EXHIBIT 10.8

 

AGREEMENT

 

THIS AGREEMENT is made as of June 18, 2004 between and among Viacom Inc.
(“Viacom”), Paramount Home Entertainment, Inc. (sued as Paramount Home Video,
Inc.), and Sumner Redstone (collectively, “Viacom Entities”) and Blockbuster
Inc. (“Blockbuster”) (Viacom Entities and Blockbuster collectively, “Parties”),
each of which is a party to a judgment sharing agreement (“Judgment Sharing
Agreement”) made as of November 9, 2001 between and among certain defendants in
Cleveland, et al. v. Viacom Inc., et al., No. SA-99-CA-0783 in the United States
District Court for the Western District of Texas or in Merchant, et al. v.
Redstone, et al., No. BC 244 270 in the Superior Court for the State of
California, County of Los Angeles.

 

Section 1. Preamble

 

WHEREAS Viacom was Blockbuster’s parent at the time the Judgment Sharing
Agreement was made and signed.

 

WHEREAS Viacom presently intends to split off Blockbuster, with the result that
Viacom will no longer be Blockbuster’s parent.

 

WHEREAS the Judgment Sharing Agreement did not differentiate between the Viacom
Entities and Blockbuster in the percentage allocations in Exhibit A thereof and
instead allocated to the Viacom Entities and Blockbuster a unitary share because
the Viacom Entities and Blockbuster were adjudged by the court in Cleveland, et
al. v. Viacom Inc., et al. to have been incapable of conspiring with each other
for purposes of antitrust laws and thus to have a unity of interest at all times
relevant to the Revenue Sharing Antitrust Cases.

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WHEREAS the Parties wish to provide for an equitable apportionment among
themselves of the unitary share which might arise out of the Revenue Sharing
Antitrust Cases (by judgment or by operation of the Judgment Sharing Agreement),
to establish a process for the possible settlement of their unitary interest in
the Revenue Sharing Antitrust Cases, and to avoid controversy, dispute or
litigation among themselves with respect thereto.

 

NOW, THEREFORE, for the foregoing and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

 

Section 2. Definitions

 

Unless defined in this Agreement, capitalized terms shall have the meaning
ascribed to them in the Judgment Sharing Agreement.

 

Section 3. Allocation of Obligations Under Judgment Sharing Agreement

 

3.1 The Viacom Entities and Blockbuster shall be responsible for satisfying any
liability incurred by either party that arises out of the Revenue Sharing
Antitrust Cases by judgment or by operation of the Judgment Sharing Agreement in
accordance with the following percentages: Viacom Entities 66.67% and
Blockbuster 33.33%.

 

Section 4. Settlement

 

4.1 No party may reach an agreement of Settlement in the Revenue Sharing
Antitrust Cases without the consent of the other party, such consent not to be
unreasonably withheld by either party.

 

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4.2 Each party shall cooperate in any settlement discussions in a Revenue
Sharing Antitrust Case, including by disclosing all settlement discussions
between a party and a Claimant or Claimants. Each party shall use commercially
reasonable efforts in any agreement of Settlement with a Claimant or Claimants
to include a provision that complies with Sections 4.2 and 4.3 of the Judgment
Sharing Agreement.

 

Section 5. Miscellaneous

 

5.1 Each party, with the assistance of its respective counsel, has read this
Agreement together with the Judgment Sharing Agreement and has had an
opportunity fully to negotiate the terms hereof. Accordingly, any rule of
construction seeking to resolve any ambiguities against the drafting party shall
not be applied in the interpretation of this Agreement.

 

5.2 This Agreement merges and supersedes all prior agreements, commitments,
representations, writings and discussions among the Parties as to the subject
matter of this Agreement. This Agreement and the Judgment Sharing Agreement are
to be read together, with any conflicts regarding the Parties’ obligations
resolved in favor of the obligations created by this Agreement.

 

5.3 Each of the Parties to this Agreement hereby affirms and acknowledges:
(a) that a representative of the party with the authority to bind the party with
respect to the matters set forth herein has read and understood the Agreement;
(b) that the terms of this Agreement and the effects thereof have been fully
explained to that representative by its counsel; (c) that the representative
fully understands each term of the Agreement and its effect; and (d) that no
party has relied upon any statement,

 

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representation or inducement (whether material, false, negligently made or
otherwise) of any other party with respect to said party’s decision to execute
this Agreement.

 

5.4 Whenever possible, each provision of this Agreement shall be interpreted in
such a manner as to be effective and valid under applicable law. If any portion
of this Agreement is declared invalid for any reason in any jurisdiction, such
declaration shall have no effect upon the remaining portions of this Agreement,
which shall continue in full force and effect as if this Agreement had been
executed with the invalid portions thereof deleted; provided, that the entirety
of this Agreement shall continue in full force and effect in all other
jurisdictions.

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have
caused this Agreement to be executed by their officers hereunto duly authorized,
effective as of the date first above mentioned. In so doing, the Parties
expressly agree to and intend to be legally bound by this Agreement.

 

For: Paramount Home Entertainment, Inc. (sued as Paramount Home Video, Inc.)

 

By:

 

/s/ R. Prentice

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Dated:

 

June 18, 2004

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For:

 

Blockbuster Inc.

By:

 

/s/ Edward B. Stead

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Dated:

 

June 18, 2004

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For:

 

Viacom Inc.

By:

 

/s/ Michael D. Fricklas

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Dated:

 

June 18, 2004

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For:

 

Sumner Redstone

By:

 

/s/ Sumner Redstone

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Dated:

 

June 18, 2004

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