereto.
	 
	 	11.3	 	The rights of the Company under clause 11.1 are without prejudice to any other rights
that it might have at law to terminate the Engagement or to accept any breach of this Deed
on the part of the Consultant as having brought the

 

 

	 	 	 	deed to an end. Any delay by the Company in exercising its rights to terminate shall not
constitute a waiver thereof.
	 
	 	11.4	 	The Consultant shall have the right to terminate this Agreement with effect from 31 December
2010 by notice served on the Company at any time between 1 November 2010 and 15 December 2010,
PROVIDED THAT this right of termination shall not be exercisable if CKX, Inc. has exercised
its option to acquire shares in XIX Entertainment Limited pursuant to the option agreement
between CKX, Inc., the Consultant and XIX Entertainment Limited dated January 2010.

12. OBLIGATIONS UPON TERMINATION

	 	12.1	 	On the Termination Date the Consultant shall:

	 	(a)	 	immediately deliver to the Company all documents, books, materials, records,
correspondence, papers and information (on whatever media and wherever located) relating
to the business or affairs of the Company or any Group Company or its or their business
contacts, any keys, and any other property of the Company or any Group Company, which is
in his possession or under his control;
	 
	 	(b)	 	irretrievably delete any information relating to the business of the Company or
any Group Company stored on any magnetic or optical disk or memory and all matter
derived from such sources which is in his possession or under his control outside the
premises of the Company; and
	 
	 	(c)	 	provide a signed statement that he has complied fully with his obligations under
this clause.

	 	12.2	 	Following the Termination Date, the Company shall remain obligated to pay any Fee or other
amounts payable hereunder that are accrued and due and payable to the Consultant prior to the
Termination Date.

13. STATUS, INDEMNITY AND REIMBURSEMENT

	 	13.1	 	The relationship of the Consultant to the Company will be that of independent
contractor and nothing in this Deed shall render him or any person, firm, company or
organization used by the Consultant pursuant to Clause 3.6 of this Deed an employee,
worker, agent or partner of the Company and neither the Consultant nor any person used by
the Consultant pursuant to Clause 3.6 of this Deed shall hold himself out as such.
	 
	 	13.2	 	This Deed constitutes a contract for the provision of services and not a contract of
employment and accordingly the Consultant shall be fully responsible for

 

 

	 	 	 	and shall indemnify and keep indemnified the Company and any Group Company for and in
respect of:

	 	(a)	 	any sums in respect of income tax or employee’s National Insurance (excluding
penalties and interest) connected with the payments made hereunder that the Company is
obliged to account to any tax authority for to the extent that those sums are due and
have not been paid by the Consultant under self assessment; and
	 
	 	(b)	 	any liability for any employment-related claim or any claim based on worker
status (including reasonable costs and expenses) brought by the Consultant against the
Company arising out of or in connection with the provision of the Services, except where
such claim is as a result of any act or omission of the Company.

	 	13.3	 	The Company may at its option satisfy such indemnity (in whole or in part) by way of
deduction from payments due to the Consultant.

14. NOTICES

	 	14.1	 	Any notice given under this Deed shall be in writing and signed by or on behalf of the
party giving it and shall be served by delivering it personally, or sending it by prepaid
recorded delivery or registered post to the relevant party at (in the case of the Company)
its registered office for the time being and (in the case of the Consultant) his last known
address or by sending it by fax to the fax number notified by the relevant party to the
other party. Any such notice shall be deemed to have been received:

	 	(a)	 	if delivered personally, at the time of delivery;
	 
	 	(b)	 	in the case of pre-paid recorded delivery or registered post, 48 hours from the
date of posting;
	 
	 	(c)	 	in the case of fax, at the time of transmission.

	 	14.2	 	In proving such service it shall be sufficient to prove that the envelope containing
such notice was addressed to the address of the relevant party and delivered either to that
address or into the custody of the postal authorities as a pre-paid recorded delivery or
registered post or that the notice was transmitted by fax to the fax number of the relevant
party).

15. ENTIRE AGREEMENT AND PREVIOUS CONTRACTS

	 	 	 	Each party on behalf of itself acknowledges and agrees with the other party that:

	 	(a)	 	this Deed together with any documents referred to in it constitutes the entire
agreement and understanding between the Consultant and the Company relating to the
Engagement;

 

 

	 	(b)	 	in entering into this Deed neither party has relied on any Pre-Contractual
Statement; and
	 
	 	(c)	 	the only remedy available to either party for breach of this Deed shall be for
breach of contract under the terms of this Deed and each party shall have no right of
action against any other party in respect of any Pre-Contractual Statement. Nothing in
this Deed shall, however, operate to limit or exclude any liability for fraud.

16. VARIATION

	 	 	 	No variation of this Deed or of any of the documents referred to in it shall be valid
unless it is a deed and signed by or on behalf of each of the parties.

17. COUNTERPARTS

	 	 	 	This Deed may be executed in any number of counterparts, each of which, when executed and
delivered, shall be an original, and all the counterparts together shall constitute one and
the same instrument.

18. THIRD PARTIES

	 	 	 	Other than in respect of Group Companies, the Contracts (Rights of Third Parties) Act 1999
shall not apply to this Deed and no other third party shall have any rights under it. The
terms of this Deed or any of them may be varied, amended or modified or this Deed may be
suspended, cancelled or terminated by a deed between the parties or this Deed may be
rescinded (in each case), without the consent of any third party.

19. GOVERNING LAW AND JURISDICTION

	 	19.1	 	This Deed and any dispute or claim arising out of or in connection with it or its
subject matter or formation (including non-contractual disputes or claims) shall be
governed by and construed in accordance with English law.
	 
	 	19.2	 	The parties irrevocably agree that the courts of England and Wales shall have exclusive
jurisdiction to settle any dispute or claim that arises out of or in connection with this
Deed or its subject matter or formation (including non-contractual disputes or claims).

 

 

SCHEDULE

SERVICES AND FEES

	1.	 	The Services
	 
	1.1	 	The Consultant shall be engaged as Executive Producer of each of the Programmes and shall
supervise the creative execution and subsequent exploitation of the Programmes in a first
class manner consistent with the highest industry standards.
	 
	1.2	 	Subject to 1.4 below, the Consultant in providing the Services shall:

	 	(a)	 	have authority to incur expenditure in the name of or for the account of the
Company (or of the relevant Group Company) in respect of the Programmes;
	 
	 	(b)	 	have authority to bind the Company (or the relevant Group Company) with respect
to any creative decisions regarding the Programmes including (without limitation) format
changes, selection of music, talent, hosts, judges, guest judges and production
personnel and any sponsor integrations;
	 
	 	(c)	 	on behalf of the Company (or relevant Group Company) and either alone or, at the
request of the Comapny (or the relevant Group Company) in conjunction with senior
management or advisors of the Company, supervise negotiations with broadcasters,
sponsors, production partners, distributors, record labels, talent, and touring
companies in relation to the Programmes; and
	 
	 	(d)	 	provide the Company with regular and timely updates with respect to all of the
foregoing.

	 	 	 	provided, however, that notwithstanding the foregoing the Consultant
shall not have any authority to incur, or cause the Company to incur, expenditures in excess
of the amounts set forth in the Budget, without the Company’s prior written consent.

	1.3	 	In addition to Services as Executive Producer, the Consultant shall provide creative and
strategic advice in relation to the business of a Group Company where the Consultant’s
expertise or business relationships can assist the relevant Group Company.
	 
	1.4	 	Notwithstanding anything in this Deed to the contrary, nothing in this Deed shall be deemed
to prevent or restrict the Company’s ability to exploit, operate or otherwise manage and
exercise its rights in respect of the Programmes in any manner that the Company determines in
its sole discretion.
	 
	2.	 	The Fee

 

 

	2.1	 	The Fee for the Services (as referred to in clause 4 of this Deed) shall be calculated as set
out in this clause 2 of this Schedule.
	 
	2.2	 	In respect of the Services as Executive Producer referred to in clause 1.1 of this Schedule,
the Company shall pay to the Consultant as the Fee, a sum equal to ten per cent (10%) of the
Net Profits in each calendar year that the Consultant renders Services hereunder. The Company
shall calculate the Fee as at 31 December of the relevant year and pay the Fee due to the
Consultant (after recoupment of any Advances paid for that calendar year pursuant to 2.3
below) by 31 March of the following year. The Company shall provide to the Consultant a
statement showing in reasonable detail the calculation of the Fee.
	 
	2.3	 	The Company shall pay the Consultant the following sums (each
an “Advance”) as non-returnable
advances against and recoupable from the Fee payable pursuant to clause 2.2 above:

	 	(a)	 	$5,000,000 for the calendar year 2010;
	 
	 	(b)	 	for each calendar year of the Engagement after 2010:

(i) $3,000,000 if the US broadcaster (currently Fox Broadcasting Company (“FBC”))
has ordered a new series of “American Idol” to be transmitted in that calendar
year; and

(ii) $2,000,000 if the US broadcaster (currently FBC) has ordered a new series of
“So You Think You Can Dance” to be transmitted in that calendar year;

provided, however, that in the event that the “Executive Producer
Fees” paid by the Fox Broadcasting Company (or any successor broadcast network) to
the Company in respect of any Programme are reduced below the levels in effect as
of the date hereof, then the Company shall have the right to notify the Consultant
of such reduction and the Company’s proposed reduction in the related Advance
amount in respect of such Programme. Following the Consultant’s receipt of such
notice, the Consultant shall have right to accept the reduced Advance or terminate
the Services in respect of the applicable Programme. If the Consultant fails to
provide notice to the Company of his determination hereunder within 10 days of his
receipt of such notice, then the Consultant shall be deemed to have accepted and
shall be bound by the reduced Advanced amount in respect of the applicable
Programme.

	2.4	 	The total of the Advances payable pursuant to paragraph 2.3 above shall be paid in advance in
four equal instalments on 15 January, 1 March, 1 June and 1 September in each year or within five
Business Days of the Consultant presenting an invoice for the fees for each period. If the
Consultant is unable, for any reason, to provide the Services in respect of American Idol and/or So
You Think You Can Dance for more than one-half of the production season, the Fee (including the

 

 

	 	 	Advance) shall be reduced on a pro rata daily basis for the entire year and, in the sole
discretion of the Company, the Company may terminate this Agreement.

	2.5	 	In respect of the Services other than as Executive Producer referred to in clause 1.2 of this
Schedule, the Company shall pay to the Consultant:

	 	(a)	 	£500,000 on 15 January 2010;
	 
	 	(b)	 	£500,000 on 1 March 2010; and
	 
	 	(c)	 	£500,000 on 1 May 2010.

	2.6	 	The Advances and the Fee shall be paid to the Consultant gross, without any deductions for
United Kingdom income tax and employees National Insurance Contributions unless the Company
shall have been notified by an applicable taxing authority that such withholding is required
and that this is the liability of the Company. So long as Consultant has on file a properly
completed Internal Revenue Service Form W8-ECI certifying the Fee is effectively connected
with a United States trade or business, the Fee shall be paid gross, without deductions for
United States Federal income tax, but may be reduced for state or local income tax to the
extent required by law. The Fee also excludes Value Added Tax, which shall be payable in
addition at the applicable rate upon receipt of a valid VAT invoice from the Consultant.
	 
	3.	 	The Consultant shall have the right, at his sole cost and expense, to appoint an auditor to
inspect and audit the books and records of the Company and each Group Company not more than
once per year on reasonable prior notice (but in no event later than twelve months following
the conclusion of any calendar year in respect of the prior calendar year) in order to verify
the calculation of the Fee.

 

 

IN WITNESS of which this Deed has been executed and has been delivered on the date which appears
first on page 1.

	 	 	 	 	 
	Executed as a deed by

19 ENTERTAINMENT LIMITED
	 	/s/
Robert F.X. Sillerman	 	 
	 
	 	 

Director
	 	 
	 
	 
	 	/s/ Howard J. Tytel	 	 
	 
	 	 	 	 
	 
	 	Director/Secretary	 	 
	 
	 	 	 	 
	Signed as a deed by SIMON ROBERT FULLER:
	 	/s/ Simon Robert Fuller	 	 
	 
	 	 	 	 
	 
	 	SIMON ROBERT FULLER	 	 
	 
	 	 	 	 
	in the presence of:
	 	 	 	 
	 
	 	 	 	 
	Witness: /s/ A. R. Stinson
	 	A. R. Stinson	 	 
	 
	 	 	 	 
	 
	 	Name	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	Address	 	 
	 
	 	33 Ransome’s Dock	 	 
	 
	 	35-37 Parkgate Road, London SW 11 4NP	 	 
	 
	 	Solicitor	 	 
	 
	 	Occupation	 	 
	 
	 
	 	13 January 2010	 	 
	 
	 	Dateexv10w2

EXHIBIT
10.2

Date: January 2010

CKX, Inc. (1)

Simon Robert Fuller (2)

XIX Entertainment Limited (3)

Option Agreement

Relating to Shares in XIX Entertainment Limited

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 	 	 
	1.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Grant of Option	 	 	5	 
	 
	 	 	 	 	 	 
	3.
	 	Exercise of the Option	 	 	5	 
	 
	 	 	 	 	 	 
	4.
	 	Purchase Price	 	 	6	 
	 
	 	 	 	 	 	 
	5.
	 	Completion	 	 	7	 
	 
	 	 	 	 	 	 
	6.
	 	Prohibition on Disposal or Reorganisation	 	 	10	 
	 
	 	 	 	 	 	 
	7.
	 	Representation and Warranties; Covenants	 	 	11	 
	 
	 	 	 	 	 	 
	8.
	 	Access to Information	 	 	15	 
	 
	 	 	 	 	 	 
	9.
	 	Termination	 	 	16	 
	 
	 	 	 	 	 	 
	10.
	 	Miscellaneous	 	 	17	 

- -

 

THIS
OPTION AGREEMENT (this “Agreement”) is dated January 2010 and is made

BETWEEN:

	(1)	 	CKX, Inc., a corporation organised under the laws of Delaware whose principal place of
business is 650 Madison Avenue, New York, NY 10022 (the “Purchaser”);
	 
	(2)	 	SIMON ROBERT FULLER, an individual of 19 The Mall, East Sheen, London SW14 (the
“Seller”); and
	 
	(3)	 	XIX Entertainment Limited, a company registered in England (company registration number
07113842) whose registered office is at 12 New Fetter Lane, London, EC4A 1AG (the
“Company”).

PRELIMINARY STATEMENT:

As of the date of this Agreement, the Seller owns one hundred percent (100%) of the issued and
outstanding equity interests in the Company (the “Shares”).

The Seller desires to grant the Purchaser, and the Purchaser desires to acquire from the Seller,
the option to purchase not less than ten percent (10%) and not more than thirty three percent (33%)
of the Shares owned by Seller pursuant to the terms and conditions of this Agreement.

NOW IT IS HEREBY AGREED as follows:

1. Definitions

	1.1	 	Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated below:

“Adjusted Enterprise Value” means (i) the aggregate purchase price paid by a Third
Party Investor in respect of a purchase of Shares, divided by (ii) the quotient of (x) the
number of Shares acquired by such Third Party Investor, divided by (y) the total number of
issued and outstanding Shares outstanding immediately following such acquisition of Shares.

“Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person.

“Agreement” has the meaning given such term in the preamble hereto.

 

 

“Call Notice” has the meaning given such term in Section 3.1 of this Agreement.

“Change in Control” means, with respect to any Person, the acquisition, directly or
indirectly, of (i) beneficial ownership of voting securities representing 50% or more of
the total voting power of the equity securities of such Person by any other Person or (ii)
the power to manage such Person by any other Person..

“Change in Control Transaction” has the meaning given such term in Section 14.6 of
this Agreement.

“CKX Common Stock” means common stock, par value $0.01 per share, of the Purchaser.

“Company” has the meaning given to such term in the preamble to this Agreement.

“Completion” means the payment of the Purchase Price for the Option Shares in
accordance with Section 4 of this Agreement by the Purchaser and the delivery of the
Completion Documents by the Seller and the Purchaser, respectively.

“Completion Date” has the meaning given such term in Section 3.3 of this Agreement.

“Completion Documents” means the documents required to be delivered under the terms of
this Agreement at Completion by the Seller and the Purchaser, including the Shareholders’
Agreement.

“Consultancy Deed” means that certain consultancy deed between the Seller and 19
Entertainment Limited.

“Encumbrance” means any liens (including environmental and tax liens), pledges,
charges, security interests, restrictions, claims and other encumbrances of any kind,
including any restriction on the use, voting, transfer, receipt of income or other exercise
of any attributes of ownership.

“Enterprise Value” means £100,000,000.

“Excluded Projects” has the meaning given such term in the Shareholders’ Agreement.

“Exercise Date” means the date on which the Call Notice is deemed to have been duly
given in accordance with Section 3.1 hereof.

 

 

“Governmental Entity” means a federal, state or other governmental, regulatory or
administrative agency, court, department, commission, board, bureau, or other authority or
instrumentality, domestic or foreign.

“Independent Option” has the meaning given such term in Section 3.2 of this Agreement.

“Independent Option Purchase Price” has the meaning given to such term in Section 6.2
of this Agreement.

“Option” has the meaning given such term in Section 2.1 of this Agreement.

“Option Consideration Payment” has the meaning given such term in Section 2.1 of this
Agreement.

“Option Period” means the period between the date hereof and March 15, 2010.

“Option Shares” has the meaning given such term in Section 2.1 of this Agreement.

“Organizational Documents” means the currently effective memorandum, articles of
association and any other organizational documents of the Company, each in the form
attached hereto as Exhibit A.

“Permitted Assignee” has the meaning given such term in Section 14.6 of this
Agreement.

“Person” means, any individual, corporation (including non-profit corporation),
general or limited partnership, limited liability company, joint venture, association,
joint stock company, trust, estate, unincorporated organization, government or agency or
political subdivision thereof or other entity.

“Projects” has the meaning given such term in the Shareholders’ Agreement.

“Purchase Price” means, as applicable, (i) the Third Party Investment Option Purchase
Price or (ii) the Independent Option Purchase Price.

“Purchaser” has the meaning given such term in the preamble hereto.

“Purchaser’s Certificate” has the meaning given such term in Section 5.4(c) of this
Agreement.

“Reorganisation” means, with respect to the Company, every allotment or issue of
Shares, share capital or equity securities by any means and every issue or grant by way

 

 

		 	of rights and every consolidation or sub-division or reduction of capital or capital
dividend or other reconstruction or adjustment relating to the equity
share capital (or any shares stock or securities derived therefrom) and any amalgamation or reconstruction
affecting the equity share capital (or any shares stock or securities derived therefrom).
	 
	 	 	“Seller” has the meaning given such term in the preamble hereto.
	 
	 	 	“Seller’s Certificate” has the meaning given such term in Section 5.3(c) of this
Agreement.
	 
	 	 	“Shareholders’ Agreement” means that certain Shareholders’ Agreement by and among the
Seller, the Purchaser, the Company and any other shareholders of the Company, in the form
attached hereto as Exhibit B and, in the event the Purchaser acquires less than 25%
of the issued and outstanding Shares of the Company as of the Completion Date, the changes
set forth in the footnotes thereto..
	 
	 	 	“Shares” has the meaning given such term in the preliminary statement hereto.
	 
	 	 	“Subsequent Third Party Investment” has the meaning given such term in Section
4.2(b)(v) of this Agreement.
	 
	 	 	“Third Party Investment” means the acquisition of not less than five percent (5%) of
the issued and outstanding Shares by a Third Party Investor at a purchase price equal to or
greater than (i) the Enterprise Value multiplied by (ii) the percentage of issued and
outstanding Shares acquired.
	 
	 	 	“Third Party Investment Option” has the meaning given such term in Section 3.1 of this
Agreement.
	 
	 	 	“Third Party Investment Option Purchase Price” has the meaning given to such term in
Section 6.1 of this Agreement.
	 
	 	 	“Third Party Investor” means a bona fide third party purchaser who, on arms length
terms, shall pay in cleared funds for any acquired Shares.
	 
	1.2	 	Construction.

	 	(a)	 	For purposes of this Agreement, whenever the context requires the singular
number shall include the plural, and vice versa; the masculine gender shall include
the feminine and neuter genders; the feminine gender shall include the masculine and
neuter genders; and the neuter gender shall include masculine and feminine genders.

 

 

	 	(b)	 	The parties hereto agree that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Agreement.
	 
	 	(c)	 	As used in this Agreement, the words “include” and “including,” and
variations thereof, shall not be deemed to be terms of limitation, but rather shall be
deemed to be followed by the words “without limitation.”
	 
	 	(d)	 	Except as otherwise indicated, all references in this Agreement to “Sections”
and “Exhibits” are intended to refer to Sections of this Agreement and Exhibits to
this Agreement. The table of contents and headings contained in this Agreement are
for convenience of reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement.

	2.	 	Grant of Option

	2.1	 	In consideration of £500,000 paid on the date hereof in cash by the Purchaser to the Seller
(receipt whereof is hereby acknowledged) (the “Option Consideration Payment”), the
Seller hereby grants to the Purchaser an option (the “Option”) to purchase from Seller
on the terms set forth hereunder such number of Shares as shall equal not less than ten
percent (10%) and not more than thirty three percent (33%) of the Shares then issued and
outstanding immediately following the Completion Date (the “Option Shares”), and the
Seller agrees that, upon receipt of a valid Call Notice from the Purchaser, the Seller shall
transfer and sell or cause to be transferred and sold to the Purchaser the Option Shares for
the applicable Purchase Price.
	 
	2.2	 	The Option Shares shall be sold free from all Encumbrances and with all rights attached
thereto at the date hereof and of such exercise, and shall constitute thirty three (33%) of
the Shares then issued and outstanding immediately following the Completion Date in the event
that the maximum number of Option Shares are acquired as pursuant to Clause 3 below.

	3.	 	Exercise of the Option
	 
	3.1	 	At any time following the consummation of a Third Party Investment but prior to the
expiration of the Option Period, the Purchaser may exercise the Option (the “Third Party
Investment Option”) by delivering to the Seller a written notice of exercise (the
“Call Notice”), which notice shall be binding and irrevocable. The Seller shall give
the Purchaser prompt notice of any Third Party Investment, including prior notice of any
proposed completion date in respect of such investment, and copies of all documents,
instruments and deeds evidencing such investment.

 

 

	3.2	 	If the Third Party Investment has not occurred prior to February 28, 2010, the Purchaser may
exercise the Option (the “Independent Option”) at any time during the remaining Option
Period by delivering to the Seller a Call Notice, which shall be binding and irrevocable.
	 
	3.3	 	The Call Notice shall specify (i) the percentage, being not less than ten percent (10%) and
not more than thirty three (33%), of the issued and outstanding Shares (determined as of
completion) that the Purchaser intends to acquire hereunder (the “Purchased
Percentage”) and (ii) the date on which the exercise of the Option shall be completed (the
“Completion Date”), which date shall be not more than 60 days nor less than 5 days
after the date of such notice.
	 
	4.	 	Purchase Price
	 
	4.1	 	Third Party Investment Option Purchase Price. The purchase price to be paid for the
Option Shares purchased pursuant to the Third Party Investment Option shall be an amount equal
to the Enterprise Value multiplied by the Purchased Percentage (the “Third Party
Investment Option Purchase Price”); provided, however, that in the event a
Third Party Investor acquires Shares prior to the Purchaser’s exercise of the Option for a
purchase price less than each Share’s pro rata portion of the Enterprise Value, the Purchase
Price paid by the Purchaser for the applicable Option Shares pursuant to the Purchaser’s
exercise of the Option shall be an amount equal to the Adjusted Enterprise Value multiplied by
the Purchased Percentage.
	 
	4.2	 	Independent Option Purchase Price.

	 	(a)	 	The purchase price to be paid for the applicable Option Shares purchased
pursuant to the Independent Option shall be an amount mutually agreed upon by the
Seller and the Purchaser within 5 days of the Exercise Date (the “Independent
Option Purchase Price”); provided, however, that in the event the
Seller and the Purchaser cannot mutually agree upon a purchase price within the
allotted period, the Independent Option Purchase Price shall be the fair market value
of the applicable Option Shares, as determined in accordance herewith.
	 
	 	(b)	 	The fair market value of the applicable Option Shares shall be determined as
follows:

	 	(i)	 	The Seller and the Purchaser shall select a mutually acceptable appraiser
who shall determine the fair market enterprise value of the Company and the
resulting value of the applicable Option Shares.

 

 

	 	 	 	(ii) If the Seller and the Purchaser are unable to agree upon an appraiser within 3
days after the expiration of the period set forth in Section 4.2(a) above, each
party shall select an appraiser and provide written notice to the other party within
5 days of the identity of the appraiser so selected by it, which notice shall
include the written agreement of such appraiser to serve in that capacity. If both
parties so select appraisers, such appraisers shall within 20 days of their
appointment provide written copies to both parties of their appraisal.
	 
	 	 	 	(iii) If the difference between the two appraisals is less than or equal to ten
percent (10%) of the lower of the two appraisals, the determination of fair market
enterprise value shall be deemed to be the average of the two appraisals.
	 
	 	 	 	(iv) If the difference between the two appraisals is greater than ten percent
(10%) of the lower of the two appraisals, then the two appraisers shall jointly
select a third appraiser. The third appraiser shall be instructed and directed to
select one of the appraisals as the most accurate and appropriate appraisal, which
selection shall then become final and binding upon the Seller and the Purchaser.
	 
	 	 	 	(v) Notwithstanding the foregoing, if after Completion Date of the consummation of
the Independent Option and prior to the first anniversary date of the date hereof,
the Seller or the Company consummates a sale of five percent (5%) or more of the
then issued and outstanding Shares at a purchase price per Share greater than the
Independent Option Price per Share (the “Subsequent Third Party Investment”,
then the Purchaser shall pay to the Seller, as additional purchase price, an amount
equal to the difference, on a per Share basis, between the price paid in respect of
the Subsequent Third Party Investment and the Independent Option Price (but in no
event shall the Purchaser be required to make any payment hereunder based on an
enterprise value associated with a Subsequent Third Party Investment that is in
excess of the Enterprise Value).
	 
	 	 	 	(vi) All costs and expenses of the appraisers shall be borne by the Purchaser.

	4.3	 	Payment of Purchase Price.

	 	 	The Purchase Price payable to the Seller at Completion shall be delivered by the Purchaser
to the Seller in cash by wire transfer of immediately available funds to an account set
forth on written wire transfer instructions provided to the Purchaser by the Seller at
least two days prior to the Completion Date.

 

 

	5.	 	Completion

	5.1	 	Completion. Unless otherwise mutually agreed in writing by the Seller and the
Purchaser, the Completion shall take place at the offices of Paul, Hastings, Janofsky & Walker
(Europe) LLP, having an address of Ten Bishops Square, London, E1 6EG, United Kingdom, on the
date specified in the Call Notice when all of the conditions set forth in Section 5.2, 5.3,
5.4, 5.5 and 5.6 below have been satisfied or waived.
	 
	5.2	 	Conditions to the Obligations of the Seller and the Purchaser. The respective
obligations of each of the Seller and the Purchaser to effect the purchase of the Option
Shares are subject to the conditions precedent that (i) no injunction, order, decree or ruling
issued by a Governmental Entity, nor any statute, rule, regulation or executive order
promulgated or enacted by any Governmental Entity, shall enjoin, make illegal or otherwise
materially impair or restrict such assignment, assumption or consummation, as the case may be,
(ii) all required consents of any Governmental Entity or any other third party required to be
obtained in order to consummate the transactions contemplated by this Agreement shall have
been obtained and be in full force and effect, and all required waiting periods and any
extensions thereof, shall have expired or been terminated and (iii) no action, suit,
investigation or proceeding by any Governmental Entity shall have been instituted or
threatened to restrain or prohibit or otherwise challenge the legality or validity of the
transactions contemplated by this Agreement.
	 
	5.3	 	Additional Conditions to the Obligations of the Purchaser. The obligations of the
Purchaser are subject to fulfilment (or written waiver by the Purchaser) at or prior to the
Completion Date of each of the following conditions precedent:

	 	(a)	 	Representations and Warranties. The representations and warranties
contained in Section 7.1 hereof shall be true and correct in all material respects as
of the date of this Agreement and as of the Completion Date as though made at and as
of the Completion Date.
	 
	 	(b)	 	Performance of Covenants. The Seller and the Company shall have duly
performed and complied in all material respects with each covenant and agreement
required to be performed or complied with by it under this Agreement, in each case, as
and when required to be performed or complied with by it prior to or on the Completion
Date.
	 
	 	(c)	 	Certificate of the Seller. The Seller shall have delivered to the
Purchaser a certificate signed by the Seller to the effect that each of the conditions
specified in Sections 5.3(a) and 5.3(b) of this Agreement has been satisfied in all
respects (the “Seller’s Certificate”).

 

 

	 	(d)	 	Entrance into the Shareholders’ Agreement. The Seller shall have
entered into, and shall have caused the Company, any Third Party Investor and any
other shareholders of the Company to enter into, the Shareholders’ Agreement. The
Seller covenants with the Purchaser to procure such parties enter into the
Shareholders Agreement.
	 
	 	(e)	 	Completion Documents. The Purchaser shall have received each of the
Completion Documents to be delivered by the Seller at or prior to the Completion.

	5.4	 	Additional Conditions to the Obligations of the Seller. The obligations of the
Seller are subject to fulfilment (or written waiver by the Purchaser) at or prior to the
Completion Date of each of the following conditions precedent:

	 	(a)	 	Representations and Warranties. The representations and warranties
contained in Section 7.2 hereof shall be true and correct in all material respects as
of the date of this Agreement and as of the Completion Date as though made at and as
of the Completion Date.
	 
	 	(b)	 	Performance of Covenants. The Purchaser shall have duly performed and
complied in all material respects with each covenant and agreement required to be
performed or complied with by it under this Agreement, in each case, as and when
required to be performed or complied with by it prior to or on the Completion Date.
	 
	 	(c)	 	Certificate of the Purchaser. The Purchaser shall have delivered to
the Seller a certificate signed by an officer of the Purchaser to the effect that each
of the conditions specified in Sections 5.4(a) and 5.4(b) of this Agreement has been
satisfied in all respects (the “Purchaser’s Certificate”).
	 
	 	(d)	 	Entrance into the Shareholders’ Agreement. The Purchaser shall have
entered into the Shareholders’ Agreement.
	 
	 	(e)	 	Completion Documents. The Seller shall have received each of the
Completion Documents to be delivered by the Purchaser at or prior to the Completion.

	5.5	 	Closing Deliveries by the Purchaser. At the Completion, the Purchaser shall deliver
to the Seller:

	 	(a)	 	the Purchase Price in accordance with Section 4 of this Agreement;

 

 

	 	(b)	 	true and complete copies, certified by the Secretary of the Purchaser, of the
resolutions duly and validly adopted by the Board of Directors of the Purchaser
evidencing the authorization of the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby;
	 
	 	(c)	 	the Purchaser’s Certificate in accordance with Section 5.4(c) of this
Agreement; and
	 
	 	(d)	 	such other documents and instruments reasonably requested by the Seller in
order to effect the transactions contemplated hereby.

	5.6	 	Closing Deliveries by the Seller. At the Completion, the Seller shall deliver to the
Purchaser:

	 	(a)	 	the certificate or certificates evidencing the Option Shares, duly endorsed
in blank or accompanied by a duly executed stock or other transfer power, which Option
Shares shall be delivered free and clear of all Encumbrances;
	 
	 	(b)	 	a receipt for the Purchase Price;
	 
	 	(c)	 	the Seller’s Certificate in accordance with Section 5.3(c) of this Agreement;
	 
	 	(d)	 	all documents, instruments and deeds required by the Shareholders Agreement;
and
	 
	 	(e)	 	such other documents and instruments reasonably requested by the Purchaser in
order to effect the transactions contemplated hereby.

	6.	 	Prohibition on Disposal or Reorganisation
	 
	6.1	 	While the Option entitling the Purchaser to purchase the Option Shares either pursuant to the
Third Party Investment Option or the Independent Option remains exercisable:

	 	(a)	 	the Seller shall not without the prior written consent of the Purchaser sell,
transfer or otherwise dispose of (including, without prejudice to the generality of
the foregoing, accept an offer made to all holders for the class or classes of
securities to which the Option Shares belong) or mortgage, charge, pledge or otherwise
encumber any of the Option Shares;
	 
	 	(b)	 	the Seller and the Company shall ensure that no Reorganisation occurs; and

 

 

	 	(c)	 	the Company shall not pay, or agree to pay, annual salary, bonus or other
compensation to the Seller in excess of £1 million; provided, however,
that nothing contained in this clause shall limit dividends distributable to the
Seller in accordance with the Shareholders’ Agreement.

	6.2	 	It is hereby acknowledged that the Purchaser may in the Purchaser’s discretion and with a
view to protecting its interests hereunder file a stop notice or notices in respect of the
Option Shares.
	 
	7.	 	Representation and Warranties; Covenants
	 
	7.1	 	Representations and Warranties of the Seller. As of the date hereof and at the
Completion Date, the Seller hereby represents and warrants to the Purchaser that:

	 	(a)	 	Seller Authority. Each of the Seller and the Company has the full
power, authority and legal right to execute, deliver and perform his or its
obligations under this Agreement and to consummate the transactions contemplated
herein.
	 
	 	(b)	 	Enforceability; Binding Effect. This Agreement has been duly
authorized and validly executed and delivered by the Seller and the Company and
constitutes the valid and legally binding obligation of the Seller and the Company,
enforceable against the Seller and the Company in accordance with its terms and
conditions, except as may be limited by any bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar law affecting creditors’ rights and
remedies generally and, with respect to the enforceability thereof, by general
principles of equity, including principles of commercial reasonableness, good faith
and fair dealing (regardless of whether enforcement is sought in a proceeding at law
or in equity)..
	 
	 	(c)	 	Non-contravention. The execution and delivery of this Agreement, and
the consummation of the transactions contemplated hereby, by the Seller and the
Company will not (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which the Seller or the Company is subject, (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration, create in any party the right to accelerate, terminate, modify, or
cancel any agreement, contract, lease, license, instrument, or other arrangement to
which the Seller or the Company is a party or by which the Seller or the Company is
bound or to which any of the Seller’s or the Company’s assets is subject, or (iii)
require the Seller or the Company to

 

 

	 	 	 	give any notice to, make any filing with, or obtain any authorization, consent or
approval of any third party.
	 
	 	(d)	 	Company Organization and Corporate Power. The Company is a company
registered in England with number 07113842, duly organized, validly existing and in
good standing under the laws of England. The Company has full power and authority to
carry on the business in which it is engaged and to own and use the properties owned
and used by it.
	 
	 	(e)	 	Title to the Shares. The Seller has good title to the Shares
(including the Option Shares), free and clear of any Encumbrances. The Shares
(including the Option Shares) have been duly authorized, validly issued and are fully
paid and non-assessable. The Shares constitute all of the issued and outstanding
equity securities of the Company, and neither the Company nor the Seller is party to
any agreement or is otherwise obligated to issues or sell any equity securities of the
Company to any Person.
	 
	 	(f)	 	Absence of Encumbrances. Neither the Company nor the Seller have
Encumbered, secured, mortgaged or charged any of the Shares and none of the Shares are
subject to any third party rights.
	 
	 	(g)	 	Organizational Documents of the Company. The documents attached
hereto as Exhibit A are true and complete copies of the Organizational
Documents of the Company.
	 
	 	(h)	 	Assets and Liabilities; Contracts. The Company has never traded, has
no assets (save for its share capital) nor liabilities (actual or contingent) and has
entered into no contracts, commitments or arrangements, save as set forth on
Schedule 1 hereto or as notified to the Purchaser from time to time prior to
expiry of the Option Period (it being the intention that the Company will commence
trading from January 2010).
	 
	 	(i)	 	Brokers’ Fees. Neither the Seller nor the Company has any liability
or obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which the Purchaser or
the Company is or may become liable.
	 
	 	(j)	 	Litigation. There are no actions, suits, investigations, or
proceedings by or before any Governmental Entity pending, or, to the Seller’s
knowledge, threatened against the Seller or the Company which in any manner challenges
the validity of this Agreement or any action taken by the Seller or the Company
pursuant to this Agreement or seeks to prevent, enjoin, alter or materially delay any
transaction contemplated hereby.

 

 

	7.2	 	Representations and Warranties of the Purchaser. As of the date hereof and the
Completion Date, the Purchaser hereby represents and warrants to the Seller that:

	 	(a)	 	Organization; Good Standing. The Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware.
	 
	 	(b)	 	Authorization. The Purchaser has all requisite power and authority
to execute and deliver, and to perform its respective obligations under this
Agreement, and this Agreement has been duly authorized by all necessary action on the
part of the Purchaser.
	 
	 	(c)	 	Binding Effect; Enforceability. This Agreement has been duly
executed and delivered by the Purchaser and is the valid and binding obligation of the
Purchaser, enforceable against such party in accordance with its terms, except as may
be limited by any bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar law affecting creditors’ rights and remedies generally and, with
respect to the enforceability thereof, by general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing (regardless of
whether enforcement is sought in a proceeding at law or in equity).
	 
	 	(d)	 	Non-contravention. The execution and delivery of this Agreement, and
the consummation of the transactions contemplated hereby, by the Seller will not (i)
violate any constitution, statute, regulation, rule, injunction, judgment, order,
decree, ruling, charge, or other restriction of any government, governmental agency,
or court to which the Seller is subject, (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration, create in any party the right
to accelerate, terminate, modify, or cancel any agreement, contract, lease, license,
instrument, or other arrangement to which the Purchaser is a party or by which the
Purchaser is bound or to which any of the Purchaser’s assets is subject, or (iii)
require the Purchaser to give any notice to, make any filing with, or obtain any
authorization, consent or approval of any third party.
	 
	 	(e)	 	Brokers’ Fees. The Seller has no liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which the Purchaser or the Company is or may become
liable.
	 
	 	(f)	 	Litigation. There are no actions, suits, investigations, or
proceedings by or before any Governmental Entity pending, or, to the Seller’s
knowledge, threatened against the Seller which in any manner challenges the validity
of this Agreement or any action taken by the Seller pursuant to this Agreement or

 

 

        seeks to prevent, enjoin, alter or materially delay any transaction contemplated
hereby.

	7.3	 	Covenants of the Seller and Purchaser. Each of the Seller, the Company and the
Purchaser shall use commercially reasonable efforts to take all action and to do all things
necessary, proper, or advisable in order to consummate and make effective the transactions
contemplated by this Agreement.
	 
	7.4	 	Additional Covenants of the Company (and the Seller on Behalf of the Company). For
the period commencing on the date hereof and ending on the first to occur of the Completion
Date or the Termination Date, the Company shall (and the Seller shall cause the Company to)
(i) conduct its business in the ordinary course, consistent with normal practice and (ii)
except as expressly required hereby and except as otherwise consented to in advance in writing
by the Purchaser (such consent not to be unreasonably withheld or delayed):

	 	(a)	 	not make any material change in the nature and scope of the Business (as
defined in the Shareholders Agreement) including amalgamating or merging with any
other business or the sale, transfer or disposal of the whole or a substantial part of
the Business;
	 
	 	(b)	 	not create, allot or issue any Shares or other securities in the capital of
the Company, or grant any option or rights to subscribe for or to convert any
instrument into any such Shares or securities (except in connection with a Third Party
Investment contemplated hereby and in a manner not in contravention of or conflict
with the terms and conditions of this Agreement);
	 
	 	(c)	 	not reduce, subdivide or consolidate the share capital of the Company, or
vary the rights attaching to any class of shares in the capital of the Company, or
redeem, purchase or otherwise acquire any Shares or other securities of the Company;
	 
	 	(d)	 	not borrow or the incur indebtedness in the form of borrowing (save for
working capital introduced by the Seller)
	 
	 	(e)	 	not guarantee, create a surety or indemnity in favour of any person (other
than in the ordinary course of business);
	 
	 	(f)	 	not mortgage, charge or create any other form of encumbrance in respect of
any of the Company’s assets (other than in the ordinary course of business)or
undertaking;

 

 

	 	(g)	 	not make any loan to any Person (other than in the ordinary course of
business, but in no event to any Director, officer or employee of the Company);
	 
	 	(h)	 	not acquire any assets (other than in the ordinary course of business);
	 
	 	(i)	 	not acquire shares, stocks, bonds, debentures, options or other securities in
respect of any other Person, or dispose of any such interest (other than in the
ordinary course of business);
	 
	 	(j)	 	not make or declare any distribution or dividend;
	 
	 	(k)	 	not increase the remuneration or benefits of any Director of the Company or
connected person of any Director of the Company, or establish any new profit-share,
bonus or other incentive schemes for Directors of the Company, shareholders or any of
their Affiliates;
	 
	 	(l)	 	not establish or amend any pension scheme in relation to the Company or grant
any pension rights to any Director of the Company or employee of the Company or any
dependents of a Director of the Company or employee of the Company;
	 
	 	(m)	 	not enter into any contract (other than a service or employment contract in
respect of acting as Director of the Company) with a Director of the Company or with a
shareholder of the Company or a connected person (within the meaning of Section 252 of
the Companies Act 2006) of a Director of the Company;
	 
	 	(n)	 	not apply for the listing of any shares or debt securities of the Company on
any recognised stock exchange or the trading of any of its shares or debt securities
on a regulated market (as defined by Section 1173(1) of the Companies Act 2006;
	 
	 	(o)	 	not enter into or become bound by any transaction, contract, agreement or
arrangement with any Affiliate of the Company; and
	 
	 	(p)	 	not alter the Company’s Organizational Documents.

	7.5	 	The Seller covenants and agrees with the Purchaser that all Projects created or undertaken by
the Seller during the period commencing on the date hereof and ending on the later of (i) the
expiration of the Option Period or, if the Option is exercised (ii) the Completion Date shall
only be taken up through the Company, except for the Excluded Projects. Notwithstanding the
foregoing, the Seller may, and shall, perform his obligations under the Consultancy Deed.

 

 

	8.	Access to Information
	 
	8.1	 	During the Option Period the Seller will use reasonable commercial endeavours to provide such
information that the Purchaser reasonably requests to the purposes of, inter alia, complying
with relevant regulations and statutes, and also for the purposes of obtaining relevant
consents and approvals.
	 
	9.	Termination
	 
	9.1	 	Termination. This Agreement may be terminated at any time prior to the Completion
Date:

	 	(a)	 	by mutual agreement of the Seller and the Purchaser;
	 
	 	(b)	 	automatically if the Purchaser has not delivered a Call Notice prior to the
expiration of the Option Period;
	 
	 	(c)	 	by the Seller if a material breach of any provision of this Agreement has
been committed by the Purchaser and such breach has not been waived in writing by the
Seller or cured by the Purchaser within ten (10) days after receipt of written notice
from the Seller requesting such breach to be cured;
	 
	 	(d)	 	by the Purchaser if a material breach of any provision of this Agreement has
been committed by the Seller and such breach has not been waived in writing by the
Purchaser or cured by the Seller within ten (10) days after receipt of written notice
from the Purchaser requesting such breach to be cured;
	 
	 	(e)	 	by the Purchaser if any of the conditions set forth in Sections 5.2 and 5.3
have not been satisfied on or before the Completion Date or if satisfaction of such a
condition is or becomes impossible (other than through the failure of the Purchaser to
comply with its obligations under this Agreement) and the Purchaser has not waived
such condition in writing on or before such time;
	 
	 	(f)	 	by Seller if any of the conditions set forth in Sections 5.2 and 5.4 have not
been satisfied on or before the Completion Date or if satisfaction of such a condition
is or becomes impossible (other than through the failure of the Seller to comply with
its obligations under this Agreement) and the Seller has not waived such condition in
writing on or before such time; or
	 
	 	(g)	 	by the Seller on the one hand or the Purchaser on the other hand, if any
Governmental Entity shall have issued a final permanent order enjoining or otherwise
prohibiting the transactions contemplated by this Agreement, and

 

 

	 	 	 	the time for appeal or petition for reconsideration of such order shall have
expired.

	9.2	 	Notice of Termination. Any party desiring to terminate this Agreement pursuant to
this Section 9 shall give written notice of such termination to the other party to this
Agreement.
	 
	9.3	 	Effect of Termination. If this Agreement is terminated, all further obligations of
the parties or their respective Affiliates shall be terminated without further liability of
any party to the other (except as set forth in Sections 10.2 and 10.11); provided,
however, that nothing herein shall relieve any party from liability for its fraudulent
or intentional misrepresentation, omission or breach of this Agreement.

In the event of any termination of this Agreement pursuant to Section 9, the Purchaser shall not be
entitled a refund of the Option Consideration Payment.

	10.	Miscellaneous
	 
	10.1	 	Notices. All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be deemed to have been duly given when delivered in person, by
overnight courier or facsimile to the respective parties as follows:

If to the Seller:

Simon Robert Fuller

19 The Mall

East Sheen, London, SW14 7EN

Facsimile: +44 207 228 3649

With a copy to:

Andy Stinson,

33 Ransome’s Dock,

35-37 Parkgate Road,

London, SW11 4NP

Facsimile:
+44 207 228 3649

If to the Purchaser:

CKX, Inc.

650 Madison Avenue

 

 

New York, New York 10022

Facsimile: 1-212-421-3998

With a copy to:

Paul, Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York 10022

Facsimile: 212-319-4090

Attention: William F. Schwitter, Esq.

                  Luke P. Iovine, III, Esq.

Paul, Hastings, Janofsky & Walker LLP

Ten Bishops Square

Eighth Floor

London, E1 6EG

United Kingdom

Facsimile: 44-20-3023-5109

Attention:  Ronan O’Sullivan

If to the Company:

XIX Entertainment limited

12 New Fetter Lane

London, EC4A 1AG

Attention: Company Secretary

Facsimile:
+44 207 556 1212

With a copy to:

Andy Stinson,

33 Ransome’s Dock,

35-37 Parkgate Road,

London, SW11 4NP

Facsimile:  +44 207 228 3649

or to such other address or facsimile number as such party shall have specified in a
written notice given to the other party hereto in the manner set forth above.

 

 

	10.2	 	Press Releases; Confidentiality. Except to the extent required by applicable law or
legal process or applicable rules of a stock exchange or national market system, each of the
Seller and the Purchaser agree that it will not issue any press release, advertisement or
other public announcement with respect to this Agreement or the transactions contemplated
hereby without the prior written consent of the party hereto, which consent may be granted or
withheld in the sole discretion of the other party. The parties hereto hereby agree that this
Agreement and the terms contained herein shall be kept confidential by the parties hereto and
their Affiliates and agents except to the extent disclosure is required by applicable law or
legal process or applicable rules of a stock exchange or national market system, in which
event the disclosing party shall promptly notify the other party of the requirement and the
terms thereof prior to submission and the disclosing party shall cooperate to the maximum
extent reasonably practicable to prevent or minimize the disclosure of such confidential
information. Each party shall be entitled to reveal the contents of this Agreement to its
professional advisors and the Seller may disclose this Agreement on a confidential basis to
any prospective Third Party Investor.
	 
	10.3	 	Amendments and Waivers. No amendment or waiver of any provision of this Agreement
shall be effective with respect to any party unless made in writing and signed by such party.
Waiver by any party of any breach or failure to comply with any provision of this Agreement by
any other party shall not be construed as, or constitute, a continuing waiver of such
provision, or a waiver of any other breach of or failure to comply with any other provisions
of this Agreement.
	 
	10.4	 	Assignability. Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by the Seller or the Purchaser;
provided, however, that the Purchaser may assign its rights, remedies,
obligations and liabilities arising hereunder (i) to a purchaser of the 19 Entertainment
Limited group of companies or substantially all of their business or assets and (ii) to any
Affiliate of CKX, Inc. (a “Permitted Assignee”); provided, further, that
this Agreement may not be further directly or indirectly assigned in connection with a
transaction that results in a Change in Control of the Permitted Assignee (a “Change in
Control Transaction”) to a third party that is not (or following such Change of Control, will
not be) an Affiliate of the Purchaser, unless the transaction would constitute a sale
contemplated by clause (i) above.
	 
	10.5	 	Entire Agreement. This Agreement (including the Exhibits and Schedules hereto)
constitute the entire agreement among the parties relating to the subject matter hereof and
supersede any and all prior agreements or understandings with respect to the subject matter
hereof.
	 
	10.6	 	Specific Performance. Each party hereto acknowledges and agrees that the other party
may be irreparably damaged if any provision of this Agreement is not performed in

 

 

	 	 	accordance with its terms or otherwise is breached. Accordingly,
each party agrees that the other party shall be entitled to seek
injunctive relief, subject to a determination by a court of
competent jurisdiction, to prevent any such failure of performance
or breach and to enforce specifically this Agreement and any of the
terms and provisions hereof.
	 
	10.7	 	Governing Law; Submission to Jurisdiction.

	 	(a)	 	This Agreement shall be governed by English law.
	 
	 	(b)	 	The parties hereto hereby agree that the courts of England have exclusive
jurisdiction to settle any disputes which may arise out of or in connection with this
Agreement (including as to formation, enforceability, validity or interpretation) and
submit to the jurisdiction of such courts and agree that accordingly any suit, action
or proceeding arising out of or in connection with this Agreement may be brought in
such courts.

	10.8	 	Severability. If one or more of the provisions contained in this Agreement shall,
for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision hereof.
	 
	10.9	 	Third Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and assigns, and is not for the benefit of, and no
provision hereof may be enforced by, any other person or entity. No rights shall arise in
favour of any party who is not a party to this Agreement under the Contracts (Rights of Third
Parties) Act of 1999.
	 
	10.10	 	Counterparts; Execution and Delivery by Facsimile. This Agreement may be executed
in two or more counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement. This Agreement may be executed and delivered by
facsimile, with such delivery to be as effective as delivery of an originally executed
counterpart hereof, followed promptly by delivery of an originally executed counterpart.
	 
	10.11	 	Expenses. Except as expressly provided in this Agreement, each of the parties
hereto shall bear its own costs and expenses (including legal, accounting and investment
banking fees and expenses) incurred in connection with this Agreement and the transactions
contemplated hereby.

[Signature Page Follows]

 

 

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

	 	 	 
	 
	 	/s/ Simon Robert Fuller
	 
	 	 
	 
	 	Simon Robert Fuller
	 
	 	 
	 
	 	CKX, Inc.
	 
	 	 
	 
	 	/s/ Robert F.X. Sillerman
	 
	 	 
	 
	 	Name: Robert F.X. Sillerman
	 
	 	Title:   Chairman and Chief Executive Officer
	 
	 	 
	 
	 	XIX ENTERTAINMENT LIMITED
	 
	 	 
	 
	 	/s/ Simon Robert Fuller
	 
	 	 
	 
	 	Name:  Simon Robert Fuller
	 
	 	Title:    Authorized Signatory

 

 

Schedule 1

Assets and Liabilities; Contracts

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