Document:

Amended and Restated Employment Agreement - James W. Keyes

 Exhibit 10.1 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between
BLOCKBUSTER INC. (“Blockbuster” or the “Company”), and JAMES W. KEYES (“Executive”). Blockbuster and Executive may hereinafter be
referred to jointly as the “Parties.”  
 W I T N E S S E T H:

 WHEREAS, Executive and the Company previously entered into an employment agreement, as amended from time to time,
dated July 2, 2007 (the “Original Effective Date”); and 
 WHEREAS, the Parties desire to
amend and restate the employment agreement on the terms and conditions set forth herein. 
 NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the Parties agree upon the following terms of employment of Executive by the Company: 

1. Effective Date and Term. Executive’s employment shall continue under this Agreement commencing on July 1, 2010 (the
“Effective Date”). The Company hereby employs Executive, and Executive hereby agrees to be employed by the Company, on the terms and conditions set forth herein for a term commencing on the Effective Date of this Agreement
and ending on June 30, 2011 (the “Term of Employment”). 
 2. Duties. Executive will
serve the Company in the capacity of the Company’s chief executive officer (the “Chief Executive Officer”) and, in that capacity, Executive will perform his duties to the best of his abilities, subject to the oversight
of the Company’s board of directors (the “Board”). In addition to performing his duties as Chief Executive Officer, Executive shall serve as chairman of the Board (the “Chairman”). The Company
agrees that Executive shall have duties and responsibilities consistent with the positions set forth above in a company the size and of the nature of Blockbuster and shall at all times have such discretion and authority as is required in the
carrying out of Executive’s duties in a proper and efficient manner, subject to such limits as the Board may impose through the Company’s authorizing resolutions or otherwise. As Chairman, Executive shall be entitled to receive the same
fees and insurance coverage made available to other inside directors on the Board. 
 During the Term of Employment, Executive
shall devote substantially all of his professional attention, on a full time basis, to the business and affairs of the Company, including, among other things, the business and affairs of joint ventures involving the Company and other entities in
which the Company has an equity interest, and shall use his best efforts to advance the best interest of the Company and shall comply with all of the policies of the Company, including, without limitation, such policies with respect to legal
compliance, conflicts of interest, confidentiality and business ethics as are from time to time in effect. 
 During the Term of
Employment, Executive shall not, without the prior approval of the Board, which approval will not be unreasonably withheld, (a) directly or indirectly render services to, or otherwise act in a business or professional capacity on behalf of or
for the benefit 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 1

 
of, any other Person (as defined below) as an employee, advisor, member of a board or similar governing body, independent contractor, agent, consultant, representative or otherwise, whether or
not compensated, or (b) accept appointment to or work in any capacity for any charitable or not-for-profit organization; and, in the case of clauses (a) and (b), to the extent Board approval is granted for Executive’s engagement in
any such activity, Executive shall only engage in such activity to the extent that such activity does not conflict or interfere with the performance of Executive’s duties to the Company. Executive shall be entitled to manage his personal
investments and affairs and to engage in public speaking, provided that such activities do not conflict or interfere with the performance of Executive’s duties. Notwithstanding the foregoing, Executive may continue to provide service in his
current capacity to the entities and organizations listed on Exhibit A to this Agreement, provided that such activities do not conflict or interfere with the performance of Executive’s duties to the Company.
“Person” or “person”, as used in this Agreement, means any individual, partnership, limited partnership, corporation, limited liability company, trust, estate, cooperative, association, organization,
proprietorship, firm, joint venture, joint stock company, syndicate, company, committee, government or governmental subdivision or agency, or other entity. 

3. Compensation. 

A. Salary. For all duties to be performed by Executive on and after the Effective Date in any capacity hereunder,
Executive shall be paid a base salary (“Base Salary”) at an annual rate, to be determined by the Board, of not less than $750,000.00 per year, payable in accordance with the normal payroll practices and procedures of the
Company and subject to normal withholdings. Executive’s Base Salary may not be decreased, but Executive may be entitled to increases in his Base Salary in the sole discretion of the Board. 

B. Stay Bonus. In the event Executive remains employed by the Company through June 30, 2011, the Company shall
pay to Executive a lump sum cash bonus on June 30, 2011 in the amount of $650,000.00, subject to normal withholdings; provided, that, if Executive’s employment with the Company is terminated prior to June 30, 2011, either by the
Company in an Involuntary Termination, due to Executive’s death or Disability or by Executive pursuant to a Good Reason Termination, Executive shall still be entitled to receive a lump sum cash bonus in the amount of $650,000.00, subject to
normal withholdings, payable within sixty (60) days following Executive’s Date of Termination. In addition, Executive shall be entitled to receive, on June 30, 2011, 1,250,000 unrestricted shares of Class A common stock, par
value $.01 per share, of the Company (the “Common Stock”), which shares will be issued under and be subject to the terms and conditions of the Company’s 2004 Long-Term Management Incentive Plan (the “2004
Plan”), provided that Executive remains employed by the Company through June 30, 2011, provided, further, that, in the event shares of Common Stock are not publicly traded on June 30, 2011 (or on such earlier date as delivery
of shares may be required pursuant to the immediately following sentence), Executive shall be entitled to receive a cash payment in the amount of $500,000.00 on June 30, 2011, as long as he is employed by the Company on that date.
Notwithstanding the foregoing, in the event Executive is terminated prior to June 30, 2011, either by the Company in an Involuntary Termination, due to Executive’s death or Disability or by Executive pursuant to a Good

  

  

			
	EMPLOYMENT AGREEMENT	  	Page 2

 
Reason Termination, then Executive shall still be entitled to receive the 1,250,000 shares of Common Stock or $500,000.00 cash payment (as applicable), which will be issued or paid to him within
sixty (60) days following Executive’s Date of Termination. 
 C. Bonus Compensation. During the
Term of Employment, Executive shall be entitled to receive, in addition to his Base Salary, an annual bonus (each, an “Annual Bonus”) in accordance with the terms of the Company’s Senior Executive Annual Performance
Bonus Plan, as such plan may be amended from time to time (the “Bonus Plan”) and the provisions of this Paragraph 3.C. Executive’s target Annual Bonus for each year (“Target Bonus”) will be 100%
of Executive’s Base Salary in effect for the fiscal year to which such Annual Bonus relates, and Executive shall be eligible to receive an Annual Bonus between 0% and 300% of Executive’s Target Bonus based on annual performance achievement
relative to performance goals. Executive’s Annual Bonus will be paid to Executive no later than March 15 of the calendar year following the calendar year to which the Annual Bonus relates. 

D. Stock Options. On the Original Effective Date, Executive was granted stock options to purchase a number of
Common Stock equal to 4.0% of the aggregate number of shares of Common Stock and Class B common stock of the Company that was issued and outstanding on the Original Effective Date, subject to adjustment in accordance with the applicable provisions
of the 2004 Plan. Except as provided otherwise in Paragraphs 5 and/or 6, such stock options vest over a three (3) year period, with one-third of the stock options vesting at each anniversary date of the Original Effective Date. The term of such
stock options will expire (and the stock options will cease to be exercisable) on the seventh anniversary of the Original Effective Date. Except as otherwise provided herein, the stock options will be governed by the terms and provisions of the 2004
Plan, and the exercise price applicable to such stock options is as follows: 
 (1) One-third of the stock
options have an exercise price equal to the average of the opening market price and the closing market price of shares of the Company’s Common Stock on the Original Effective Date; 

(2) With respect to the remaining two-thirds of the stock options (the “Remaining Options”):
(a) one-third of the Remaining Options have an exercise price equal to 15% above the exercise price determined in Paragraph 3.D.(1); (b) one-third of the Remaining Options have an exercise price equal to 15% above the exercise price
determined in Paragraph 3.D.(2)(a); and (c) one-third of the Remaining Options have an exercise price equal to 15% above the exercise price determined in Paragraph 3.D.(2)(b). 

E. Restricted Share Units. On the Original Effective Date, Executive was issued $3,000,000.00 worth of restricted
share units in the Company, calculated based on the closing market price of the Company’s shares of Common Stock on the Original Effective Date in accordance with the terms of the 2004 Plan. Except as provided otherwise in Paragraphs 5 and/or
6, such restricted share units will vest in full on the third anniversary of the Original Effective Date, provided Executive remains employed until 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 3

 
the third anniversary of the Original Effective Date. Once vested, the restricted share units will be settled for the number of shares of the Company’s Common Stock underlying the restricted
share units issued to Executive. The delivery of shares upon settlement of the vested restricted share units shall be made within five (5) business days following the applicable vesting date; provided, however, that if Executive vests in all or
a portion of the restricted share units as a result of the termination of his employment with the Company, as described in Paragraph 5 hereof, the delivery of shares shall instead be made on the first day of the seventh calendar month following the
date on which Executive’s employment with the Company is terminated, but such settlement delay shall only apply in the event that Executive is a “specified employee” within the meaning of Treasury Regulation § 1.409A-1(i)(1).

 F. Other Benefits. Executive shall be eligible to participate in or receive benefits under any
employee benefit plan, program, or arrangement currently available to other executives of the Company, and/or made available by the Company in the future to its executives and key management employees, subject to and on a basis consistent with the
terms, conditions, and overall administration of such plans and arrangements; provided, however that (1) Executive shall not be entitled to participate in any (a) cash incentive, bonus or other compensation arrangement of the Company other
than as provided in and pursuant to Paragraphs 3.B. and 3.C. hereof, or (b) any severance plan of the Company, and (2) Executive shall be eligible to receive annual equity grants pursuant to the Company’s stockholder-approved equity
plans, including the 2004 Plan. 
 G. Expense Reimbursement. Executive shall be entitled to reasonable
reimbursement of all reasonable expenses incurred on behalf of the Company during the Term of Employment, in accordance with the Company’s standard policies and procedures, which provide an objectively determinable nondiscretionary definition
of the expenses eligible for reimbursement. Subject to the Company’s ability to obtain sufficient and appropriate liability insurance coverage at a reasonable cost (to be reasonably determined by the Company), the Company acknowledges and
agrees that Executive may use his personal aircraft for any business travel related to the Company’s business, and the Company shall reimburse Executive for all reasonable expenses related thereto, not to exceed an amount equal to the lowest
published charter rate applicable to charter aircraft of the same type and class as Executive’s personal aircraft. Notwithstanding any provision of this Agreement to the contrary, the amount of expenses for which Executive is eligible to
receive reimbursement during any calendar year shall not affect the amount of expenses for which Executive is eligible to receive reimbursement during any other calendar year within the Term of Employment. Reimbursement of expenses under this
Paragraph 3.G. shall be made on or before the last day of the calendar year following the calendar year in which the expense was incurred. Executive is not permitted to receive a payment or other benefit in lieu of reimbursement under this Paragraph
3.G. 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 4

 4. Termination. Unless otherwise agreed to in writing by the Company and
Executive, Executive’s employment hereunder may be terminated under the following circumstances: 
 A.
For Cause Termination. The Board may terminate Executive’s employment with the Company for Cause, as defined in the following sentence. For purposes of this Agreement, (1) “Cause” means: (a) an act of
dishonesty in the course of employment that is detrimental to the best interests of the Company or any of its affiliates; (b) willful conduct of Executive involving any immoral acts that impairs the reputation of the Company or any of its
affiliates; (c) willful disloyalty to the Company; (d) willful refusal or failure of Executive to obey the lawful directions of the Board; (e) the neglect of duties and responsibilities assigned to Executive; (f) the indictment
of Executive of any felony under federal, state or local law or a reasonable determination of the Board that Executive engaged in the act of sexual harassment or violated Federal securities laws; (g) the repeated use by Executive of a
controlled substance without a prescription or the repeated use of alcohol that impairs Executive’s ability to carry out his duties and responsibilities; (h) violation by Executive of any of the Company’s material policies; or
(i) material breach of this Agreement; and (2) “For Cause Termination” is any termination for Cause in accordance herewith. 

B. Good Reason Termination. Executive may terminate his employment with the Company for Good Reason upon giving
the Company not less than thirty (30) days written notice in advance of any proposed Date of Termination (as defined in Paragraph 4.F.) for Good Reason, which notice must a contain detailed explanation of what facts Executive believes give rise
to a Good Reason Termination. For purposes of this Agreement, “Good Reason” means a termination initiated by Executive within sixty (60) days following the occurrence of (1) a significant reduction in
Executive’s title, duties, or responsibilities that occurs without Executive’s consent; or (2) a material reduction in Executive’s Base Salary or Executive’s annual Target Bonus opportunity. Notwithstanding anything to the
contrary contained herein, the following shall not be or constitute Good Reason: (a) any reduction in Executive’s title, duties, or responsibilities as Chairman as a result of the stockholders of the Company failing to reelect Executive to
that position; (b) any isolated or inadvertent action not taken in bad faith; or (c) any action that is remedied by the Company within thirty (30) days after receipt of a written notice from Executive as described above. For the
purposes of this Agreement, a “Good Reason Termination” means any termination for a Good Reason in accordance herewith. 

C. Involuntary Termination. The Board may, at any time, terminate Executive’s employment with the Company
without Cause through an Involuntary Termination. An “Involuntary Termination” is any termination of Executive’s employment by the Board that does not meet the definition of a For Cause Termination. 

D. Voluntary Resignation. A “Voluntary Resignation” is any resignation of employment by
Executive that is not a Good Reason Termination. 
 E. Notice of Termination. Any termination occurring
in accordance with the terms of this Paragraph 4 (other than by reason of Executive’s death) shall be communicated by a Notice of Termination to the other Party delivered in accordance with Paragraph 8 of this Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice that (i) indicates the specific termination provision of this Agreement relied upon; (ii) sets forth in reasonable detail the facts and

  

  

			
	EMPLOYMENT AGREEMENT	  	Page 5

 
circumstances claimed to provide a basis for the termination; and (iii) specifies the date such termination shall be effective. The failure of Executive or the Company to set forth in the
Notice of Termination any fact or circumstance that contributes to a showing of the basis for termination shall not waive any right of such Party hereunder or later preclude such Party from asserting such fact or circumstance in enforcing its rights
hereunder. 
 F. Date of Termination/Disability. “Date of Termination” means the
date of receipt of the Notice of Termination or any later date specified therein, as the case may be; provided, however, that if Executive’s employment is terminated by reason of his death, the Date of Termination shall be the date of death of
Executive. For the purposes of this Agreement, “Disability” means, as reasonably determined by the Board, Executive’s physical or mental incapacity that renders him unable to perform the essential functions of
Executive’s duties to the Company for sixty (60) consecutive days or eighty (80) days in any twelve (12) month period, even with reasonable accommodation, in which case Executive’s Date of Termination is the end of such
sixty (60) day period or the eighty-first day in any twelve (12) month period that Executive is absent from work by reason of Disability. 

5. Obligations of the Company in the Event of Termination. In the event of termination of Executive’s employment
hereunder, all rights of Executive under this Agreement, including all rights to compensation, shall end and Executive shall only be entitled to be paid the amounts set forth in this Paragraph 5 below; provided, that, the obligation of the Company
to make any payment required pursuant to this Paragraph 5 (other than any amounts of Executive’s Base Salary previously earned and accrued and any amounts payable on account of accrued but unused vacation) is conditioned upon (i) execution
and delivery by Executive to the Company of a release agreement in favor of the Company, its affiliates and their respective officers, directors, employees, agents and equity holders in respect of Executive’s employment with the Company and the
termination thereof in a form substantially as set forth in Exhibit B attached hereto (the “Release”), and (ii) such Release, once executed by Executive and delivered to the Company, becoming irrevocable and final
under applicable law. Promptly following Executive’s termination, the Company shall deliver to him an execution-ready Release and, in the event that Executive fails to deliver the executed Release to the Company or the Executive delivers an
executed Release but such Release does not become irrevocable and final under applicable law on or before the last day of the period during which payment may be made under the following provisions of this Paragraph 5, then Executive shall forfeit
any payment required pursuant to this Paragraph 5 (other than any amounts of Executive’s Base Salary previously earned and accrued and any amounts payable on account of accrued but unused vacation). 

A. For Cause Termination. 

(1) If Executive’s employment is terminated as a result of a For Cause Termination or due to Executive’s death
or Disability, Executive will then, in lieu of any other payments of any kind (including without limitation, any severance payments), be entitled to receive, within thirty (30) days following the Date of Termination, the following: 

(a) Payment of any unpaid Base Salary through the Date of Termination; 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 6

 (b) Payment for any vacation time accrued and unused as of the Date of
Termination, pursuant to Company policy; 
 (c) Executive’s vested stock options may be exercised in
accordance with the applicable provisions of the 2004 Plan, and all unvested stock options shall be forfeited; and 

(d) All of Executive’s unvested restricted share units shall be forfeited and cancelled. 

(2) Coverage under all of the Company’s benefit plans and programs in which Executive is entitled to participate
under Paragraph 3.F. above will terminate as of the Date of Termination except to the extent expressly provided in such plans, programs, or applicable law. 

(3) Notwithstanding the foregoing or any other provision of this Agreement to the contrary, nothing in this Agreement
shall preclude Executive from receiving payment of any amount that he is entitled to receive pursuant to the terms of Paragraph 3.B. of this Agreement. 

B. Involuntary Termination and/or Good Reason Termination. 

(1) If Executive’s employment is terminated by the Company through an Involuntary Termination or by Executive
pursuant to a Good Reason Termination, Executive will then, in lieu of any other payments of any kind (including without limitation, any severance payments), be entitled to receive, within thirty (30) days following the Date of Termination
(except as otherwise specified below), the following: 
 (a) Payment of any unpaid Base Salary through the Date
of Termination; 
 (b) Payment for any vacation time accrued and unused as of the Date of Termination, pursuant
to Company policy; 
 (c) A pro-rata portion of all outstanding equity grants held by Executive on the Date of
Termination that are subject solely to time-based vesting conditions will vest as of the Date of Termination, based on the number of days during the applicable vesting period that Executive was employed by the Company, divided by the total number of
days in such vesting period; 
 (d) Executive’s vested stock options may be exercised in accordance with
the applicable provisions of the 2004 Plan; 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 7

 (e) A portion of the Annual Bonus that Executive would have been entitled
to receive for the fiscal year of termination based on the actual performance attained, such portion to be determined by multiplying such Annual Bonus by a fraction, the numerator of which is the number of days during which Executive was employed by
the Company in the fiscal year of Executive’s termination, and the denominator of which is 365 (the “Pro-Rata Bonus”), with such Pro-Rata Bonus payable to Executive at the time specified in Paragraph 3.C as if
Executive’s employment had not terminated; 
 (f) Payment of a lump sum amount equal to twenty-four
(24) months’ worth of Executive’s Base Salary, as in effect on the Date of Termination; and 

(g) Continued eligibility to participate in all of the Company’s group health plans (including continued eligibility
for Executive’s spouse and eligible dependents), to the extent covered immediately prior to the Date of Termination, on the same terms and conditions as active employees of the Company, until the earlier to occur of (i) 24 months from the
Date of Termination (the “Severance Period”), or (ii) until Executive is or becomes eligible for comparable coverage under the group health plan of a subsequent employer. If Executive continues to receive benefits
pursuant to this Paragraph 5.B.(1)(g) when, in the absence of the benefits provided in this Paragraph 5.B.(1)(g), Executive would not be entitled to continuation coverage under Section 4980B of the Internal Revenue Code of 1986, as amended,
Executive shall receive reimbursement for all medical expenses no later than the end of the calendar year immediately following the calendar year in which the applicable expenses were incurred. The health care continuation coverage period under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), or any replacement or successor provision of United States law, shall run concurrently with the Severance Period. For the avoidance of doubt, this
provision shall not entitle Executive to any continued disability coverage. 
 (2) Notwithstanding the foregoing
or any other provision of this Agreement to the contrary, nothing in this Agreement shall preclude Executive from receiving payment of any amount that he is entitled to receive pursuant to the terms of Paragraph 3.B. of this Agreement. 

C. Termination Due to Voluntary Resignation. 

(1) If Executive’s employment is terminated because of a Voluntary Resignation, Executive will then, in lieu of any
other payments of any kind (including without limitation, any severance payments), be entitled to receive, within thirty (30) days following the Date of Termination, the following: 

(a) Payment of any unpaid Base Salary through the Date of Termination; 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 8

 (b) Payment for any vacation time accrued and unused as of the Date of
Termination, pursuant to Company policy; 
 (c) Executive’s vested stock options and vested restricted
share units may be exercised and/or settled in accordance with the applicable provisions of this Agreement and the 2004 Plan, provided that the delivery of shares upon settlement of vested restricted share units is made on the date specified in
Paragraph 3.E. hereof; and 
 (d) Any unvested stock options or unvested restricted share units shall be
forfeited and cancelled. 
 (2) Coverage under all of the Company’s benefit plans and programs in which
Executive is entitled to participate under Paragraph 3.F. above will terminate as of the Date of Termination except to the extent expressly provided in such plans, programs, or by applicable law. 

6. Change of Control. 

A. Notwithstanding any other provision of this Agreement to the contrary, upon the occurrence of a Change of Control or
the approval by the stockholders of the Company of (or, if no such approval is required, the consummation of) a plan of complete liquidation of the Company or an agreement for the sale or distribution by the Company of all or substantially all of
the Company’s assets (in each case, other than a liquidation, sale, disposition or other pro-rata distribution of all or substantially all of the Company’s assets or any other transaction, in one transaction or a series of related
transactions, to or with a Person owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of the stock of the Company)(together with a Change in Control, a “Corporate
Event”), provided Executive is an employee of Company on the date such event occurs and provided such event occurs on or prior to July 1, 2010, all of Executive’s stock options and restricted share units shall vest and may be
exercised or settled in accordance with the applicable provisions of this Agreement and the 2004 Plan; provided that the delivery of shares upon settlement of vested restricted share units is made within the time specified in Paragraph 3.E. hereof.

 B. As used in this Agreement, “Change of Control” means the consummation of any
transaction (including, without limitation, any sale of stock, merger, consolidation or spinoff), the result of which is that any Person, other than the Company, any subsidiary of the Company, or any employee benefit plan of the Company, becomes the
Beneficial Owner of more than 50% of the Voting Stock. For the purposes hereof, the following capitalized terms will have the following meaning: “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule
13d-5 under the Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 9

 
amended, and any successor thereto. “Voting Stock” means all classes of capital stock of the Company which are entitled to vote as one class in the election of directors
thereof at a meeting of stockholders called for such purpose. 
 7. Indemnification; Directors’ and Officers’
Liability Insurance. As and to the extent provided in the Company’s bylaws, Executive will be entitled to the indemnification provided to other executive officers and directors of the Company. In addition, the Company agrees to include
Executive as a covered person on a directors’ and officers’ liability insurance policy or policies covering Executive to the same extent that the Company provides such coverage for its other executive officers and directors. 

8. Notices. Any and all notices required or permitted under this Agreement shall be in writing and shall be personally
delivered, or mailed by expedited overnight delivery service, or sent by facsimile (provided that the sender confirms the facsimile by sending an original confirmation copy thereof by certified or registered mail or expedited delivery service within
two (2) business days after transmission thereof) to the respective Parties at the following addresses unless and until a different address has been designated by written notice to the other Party, as follows: 

Notices to Blockbuster: 

Blockbuster Inc. 

Attn: Chief Financial Officer 

1201 Elm Street 

Dallas, Texas 75270 

Facsimile No.: (214) 854-3436 

Notices to Executive: 

James W. Keyes 

5907 Gladeside Court 

Dallas, Texas 75248 

Facsimile No.: (972) 380-1515 

Any notice shall be deemed to have been given at the time of personal delivery or, in the case of facsimile, upon transmission (provided confirmation is
sent as described above) or, in the case of expedited delivery via overnight service upon receipt thereof. 
 9.
Non-Disclosure/Non-Disparagement. 
 A. During the Term of Employment and at all times thereafter,
Executive shall (1) hold in a fiduciary capacity for the benefit of the Company and each of its affiliates, all secret or confidential information, knowledge or data, including, without limitation, trade secrets, sources of supplies and
materials, customer lists and their identity, designs, production and design techniques and methods, identity of investments, identity of contemplated investments, business opportunities, valuation models and methodologies, processes, technologies,
and any intellectual property relating to the 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 10

 
business of the Company or its affiliates, and their respective businesses, (a) obtained by Executive during Executive’s employment by the Company and any of the subsidiaries of the
Company, and (b) not otherwise in the public domain (“Confidential Information”); and (2) comply with any confidentiality obligations of the Company to a third party. Executive shall not, without the prior written
consent of the Company (acting at the direction of the Board): (i) except to the extent compelled pursuant to the order of a court or other body having jurisdiction over such matter or based upon the advice of counsel that such disclosure is
legally required, communicate or divulge any Confidential Information to anyone other than the Company and those designated by the Company; or (ii) use any Confidential Information for any purpose other than the performance of his duties
pursuant to this Agreement. Executive will reasonably assist the Company or its designee, at the Company’s expense, in obtaining a protective order, other appropriate remedy or other reliable assurance that confidential treatment will be
accorded any Confidential Information disclosed pursuant to the terms of this Agreement. 
 B. Executive agrees
not to disparage the Company, any of its affiliates or any of their respective officers or directors at any time during and after his Term of Employment hereunder. 

C. All processes, technologies, intellectual property and inventions (collectively, “Inventions”)
conceived, developed, invented, made or found by Executive, alone or with others, during the Term of Employment that are within the scope of the Company’s business operations, whether or not patentable and whether or not on the Company’s
or any of its subsidiaries’ time or with the use of the Company’s or any of its subsidiaries’ facilities or materials, shall be the property of the Company or its respective subsidiary, as the case may be, and shall be promptly and
fully disclosed by Executive to the Company. Executive shall perform all reasonably necessary acts (including, without limitation, executing and delivering any confirmatory assignments, documents, or instruments requested by the Company or any of
its subsidiaries) to vest title to any such Invention in the Company or the applicable subsidiary and to enable the Company or the applicable subsidiary, at their expense, to secure and maintain domestic and/or foreign patents or any other rights
for such Inventions. 
 10. Non-Compete. 

A. Executive will not, for a period of one (1) year following the Date of Termination, either directly or indirectly,
as principal, agent, owner, employee, partner, investor, stockholder (other than solely as a holder of not more than 1% of the issued and outstanding shares of any public entity), consultant, advisor or otherwise howsoever own, operate, carry on or
engage in the operation of or have any financial interest in or provide, directly or indirectly, financial assistance to or lend money to or guarantee the debts or obligations of any Person carrying on or engaged in any business that is similar to
or competitive with the business conducted by the Company or any of its subsidiaries, whether with respect to customers, sources of supply or otherwise. 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 11

 B. Executive covenants and agrees with the Company and its subsidiaries
that, during the Term of Employment and for one (1) year thereafter, Executive shall not, directly or indirectly, for himself or for any other Person: 

(1) solicit, interfere with or endeavor to entice away from the Company or any of its subsidiaries or affiliates, any
customer or client; 
 (2) attempt to direct or solicit any customer or client away from the Company or any of
its subsidiaries or affiliates; or 
 (3) interfere with, entice away or otherwise attempt to induce any person
who is then or has been within six (6) months prior thereto an employee of the Company or any of its subsidiaries or affiliates to terminate his/her employment with the Company or any of its subsidiaries or affiliates. 

Executive represents to and agrees with the Company that the enforcement of the restrictions contained in Paragraph 9 and Paragraph 10 (i.e., the
Non-Disclosure, Non-Disparagement and Non-Compete provisions of this Agreement) would not be unduly burdensome to Executive and that such restrictions are reasonably necessary to protect the legitimate interests of the Company. Executive agrees that
the remedy of damages for any breach by Executive of the provisions of either of these paragraphs may be inadequate and that the Company shall be entitled to seek injunctive relief, without posting any bond, and Executive agrees not to oppose
granting of such relief on the grounds that monetary damages would adequately compensate the Company. This Paragraph 10 constitutes an independent and separable covenant that shall be enforceable notwithstanding any right or remedy that the Company
may have under any other provision of this Agreement or otherwise. 
 11. Return of Property. All documents, data,
recordings, or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for Executive and utilized by Executive in the course of his employment with the Company or any of its
affiliates shall remain the exclusive property of the Company. Executive shall return such property that is in his possession or control promptly after receipt of a written request from the Company. Anything to the contrary notwithstanding, nothing
in this Paragraph 11 shall prevent Executive from retaining a home computer and security system, papers and other materials of a personal nature, including personal diaries, calendars and Rolodexes, information relating to his compensation or
relating to reimbursement of expenses, information that Executive reasonably believes may be needed for tax purposes, and copies of plans, programs and agreements relating to Executive’s employment. 

12. Litigation. Executive agrees that, during the Term of Employment and continuing until the end of the one (1) year
period following Executive’s Date of Termination, and, if longer, during the pendancy of any litigation or other proceeding, Executive shall not communicate with anyone (other than his attorneys and tax and/or financial advisors and except to
the extent Executive determines in good faith is necessary to the performance of his duties hereunder) with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the
Company or any of its affiliates, other than any litigation or other proceeding in which Executive is a party-in-opposition, without giving 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 12

 
prior notice to the Company or the Company’s counsel. In addition, during the Term of Employment and continuing until the end of the one (1) year period following Executive’s Date
of Termination, in the event that any other party attempts to obtain information or documents from Executive (other than in connection with any litigation or other proceeding in which Executive is a party-in-opposition) with respect to matters
Executive believes in good faith are related to such litigation or other proceeding, Executive shall promptly so notify the Company’s counsel. Executive agrees to cooperate, in a reasonable and appropriate manner, with the Company and its
attorneys, both during and after the termination of his employment, in connection with any litigation or other proceeding arising out of or relating to matters in which Executive was involved prior to the termination of his employment to the extent
the Company pays all expenses Executive incurs in connection with such cooperation and to the extent such cooperation does not unduly interfere (as determined by Executive in good faith) with Executive’s personal or professional schedule.

 13. Arbitration. Except as provided otherwise in Paragraph 10, all claims, demands, causes of action, disputes,
controversies or other matters in question (“Claims”), whether or not arising out of this Agreement or the Executive’s service (or termination from service) with the Company, whether arising in contract, tort or
otherwise and whether provided by statute, equity or common law, that the Company may have against the Executive or that the Executive may have against the Company, or its parents, subsidiaries or affiliates, or against each of the foregoing
entities’ respective officers, directors, employees or agents in their capacity as such or otherwise, shall be submitted to binding arbitration, if such Claim is not resolved by the mutual written agreement of the Executive and the Company, or
otherwise, within thirty (30) days after notice of the dispute is first given. Claims covered by this Paragraph 13 include, without limitation, Claims by the Executive for breach of this Agreement, wrongful termination, discrimination (based on
age, race, sex, disability, national origin, sexual orientation, or any other factor), harassment and retaliation. Any arbitration shall be conducted in accordance with the Federal Arbitration Act (“FAA”) and, to the extent
an issue is not addressed by the FAA, with the then-current National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”) or such other rules of the AAA as are applicable to the
Claims asserted. If a Party refuses to honor its obligations under this Paragraph 13, the other Party may compel arbitration in either federal or state court. The arbitrator shall apply the substantive law of Texas (excluding choice-of-law
principles that might call for the application of some other jurisdiction’s law) or federal law, or both as applicable to the Claims asserted. The arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation,
applicability or enforceability or formation of this Agreement (including this Paragraph 13), including any Claim that all or part of the Agreement is void or voidable and any Claim that an issue is not subject to arbitration. The results of
arbitration will be binding and conclusive on the parties hereto. Any arbitrator’s award or finding or any judgment or verdict thereon will be final and unappealable. All parties agree that venue for arbitration will be in Dallas, Texas,
and that any arbitration commenced in any other venue will be transferred to Dallas, Texas, upon the written request of any Party to this Agreement. In the event that an arbitration is actually conducted pursuant to this Paragraph 13, the Party
in whose favor the arbitrator renders the award shall be entitled to have and recover from the other Party all costs and expenses incurred, including reasonable attorneys’ fees, reasonable costs and other reasonable expenses pertaining to the
arbitration and the enforcement thereof and such attorneys fees, costs and other expenses shall become a part of any award, judgment or verdict. Any and all of the arbitrator’s orders, 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 13

 
decisions and awards may be enforceable in, and judgment upon any award rendered by the arbitrator may be confirmed and entered by any federal or state court having jurisdiction. All privileges
under state and federal law, including attorney-client, work product and party communication privileges, shall be preserved and protected. The decision of the arbitrator will be binding on all parties. Arbitrations will be conducted in such a manner
that the final decision of the arbitrator will be made and provided to the Executive and the Company no later than 120 days after a matter is submitted to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any
order, decision or award of the arbitrators, shall be kept confidential by all parties. EXECUTIVE ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, EXECUTIVE IS WAIVING ANY RIGHT THAT EXECUTIVE MAY HAVE TO A JURY TRIAL OR A COURT TRIAL OF ANY SERVICE
RELATED CLAIM ALLEGED BY EXECUTIVE.  
 14. Miscellaneous. 

A. Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Texas, without reference to principles of conflict of laws. 
 B. Captions. The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect. 
 C. Actions by the Board. Any
and all determinations or other actions required of the Board hereunder that relate specifically to Executive’s employment by the Company or the terms and conditions of such employment shall be made by the members of the Board other than
Executive, and Executive shall not have any right to vote or decide upon any such matter. If any determination or other action required of the Board hereunder requires that such determination or other action be taken by a majority, a specified
number, or a specified percentage of the Board, then such majority, number or percentage shall be determined as if Executive was not a member of the Board. 

D. Entire Agreement. This Agreement contains the entire agreement between Executive and the Company with regard to
the Company’s employment of Executive and supersedes and nullifies all previous agreements between the Parties about the Company’s employment of Executive. 

E. Amendment. This Agreement may be amended, modified or terminated only by a written document signed by Executive
and a duly authorized officer of the Company specifically referencing the provision or provisions being amended, modified or terminated. 

F. Invalid Provision; Language Construction. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality, or unenforceability will not affect any provision in any other jurisdiction, but this Agreement will be reformed, construed, and enforced in 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 14

 
such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein except that any court having jurisdiction shall have the power to reduce the duration,
area, or scope of such invalid, illegal, or unenforceable provision and, its reduced form, it shall be enforceable. It is the intent of the Parties that the provisions of this Agreement be enforceable to the fullest extent permitted by applicable
law. The Parties agree that the language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either Party. 

G. No Assignment. No rights or obligations of Executive under this Agreement may be assigned or transferred other
than Executive’s rights to compensation and benefits, which may be transferred only by will or operation of law. 

H. Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state, or
local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 I.
Waiver. The Company’s or Executive’s failure to insist on strict compliance with any provision of this Agreement shall not be deemed to be a waiver of such provision or any other provision of this Agreement. 

J. Deemed Resignations. Any termination of Executive’s employment with the Company shall constitute an
automatic resignation of Executive as an officer of the Company and each affiliate of the Company. In addition, Executive agrees to resign, effective as of the date of conclusion of his employment for an reason, from his membership on the Board (if
applicable), and from the board of directors of any affiliate of the Company, and from the board of directors or similar governing body of any corporation, limited liability company, or other entity in which the Company or any affiliate holds an
equity interest and with respect to which board or similar governing body Executive serves as the Company’s or such affiliate’s designee or other representative. 

K. Consultation with Attorney. Executive acknowledges that he has been advised in writing to consult with an
attorney before signing this Agreement. 
 L. No Conflict. Executive covenants and represents that
(i) he is not a party to any contract, commitment or agreement, nor is he subject to, or bound by, any order, judgment, decree, law, statute, ordinance, rule, regulation or other restriction of any kind or character, which would prevent or
restrict him from entering into and performing his obligations under this Agreement, (ii) he is free to enter into the arrangements contemplated herein, and (iii) he is not subject to any agreement or obligation that would limit his
ability to act on behalf of the Company or any of its subsidiaries. Executive has delivered to the Company true and complete copies of any currently effective employment agreement, non-competition agreement or similar agreement to which Executive is
subject. 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 15

 M. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original. 
 [Signature Page Follows] 

 

  

			
	EMPLOYMENT AGREEMENT	  	Page 16

 IN WITNESS WHEREOF, the Parties have executed the Agreement as of the dates set forth
below. 
  

									
	EXECUTIVE	  		  	BLOCKBUSTER INC.
				
	 /s/ JAMES W. KEYES
	  		  	By:	  	 /s/ Rod J. McDonald

	JAMES W. KEYES	  		  	Its:	  	 Vice President, Secretary and General Counsel

	Date:	  	 June 30, 2010
	  		  	Date:	  	 June 30, 2010

[Signature Page to Employment Agreement] 
  

  

			
	EMPLOYMENT AGREEMENT	  	Page 17

 EXHIBIT A 

Companies: 
  

	 	•	 	 Cimarron Aviation Corporation 

Chairman 
  

	 	•	 	 Key Development, LLC 

Chairman 
  

	 	•	 	 Key Equity, LLC 

Chairman 
 Charitable and
Not-for-Profit Organizations: 
  

	 	•	 	 American Red Cross 

National Board of Governors- Member 
  

	 	•	 	 Dallas Center for the Performing Arts 

Board Member 
  

	 	•	 	 Dallas Citizens Council 

Board Member 
  

	 	•	 	 Dallas Education Foundation 

Board Member 
  

	 	•	 	 Dallas Symphony Organization 

Executive Board Member 
  

	 	•	 	 Education is Freedom 

Founder/ Board Member 
  

	 	•	 	 SMU/ Cox School of Business 

Board Member 
  

	 	•	 	 The Cooper Institute 

Board Member 
  

	 	•	 	 University of Limerick Foundation 

International Board Member 
  

  

			
	EXHIBIT A – LIST OF CURRENT ORGANIZATIONS	  	Page 1

 EXHIBIT B 

GENERAL RELEASE OF ALL CLAIMS 

This General Release of All Claims (the “General Release”) dated as of
                 , 20     is made in consideration of severance payments and other benefits provided to the undersigned employee
(“Executive”) under the Employment Agreement by and between Executive and Blockbuster Inc. (the “Company”), effective as of             
    , 2010 (the “Employment Agreement”). Unless otherwise defined herein, the terms defined in the Employment Agreement shall have the same defined meaning in this General Release. 

1. For valuable consideration to be paid to Executive, upon expiration of the seven day revocation period provided in Section 8
herein, as provided for in Paragraph 5 of the Employment Agreement and to which he is not contractually entitled to absent the execution of this General Release, the adequacy of which is hereby acknowledged, Executive, for himself, his spouse,
heirs, administrators, children, representatives, executors, successors, assigns, and all other persons claiming through Executive, if any (collectively, “Releasers”), does hereby release, waive, and forever discharge the Company
and the Company’s former, present or future subsidiaries, parents, affiliates, related organizations, employees, officers, directors, equity holders, attorneys, successors and assigns (collectively, the “Releasees”) from, and
does fully waive any obligations of Releasees to Releasers for, any and all liability, actions, charges, causes of action, demands, damages, or claims for relief, remuneration, sums of money, accounts or expenses (including, without limitation,
attorneys’ fees and costs) of any kind whatsoever, whether known or unknown or contingent or absolute, which heretofore has been or which hereafter may be suffered or sustained, directly or indirectly, by Releasers in consequence of, arising
out of, or in any way relating to Executive’s employment with the Company (whether pursuant to the Employment Agreement or otherwise) or any of its affiliates and the termination of Executive’s employment. The foregoing release and
discharge, waiver and covenant not to sue includes, but is not limited to, all claims, and any obligations or causes of action arising from such claims, under common law including any state or federal discrimination, fair employment practices or any
other employment-related statute or regulation (as they may have been amended through the date of this General Release) prohibiting discrimination or harassment based upon any protected status including, without limitation, race, color, religion,
national origin, age, gender, marital status, disability, handicap, veteran status or sexual orientation. Without limitation, specifically included in this paragraph are any claims arising under the Federal Rehabilitation Act of 1973, Age
Discrimination in Employment Act of 1967, as amended (“ADEA”), the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, the Equal Pay Act, the Americans With
Disabilities Act, the National Labor Relations Act, the Fair Labor Standards Act, Employee Retirement Income Security Act of 1974, the Family Medical Leave Act of 1993, the Consolidated Omnibus Budget Reconciliation Act of 1985, and any similar
state statutes. The foregoing release and discharge also expressly includes any claims under any state or federal common law theory, including, without limitation, wrongful or retaliatory discharge, breach of express or implied contract, promissory
estoppel, unjust enrichment, breach of covenant of good faith and fair 
  

  

			
	EXHIBIT B – GENERAL RELEASE OF CLAIMS	  	Page 1

 
dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation,
deceit, fraud or negligence. This also includes a release by Executive of any claims for alleged physical or personal injury, emotional distress relating to or arising out of Executive’s employment with the Company or the termination of that
employment; and any claims under the WARN Act or any similar law, which requires, among other things, that advance notice be given of certain work force reductions. This release and waiver applies to any claims or rights that may arise after the
date Executive signs this General Release, but does not apply to any such claims arising out of the conduct by any Releasees that takes place after Executive signs this General Release. All of the claims, liabilities, actions, charges, causes of
action, demands, damages, remuneration, sums of money, accounts or expenses described in this Section 1 shall be described, collectively, as the “Released Claims”. 

2. Excluded from this General Release are any claims which cannot be waived by law, including, but not limited to, the right to
participate in an investigation conducted by certain government agencies. Executive does, however, waive Executive’s right to any monetary recovery should any agency (such as the Equal Employment Opportunity Commission) pursue any claims on
Executive’s behalf. Executive represents and warrants that Executive has not filed any complaint, charge, or lawsuit against the Releasees with any government agency or any court. 

3. Executive agrees never to sue Releasees in any forum for any Released Claims covered by the above waiver and release language, except
that Executive may bring a claim under the ADEA to challenge this General Release. If Executive violates this General Release by suing Releasees, other than under the ADEA, Executive shall be liable to the Company for its reasonable attorneys’
fees and other litigation costs incurred in defending against such a suit. Nothing in this General Release is intended to reflect any party’s belief that Executive’s waiver of claims under ADEA is invalid or unenforceable, it being the
interest of the parties that such claims are waived. 
 4. Executive acknowledges and recites that: 

(a) Executive has executed this General Release knowingly and voluntarily; 

(b) Executive has read and understands this General Release in its entirety; 

(c) Executive has been advised and directed orally and in writing (and this subparagraph (c) constitutes such written direction) to
seek legal counsel and any other advice he wishes with respect to the terms of this General Release before executing it; 
 (d)
Executive’s execution of this General Release has not been forced by any employee or agent of the Company, and Executive has had an opportunity to negotiate about the terms of this General Release and that the agreements and obligations herein
are made voluntarily, knowingly and without duress, and that neither the Company nor its agents have made any representation inconsistent with the General Release; and 
  

  

			
	EXHIBIT B – GENERAL RELEASE OF CLAIMS	  	Page 2

 (e) Executive has been offered 21 calendar days after receipt of this General Release to
consider its terms before executing it. 
 5. This General Release shall be governed by, and construed in accordance with, the
laws of the United States applicable thereto and the internal laws of the State of Texas, without giving effect to the conflicts of law principles thereof. 

6. Executive represents that he has returned all property belonging to the Company including, without limitation, keys, access cards,
computer software and any other equipment or property. Executive further represents that he has delivered to the Company all documents or materials of any nature belonging to it, whether an original or copies of any kind, including any Confidential
Information. 
 7. Executive represents that he has been provided notice of his right to elect continuation of medical benefits
under COBRA and that he is not entitled to any other benefits under the Company’s employee benefit plans. 
 8. Executive
shall have 7 days from the date hereof to revoke this General Release by providing written notice of the revocation to the Company, in accordance with the requirements of Paragraph 8 of the Employment Agreement, in which event this General Release
shall be unenforceable and null and void. 
 I, JAMES W. KEYES, represent and agree that I have carefully read this General Release; that I
have been given ample opportunity to consult with my legal counsel or any other party to the extent, if any, that I desire; and that I am voluntarily signing by my own free act. 

PLEASE READ THIS GENERAL RELEASE CAREFULLY. IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 

 

	
	EXECUTIVE:
	
	  

	JAMES W. KEYES
	Date:             , 20    

 

  

			
	EXHIBIT B – GENERAL RELEASE OF CLAIMS	  	Page 3Unassociated Document

 

Exhibit 10.1

CAPRIUS, INC.

10 Forest Avenue

Suite 220

Paramus, New Jersey 07652

 

June 29, 2010

Special Situations Fund III QP, L.P.

Special Situations Private Equity Fund, L.P.

c/o MGP Advisors Limited

527 Madison Avenue

New York, NY 10022

Gentlemen:

This letter agreement (this “Agreement”) sets forth the agreement between Special Situations Fund III QP, L.P. (“SSFQP”), and Special Situations Private Equity Fund, L. P. (“SSFPE” and  collectively with SSFQP, the “SSF Funds”), and  Caprius, Inc. (the “Company”), regarding the sale by the SSF Funds of all of their respective equity interests in the Company (the “Company Securities”) to the Company.

1.  Ownership.  The SSF Funds represent and warrant that they are the beneficial owners of the following Company Securities:

 

	 	 	 	SSFQP	 	 	 	SSFPE	 
	
Common Stock

	 	 	0	 	 	 	0	 
	
Series D Preferred Stock

	 	 	18,548	 	 	 	60,483	 
	
Series E Preferred Stock

	 	 	1,150	 	 	 	3,750	 
	
Series F Preferred Stock

	 	 	4,216	 	 	 	13,750	 
	
Warrants

	 	 	579,509	 	 	 	1,889,786	 

 

2.  Purchase and Sale.  Subject to the terms and conditions set forth herein, the SSF Funds agree to sell, and hereby do sell, any and all of their Company Securities, including without limitation,  79,031 shares of Series D Preferred Stock, 4,900 shares of Series E Preferred Stock and 17,966 shares of Series F Preferred Stock (collectively, the “Preferred Shares”), together with warrants (the “Warrants” and collectively with the Preferred Shares, the “Sale Securities”) exercisable into an aggregate of 8,863,218 shares of the Company’s common stock, to the Company, and the Company agrees to purchase, and hereby does purchase, the Sale Securities from the SSF Funds for an aggregate purchase price of Ten Thousand Dollars $10,000 (the “Purchase Price”).

3.  Closing.  The closing of the purchase and sale of the Sale Securities shall occur upon the receipt by the SSF Funds of payment of the Purchase Price by wire transfer to an account it has designated and delivery by the SSF Funds of stock certificates for the Preferred Shares, duly endorsed, and the original Warrant Agreements for the Warrants.

 

  

  

  

 

4.  Other Consideration.  As additional consideration in connection with the sale and purchase of the Sale Securities, upon closing, the SSF Funds  will be deemed to have waived all dividends accrued on the Preferred Shares from the respective original issuance dates to the closing hereof.

5.  Representations by the SSF Funds.  Each of the SSF Funds represents, jointly and severally, to the Company as follows:

           5.1  Title.  Each of the SSF Funds is the sole record and beneficial owner of the Company Securities set forth below its name in Section 1 above, free and clear of any lien, encumbrance and security interest of any kind, and has not sold, transferred or otherwise assigned nor granted any option, purchase right, or other interest in its portion of the Company Securities to any third party.  Each of the SSF Funds represents and warrants, jointly and severally, to the Company that the Sale Securities constitute all of the equity interests in the Company owned by the SSF Entities or their affiliates, and that the SSF Entities and their affiliates do not own any common stock of the Company.  In addition, each of the SSF Funds represents and warrants, jointly and severally, to the Company, that the sale of the Sale Securities is voluntary, and in connection with the sale no one on behalf of the Company has made any representations (whether written or oral) to the SSF Funds regarding the business, operations or financial condition of the Company or the value of the Company Securities.

6.  Miscellaneous.

6.1  Entire Agreement.  This Agreement sets forth the entire agreement among the SSF Funds and the Company as to the subject matter herein, and cannot be amended, modified or terminated except by a writing executed by the parties hereto.

6.2  Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to choice of laws or conflicts of laws provisions thereof.

6.3  Notices.  Any notice or other communication required or given by any party under this Agreement shall be in writing and sent by recognized overnight courier to the address of the other parties as set forth at the head of this Agreement or to such other address as any party hereto may hereafter give to the other parties.

6.4  Binding.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

6.5  Counterparts.  This Agreement may be executed in one or more counterparts (including counterparts transmitted by facsimile or electronic mail), each of which shall be an original, but all of which when taken together shall constitute one and the same Agreement.

 

	 	
Very truly yours.

 

CAPRIUS, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Dwight Morgan	 
	 	Dwight Morgan, President	 

 

  

  

  

 

 

SPECIAL SITUATIONS FUND III QP, L.P.

By: /s/Austin Marxe

Austin Marxe, Managing Director

 

SPECIAL SITUATIONS PRIVATE EQUITY FUND, L.P.

By: /s/Austin Marxe

Austin Marxe, Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]