----

| 1.0   | PURPOSE |
|-----------------|---------|

| 1.1   | This      Severance Pay Policy is intended to provide on a discretionary basis      severance benefits to eligible employees of Entertainment      Distribution Company (USA) LLC ("EDC") under the limited      circumstances set forth below.  The Policy is totally      discretionary, and EDC reserves the right to grant or deny severance      benefits on a case by case basis, depending on the circumstances of each      case. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.0   | DEFINITIONS |
|-----------------|-------------|

| 2.1   | "EDC"      means Entertainment      Distribution Company (USA)LLC |
|-----------------|-------------------------------------------------------------------|

| 2.2   | "Eligible      Employee" means a full-time non-exempt and exempt common law employee of      EDC classified as      Fixed and/or SG&A Laborat      its Kings Mountain plant (other than an individual classified as      "Variable Labor" and/or an individual      whose terms and conditions of employment are subject to collective      bargaining), as classified by EDC in its sole discretion regardless      of how a court may later classify such employee, excluding in any case any      person under an employmentcontract. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3   | "Participant"      means any Eligible Employee who has been granted severance pay      benefits. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 2.4   | "Policy"      means this Severance Pay Policy for Entertainment      Distribution Company (USA)LLC. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| 3.0   | ELIGIBILITY |
|-----------------|-------------|

| 3.1   | This      Policy applies to any Eligible Employee except any employee who is a party      to a previously agreed to severance or termination    agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | An      Eligible Employee shall become a Participant only after being granted      severance pay benefits by EDC.  No Eligible Employee shall be      eligible to receive a benefit of any type under the Policy until after      becoming such a Participant. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.0   | PAYMENT      CIRCUMSTANCES |
|-----------------|----------------------------|

| 4.1   | There      is no right or entitlement to benefits under the Policy; however, EDC will      consider granting severance pay as set forth in Section 5.1 in the      following circumstances, as determined by EDC in its sole      discretion: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | A      permanent reduction in work force in a job location or      department; |
|-----------------|--------------------------------------------------------------------------------|

| (b)   | The      discontinuance of an operation in a job location or      department; |
|-----------------|-------------------------------------------------------------------------------|

| (c)   | Loss      of employment due to a sale of a division or corporation to another      company, except in the case of an offer of employment under 4.2 below;      or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | A      location closing; or |
|-----------------|-----------------------------|

| (e)   | The      elimination of a job or position. |
|-----------------|--------------------------------------------|

----

| 4.2   | Under      no circumstance will severance pay be considered in any of the following      circumstances, as determined by EDC in its sole  discretion: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The      termination is related to jobperformance; |
|-----------------|----------------------------------------------------|

| (b)   | Termination      of employment by reason of death ordisability; |
|-----------------|-----------------------------------------------------------------|

| (c)   | If      the employee resigns, quits or abandons his or her  job; |
|-----------------|------------------------------------------------------------------|

| (d)   | If      the employee is offered employment on a reasonably similar basis, as      determined by EDC in its sole discretion, by a successor employer or by a      company who is buying, acquiring or otherwise gaining control of the      division or corporation for which the employee was employed prior to the      sale; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | If      the operations are limited or interrupted by occurrences beyond EDC's      control such as an act of war, fire, flood, terrorist action, or other      disaster; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | If      operations are limited or interrupted by strikes, work stoppages, work      slowdowns or civil disturbance. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 5.0   | SEVERANCE      PAY |
|-----------------|--------------------|

| 5.1   | Subject      to the Eligible Employee signing any release offered by EDC, an Eligible      Employee who has been awarded severance pay under Section 4.1 shall      receive severance pay in an amount and manner to be determined by EDC in      its sole discretion using the following  guidelines: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | Severance      is normally payable on a periodic basis (normal payroll period); however,      EDC reserves the right to make a lump sum payment.  COBRA      premiums at the Eligible Employee's election may be paid from the      severance pay in accordance with any flexible benefit plan of      EDC. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.0   | CLAIMS      PROCEDURE |
|-----------------|-----------------------|

| 6.1   | EDC      shall have full discretion and final authority to make any determination      under the Policy, including determining whether to grant or deny severance      benefits and interpreting thePolicy. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.2   | An      employee who has not been granted benefits under this Policy and who      believes that he is entitled to any benefits under this Policy or an      Eligible Employee who has any claim under this Policy, shall present such      claim in writing to EDC within sixty (60) days following the act giving      rise to such claim.  EDC shall within a reasonable time provide      adequate notice in writing to any claimant as to the decision on any such      claim.  If such claim has been denied, in whole or in part, such      notice shall set forth:  (i) the specific reasons for such      denial; (ii) specific reference to any pertinent provisions of the Policy      on which denial is based; (iii) a description of any additional material      or information necessary for the claimant to perfect the claim and an      explanation of why such material or information is necessary; and (iv) an      explanation of the Policy’s review procedure.  Such notice shall      be written in a manner calculated to be understood by the      claimant.  Within sixty (60) days after receipt by the claimant      of notification of denial, the claimant shall have to present a written      appeal to EDC.  If such appeal is not filed within said sixty      (60) day period, the decision of EDC shall be final and      binding.  EDC shall act as a fiduciary in making a full and fair      review of such denial.  The claimant or his duly authorized      representative may review any Policy documents which are pertinent to the      claim and may submit issues and comments to EDC in writing.  A      decision by EDC shall be made promptly, and in any event not later than      sixty (60) days after its receipt of the appeal; provided, however, if EDC      decides a hearing at which the claimant or his duly authorized      representative may be present is necessary, and such a hearing is held,      such decision shall be rendered as soon as possible, but not later than      one hundred twenty (120) days after receipt of the appeal.  Any      such decision of EDC shall be in writing and provide adequate notice to      the claimant setting forth the specific reasons for any denial and written      in a manner calculated to be understood by the claimant.  Any      such decision by EDC shall be final, unless the claimant files a legal      action within twelve (12) months after such decision of    EDC. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.0   | AMENDMENT AND      TERMINATION |
|-----------------|--------------------------------|

| 7.1   | EDC      may amend, terminate, suspend, withdraw or modify the Policy, in whole or      in part, at any time, by a written instrument signed by the President of      EDC. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.0   | POLICY      FUNDING |
|-----------------|---------------------|

| 8.1   | The      benefits under the Policy are paid solely from the general assets of EDC      for whom the Participant wasemployed. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| 9.0   | NO      VESTING |
|-----------------|-----------------|

| 9.1   | There      is no right, entitlement or vesting to any benefits under the      Policy.  The granting of severance benefits under the Policy is      in the sole discretion of EDC. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.0   | MISCELLANEOUS |
|------------------|---------------|

| 10.1   | EDC      shall be the administrator for the Policy with authority to control and      manage the operation and administration of the Policy.  EDC, as      administrator, shall be the named fiduciary of the Policy.  For      purposes of filing suit, the agent for service of legal process is      EDC.  Any action of EDC required under the Policy shall be made      by and through the President of      EDC. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2   | To      the extent permitted under ERISA, each fiduciary under the Policy shall be      responsible for the specific duties assigned under the Policy and shall      not be directly or indirectly responsible for the duties assigned to      another fiduciary.  Any person or group of persons may serve in      more than one fiduciary capacity with respect to the    Policy. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | Neither      the establishment nor the maintenance of the Policy nor any amendment      thereof nor any act or omission under the Policy or resulting from the      operation of the Policy shall beconstrued: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | as      conferring upon any Eligible Employee or any other person a right or claim      against EDC, except to the extent that such right or claim shall be      specifically expressed and provided in the Policy or as provided under      ERISA; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      creating any responsibility or liability of EDC for the validity or effect      of the Policy; |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (c)   | as      a contract or agreement between EDC and any Eligible Employee or any other      person; |
|-----------------|-------------------------------------------------------------------------------------------------|

| (d)   | as      being consideration, or an inducement or a condition of employment of any      Eligible Employee or any other person, or as affecting or restricting in      any manner or to any extent whatsoever the rights or obligations of EDC or      any Eligible Employee or any other person to continue or terminate the      employment relationship at any time;or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | as      giving any Eligible Employee the right to be retained in the service of      EDC or to interfere with the right of EDC to discharge any Eligible      Employee or any other person at anytime. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4   | Any      notice given under the Policy shall be sufficient if given to EDC, when      addressed to its principal business office, or if given to an Eligible      Employee, when addressed to the Eligible Employee at his address as it      appears in the records of EDC or any other Participating      Employer. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Any      payment to any Eligible Employee shall, to the extent thereof, be in full      satisfaction of the claim of such Eligible Employee being paid thereby,      and EDC may condition payment thereof on delivery by the Eligible Employee      of a duly executed receipt and release in such form as may be determined      by EDC. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.6   | This      Policy document shall constitute the only legally governing document for      the Policy.  No statement or other communication shall amend or      modify any provision of the Policy. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|