Document:

Registration Rights Agreement among Smithfield Foods, Inc.

 Exhibit 4.1 
 Execution Version 
  

 REGISTRATION RIGHTS AGREEMENT 
 among 
 SMITHFIELD FOODS, INC., 
 and

 CONTIGROUP COMPANIES, INC. 
  

 Dated: May 7, 2007 
  

  

 TABLE OF CONTENTS 
  

							
	 	  	 	 	 	  	Page
	1.	  	Definitions and Interpretation	  	1
		  	(a)	 	Certain Definitions	  	1
		  	(b)	 	Interpretation	  	4
			
	2.	  	General; Securities Subject to this Agreement	  	4
		  	(a)	 	Grant of Rights	  	4
		  	(b)	 	Registrable Securities	  	4
		  	(c)	 	Holders of Registrable Securities	  	5
			
	3.	  	Incidental or “Piggy-Back” Registration	  	5
		  	(a)	 	Request for Incidental or “Piggy-Back” Registration	  	5
			
	4.	  	Lock-up Agreements	  	6
		  	(a)	 	Designated Holder Lock-up Agreements	  	6
		  	(b)	 	Third Party Beneficiaries in Lock-up Agreements	  	6
			
	5.	  	Registration Procedures	  	6
		  	(a)	 	Obligations of the Company	  	6
		  	(b)	 	Seller Obligations	  	11
		  	(c)	 	Notice to Discontinue	  	11
		  	(d)	 	Registration Expenses	  	11
			
	6.	  	Indemnification; Contribution	  	12
		  	(a)	 	Indemnification by the Company	  	12
		  	(b)	 	Indemnification by Designated Holders	  	13
		  	(c)	 	Conduct of Indemnification Proceedings	  	13
		  	(d)	 	Contribution	  	14
			
	7.	  	Exchange Act Reporting and Rule 144	  	14
			
	8.	  	Miscellaneous	  	15
		  	(a)	 	Recapitalizations, Exchanges, etc.	  	15
		  	(b)	 	No Inconsistent or Superior Agreements	  	15
		  	(c)	 	Remedies	  	16
		  	(d)	 	Amendments and Waivers	  	16
		  	(e)	 	Notices	  	16
		  	(f)	 	Successors and Assigns; Third Party Beneficiaries	  	17
		  	(g)	 	Headings	  	17
		  	(h)	 	GOVERNING LAW; CONSENT TO JURISDICTION	  	17
		  	(i)	 	WAIVER OF JURY TRIAL	  	18
		  	(j)	 	Severability	  	18
		  	(k)	 	Rules of Construction	  	18
		  	(l)	 	Interpretation	  	18
		  	(m)	 	Entire Agreement	  	18

							
	 	 	 	  	 	  	Page
		 	(n)	  	Further Assurances	  	18
		 	(o)	  	Other Agreements	  	19
		 	(p)	  	Counterparts	  	19

  

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 REGISTRATION RIGHTS AGREEMENT 
 REGISTRATION RIGHTS AGREEMENT, dated May 7, 2007 (this “Agreement”), among Smithfield Foods, Inc., a Virginia corporation
(the “Company”) and ContiGroup Companies, Inc., a Delaware corporation (“Stockholder”). Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in
Section 1. 
 R E C I T A L S : 
 A. Pursuant to the Agreement and Plan of Merger, dated as of September 17, 2006 (the “Merger Agreement”), among the Company, KC2 Merger Sub, Inc. and Premium Standard Foods, Inc.
(“PSF”), each outstanding share of the common stock, par value $0.01 per share, of PSF will be converted into the right to receive 0.6780 shares of Common Stock and $1.25 in cash, subject to adjustment as provided in the Merger
Agreement. 
 B. Concurrently with the Merger Agreement, the Company, Stockholder and PSF entered into the Voting Agreement, dated
September 17, 2006 pursuant to which the Company, among other things, has agreed to grant “piggy-back” registration rights to Stockholder with respect to the Registrable Securities as set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions and Interpretation. 
 (a) Certain Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings
indicated: 
 “Affiliate” means any Person who is an “affiliate” as defined in Rule 12b-2 promulgated under the
Exchange Act. 
 “Agreement” means this Agreement, as the same may be amended, supplemented or modified in accordance with
the terms hereof. 
 “Board of Directors” means the board of directors of the Company. 
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the State of New York are
authorized or required by law or executive order to close. 
 “Closing Price” means, with respect to the Registrable
Securities, as of the date of determination: (i) if the Registrable Securities are listed on a national securities exchange, the closing price per share of a Registrable Security on such date or, if no such 

 
closing price on such date is reported, the average of the closing bid and asked prices on such date, as officially reported on the principal national
securities exchange on which the Registrable Securities are then listed or admitted to trading; or (ii) if the Registrable Securities are not then listed or admitted to trading on any national securities exchange, the last sale price or, if
such last sale price is not reported, the average of the high bid and low asked prices in the over-the-counter market, as reported by The Nasdaq Stock Market LLC or such other system then in use; or (iii) if on any such date the Registrable
Securities are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Registrable Securities selected by the Company; or (iv) if none of (i),
(ii) or (iii) is applicable, a market price per share determined in good faith by the Board of Directors. If trading is conducted on a continuous basis on any exchange, then the closing price shall be as at 4:00 P.M. New York City time.

 “Commission” means the Securities and Exchange Commission. 
 “Common Stock” means the common stock, par value $0.50 per share, of the Company or any other capital stock of the Company into which
such stock is reclassified or reconstituted and any other common stock of the Company. 
 “Company” has the meaning set
forth in the preamble to this Agreement. 
 “Company Underwriter” has the meaning set forth in Section 3(a).

 “Designated Holder” means Stockholder, and any transferee (whether direct or indirect) of Stockholder to whom Registrable
Securities have been transferred in accordance with Section 8(f), other than a transferee to whom Registrable Securities have been transferred pursuant to a Registration Statement under the Securities Act or Rule 144 or Regulation S
promulgated under the Securities Act. 
 “Designated Holder Free Writing Prospectus” means each Free Writing Prospectus
prepared by or on behalf of the relevant Designated Holder or used or referred to by such Designated Holder in connection with the offering of Registrable Securities. 
 “Disclosure Package” means, with respect to any offering of securities, (i) the preliminary Prospectus, (ii) each Free Writing Prospectus and (iii) all other information, in each case,
that is deemed, under Rule 159 promulgated under the Securities Act, to have been conveyed to purchasers of securities at the time of sale of such securities (including a contract of sale). 
 “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations of the Commission promulgated thereunder.

 “Free Writing Prospectus” means any “free writing prospectus” as defined in Rule 405 promulgated under the
Securities Act. 
 “Holders’ Counsel” has the meaning set forth in Section 5(a)(i). 
  

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 “Incidental Registration” has the meaning set forth in Section 3(a). 
 “Indemnified Party” has the meaning set forth in Section 6(c). 
 “Indemnifying Party” has the meaning set forth in Section 6(c). 
 “Inspectors” has the meaning set forth in Section 5(a)(viii). 
 “Liability” has the meaning set forth in Section 6(a). 
 “Lock-up Agreements” has the meaning set forth in Section 4(a). 
 “Market Price” means, on any date of determination, the average of the daily Closing Price of the Registrable Securities for the
immediately preceding 30 days on which the national securities exchanges are open for trading. 
 “Merger Agreement” has the
meaning set forth in Recital A. 
 “NASD” means the National Association of Securities Dealers, Inc. 
 “Person” means any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated
association, joint venture, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity. 
 “Prospectus” means any “prospectus” as defined in Rule 405 promulgated under the Securities Act. 
 “Records” has the meaning set forth in Section 5(a)(viii). 
 “Registrable Class Securities” means the Registrable Securities and any other securities of the Company that are of the same class as
the relevant Registrable Securities. 
 “Registrable Securities” means each of the following: (a) any and all shares of
Common Stock received in the Merger and owned by the Designated Holders or any other capital stock of Parent into which such stock is reclassified or reconstituted; and (b) any shares of Common Stock issued or issuable to any of the Designated
Holders with respect to the Registrable Securities by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise and any shares of Common Stock or
voting common stock issuable upon conversion, exercise or exchange thereof. 
 “Registration Expenses” has the meaning set
forth in Section 5(d). 
 “Registration Statement” means a registration statement filed pursuant to the Securities Act.

  

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 “Securities Act” means the Securities Act of 1933 and the rules and regulations of the
Commission promulgated thereunder. 
 “Transfer” means, with respect to any security, the offer for sale, sale, pledge,
transfer or other disposition or encumbrance (or any transaction or device that is designed to or could be expected to result in the transfer or the disposition by any Person at any time in the future) of such security, and shall include the
entering into of any swap, hedge or other derivatives transaction or other transaction that transfers to another in whole or in part any rights, economic benefits or risks of ownership, including by way of settlement by delivery of such security or
other securities in cash or otherwise. 
 “underwritten public offering” of securities means a public offering of such
securities registered under the Securities Act in which an underwriter, placement agent or other intermediary participates in the distribution of such securities. 
 (b) Interpretation. Unless otherwise noted: 
 (i) All references to laws, rules, regulations and
forms in this Agreement shall be deemed to be references to such laws, rules, regulations and forms, as amended from time to time or, to the extent replaced, the comparable successor thereto in effect at the time. 
 (ii) All references to agencies, self-regulatory organizations or governmental entities in this Agreement shall be deemed to be references to the
comparable successor thereto. 
 (iii) All references to agreements and other contractual instruments shall be deemed to be references to
such agreements or other instruments as they may be amended from time to time. 
 (iv) Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 
 2. General; Securities Subject to this Agreement. 
 (a) Grant of Rights. The Company hereby
grants “piggy-back” registration rights to the Designated Holders upon the terms and conditions set forth in this Agreement. 
 (b) Registrable Securities. For the purposes of this Agreement, Registrable Securities will cease to be Registrable Securities when (i) a Registration Statement covering such Registrable Securities has been declared effective
under the Securities Act by the Commission and such Registrable Securities have been disposed of pursuant to such effective Registration Statement, (ii) the entire amount of the Registrable Securities owned by the relevant Designated Holder may
be sold in a single fiscal quarter pursuant to Rule 144 promulgated under the Securities Act (iii) the Registrable Securities transferred to a Person not entitled to the registration rights granted by this Agreement, or (iv) such
Registrable Securities cease to be outstanding. 
  

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 (c) Holders of Registrable Securities. A Person is deemed, and shall only be deemed, to be a
holder of Registrable Securities if such Person owns Registrable Securities or has a right to acquire such Registrable Securities and such Person is a Designated Holder. If the Company receives conflicting instructions, notices or elections from two
or more Persons with respect to the same Registrable Securities, the Company may act upon the basis of the instructions, notice or election received from the registered owner of such Registrable Securities. Registrable Securities issuable
upon exercise of an option or upon conversion, exercise or exchange of another security shall be deemed outstanding for the purposes of this Agreement. 
 3. Incidental or “Piggy-Back” Registration. 
 (a) Request for Incidental or
“Piggy-Back” Registration. At any time after the date hereof, if the Company proposes to file a Registration Statement with respect to an offering by the Company for its own account (other than a Registration Statement on Form S-4
or S-8) or for the account of any stockholder of the Company, then the Company shall give written notice of such proposed filing to each of the Designated Holders at least 20 days before the anticipated filing date, and such notice shall
describe the proposed registration, offering price (or reasonable range thereof) and distribution arrangements, and offer such Designated Holders the opportunity to register the number of Registrable Securities as each such Designated Holder may
request (an “Incidental Registration”). In connection with any Incidental Registration under this Section 3(a) involving an underwritten public offering, the Company shall use its reasonable efforts (within 20 days after
the notice provided for in the preceding sentence) to cause the managing underwriter or underwriters (the “Company Underwriter”) to permit each of the Designated Holders who has requested in writing to participate in the Incidental
Registration to include the number of such Designated Holder’s Registrable Securities specified by such Designated Holder in such offering on the same terms and conditions as the securities of the Company or for the account of such other
stockholder, as the case may be, included therein. In connection with any Incidental Registration under this Section 3(a) involving an underwritten public offering, the Company shall not be required to include any Registrable Securities in such
underwritten public offering unless the Designated Holders thereof accept the terms of the underwritten public offering as agreed upon between the Company, such other stockholders, if any, and the Company Underwriter, and then only in such quantity
as the Company Underwriter believes will not jeopardize the success of the offering by the Company. If the Company Underwriter determines that the registration of all or part of the Registrable Securities which the Designated Holders have requested
to be included would materially adversely affect the success of such offering, then the Company shall include in such Incidental Registration only the aggregate amount of Registrable Securities that the Company Underwriter believes may be sold
without any such material adverse effect and shall include in such registration, first, all of the securities to be offered for the account of the Company; and second, the Registrable Securities to be offered for the account of the

  

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Designated Holders pursuant to this Section 3 and the securities for the account of any other stockholders of the Company, pro rata based on the
number of Registrable Securities owned by each such Designated Holder or securities for the account of such other stockholder. 
 (b)
Expenses. The Company shall bear all Registration Expenses in connection with any Incidental Registration pursuant to this Section 3, whether or not such Incidental Registration becomes effective. 
 4. Lock-up Agreements. 
 (a)
Designated Holder Lock-up Agreements. To the extent (i) requested by the Company Underwriter, in the case of an underwritten public offering, and (ii) the Company and all of the Company’s officers, directors and holders in
excess of 1% of its outstanding shares of capital stock execute agreements identical to or more restrictive than those referred to in this Section 4(a), each Designated Holder agrees (x) not to effect any Transfer of any Registrable Class
Securities or any securities convertible into or exchangeable or exercisable for such Registrable Class Securities and (y) not to make any request for the registration of the Transfer of any Registrable Class Securities or any securities
convertible into or exchangeable or exercisable for such Registrable Class Securities, in each case, during the period beginning on the effective date of the Registration Statement for such public offering and ending on the date that is 90 days
after the date of the final Prospectus relating to such public offering (or such shorter period, if any, mutually agreed upon by such Designated Holder and the requesting party), except as part of such public offering. Upon request by the Company
Underwriter, each Designated Holder shall enter into customary lock-up agreements (“Lock-up Agreements”) on terms consistent with the preceding sentence and no less favorable to the Designated Holders than those applicable to any
other stockholder of the Company that signs a Lock-up Agreement in connection with such offering. No Designated Holder subject to this Section 4(a) shall be released from any obligation under any agreement, arrangement or understanding entered
into pursuant to this Section 4(a) unless all other Designated Holders subject to the same obligation are also released. 
 (b)
Third Party Beneficiaries in Lock-up Agreements. Any Lock-up Agreements executed by the Designated Holders pursuant to this Section 6 shall contain provisions naming the Company as an intended third-party beneficiary thereof and
requiring the prior written consent of the Company for any amendments thereto or waivers thereof. 
 5. Registration Procedures.

 (a) Obligations of the Company. Whenever registration of Registrable Securities has been requested or required pursuant to
Section 3, the Company shall use its reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof as promptly as practicable, and in connection
with any such request or requirement, the Company shall: 
  

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 (i) as expeditiously as possible, prepare and file with the Commission a Registration Statement on any
form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of such Registrable Securities in accordance with the intended method of distribution thereof, and cause
such Registration Statement to become effective; provided, however, that (A) before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including any documents incorporated by reference
therein), or before using any Free Writing Prospectus, the Company shall provide counsel selected by the Designated Holders holding a majority of the Registrable Securities of Designated Holders being registered in such registration
(“Holders’ Counsel”) and any other Inspector with an adequate and appropriate opportunity to review and comment on such Registration Statement, each Prospectus included therein (and each amendment or supplement thereto)
and each Free Writing Prospectus to be filed with the Commission, subject to such documents being under the Company’s control, and (B) the Company shall notify the Holders’ Counsel and each seller of Registrable Securities pursuant to
such Registration Statement of any stop order issued or threatened by the Commission and take all actions required to prevent the entry of such stop order or to remove it if entered; 
 (ii) as expeditiously as possible, prepare and file with the Commission such amendments and supplements to such Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the lesser of (A) 180 days and (B) such shorter period which will terminate when all Registrable Securities covered by such
Registration Statement have been sold; 
 (iii) as expeditiously as possible, furnish to each seller of Registrable Securities, prior to
filing a Registration Statement, at least one copy of such Registration Statement as is proposed to be filed, and thereafter such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all
exhibits thereto), the Prospectus included in such Registration Statement (including each preliminary Prospectus), any Prospectus filed pursuant to Rule 424 promulgated under the Securities Act and any Free Writing Prospectus as each such seller may
reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller; 
 (iv) as expeditiously as
possible, register or qualify such Registrable Securities under such other securities or “blue sky” laws of such jurisdictions as any seller of Registrable Securities may request, and to continue such registration or qualification in
effect in such jurisdiction for as long as permissible pursuant to the laws of such jurisdiction, or for as long as any such seller requests or until all of such Registrable Securities are sold, whichever is shortest, and do any and all other acts
and things which may be reasonably necessary or advisable to enable any such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller; provided, however, that the Company shall not
be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 5(a)(iv), (B) subject itself to taxation in any such jurisdiction or (C) consent to
general service of process in any such jurisdiction; 
  

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 (v) as expeditiously as possible, notify each seller of Registrable Securities: (A) when a
Disclosure Package, Prospectus, any Prospectus supplement, a Registration Statement or a post-effective amendment to a Registration Statement has been filed with the Commission, and, with respect to a Registration Statement or any post-effective
amendment, when the same has become effective; (B) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Disclosure Package, Registration Statement or related Prospectus or for
additional information; (C) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation or threatening of any proceedings
for that purpose; (D) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceedings for such purpose; (E) of the existence of any fact or happening of any event of which the Company has knowledge which makes any statement of a material fact in such Disclosure Package, Registration Statement or
related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue or which would require the making of any changes in the Disclosure Package, Registration Statement or Prospectus in order that, in the case of
the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such
Disclosure Package or Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading; and (F) of the determination by counsel of the Company that a post-effective amendment to a Registration Statement is advisable; 
 (vi) as expeditiously as possible, upon the occurrence of any event contemplated by Section 5(a)(v)(E) or the good faith determination of the Board of Directors that any registration of Registrable Securities
should not be made or continued because it would materially interfere with any financing, acquisition, corporate reorganization or merger or other transaction involving the Company, as promptly as practicable, prepare a supplement or amendment to
such Disclosure Package, Registration Statement or related Prospectus and furnish to each seller of Registrable Securities a reasonable number of copies of such supplement to or an amendment of such Disclosure Package, Registration Statement or
Prospectus as may be necessary so that, after delivery to the purchasers of such Registrable Securities, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such Disclosure Package or Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 
  

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 (vii) enter into and perform customary agreements (including underwriting and indemnification and
contribution agreements in customary form with the Company Underwriter, as applicable) and take such other commercially reasonable actions as are required in order to expedite or facilitate each disposition of Registrable Securities and shall
provide all reasonable cooperation, including causing appropriate officers to attend and participate in “road shows” and other information meetings organized by the Company Underwriter, if applicable, and causing counsel to the Company to
deliver customary legal opinions in connection with any such underwriting agreements; 
 (viii) make available at reasonable times for
inspection by any seller of Registrable Securities, any managing underwriter participating in any disposition of such Registrable Securities pursuant to a Registration Statement, Holders’ Counsel and any attorney, accountant or other agent
retained by any such seller or any managing underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries (collectively, the
“Records”) as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s and its subsidiaries’ officers, directors and employees, and the independent public
accountants of the Company, to supply all information reasonably requested by any such Inspector in connection with such Registration Statement. Records that the Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors (and the Inspectors shall confirm their agreement in writing in advance to the Company if the Company shall so request) unless (A) the disclosure of such Records is necessary,
in the Company’s judgment, to avoid or correct a misstatement or omission in the Registration Statement, (B) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction after
exhaustion of all appeals therefrom or (C) the information in such Records was known to the Inspectors on a non-confidential basis prior to its disclosure by the Company or has been made generally available to the public. Each seller of
Registrable Securities agrees that it shall, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate
action to prevent disclosure of the Records deemed confidential; 
 (ix) if such sale is pursuant to an underwritten public offering, obtain
a “cold comfort” letter dated the effective date of the Registration Statement and the date of the closing under the underwriting agreement from the Company’s independent public accountants in customary form and covering such matters
of the type customarily covered by “cold comfort” letters as Holders’ Counsel or the managing underwriter reasonably requests; 
 (x) furnish, at the request of any seller of Registrable Securities on the date such securities are delivered to the underwriters for sale pursuant to such registration or, if such securities are not being sold through underwriters, on the
date the Registration Statement with respect to such securities becomes effective, an opinion, dated such date, of counsel representing the Company for the purposes of such 

  

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registration, addressed to the underwriters, if any, and to the seller making such request, covering such legal matters with respect to the registration in
respect of which such opinion is being given as the underwriters, if any, and such seller may reasonably request and are customarily included in such opinions; 
 (xi) with respect to each Free Writing Prospectus or other materials to be included in the Disclosure Package, ensure that no Registrable Securities be sold “by means of” (as defined in Rule 159A(b)
promulgated under the Securities Act) such Free Writing Prospectus or other materials without the prior written consent of the Designated Holders of the Registrable Securities covered by such registration statement, which Free Writing Prospectuses
or other materials shall be subject to the review of Holders’ Counsel; 
 (xii) as expeditiously as possible and within the deadlines
specified by the Securities Act, make all required filings of all Prospectuses and Free Writing Prospectuses with the Commission; 
 (xiii)
as expeditiously as possible and within the deadlines specified by the Securities Act, make all required filing fee payments in respect of any Registration Statement or Prospectus used under this Agreement (and any offering covered thereby);

 (xiv) comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as
reasonably practicable but no later than 17 months after the effective date of the Registration Statement, an earnings statement covering a period of 12 months beginning after the effective date of the Registration Statement, in a manner
which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 
 (xv) cause all such
Registrable Securities to be listed on each securities exchange on which Registrable Class Securities issued by the Company are then listed, provided that the applicable listing requirements are satisfied; 
 (xvi) as expeditiously as practicable, keep Holders’ Counsel advised in writing as to the initiation and progress of any registration under
Section 3, and provide Holders’ Counsel with all correspondence with the Commission in connection with any such Registration Statement; 
 (xvii) cooperate with each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD;

 (xviii) if such registration is pursuant to a Registration Statement on Form S-3 or any similar short-form registration, include in such
Registration Statement such additional information for marketing purposes as the managing underwriter reasonably requests; and 
  

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 (xix) take all other steps reasonably necessary to effect the registration and disposition of the
Registrable Securities contemplated hereby. 
 (b) Seller Obligations. In connection with any offering under any Registration
Statement under this Agreement, each Designated Holder: 
 (i) shall promptly furnish to the Company in writing such information with respect
to such Designated Holder and the intended method of disposition of its Registrable Securities as the Company may reasonably request or as may be required by law for use in connection with any related Disclosure Package, Registration Statement or
Prospectus (or amendment or supplement thereto) and all information required to be disclosed in order to make the information previously furnished to the Company by such Designated Holder not contain a material misstatement of fact or necessary to
cause such Disclosure Package, Registration Statement or Prospectus (or amendment or supplement thereto) not to omit a material fact with respect to such Designated Holder necessary in order to make the statements therein not misleading; 

(ii) shall comply with the Securities Act and the Exchange Act and all applicable state securities laws and comply with all applicable regulations in
connection with the registration and the disposition of the Registrable Securities; and 
 (iii) shall not use any Free Writing Prospectus
without the prior written consent of the Company. 
 (c) Notice to Discontinue. Each Designated Holder agrees that, upon receipt of
any notice from the Company of the happening of any event of the kind described in Section 5(a)(v)(E), such Designated Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Designated Holder’s receipt of the copies of the supplemented or amended Prospectus or Free Writing Prospectus contemplated by Section 5(a)(vi) and, if so directed by the Company,
such Designated Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Designated Holder’s possession, of the Prospectus or Free Writing Prospectus covering such Registrable
Securities which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement
(including the period referred to in Section 5(a)(ii)) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 5(a)(v)(E) to and including the date when sellers of such
Registrable Securities under such Registration Statement shall have received the copies of the supplemented or amended Prospectus or Free Writing Prospectus contemplated by and meeting the requirements of Section 5(a)(vi). 
 (d) Registration Expenses. The Company shall pay all expenses arising from or incident to its performance of, or compliance with, this

  

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Agreement, including (i) Commission, stock exchange and NASD registration and filing fees, (ii) all fees and expenses incurred in complying with
securities or “blue sky” laws (including reasonable fees, charges and disbursements of counsel to any underwriter incurred in connection with “blue sky” qualifications of the Registrable Securities as may be set forth in any
underwriting agreement), (iii) all printing, messenger and delivery expenses, (iv) the reasonable fees, charges and expenses of Holders’ Counsel, any necessary counsel with respect to state securities law matters, counsel to the
Company and of its independent public accountants, and any other accounting fees, charges and expenses incurred by the Company (including any expenses arising from any “cold comfort” letters or any special audits incident to or
required by any registration or qualification) and any legal fees, charges and expenses incurred by the Designated Holders (except that the Company shall not be obligated to pay the legal fees, charges and expenses of more than one separate counsel
and one local counsel for all Designated Holders, taken together), and (v) any liability insurance or other premiums for insurance obtained in connection with any Incidental Registration pursuant to the terms of this Agreement, regardless of
whether such Registration Statement is declared effective. All of the expenses described in the preceding sentence of this Section 5(d) are referred to herein as “Registration Expenses.” The Designated Holders of Registrable
Securities sold pursuant to a Registration Statement shall bear the expense of any broker’s commission or underwriter’s discount or commission relating to the registration and sale of such Designated Holders’ Registrable Securities
and, subject to clause (iv) above, shall bear the fees and expenses of their own counsel. 
 6. Indemnification;
Contribution. 
 (a) Indemnification by the Company. The Company shall indemnify and hold harmless each Designated Holder, its
stockholders, partners, members, directors, officers, Affiliates and each Person who controls (within the meaning of Section 15 of the Securities Act) such Designated Holder from and against any and all losses, claims, damages, liabilities and
expenses, or any action or proceeding in respect thereof (including reasonable costs of investigation and reasonable attorneys’ fees and expenses) (each, a “Liability”) arising out of or based upon (i) any untrue statement
or alleged untrue statement of a material fact contained in the Disclosure Package, the Registration Statement, the Prospectus or in any amendment or supplement thereto, and (ii) the omission or alleged omission to state in the Disclosure
Package, the Registration Statement, the Prospectus or in any amendment or supplement thereto any material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the
Company shall not be liable in any such case to the extent that any such Liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Disclosure Package, Registration
Statement, Prospectus or preliminary prospectus or amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Designated Holder (including the information provided
pursuant to Section 5(b)(i)) expressly for use therein. 
  

 12 

 (b) Indemnification by Designated Holders. In connection with any offering in which a Designated
Holder is participating pursuant to Section 3, such Designated Holder shall indemnify and hold harmless the Company, any underwriter retained by the Company, each other Designated Holder, their respective directors, officers, other Affiliates
and each Person who controls the Company, such other Designated Holders or such underwriter (within the meaning of Section 15 of the Securities Act) from and against any and all Liabilities arising out of or based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in the Disclosure Package, the Registration Statement, the Prospectus, any Designated Holder Free Writing Prospectus or in any amendment or supplement thereto, and (ii) the
omission or alleged omission to state in the Disclosure Package, the Registration Statement, the Prospectus, any Designated Holder Free Writing Prospectus or in any amendment or supplement thereto any material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case, to the extent such Liabilities arise out of or are based upon written information furnished by such Designated Holder or on such Designated Holder’s behalf expressly for
inclusion in the Disclosure Package, the Registration Statement, the Prospectus or any amendment or supplement thereto relating to the Registrable Securities (including the information provided pursuant to Section 5(b)(i)); provided, however,
that the obligation to indemnify shall be individual, not joint and several, for each Designated Holder and the total amount to be indemnified by such Designated Holder pursuant to this Section 6(b) shall be limited to the net proceeds (after
deducting the underwriters’ discounts and commissions) received by such Designated Holder in the offering to which the Registration Statement, Prospectus, Disclosure Package or Designated Holder Free Writing Prospectus relates. 
 (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) shall
give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, however, that the failure to so notify the Indemnifying Party shall not relieve the Indemnifying
Party of any Liability that it may have to the Indemnified Party hereunder (except to the extent that the Indemnifying Party forfeits substantive rights or defenses by reason of such failure). If notice of commencement of any such action is
given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at
its own expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel reasonably satisfactory to the
Indemnified Party or (iii) the named parties to any such action (including any impleaded parties) include both the Indemnifying Party and the Indemnified Party and such parties have been advised by such counsel that either 

  

 13 

 
(A) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of
professional conduct or (B) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such cases specified in the prior sentence,
the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party; it being understood, however, that the Indemnifying Party shall not be liable for the fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) for all Indemnified Parties. No Indemnifying Party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. No
Indemnifying Party shall, without the written consent of such Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which such Indemnified Party is a party and indemnity has been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability for claims that are the subject matter of such proceeding. 
 (d) Contribution. If the indemnification provided for in this Section 6 from the Indemnifying Party is unavailable to an Indemnified Party
hereunder in respect of any Liabilities referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such Liabilities, as well as any other relevant equitable considerations. The relative faults
of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The
amount paid or payable by a party as a result of the Liabilities referred to above shall be deemed to include, subject to the limitations set forth in Sections 6(a), 6(b) and 6(c), any legal or other fees, charges or expenses reasonably
incurred by such party in connection with any investigation or proceeding; provided, that the total amount to be contributed by such Designated Holder shall be limited to the net proceeds (after deducting the underwriters’ discounts and
commissions) received by such Designated Holder in the offering. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any
other method of allocation which does not take account of the equitable considerations referred to in this paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 7. Exchange Act Reporting and Rule 144.
The Company covenants that it shall (a) file any reports required to be filed by it under the Exchange Act and (b) take such further action as each Designated Holder may reasonably request (including 

  

 14 

 
providing any information necessary to comply with Rule 144 promulgated under the Securities Act), all to the extent required from time to time to
enable such Designated Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 promulgated under the Securities Act, as such rule may be
amended from time to time, or Regulation S promulgated under the Securities Act or (ii) any similar rules or regulations hereafter adopted by the Commission. The Company shall, upon the written request of any Designated Holder, deliver to
such Designated Holder a written statement as to whether it has complied with such requirements. 
 8. Miscellaneous. 
 (a) Recapitalizations, Exchanges, etc. The provisions of this Agreement shall apply to the full extent set forth herein with respect to
(i) the shares of Common Stock, (ii) any and all shares of voting Common Stock of the Company into which the shares of Common Stock are converted, exchanged or substituted in any recapitalization or other capital reorganization by the
Company and (iii) any and all equity securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in conversion of, in exchange for or in
substitution of, the shares of Common Stock and shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof. The Company shall cause any successor or
assign (whether by merger, consolidation, sale of assets or otherwise) to assume this Agreement or enter into a new registration rights agreement with the Designated Holders on terms substantially the same as this Agreement as a condition of any
such transaction. 
 (b) No Inconsistent or Superior Agreements. The Company represents and warrants that it has not granted
Incidental Registration rights that are superior to or more favorable than those contained in this Agreement to any other Person with respect to the Common Stock (or any securities exchangeable or convertible into or exercisable for Common Stock).
The Company shall not enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Designated Holders in this Agreement or grant any additional registration rights to any Person or with respect to any
securities which are not Registrable Securities which are prior in right to or inconsistent with the rights granted in this Agreement. To the extent that after the date of this Agreement, the Company grants Incidental Registration rights that are
superior to or more favorable than those contained in this Agreement to any other Person with respect to the Common Stock (or any securities exchangeable or convertible into or exercisable for Common Stock), any such superior or more favorable
rights or terms shall be deemed to be granted simultaneously to the Designated Holders with respect to their Registrable Securities, and the Company shall promptly prepare and execute such documents to reflect and provide such Designated Holders
with such superior or more favorable rights. 
  

 15 

 (c) Remedies. The Designated Holders, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, shall be entitled to specific performance of their rights under this Agreement, without need for a bond. The Company agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law would be adequate or that there is need for a bond. 
 (d) Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given unless consented to in writing by (i) the Company and (ii) Designated Holders holding Registrable Securities representing (after giving effect to any
adjustments) at least a majority of the aggregate number of Registrable Securities owned by all of the Designated Holders. Any such written consent shall be binding upon the Company and all of the Designated Holders. 
 (e) Notices. All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be made by
registered or certified first-class mail, return receipt requested, telecopy, electronic transmission, courier service or personal delivery: 
  

	
	 (i)     if to the Company:

	
	 Smithfield Foods, Inc.

	 200 Commerce Street

	 Smithfield, VA 23430

	 Telecopy: (757) 365-3025

	 Attention: C. Larry Pope

	
	 with a copy to:

	
	 Simpson Thacher & Bartlett LLP

	 425 Lexington Avenue

	 New York, NY 10017

	 Telecopy: (212) 455-2502

	 Attention: Robert E. Spatt

	 Maripat Alpuche

	
	 (ii)    if to Stockholder:

	
	 ContiGroup Companies, Inc.

	 277 Park Avenue

	 New York, NY 10172

	 Telecopy: (212) 207-5193

	 Attention: Michael J. Zimmerman

  

 16 

	
	 with a copy to:

	
	 Paul, Weiss, Rifkind, Wharton & Garrison LLP

	 1285 Avenue of the Americas

	 New York, NY 10019-6064

	 Telecopy: (212) 757-5990

	 Attention: Robert B. Schumer

	
	 (iii)  if to any other Designated Holder, at its address as it appears on the record books of the Company.

 All such notices, demands and other communications shall be deemed to have been duly given when delivered by hand,
if personally delivered; when delivered by courier, if delivered by commercial courier service; five Business Days after being deposited in the mail, postage prepaid, if mailed; and when receipt is acknowledged, if telecopied or electronically
transmitted. Any party may by notice given in accordance with this Section 8(e) designate another address or Person for receipt of notices hereunder. 
 (f) Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto as hereinafter provided. The
incidental or “piggy-back” registration rights of the Designated Holders contained in Section 3 and the other rights of each of the Designated Holders with respect thereto shall be, with respect to any Registrable Security,
transferred to any Person who is the transferee of such Registrable Security, without the consent of the Company. At the time of the transfer, or promptly following the transfer, of any Registrable Security as contemplated by this Section 8(f),
such transferee shall execute and deliver to the Company an instrument, substantially in the form of Exhibit A hereto (which shall also be executed by the Company), to evidence its agreement to be bound by, and to comply with, this Agreement as a
Designated Holder. All of the obligations of the Company hereunder shall survive any such transfer. Except as provided in Section 6, no Person other than the parties hereto and their successors and permitted assigns is intended to be a
beneficiary of this Agreement. 
 (g) Headings. The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 
 (h) GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION. The parties hereto irrevocably submit to the exclusive
jurisdiction of any state or federal court sitting in New York County in the State of New York over any suit, action or proceeding arising out of or relating to this Agreement or the affairs of the Company. To the fullest extent they may effectively
do so under applicable law, the parties hereto irrevocably waive and agree not to assert, by way of motion, as a defense or otherwise, any claim that they are not subject to the jurisdiction of any such court, any objection that 

  

 17 

 
they may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum. 
 (i) WAIVER OF JURY TRIAL. EACH PARTY
ACKNOWLEDGES AND AGREES THAT ANY DISPUTE OR CONTROVERSY THAT MAY ARISE, WHETHER IN WHOLE OR IN PART, UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 (j) Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of
the remaining provisions hereof. 
 (k) Rules of Construction. Unless the context otherwise requires, references to sections or
subsections refer to sections or subsections of this Agreement. Terms defined in the singular have a comparable meaning when used in the plural, and vice versa. 
 (l) Interpretation. The parties hereto acknowledge and agree that (i) each party hereto and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its
revision, (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement and (iii) the terms and provisions of this Agreement shall be
construed fairly as to all parties hereto, regardless of which party was generally responsible for the preparation of this Agreement. 
 (m)
Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject
matter contained herein. There are no restrictions, promises, representations, warranties or undertakings with respect to the subject matter contained herein, other than those set forth or referred to herein. This Agreement supersedes all prior
agreements and understandings among the parties with respect to such subject matter. 
 (n) Further Assurances. Each of the parties
shall execute such documents and perform such further acts as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement. 
  

 18 

 (o) Other Agreements. Nothing contained in this Agreement shall be deemed to be a waiver of, or
release from, any obligations any party hereto may have under, or any restrictions on the transfer of Registrable Securities or other securities of the Company imposed by, any other agreement, including the Merger Agreement or the Voting Agreement.

 (p) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 [Remainder of page intentionally left blank] 
  

 19 

 IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Agreement on the
date first written above. 
  

			
	SMITHFIELD FOODS, INC.
		
	By:	 	 /s/ Michael H. Cole

	Name:	 	Michael H. Cole
	Title:	 	Vice President, Chief Legal Officer and Secretary
	
	CONTIGROUP COMPANIES, INC.
		
	By:	 	 /s/ Michael J. Zimmerman

	Name:	 	Michael J. Zimmerman
	Title:	 	Executive Vice President and Chief Financial Officer

 Signature Page To Registration Rights Agreement 

 EXHIBIT A 
 ADDENDUM AGREEMENT 
 This Addendum Agreement is made this      day of
                    , 20    , by and between
                             (the “New Designated Holder”) and [the Corporation] (the
“Company”), pursuant to a Registration Rights Agreement dated as of [ ] (the “Agreement”), between and among the Company and the Stockholder. Capitalized terms used herein but not otherwise defined herein shall have the meanings
ascribed to them in the Agreement. 
 WITNESSETH: 
 WHEREAS, the Company has agreed to provide “piggy-back” registration rights with respect to the Registrable Securities as set forth in the Agreement; and 
 WHEREAS, the New Designated Holder has acquired Registrable Securities directly or indirectly from a Designated Holder; and 
 WHEREAS, the Company and the Stockholder have required in the Agreement that all persons desiring registration rights must enter into an Addendum
Agreement binding the New Designated Holder to the Agreement; 
 NOW, THEREFORE, in consideration of the mutual promises of the parties, the
New Designated Holder acknowledges that it has received and read the Agreement and that the New Designated Holder shall be bound by, and shall have the benefit of, all of the terms and conditions applicable to a Designated Holder set out in the
Agreement. 
  

	
	
	  

	New Designated Holder

  

	
	Address:
	
	  
 
	
	  
 

  

 A-1 

 AGREED TO on behalf of [the Company] pursuant to Section 8(f) of the Agreement. 
  

			
	[THE COMPANY]
		
	 By:
	 	  

	
	  

	 Printed Name and Title

  

 A-2Agreement for the Sale and Purchase

 Exhibit 10.1 
 Dated 2 May 2007 
 BLOCKBUSTER UK LIMITED 
 and 
 THE GAME GROUP PLC

 AGREEMENT 
 for
the sale and purchase 
 of the entire issued share capital 
 of Games Station Limited 
 CMS Cameron McKenna LLP 
 Mitre House 
 160 Aldersgate Street

 London EC1A 4DD 
 T +44(0)20 7367 3000 
 F +44(0)20 7367 2000 
 Ref: MJW/RSP/MIT2.40a/108022.00003 

 Table of Contents 
  

					
	1.	  	Definitions and Interpretation	  	1
		  	Defined terms	  	1
		  	Interpretation	  	7
	2.	  	Sale and purchase	  	9
		  	Obligation to sell and purchase	  	9
		  	Dividends and distributions	  	9
		  	Waivers of pre-emption	  	9
	3.	  	Consideration	  	9
		  	Consideration subject to adjustment	  	9
		  	Consideration	  	9
		  	Reduction in consideration	  	10
	4.	  	Completion	  	10
		  	Completion meeting	  	10
		  	Effect of Completion	  	11
		  	Pending registration	  	11
		  	Company records etc.	  	11
	5.	  	Post Completion Adjustment	  	12
	6.	  	Warranties	  	14
		  	Buyer Warranties	  	14
		  	Seller Warranties	  	15
		  	Information supplied by the Company and Subsidiary	  	15
		  	Limitations on liability	  	15
		  	Exclusions from clause 6	  	15
	7.	  	Protection of goodwill and trade secrets	  	15
		  	Non-Competition	  	15
		  	Severability of covenants	  	17
	8.	  	Restricted Stock Plan and Non-Qualifying Stock Options	  	17
	9.	  	Completion Bonuses	  	18
	10.	  	Buyer’s Indemnity	  	18
	11.	  	Concession Stores	  	19
		  	Concession Store Agreement Termination	  	19
		  	Concession Store Employees	  	20
	12.	  	Intellectual Property Matters	  	22
	13.	  	Third party rights	  	22
	14.	  	Further assurance	  	22
	15.	  	Confidentiality; announcements	  	23
		  	Prohibition on disclosure	  	23
		  	Announcements	  	23
	16.	  	Assignment	  	23
		  	No assignment without consent	  	23
		  	Successors in title	  	24

  

 (i) 

					
	17.	  	Waiver; variation; invalidity	  	24
		  	No waiver by omission, delay or partial exercise	  	24
		  	Waivers and variations to be in writing	  	24
		  	No unreasonable withholding or delay	  	24
		  	Invalidity	  	24
	18.	  	Costs and expenses	  	25
		  	Payment of costs	  	25
		  	Company and Subsidiary to pay no costs	  	25
	19.	  	Payments	  	25
	20.	  	Entire agreement and financial promotion	  	25
		  	This Agreement	  	25
		  	Entire agreement	  	25
		  	Financial Promotion	  	25
		  	Other remedies	  	26
		  	Fraud	  	26
	21.	  	Counterparts	  	26
	22.	  	Whether time is of the essence	  	26
	23.	  	Notices	  	26
		  	Form of notices	  	26
		  	Address and facsimile	  	26
		  	Deemed time of service	  	27
		  	Proof of service	  	28
		  	Change of details	  	28
		  	Non-applicability to Proceedings	  	28
	24.	  	Governing law and jurisdiction	  	28
		  	English law	  	28
		  	Courts of England and Wales	  	28
		
	Schedule 1	  	29
			
		  	Details of the Group Part 1 The Company	  	29
		  	Part 2 The Subsidiary	  	29
		
	Schedule 2	  	30
			
		  	Part 1 Properties	  	30
		  	Part 2 Additional Stores	  	36
		  	Part 3 Concession Stores	  	37
		
	Schedule 3	  	38
			
		  	Intellectual Property Part 1 Registered IP	  	38
		  	Part 2 Material Unregistered IP	  	39
		  	Part 3 Example of tantrum font	  	39
		
	Schedule 4	  	40

  

 (ii) 

					
			
		  	Completion Obligations	  	40
		
	Schedule 5 Basis for preparation of the Preliminary Adjustment Statement	  	42
		
	Illustrative Form of Preliminary Adjustment Statement	  	45
			
		  	Appendix	  	45
		
	Schedule 6	  	46
			
		  	Warranties Part 1 General	  	46
		  	Part 2 Tax	  	61
		
	Schedule 7	  	66
			
		  	Limitation of Seller’s liability	  	66
		
	Schedule 8	  	72
			
		  	Relevant Employees of Concession Stores	  	72
		
	Schedule 9	  	77
			
		  	Additional Stores Cost	  	77
		
	Schedule 10	  	78
			
		  	Guarantees and Authorised Guarantee Agreements	  	78
		
	Schedule 11	  	79
			
		  	List of documents in the agreed form	  	79

  

 (iii) 

 THIS AGREEMENT is made the 2nd day of May, 2007 
 BETWEEN 
  

	(1)	BLOCKBUSTER UK LIMITED (registered in England and Wales with number 03688793) whose registered office is at Harefield Place, The Drive, Uxbridge, Middlesex, UB10 8AQ (the
“Seller”); and 

  

	(2)	THE GAME GROUP PLC (registered in England and Wales with number 0875835) whose registered office is at Unity House, Telford Road, Basingstoke, Hampshire, RG21 6YJ (the
“Buyer”). 

 RECITALS 
  

	(A)	Details of GAMES STATION LIMITED are set out in Part 1 of Schedule 1 (Details of the Group). 

  

	(B)	The Seller has agreed to sell the Shares to the Buyer and the Buyer has agreed to purchase the Shares on and subject to the terms and conditions of this Agreement.

 NOW IT IS AGREED as follows: 
  

	1.	Definitions and Interpretation 

 Defined
terms 
  

	1.1	In this Agreement: 

 “2006 Accounts Date”
means 31 December 2006; 
 “2006 Accounts” means the audited balance sheet of the Company and the Subsidiary as at the
2006 Accounts Date and the audited consolidated profit and loss account of the Company and the Subsidiary for the year ended on that date together with the notes and the directors’ report in respect of that period; 
 “Accounts” means the audited balance sheet of the Company and the Subsidiary as at the Accounts Date and the audited consolidated profit
and loss account of the Company and the Subsidiary for the year ended on that date together with the notes and the directors’ report in respect of that period; 
 “Accounts Date” means 31 December 2005; 
 “Additional Stores” means
the 20 new business premises listed in Part 2 of Schedule 2 that have been or are to be added after 31 December 2006; 
 “Additional Stores Cost” means the amount expended up to and including 1 May 2007 by the Seller, the Company and its Affiliates for the installation of the Additional Stores as set out in Schedule 9; 
 “Affiliate” means in relation to any body corporate (i) a parent undertaking of such body corporate; or (ii) a subsidiary
undertaking of such body corporate or of any such parent undertaking; 
 “Agreement” means this Agreement including the
Recitals and Schedules, but not the Tax Deed; 

 “Asset Transfers” means the distribution of fixed assets and inventory of the Concession
Stores pursuant to a dividend in specie declared by the Company immediately prior to Completion; 
 “Blockbuster Shares”
means shares in Blockbuster Inc.; 
 “Branding” has the meaning given in sub-clause 11.3; 
 “Business Day” means a day (other than a Saturday or Sunday) when banks are open for business in the City of London and New York, New
York; 
 “Buyer’s Solicitors” means Clifford Chance LLP of 10 Upper Bank Street, London, E14 5JJ; 
 “CA 85” means the Companies Act 1985; 
 “Cash” means cash in hand or credited to any account of any Group Company with a financial institution excluding any cash paid to the Company prior to or at Completion pursuant to the terms of this
Agreement; 
 “Cash Balance” means the Cash held by the Group at 11.59 p.m. on 1 May 2007 as determined in accordance
with Schedule 5 and as set out in Column G31 of the Final Adjustment Statement; 
 “Chart-Track Limited” means the company
registered in England and Wales with company number 03073596 whose registered office is at 82 Glentham Road, London SW13 9JJ and any successor company; 
 “Closing Amount” has the meaning given in sub-clause 3.2.1 of this Agreement; 
 “Company” means the company named in Recital (A); 
 “Competent Authority” means (i) any
person (whether autonomous or not) having legal and/or regulatory authority and/or enforcement powers; (ii) any court of law or tribunal in any jurisdiction; and/or (iii) any Taxation Authority; 
 “Completion” means completion of the sale and purchase of the Shares pursuant to this Agreement; 
 “Completion Bonuses” means (i) the bonuses to be paid by the Seller or any of its Affiliates (other than the Company or the
Subsidiary) at Completion to Michael Logue, Jeremy Gerken, Martyn Gibbs and Ryedale Consultancy Limited pursuant to, in the case of Michael Logue, Jeremy Gerken and Martyn Gibbs, letters from the Company to each of them dated 8 August 2006,
and, in the case of Ryedale Consultancy Limited, a letter from the Company to it dated 16 January, 2007 and (ii) any amounts (if any) paid by the Seller or any of its Affiliates to the holders (or any of them) of restricted stock units
under the Restricted Stock Plan and or non-qualifying options in respect of the surrender of such restricted stock units and/or non-qualifying options; 
 “Completion Working Capital” means the Working Capital of the Group, as at 11.59 p.m. on 1 May 2007, as set out in Column I of the Final Adjustment Statement; 
 “Concession Store Agreement” means the concession store agreement dated 8 April 2004 and made between the Company and Blockbuster
Entertainment Limited; 
  

 2 

 “Concession Stores” means the video game stores identified in Part 3 of Schedule 2,
operating under the trade name and mark GAMESTATION® at the date of this Agreement; 
 “Connected Person” means a person connected (within the
meaning of section 839 TA 88) with the Seller or any of the directors of any Group Company; 
 “Consideration” means the
consideration payable for the Shares, as specified in clause 3.2 (Consideration); 
 “Costs” means any cost, loss,
damage or expense (including all reasonable legal fees plus VAT thereon); 
 “Date of Transfer” has the meaning set out in
clause 11.6; 
 “Disclosed” means information fairly disclosed by the Disclosure Documents (and “Disclosure”
shall be construed accordingly) with sufficient details to identify the nature and scope of the matter disclosed in the Disclosure Documents; 
 “Disclosure Documents” means the Disclosure Letter including the general disclosures contained in it and the two identical bundles of documents collated by or on behalf of the Seller, the outside covers of each of which
have been signed for identification by or on behalf of the Seller and the Buyer; 
 “Disclosure Letter” means the letter
described as such, dated as of the date of this Agreement and addressed by the Seller to the Buyer; 
 “Employee Benefit
Plan” means any agreement or arrangement for the provision of pensions, allowances, lump sums or other like benefits of retirement, death or long term ill health for the benefit of any current or former employee of the Company or the
employee’s dependants; 
 “Encumbrance” means any (other than by virtue of this Agreement) interest or equity of any
person (including any right to acquire, option or right of pre-emption or conversion) or any mortgage, charge, pledge, lien, assignment, hypothecation, security interest, title retention or any other security agreement or arrangement, or any
agreement to create any of the above; 
 “Environment” means any and all organisms (including man), ecosystems, property and
the following media: air (including the air within buildings and the air within other natural or man-made structures, whether above or below ground); water (including water under or within land or in drains or sewers and coastal and inland waters);
and land (including land under water); 
 “Environmental and Health and Safety Permits” means any permits, licences,
consents, certificates, registrations, notifications or other authorisations, variation, modification or transfer required or issued under any Environmental Laws or Health and Safety Laws for the operation of the business of the Company or in
relation to any of the Properties; 
 “Environmental Laws” means all or any applicable international, European, national or
local, civil or criminal law, statutes, regulations, secondary legislation, bye-laws, common law, directives, treaties and other measures, judgments and decisions of any court or tribunal and guidance notes which are legally binding and in force at
the date of this Agreement that have as a primary purpose the protection of the environment or the provision of remedies in respect of harm or damage to the Environment; 
  

 3 

 “Estimated Purchase Price” has the meaning set out in clause 4.2 of this Agreement;

 “Event” means any act, omission, occurrence, transaction or circumstance (including Completion); 
 “Final Adjustment Statement” has the meaning given in clause 5.1.4. 
 “FRS” means a financial reporting standard in force at the date of this Agreement as issued by the Accounting Standards Board Limited;

 “GAAP” means FRSs, SSAPs, the legal principles set out in Schedules 4 and 4A CA 85, rulings and abstracts of the Urgent
Issues Task Force of the Accounting Standards Board Limited and guidelines, conventions, rules and procedures of accounting practice in the United Kingdom which are regarded as permissible by the Accounting Standards Board Limited; 
 “Group” means collectively the Company and the Subsidiary (and “Group Company” shall be construed accordingly);

 “Harm” means harm to the Environment, and in the case of man includes offence caused to any of his senses or harm to his
property; 
 “Health and Safety Laws” means all applicable laws, statutes, regulations, secondary legislation, bye-laws,
common law, directives, treaties and other measures, judgments and decisions of any court or tribunal and guidance notes which are legally binding and in force as at the date of this agreement in so far as they relate to or apply to the health and
safety of any person, including the Health and Safety at Work etc. Act 1974, the Control of Asbestos at Work Regulations 2002 and the Construction (Design and Management) Regulations 1994; 
 “Indebtedness” means the aggregate amount (expressed as a positive number) payable by members of the Group as at 11.59 p.m. on 1 May
2007 in respect of all monies borrowed by such members (including, for the avoidance of doubt, under any loan from any member(s) of the Seller’s Group or Connected Person) whether under normal commercial lending terms, upon the issue of bills,
bonds, notes, loan stock or by way of deferred consideration in relation to any acquisition of a business or entity, determined in accordance with Schedule 5 and as set out in Column K31 of the Final Adjustment Statement; 
 “Intellectual Property Rights” means patents, rights to inventions, utility models, copyright, trade marks, service marks, trade,
business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database rights, topography rights, moral rights, rights in
confidential information (including know-how and trade secrets) and any other rights to or interests in intellectual property, in each case whether registered or unregistered and including all applications for and renewals or extensions of such
rights, and all similar or equivalent rights or forms of protection in any part of the world; 
 “IP Assignment” means the
deed of assignment in the agreed form to be entered into at Completion by Blockbuster Inc. and the Company in respect of the G-GEAR and G-WEAR marks; 
 “IP Licence” means the licence agreement in the agreed form to be entered into at Completion by Blockbuster Inc. and the Company in respect of the TRADE STATION and TRADESTATION marks; 
  

 4 

 “IT Contracts” means all material arrangements and agreements under which any third
party (including without limitation any member of the Seller’s Group and any source code deposit agents) provides any element of, or services relating to, the IT System, including leasing, hire purchase, licensing, maintenance and services
agreements; 
 “IT System” means all material computer hardware (including network and telecommunications equipment) and
software (including without limitation all computer programs in both source and object code form, associated preparatory materials, user manual and other related documentation) owned, used, leased or licensed by or to the Company or the Subsidiary;

 “Leases” means the leases and subleases relating to the Properties; 
 “Management Accounts” means the the unaudited consolidated profit and loss account of the Group in respect of the thirteen week period
ended 1 April 2007; 
 “Material Contract” means (a) any individual contract or group of related contracts, other
than purchase orders entered into in the ordinary course of business, that involve commitments to make capital expenditures or commitments to purchase goods or services by the Company from any one person during the period of 12 months from the date
of this Agreement under which the undelivered balance of such goods or services has a purchase price in excess of £100,000; (b) any individual contract or group of related contracts, other than sales orders entered into in the ordinary
course of business, that involve commitments to sell goods or services by the Company during the period of 12 months from the date of this Agreement and under which the undelivered balance of such goods or services has a sale price in excess of
£100,000; and (c) contracts relating to the borrowing of money by the Company, to the granting by the Company of an Encumbrance on any of its assets (other than retention of title provisions and Encumbrances of similar effect arising in
the ordinary course of business), or any guarantee by the Company of any obligation in respect of borrowed money or otherwise; provided that in no event shall “Material Contracts” include contracts of employment or Leases. 
 “Parties” means the Buyer and the Seller (and “Party” shall be construed accordingly); 
 “PAYE” means the Pay-As-You-Earn mechanism used to withhold any employee taxation or employee’s National Insurance contributions;

 “Permits” means any permits, authorisations, licences or consents required to carry on the business of the Group in
compliance with Environmental Laws or Health and Safety Laws; 
 “Permitted Encumbrances” means (a) mechanics’,
carriers’, workmen’s, repairmen’s or other like Encumbrances arising or incurred in the ordinary course of business, (b) Encumbrances arising under equipment leases with third parties entered into in the ordinary course of
business and under which the Company is not in default; and (c) retention of title provisions in supplier standard terms and conditions; 
 “Previously-owned Land and Buildings” means land and buildings that have, at any time before the date of this Agreement, been owned (under whatever tenure) and/or occupied and/or used by the Company or the Subsidiary, but
which are no longer owned, occupied or used by the Company or the Subsidiary; 
 “Proceedings” means any proceeding, suit or
action (including arbitration) arising out of or in connection with this Agreement; 
  

 5 

 “Properties” means the properties of which short particulars are set out in Part 1 of
Schedule 2 (Properties) and the expression “Property” shall mean, where the context so admits, any one or more or any part of such properties; 
 “Registered IP” means the Intellectual Property Rights owned, used or exploited by the Group and listed in Part 1 of Schedule 3 (Intellectual Property); 
 “Regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006; 
 “Regulatory Requirements” means any applicable requirement of law, the United States Securities and Exchange Commission, the UK Listing
Authority, the London Stock Exchange plc, the Panel on Takeovers and Mergers or of any person who has regulatory authority which has the force of law in any relevant jurisdiction; 
 “Relevant Claim” means any claim against the Seller for breach of the Warranties, and any other claim (whether in contract, tort or
otherwise) against the Seller arising out of any of the other provisions of this Agreement; 
 “Relevant Employees of the Concession
Stores” means all employees of the Company who are assigned (other than on a temporary basis) to work wholly or mainly in or in connection with the operation of any one of the Concessions Stores immediately before the Date of Transfer (or
who would have been so employed had they not been unfairly dismissed for a reason connected to the transfer) as more particularly listed in Schedule 8; 
 “Restricted Stock Plan” means the Blockbuster Inc. Amended and Restated 1999 Long-Term Management Incentive Plan; 
 “Seller Group” means the Seller and its Affiliates; 
 “Seller’s
Solicitors” means CMS Cameron McKenna LLP of Mitre House, 160 Aldersgate Street, London EC1A 4DD (Ref. RSP/MJW/MIT2.40a/108022.00003); 
 “Senior Employee” means any employee of the Company whose annual salary exceeds £50,000 or any consultant engaged by the Company whose annual compensation exceeds £50,000; 
 “Shares” means the 1,000,000 fully-paid issued ordinary shares of £1.00 each in the capital of the Company; 
 “SSAP” means a statement of standard accounting practice in force at the date of this Agreement as adopted by the Accounting Standards
Board Limited; 
 “Stores” means the 219 video game stores, located in the Properties, operating under the trade name and
mark GAMESTATION® as of and since 31 December
2006; 
 “Subsidiary” means the Subsidiary of the Company named in Part 2 of Schedule 1 (Details of the Group);

 “TA 88” means the Income and Corporation Taxes Act 1988; 
  

 6 

 “Taxation” or “Tax” means: 
  

	 	(a)	all forms of taxation and statutory, governmental, state, federal, provincial, local government or municipal charges, duties, imposts, contributions, levies, withholdings or
liabilities chargeable in the United Kingdom or elsewhere; and 

  

	 	(b)	any penalty, fine, surcharge, interest, charges or costs payable in connection with any Taxation within (a) above or any late or incorrect return in respect of any Taxation
within (a) above; 

 “Taxation Authority” means HM Revenue and Customs, the Department of Work and
Pensions and any other governmental or other authority whatsoever competent to impose any Taxation in the United Kingdom or elsewhere; 
 “Tax Deed” means the deed in the agreed form containing certain Taxation covenants between the Seller and the Buyer; 
 “Tax Warranty” means the tax warranties set out in Part 2 of Schedule 6; 
 “TCGA” means the
Taxation of Chargeable Gains Act 1992; 
 “Transaction Documents” means collectively this Agreement and each other agreement,
instrument and document required to be executed and delivered in accordance herewith including the Tax Deed; 
 “Unregistered
IP” means Intellectual Property Rights owned, licensed, used or exploited by the Group other than Registered IP; 
 “VAT” means value added tax; 
 “VATA” means the Value Added Tax Act 1994; 
 “Video Game Hardware” means all video game consoles and video games handheld hardware (excluding peripherals) and other than pre-owned,
used, ex rental, pre-played or traded-in video game consoles or handheld hardware; 
 “Video Game Software” means all PC
games and video games software other than pre-owned, used, ex rental, pre-played or traded-in games; 
 “Warranties” means
the warranties set out in clause 6 (Warranties) and Schedule 6 (Warranties); 
 “Warranty Claim” means any
claim against the Seller for breach of the Warranties; 
 “Working Capital” means the working capital of the Company
determined in accordance with Schedule 5 as set out in column I31 of the Final Adjustment Statement; and 
 “Working Capital
Target” means £7,400,000. 
 Interpretation 
  

	1.2	In interpreting this Agreement: 

  

	 	1.2.1	reference to any document as being “in the agreed form” means that it is in the form agreed between the Seller and the Buyer and signed for the purposes of
identification by or on behalf of the Seller and the Buyer. 

  

 7 

	 	1.2.2	where any statement is qualified by the expression “so far as the Seller is aware” or by reference to the knowledge, awareness or belief of the Seller or by an
expression of similar import, that statement shall be deemed (except where otherwise expressly provided to the contrary) to be given only on the basis of matters which are within the actual knowledge of Michael Logue, Jeremy Gerken, Martyn Gibbs or
John Whitworth (none of whom has made any additional enquiry of any other person) at the date of this Agreement. 

  

	 	1.2.3	the table of contents and headings and sub-headings are for convenience only and shall not affect the construction of this Agreement. 

  

	 	1.2.4	unless the context otherwise requires, words denoting the singular shall include the plural and vice versa and references to any gender shall include all other genders. References
to any person (which for the purposes of this Agreement shall include natural persons, bodies corporate, unincorporated associations, partnerships, governments, governmental agencies and departments, statutory bodies or other entities, in each case
whether or not having a separate legal personality) shall include the person’s successors. 

  

	 	1.2.5	the words “other”, “include” and “including” do not connote limitation in any way. 

  

	 	1.2.6	references to Recitals, Schedules, clauses and sub-clauses are to (respectively) recitals to, schedules to, and clauses and sub-clauses of, this Agreement (unless otherwise
specified); and references within a Schedule to paragraphs are to paragraphs of that Schedule (unless otherwise specified); and references to this Agreement include the Schedules. 

  

	 	1.2.7	references to any statute, statutory provision, directive of the Council of the European Union (whether issued jointly with any other person or under any other name) or other
legislation include a reference to that treaty, statute, statutory provision, directive or legislation as amended, extended, re-enacted, consolidated or replaced from time to time (whether before or after the date of this Agreement) and include any
order, regulation, instrument or other subordinate legislation made under the relevant statute, statutory provision, directive or legislation PROVIDED ALWAYS THAT the liability of the Seller shall not be increased by any such amendment, extension,
re-enactment, consolidation or replacement made after the date of this Agreement. 

  

	 	1.2.8	words and expressions defined in the Tax Deed shall (to the extent they are not inconsistent with this Agreement) bear the same meanings in this Agreement. 

 

	 	1.2.9	references to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, organisation, body, official or any legal concept,
state of affairs or thing shall in respect of any jurisdiction other than England be deemed to include that which most nearly approximates in that jurisdiction to the English legal term. 

  

	 	1.2.10	any reference to “writing” or “written” includes faxes and any legible reproduction of words delivered in permanent and tangible form (but not
e-mail). 

  

	 	1.2.11	 any amount expressed in pounds sterling shall, to the extent that it requires in whole or in part to be expressed in any other currency in order to give due effect
to this Agreement, be deemed for that purpose to have been converted into the 

  

 8 

	 	 
relevant currency immediately before the close of business on the date of this Agreement (or, if that is not a Business Day, the Business Day immediately
before it). Subject to any applicable legal requirements governing conversions into that currency, the rate of exchange shall be Barclays Bank plc’s spot rate for the purchase of that currency with sterling at the time of the deemed conversion.

  

	 	1.2.12	references to times of the day are (unless otherwise expressly provided) to London time and references to a day are to a period of 24 hours running from midnight on the previous
day. 

  

	 	1.2.13	Notwithstanding anything in this Agreement to the contrary, no amount shall be (or is intended to be) included, in whole or in part (either as an increase or as a reduction), more
than once in the calculation of (including any component of) any calculated amount pursuant to this Agreement if the effect of such additional inclusion (either as an increase or as a reduction) would be to cause such amount to be over- or
under-counted for purposes of the transactions contemplated by this Agreement. 

  

	1.3	The expressions “subsidiary”, “holding company”, “body corporate”, “parent undertaking” and “subsidiary
undertaking” shall have the meanings respectively given to them in CA 85. 

  

	2.	Sale and purchase 

 Obligation to sell and
purchase 
  

	2.1	Subject to the terms of this Agreement, the Seller shall sell the Shares with full title guarantee free from all Encumbrances to the Buyer and the Buyer shall purchase the Shares
accordingly. 

 Dividends and distributions 
  

	2.2	The Shares shall be sold with the benefit of all rights attaching to them as at the date of this Agreement, including the right to receive all dividends and distributions declared,
paid or made by the Company after the date of Completion. 

 Waivers of pre-emption 
  

	2.3	The Seller waives all rights of pre-emption and any other restrictions on transfer over any of the Shares conferred on it either by the articles of association of the Company or in
any other way and shall procure that all such rights conferred on any other persons in respect of the Shares are waived no later than Completion so as to permit the sale and purchase of the Shares. 

  

	3.	Consideration 

 Consideration subject to
adjustment 
  

	3.1	The consideration for the sale of the Shares shall be subject to adjustment as provided in clause 5 (Adjustment of Consideration). 

 Consideration 
  

	3.2	The Consideration for the sale of the Shares shall be: 

  

	 	3.2.1	a cash payment of £74,000,000 (the “Closing Amount”); 

  

 9 

	 	3.2.2	(i) plus, the amount (if any) by which the Completion Working Capital exceeds the Working Capital Target, or (ii) minus, the amount (if any) by which the
Completion Working Capital is less than the Working Capital Target; 

  

	 	3.2.3	plus the Additional Stores Cost; 

  

	 	3.2.4	plus the Cash Balance; and 

  

	 	3.2.5	minus the Indebtedness, 

 provided that the
Consideration shall not exceed £100 million 
 Reduction in consideration 
  

	3.3	Any payment made by the Seller in respect of a breach of any of the Warranties or under the Tax Deed, or any other payment made by it pursuant to this Agreement, shall (and shall be
deemed to) reduce the price paid for the Shares under this Agreement by a matching amount. 

  

	4.	Completion 

 Completion meeting

  

	4.1	Subject to sub-clause 4.3, Completion shall take place at the offices of the Seller’s Solicitors (or wherever else and at whatever time the Parties agree in writing)
immediately after the execution of this Agreement. 

  

	4.2	At Completion: 

  

	 	4.2.1	the Parties shall perform their respective Completion obligations set out in Schedule 4 (Completion Obligations); and 

  

	 	4.2.2	the Buyer shall pay to the Seller’s Solicitors by electronic transfer of funds for same day value £76,000,000 which is equal to the aggregate of:

  

	 	(a)	the Closing Amount; 

  

	 	(b)	plus the Additional Stores Cost; and 

  

	 	(c)	plus £1,712,410 

 (the
“Estimated Purchase Price”) on account of the Consideration payable under clause 3.2. 
  

	4.3	If in any respect material to the other Party the provisions of paragraph 1 of Schedule 4 (Completion Obligations) are not complied with on the day of the Completion meeting
by the Seller or the provisions of paragraph 2 of Schedule 4 (Completion Obligations) are not complied with on the day of the Completion meeting by the Buyer respectively, the other Party will not be obliged to complete this Agreement and may
immediately by written notice: 

  

	 	4.3.1	defer Completion to a date not more than 28 days after the date set by sub-clause 4.1 (Completion) (and so that the provisions of sub-clauses 4.1 and 4.2 shall apply to the deferred
meeting with all necessary modifications); 

  

 10 

	 	4.3.2	without prejudice to its rights under this Agreement, proceed so far as practicable with the transactions contemplated by this Agreement (provided that if the Buyer exercises its
rights pursuant to this clause 4.3.2, completion of the purchase of some of the Shares does not affect the Buyer’s rights in connection with the others); or 

  

	 	4.3.3	waive all or any of the requirements contained in paragraph 1 or paragraph 2 of Schedule 4 (Completion Obligations) (as the case may be) at its discretion.

  

	4.4	The transfers and deliveries provided for in Schedule 4 shall be mutually interdependent and shall be regarded as occurring simultaneously, and, any other provision of this
Agreement notwithstanding, no such transfer or delivery shall become effective or shall be deemed to have occurred until all of the other transfers and deliveries provided for in Schedule 4 shall also have occurred or been waived in writing by the
party entitled to waive the same. Such transfers and deliveries shall be deemed to have occurred and Completion shall be effective as of 11.59 p.m., London time, on 1 May 2007. 

 Effect of Completion 
  

	4.5	Notwithstanding Completion: 

  

	 	4.5.1	each provision of this Agreement (and any other document referred to in it) not performed at or before Completion but which remains capable of performance; 

 

	 	4.5.2	the Warranties; and 

  

	 	4.5.3	all covenants and other undertakings contained in or entered into pursuant to this Agreement 

 will remain in full force and effect and (except as otherwise expressly provided) without limit in time. 
 Pending registration 
  

	4.6	The Seller declares that for so long as it remains the registered holder of any of the Shares after Completion, it will: 

  

	 	4.6.1	hold those Shares and all dividends and other distributions in respect of them, and all other rights arising out of or in connection with them, in trust for the Buyer and the
Buyer’s successors in title; and 

  

	 	4.6.2	at all times deal with and dispose of those Shares, and all such dividends, distributions and rights attaching to them, as the Buyer or any such successor may direct.

 Company records etc. 
  

	4.7	 During the first year following Completion, the Seller will (on reasonable prior notice and at the Buyer’s expense) provide the Buyer with copies of all
information in tangible form relating to the Group’s business which belonged to the Seller at Completion and after Completion remains in its possession or under its control (but not the Buyer’s); provided 

  

 11 

	 	 
that in the case of information that pertains to both the Company, and any of the Seller and the Seller’s Affiliates, the Seller shall only be required
to provide to the Buyer such materials to which the Company is specifically a party, is specifically bound or from which it specifically receives benefits. During the first two years following Completion, the Seller will (on reasonable prior notice
and at the Buyer’s expense) provide the Buyer with all information known to the Seller in relation to the Group if it is required for the purposes of complying with any applicable legal or regulatory requirements. 

 

	5.	Post Completion Adjustment 

  

	5.1	

  

	 	5.1.1	Within 45 days after the date of Completion, the Buyer shall cause to be prepared and delivered to the Seller its good faith a calculation, based on the books and records of the
Company, of the Completion Working Capital, Indebtedness and Cash Balance, as of Completion (the “Preliminary Adjustment Statement”), in the form set out in Schedule 5 and, based on such calculation, the Buyer’s written
calculation of the adjustment necessary to reconcile the Estimated Purchase Price to the Consideration (the “Preliminary Post-Completion Adjustment”). The Seller shall co-operate with the Buyer with regard to the preparation of the
Preliminary Adjustment Statement and provide the Buyer and its representatives, advisers and agents with reasonable access to, upon reasonable notice and during ordinary business hours, its books and records and employees, wherever located, for the
purposes of preparing the Preliminary Adjustment Statement and Preliminary Post-Completion Adjustment. The Preliminary Adjustment Statement shall be prepared as of 11.59 p.m., London time, on 1 May 2007 consistent with, and using the same
accounting methods, policies, practices and procedures as used in the preparation of the Estimated Completion Working Capital, Estimated Indebtedness and Estimated Cash Balance and in accordance with this Agreement, including Schedule 5, including,
without limitation, with respect to inventory valuation. 

  

	 	5.1.2	The Seller shall review the Preliminary Adjustment Statement and the Preliminary Post-Completion Adjustment and, if the Seller reasonably believes that either was not prepared in
accordance with sub-clause 5.1.1 or that there was a mathematical error, the Seller shall so notify the Buyer in writing no later than the 15th Business Day after the Seller’s receipt thereof, setting forth in such notice the Seller’s
objection or objections to the Preliminary Adjustment Statement or the Preliminary Post-Completion Adjustment and the specific changes or adjustments that the Seller claims are required to be made thereto in order to conform the same to the terms of
this Agreement. Any notice of objection delivered pursuant to this sub-clause 5.1.2 shall specify in reasonable detail the nature of any disagreement so asserted. 

  

	 	5.1.3	 If the Seller notifies the Buyer of an objection to the Preliminary Adjustment Statement or the Preliminary Post-Completion Adjustment pursuant to sub-clause 5.1.2
and if the Buyer and the Seller are unable to resolve such dispute through good faith negotiations within 15 Business Days after the Seller’s delivery of such written notice of objection, or within a mutually agreed to extended time period,
then the Parties shall mutually engage and submit such dispute to, and the same shall be finally resolved in accordance with the provisions of this Agreement by, the London office of Deloitte (the “Independent Accountants”);
provided, however, that if the London office of Deloitte informs either the Buyer or the Seller of its unwillingness to so serve (the “Decline Date”), then within 10 

  

 12 

	 	 
Business Days after the Decline Date, each of the Buyer and the Seller may apply to the President for the time being of the Institute of Chartered
Accountants in England and Wales to nominate the Independent Accountant, and the decision of the President for the time being of the Institute of Chartered Accountants in England and Wales shall be final and binding. The Independent Accountant shall
not act as arbitrator, but as independent expert. The Buyer and the Seller will enter into reasonable and customary arrangements for the services to be rendered by the Independent Accountants under this sub-clause 5.1.3. The Independent Accountants
shall determine and report in writing to the Buyer and the Seller as to the resolution of all disputed matters submitted to the Independent Accountants and the effect of such determinations on the Preliminary Adjustment Statement and the Preliminary
Post-Completion Adjustment within 15 Business Days after such submission or such longer period as the Independent Accountants may reasonably require, and such determinations shall be final, binding and conclusive as to the Buyer and the Seller (save
in the event of manifest error (when a relevant part of that determination shall be void and the matter shall be remitted to the Independent Accountants for correction). The Independent Accountants shall limit their review only to the disputed items
submitted to the Independent Accountants, and the final determination of each such dispute shall be within a range between and including the lower figure submitted to the Independent Accountants by either the Buyer or the Seller and the higher
figure submitted to the Independent Accountants by the other party. The Buyer and the Seller shall each make readily available to the Independent Accountants all relevant work papers and books and records relating to the Company as are requested by
the Independent Accountants and shall use commercially reasonable efforts to cooperate with the Independent Accountants in resolving any disputed matters. Subsequent to Completion, the Buyer shall co-operate with the Seller with the regard to the
Sellers enquiries made pursuant to sub-clauses 5.1.2 and this sub-clause 5.1.3 and provide the Seller and its representatives, advisors and agents with reasonable access to, upon reasonable notice and during ordinary business hours, the financial
books and records and employees of the Company, wherever located, for the purposes of reviewing any issues that are in dispute by the Parties. Each of the Buyer and the Seller shall bear its own costs and expenses incurred in connection with this
sub-clause 5.1.3; provided, however, that the fees (including VAT) and disbursements of the Independent Accountants shall be borne as the Independent Accountant shall direct or, in the absence of such direction, shared equally by the Buyer, on the
one hand, and the Seller, on the other hand. 

  

	 	5.1.4	The Preliminary Adjustment Statement and the Preliminary Post-Completion Adjustment shall become the “Final Adjustment Statement” and the “Final
Post-Completion Adjustment,” respectively, and as such shall become final, binding and conclusive upon the Buyer and the Seller for all purposes of this Agreement, upon the earliest to occur of the following: 

  

	 	(a)	the mutual acceptance by the Buyer and the Seller of the Preliminary Adjustment Statement and the Preliminary Post-Completion Adjustment, respectively, with such changes or
adjustments thereto, if any, as may be proposed by the Seller and consented to by the Buyer; 

  

	 	(b)	the expiration of 15 Business Days after the Seller’s receipt of the Preliminary Adjustment Statement and the Preliminary Post-Completion Adjustment, respectively, without
timely written objection thereto by the Seller in accordance with sub-clause 5.1.2; and 

  

 13 

	 	(c)	the delivery to the Buyer and the Seller by the Independent Accountants of the report of their determination of all disputed matters submitted to them pursuant to 5.1.3, with the
Final Adjustment Statement and Final Post-Completion Adjustment giving effect to such determination. 

  

	 	5.1.5	If the Consideration exceeds the Estimated Purchase Price, then Buyer shall pay the amount of the difference to the Seller. If the Consideration is less than the Estimated Purchase
Price, then the Seller shall pay the difference to the Buyer. Payments to the Seller pursuant to this sub-clause 5.1.5 shall be by wire transfer of immediately available funds to the Seller’s Solicitors, and payments to the Buyer pursuant to
this sub-clause 5.1.5 shall be by wire transfer of immediately available funds to an account designated by the Buyer. Payments pursuant to this sub-clause 5.1.5 shall be made no later than three Business Days after the Preliminary Adjustment
Statement and the Preliminary Post-Completion Adjustment become the Final Adjustment Statement and the Final Post-Completion Adjustment, respectively, pursuant to sub-clause 5.1.4 (the “Payment Date”). 

  

	 	5.1.6	Subject to clause 5.1.7, nothing in this clause 5 shall entitle a Party or the Independent Accountants access to any information or document which is protected by legal professional
privilege or litigation privilege or which has been prepared by the Buyer or Seller or their respective accountants or other professional advisers for the purposes of assessing the merits of any claim or argument. 

  

	 	5.1.7	Neither the Buyer nor Seller shall be entitled to refuse to supply such part or parts of documents that contain facts on which a relevant claim or argument in respect of this
sub-clause 5.1 is based. 

  

	 	5.1.8	The Buyer shall pay to the Seller interest at the rate equal to seventy basis points above the Bank of England Base Rate on all amounts payable by the Buyer to the Seller (if any)
pursuant to clause 5.1.5 from the date of Completion up to and including the Payment Date calculated on a day to day basis (on the basis of a 365 day year) for so long as such amount remains unpaid. 

  

	 	5.1.9	If the Buyer fails to pay the Seller any amount due on the Payment Date the Buyer shall (without prejudice to all other rights and remedies of the Seller in respect of such failure)
pay to the Seller interest at the rate equal to the Barclays Bank base rate plus 4 per cent per annum over the base rate per annum on such overdue amount from the date of such failure up to the date of actual payment calculated on a day to day
basis (on the basis of a 365-day year) for so long as such amount remains unpaid. 

  

	6.	Warranties 

 Buyer Warranties

  

	6.1	The Buyer warrants to the Seller that: 

  

	 	6.1.1	it is a company duly incorporated and validly existing under the laws of England and Wales; and 

  

	 	6.1.2	 it possesses all requisite power and authority to execute, deliver and perform this Agreement, and each other Transaction Document to which the Buyer is a party.
The execution, delivery and performance by the Buyer of this Agreement, and 

  

 14 

	 	 
each other Transaction Document to which the Buyer is a party, have been duly authorised by all necessary action of the Buyer and no other action on the part
of the Buyer is necessary to authorise the execution and delivery by the Buyer of this Agreement or the Transaction Documents to which it is a party. 

 Seller Warranties 
  

	6.2	The Seller warrants to the Buyer in the terms set out in Schedule 6 (Warranties) in relation to the Company and the Subsidiary as at the date of this Agreement. Each of the
Warranties set out in the separate paragraphs of Schedule 6 (Warranties) shall be separate and independent. 

 Information supplied by the Company and Subsidiary 
  

	6.3	The Seller undertakes to the Buyer to waive any and all claims which it might otherwise have against the Company, the Subsidiary and/or their respective officers, employees, agents,
consultants or any of them in respect of any information supplied to them by or on behalf of the Company and/or the Subsidiary in connection with the Warranties, the Tax Deed and/or the information Disclosed except insofar as the Seller has been
fraudulently, dishonestly, or wilfully misled by any such officer, employee, agent or consultant or through any such persons otherwise acting in bad faith. 

 Limitations on liability 
  

	6.4	The Buyer confirms and acknowledges that the Seller makes no warranty in respect of the Concession Stores or the Relevant Employees of the Concession Stores or any matter connected
thereto and, save as provided for in clauses 11.5 and 11.9, the Buyer shall not make any claim against the Seller or its Affiliates in respect thereof. 

  

	6.5	The Seller’s liability in respect of any claim in relation to this Agreement shall be limited as provided in Schedule 7 (Limitation of Seller’s liability) and as
specifically provided for in the Tax Deed provided that such limitations shall not apply in relation to the Warranties set out in paragraphs 1 (Organisation), 2 (Authority), and 3 (Ownership of Shares), of Part 1 of Schedule 6
(Warranties). 

 Exclusions from clause 6 
  

	6.6	Notwithstanding any other provision of this Agreement, the provisions of this clause 6 and Schedule 7 (Limitation of Seller’s liability) shall not apply to any claim
made against the Seller in the case of any fraud on the part of the Seller. 

  

	7.	Protection of goodwill and trade secrets 

 Non-Competition 
  

	7.1	Subject to clause 7.3, the Seller undertakes to the Buyer, for itself and as agent on behalf of the Company, that it will not do, and will procure that its Affiliates do not do, any
of the following things during the period starting on the date of this Agreement and ending on 31 January 2009: 

  

	 	7.1.1	sell Video Game Hardware and/or Video Game Software in Great Britain; and 

  

	 	7.1.2	 directly or indirectly solicit, contact with a view to his engagement or employment or actually engage or employ, any person who was a director, officer, employee
or manager of the Company at any time during the twelve months prior to the date 

  

 15 

	 	 
of this Agreement in any such case where the person in question occupies a senior or managerial position, or has material confidential information or would
be in a position to exploit the trade connections of the Company except where the person in question has responded to general recruitment advertising not specifically directed at such person. 

  

	7.2	The Seller undertakes to the Buyer, for itself and as agent on behalf of the Company, that it will not, and will procure that its Affiliates do not, during the period starting on
the date of this Agreement and ending on the second anniversary of the date of this Agreement sell Video Game Hardware and/or Video Game Software, in Great Britain under branding other than ‘Blockbuster’. 

  

	7.3	Nothing in clause 7.1 shall prevent the Seller and/or its Affiliates from selling Video Game Hardware and Video Game Software in the Seller’s own brand stores in Great Britain
or by way of an own brand on-line platform, provided that the Seller’s market share of either the Video Game Hardware market or the Video Game Software market does not exceed 9% until 31 January 2009. 

  

	7.4	For the purposes of this clause 7, “market share” shall mean the Seller’s average market share over any 26 week period of the Video Game Hardware or the Video Game
Software markets (as the case may be) in Great Britain as reported by Chart-Track Limited; provided always that in the event that the number of market participants contributing data to Chart-Track Limited falls or if a new entrant to the market does
not contribute data to Chart-Track Limited, the market share permissible shall, to the fullest extent possible, be controlled for such market entry or exit from the Chart-Track Limited pool. Furthermore if Chart-Track Limited no longer exists or
stops reporting market share information the Parties shall agree upon and, if available, appoint another provider of equivalent information or, failing which, the parties shall agree in good faith an alternative method of quantifying the relevant
market share of the Seller and its Affiliates. 

  

	7.5	The Seller and the Buyer agree to use their reasonable endeavours to provide and procure that their Affiliates provide timely and accurate information regarding their respective
market shares to Chart-Track Limited for the period from Completion to 31 January 2009. 

  

	7.6	After Completion and up to 31 January 2009, the Seller shall provide the Buyer with a notice stating that it is complying with the terms of clause 7.3. The first such notice
shall be based upon the Chart-Track Limited weekly report for week 31 2007 and published on Saturday 4 August 2007. Thereafter the notice shall be based on the Chart-Track Limited weekly report at thirteen week intervals. The last such notice
shall be based on the Chart-Track Limited weekly report for the week ended Saturday January 31 2009. In the event that Chart-Track Limited fails to publish its weekly report the Seller shall provide a notice to the Buyer pursuant to this clause
based on its best knowledge and belief. In all cases the notice shall be delivered to the Seller within 5 working days of when the Chart-Track Limited weekly report in question was published or would have been published as the case may be.

  

	7.7	The Seller agrees that the Buyer at any time during the period from Completion until 31 January 2009, may request that the Seller provide the Buyer’s Solicitors’ with
certified copies of the weekly report from Chart-Track Limited with respect to the Seller and its Affiliates and relating to sales of Video Games Hardware and Video Game Software in Great Britain on which the notice in 7.6 was based.

  

	7.8	The Buyer will instruct the Buyer’s Solicitors that the information provided pursuant to clause 7.7 will be provided on a strictly confidential outside counsel only basis and
that the Buyer’s Solicitors may not disclose the information to the Buyer but may only report whether the Chart-Track Limited information supports the Seller’s notice that it is in compliance with clause 7.3. 

  

 16 

 Severability of covenants 
  

	7.9	Whilst the undertakings in sub-clauses 7.1 to 7.8 (Covenants) are considered by the Parties to be reasonable in all the circumstances, if any provision contained therein, or one or
more should for any reason be held to be invalid, but would have been held to be valid if part of the wording were deleted, the undertakings shall apply with the minimum modifications necessary to make them valid and effective.

  

	7.10	The Seller shall use its reasonable endeavours to comply with all reasonable requests for information from the Buyer for the purposes of preparing any merger clearance filing with
the Office of Fair Trading (“OFT”) with respect to the purchase of the Company pursuant to this Agreement. 

  

	7.11	Subject to applicable regulations and law and without restricting the Seller’s and/or the Seller’s Affiliates’ ability to respond to requests for information by the
OFT addressed to the Seller or the Seller’s Affiliates, the Seller will not take any action designed to have the effect of impeding or frustrating clearance by the OFT of the acquisition contemplated by this Agreement. 

 

	7.12	The Seller acknowledges that the Buyer may be entitled to the remedy of injunction for an actual breach of this clause 7 but nothing in this clause 7.12 will prejudice the right of
the Seller to oppose an application for such a remedy or be construed as the Seller acknowledging or agreeing that such a remedy is appropriate or equitable. 

  

	8.	Restricted Stock Plan and Non-Qualifying Stock Options 

  

	8.1	If any employee of the Company or the Subsidiary (or any other person from whom the Company or the Subsidiary is required to withhold any employee taxation or employees’
National Insurance contributions under PAYE) becomes entitled at any time to receive Blockbuster Shares under the Restricted Stock Plan (“vesting”) or exercises any non-qualifying stock option, the Seller shall inform the Buyer following
the vesting of an award or the exercise of an option of the identity of the relevant employee, the vesting or exercise date, the price paid by the employee (if any) and the market value of Blockbuster Shares acquired and shall provide this
information in sufficient time to allow the Buyer to make any PAYE payments within the applicable time limits. 

  

	8.2	Subject to sub-clause 8.3 below: 

  

	 	8.2.1	Blockbuster Inc. shall determine the gross gain arising on the date of vesting or the date on which an option is exercised by deducting the aggregate price paid by the employee (if
any) from the market value on the date of vesting or exercise of the Blockbuster Shares he receives and shall issue the number of Blockbuster Shares corresponding to the gross gain. 

  

	 	8.2.2	Blockbuster Inc. shall sell or procure the sale of sufficient Blockbuster Shares to enable the payment of income tax at the appropriate rate and employees’ National Insurance
contributions on the gross gain to be made and Blockbuster Inc. shall pay the proceeds to the Buyer to enable it to discharge within the applicable time limits any income tax and employees’ National Insurance contributions payable under PAYE on
the vesting of the awards or the exercise of the options at any time. 

  

 17 

	 	8.2.3	Blockbuster Inc. shall pay to the Buyer an additional amount equal to the employer’s National Insurance contributions due on the vesting of the awards or on the exercise of the
options at any time, unless the option holders have previously paid the employer’s National Insurance contributions, in which case the appropriate amount shall be paid using the mechanism set out in sub-clause 8.2.2 above.

  

	 	8.2.4	Blockbuster Inc. shall then transfer the balance of Blockbuster Shares or pay the balance of the proceeds of sale of such shares to the employee (or any other person entitled to
receive them). 

  

	8.3	If an employee receives Blockbuster Shares pursuant to the Restricted Stock Plan or on the exercise of a non-qualifying option at any time and provides any member of the Seller
Group with a cheque to discharge any income tax and employees’ National Insurance contributions, Blockbuster Inc. shall procure that such amount, less the exercise price, is paid to the Buyer in order to satisfy its obligations to operate PAYE
within the applicable time limits. 

  

	8.4	Without duplication of the foregoing provisions of this clause 8, the Seller shall indemnify the Buyer in respect of any loss, liability or Tax, including National Insurance
contributions, incurred by the Buyer, the Company or the Subsidiary in relation to any restricted stock plan or non-qualifying stock option plan in which any employee, director or former employee or director of the Company or the Subsidiary
participated prior to Completion or exercise of any option under any such plan whether such loss, liability or Tax arises before or after Completion. 

  

	9.	Completion Bonuses 

  

	9.1	The Seller shall or shall cause one of its Affiliates (other than the Company or the Subsidiary) to pay the Completion Bonuses on or prior to Completion (net of all income tax and
National Insurance contributions due on such bonuses), and the Seller shall or shall cause one of its Affiliates (other than the Company or the Subsidiary) to pay to the Company on or prior to Completion the amount required in respect of income tax
and National Insurance contributions on the Completion Bonuses. 

  

	9.2	The Buyer shall procure that amounts paid by the Seller or any of its Affiliates to the Company in respect of income tax and National Insurance contributions on Completion Bonuses
shall be used to discharge the income tax and National Insurance liabilities in relation to Completion Bonuses. 

  

	10.	Buyer’s Indemnity 

  

	10.1	The Buyer agrees from and after Completion to indemnify the Seller in full for and against any and all claims, reasonable costs and expenses (including all legal expenses and other
professional fees together with value added tax thereon) and liabilities, whatsoever and howsoever arising, incurred or suffered by the Seller from and after Completion in relation to any of the guarantees and authorised guarantee agreements listed
on Schedule 10 to the extent arising from the Buyer’s post-Completion operation of the business of the Company. Notwithstanding the foregoing, the indemnity set forth in this clause 10: 

  

	 	10.1.1	shall cease to have effect in respect of the authorised guarantee agreements on the date on which the Company assigns its interest in the Leases and the Company is released from
direct liability under the Lease covenants by virtue of the Landlord and Tenant (Covenants) Act of 1995 and the guarantors are fully and effectively released from any liability; 

  

 18 

	 	10.1.2	shall only apply to any claims, reasonable costs, expenses (including without limitation all reasonable legal expenses and other reasonable professional fees together with value
added tax thereon) and liabilities arising after Completion and for the avoidance of doubt the indemnity contained in this sub-clause 10.1.2 shall not apply in respect of any antecedent breaches by the Company prior to Completion which have given
rise to claims, costs, expenses and liabilities under the guarantees and authorised guarantee agreements after Completion; and 

  

	 	10.1.3	to the extent that the relevant provisions are not inconsistent with this clause 10, the provisions of paragraphs 5 to 12 of Schedule 7 shall apply to the indemnity set out in
sub-clause 10.1 as they apply to the indemnities set out in clauses 8.4 and 11.5 mutatis mutandis. 

  

	11.	Concession Stores 

 Concession Store
Agreement Termination 
  

	11.1	On or prior to Completion the Company and Blockbuster Entertainment Limited shall terminate the Concession Store Agreement and the Group Companies shall terminate any other
agreement pursuant to which the Company has rights to occupy any of the Concession Stores. 

  

	11.2	On or prior to Completion the entire fixtures, fittings and content of the Concession Stores including the stock, the cash registers and the Cash therein but excluding the branding
and signage incorporating the Intellectual Property Rights of the Company shall be the property of the Seller. 

  

	11.3	Within 60 days from Completion the Seller shall at its own cost dismantle and remove the branding and signage incorporating the Intellectual Property Rights of the Company (the
“Branding”) from the Concession Stores. During the period of 60 days from Completion the Buyer shall procure that the Company for good value received shall permit the Seller and its Affiliates to trade and conduct business using the
Branding in the former Concession Stores provided that in that period the Seller undertakes not to, and shall procure that its Affiliates shall not, use the Branding in such a way so as to reduce or diminish the reputation, image or prestige of such
Branding. Furthermore for good value received the Buyer shall procure that the Company shall provide a reasonable level of accounting support to the Seller in respect of the former Concession Stores in respect of sales, cash, banking and stock.

  

	11.4	If so directed by the Buyer in writing at Completion the Seller shall procure that any items containing Intellectual Property Rights of a member of the Group that have been
dismantled/removed from display in accordance with clause 11.3 shall be returned to the Company at the cost of the Buyer, or if no such direction is given destroyed by the Seller. 

  

	11.5	 The Seller agrees from and after Completion to indemnify the Buyer and the Company for and against any and all Costs suffered or incurred by reason of any
proceeding, claim or demand (“Claims”) with respect to: (i) the operation of any of the Concession Stores prior to Completion; (ii) the Asset Transfer; and (iii) the Concession Store Agreement (including the
termination thereof) other than those Costs suffered or incurred by reason of any Claim by any Relevant Employee of the Concession Stores (or their employee representatives) (but without prejudice to the rights of the Buyer and the Company pursuant
to clause 11.9) 

  

 19 

	 	 
or any Claims by other persons who previously worked wholly or mainly in or in connection with the operation of any one of the Concessions Stores (or their
employee representatives) or any Claim under the Regulations. 

 Concession Store Employees 
  

	11.6	The Seller and the Buyer declare and acknowledge that they each consider that the termination of the concession agreements in relation to the Concession Stores and the subsequent
sale by Blockbuster Entertainment Limited of video games and/or consoles in those stores after Completion will amount to a service provision change under the Regulations. As a result the contracts of employment of the Relevant Employees of the
Concession Stores will have effect on the termination of such concession agreement (the “Date of Transfer”) as if originally made between each Relevant Employee of the Concession Stores and Blockbuster Entertainment Limited.

  

	11.7	The Buyer will indemnify each of the Seller and Blockbuster Entertainment Limited (and theirs or its agents and nominees) against any Costs suffered or incurred by reason of any
proceeding, claim or demand (“Claims”) by any employee who is not a Relevant Employee of the Concession Stores (or their employee representatives) in relation to the operation of the Regulations on the contract of employment, the
employment or the termination of employment of any employee of the Company who is not a Relevant Employee of the Concession Stores. 

  

	11.8	The Buyer will indemnify each of the Seller and Blockbuster Entertainment Limited (and theirs or its agents and nominees) against any Costs suffered or incurred by reason of any
proceeding, claim or demand by any Relevant Employee of the Concession Stores (or their employee representatives) to the extent that it arises from any failure by the Seller and/or Blockbuster Entertainment Limited and/or the Company to comply with
their obligations under regulations 13 and 14 of the Regulations. The Seller will notify the Buyer in the event that there are any actual or threatened claims which may give rise to the application of this indemnity and will consult with the Buyer
with a view to the Buyer and the Seller acting in co-operation to assist the Seller to comply with its obligations under clause 11.13.2 below. 

  

	11.9	In the event that any person designated as a Relevant Employee of the Concession Stores asserts that his employment has not transferred to Blockbuster Entertainment Limited all
parties will maintain the position that such individuals have transferred pursuant to the Regulations with the aim of persuading such employee to acknowledge the transfer of his/her employment to Blockbuster Entertainment Limited and in the event
that such employee continues to refuse to acknowledge the transfer of their employment to Blockbuster Entertainment Limited and an employment tribunal determines that such employees employment has not transferred pursuant to the Regulations, the
Seller shall indemnify the Buyer and the Company in respect of each Cost which it may sustain by reason of any Claims in connection with that employee’s contract of employment and that employee’s employment and any constructive dismissal
liability for refusing to acknowledge such claimed employment with the Company or arising as a consequence of any non compliance with an order from an employment tribunal for re-engagement or reinstatement. 

  

	11.10	The indemnity contained in Clause 11.9 above is subject to the following conditions: 

  

	 	11.10.1	 In the event of any claim made by a Relevant Employee of the Concession Stores which may be covered by the indemnity under clause 11.9 Blockbuster Entertainment
Limited shall resist such claims in the name of the Company and/or any Group Company and shall take conduct of any negotiations 

  

 20 

	 	 
(including any settlement proposals if applicable), proceedings or appeals incidental to it and to use professional advisers nominated by the Seller.
Accordingly, if the Buyer and/or the Company becomes aware from time to time of any claim by a Relevant Employee of the Concessions Stores that the Regulations did not operate so as to transfer their employment to Blockbuster Entertainment Limited
(a “Non Transfer Claim”) the Buyer shall, and shall procure that each relevant Group Company shall: 

  

	 	(a)	within 14 days of becoming so aware give notice of, and consult with the Seller in respect of, the Non Transfer Claim; 

  

	 	(b)	if so requested by the Seller take all reasonable steps or proceedings as the Seller may reasonably consider necessary in order to mitigate, avoid, resist, appeal, dispute, contest,
remedy, compromise or defend any Non Transfer Claim; 

  

	 	(c)	upon receipt of reasonable notice provide the Seller and its agents with access to and to inspect and take copies of all books, correspondence and records of the relevant Group
Company necessary for the proper conduct of the Non Transfer Claim provided that in no circumstances shall the Buyer or any Group Company be required to make available any documents or records which are legally privileged or which are subject to
restricted disclosure in accordance with the Data Protection Act 1998; 

  

	 	(d)	request and use its reasonable endeavours to ensure that the personnel of the relevant Group Company provide statements and proofs of evidence, and attend at any trial or hearing to
give evidence or otherwise, and provide similar assistance to enable the Seller to mitigate, avoid, resist, appeal, dispute, contest, remedy, compromise or defend any such Non Transfer Claim provided that the Seller shall reimburse the relevant
Group Company or relevant personnel (as directed by the relevant Group Company) for all out of pocket expenses properly incurred in connection with such assistance; 

  

	 	(e)	except with the Seller’s prior written consent, not concede that there was no transfer pursuant to the Regulations or admit liability in respect of, or compromise or settle,
the Non Transfer Claim. 

  

	 	11.10.2	The Seller shall be responsible for all costs incurred in connection with the conduct of a Non Transfer Claim and the cost of any settlement (if applicable) prior to any employment
tribunal decision and shall indemnify the Company and the Buyer for any Costs incurred by the Company or the Buyer arising from any failure by the Seller to comply with its obligations under this clause 11.10.2. 

  

	11.11	The Seller and Blockbuster Entertainment Limited acknowledge and agree that the information the Company has provided pursuant to Regulation 11 of the Regulations was provided whilst
the Company was under the control of the Seller and is sufficient to enable it to fully assess and comply with the liabilities and obligations arising in respect of the Relevant Employees of the Concession Stores. 

  

	11.12	The Seller will indemnify the Buyer and the Company against any Costs incurred as a result of the Seller or Blockbuster Entertainment Limited bringing proceedings pursuant to
Regulation 12 of the Regulations in connection with the Company’s obligations pursuant to Regulation 11 of the Regulations. 

  

 21 

	11.13	The indemnity contained in Clause 11.8 above is subject to the following conditions: 

  

	 	11.13.1	a maximum cap on liability of £750,000; 

  

	 	11.13.2	the Seller, and the Seller procuring that Blockbuster Entertainment Limited use their reasonable endeavours following the date of this Agreement to seek to minimise the commercial
risk of any claims (it being acknowledged by both parties that there is no way to minimise the legal risks of the claims being well founded given that no information or consultation will be undertaken prior to the date of transfer) being brought and
to seek to minimise the level of Costs incurred by the Buyer or the Company under Clause 11.8 provided always that nothing in this sub clause will restrict Blockbuster Entertainment Limited from acting in its best interests.

  

	11.14	Save for paragraphs 3.3, 5, 6 and 7 the provisions of Schedule 7 shall not apply to the indemnities set out in sub-clauses 11.8 to 11.13. 

  

	12.	Intellectual Property Matters 

  

	12.1	The Company currently uses a font referred to as “tantrum” font in its marketing materials an example character of which is depicted in Schedule 3, Part 2. It is
acknowledged and agreed that the Seller and its Affiliates also use such font, and that neither the Company and its Affiliates, on one hand, nor the Seller and its Affiliates, on the other hand, will have any liability to, or claim or objection of
any kind against, the other based on the use of such font, nor will the Company and its Affiliates, on one hand, or the Seller and its Affiliates, on the other hand, seek to restrict or prevent the other’s use of the font or attempt to register
or assert any Intellectual Property Right in the font. 

  

	12.2	Except as otherwise provided in this Agreement and subject to the terms of the IP Licence and the IP Assignment upon Completion: 

  

	 	12.2.1	the Seller shall cease and shall cause any member of its group to cease any and all use of Intellectual Property Rights of a member of the Group; and 

  

	 	12.2.2	the Buyer shall procure that the Group Companies shall cease any and all use of Intellectual Property Rights of Blockbuster Inc., or any member of its group.

  

	13.	Third party rights 

  

	13.1	Nothing in this Agreement is intended to confer on any person any right to enforce any term of this Agreement which that person would not have had but for the Contracts (Rights of
Third Parties) Act 1999 except that the Company and Blockbuster Entertainment Limited shall be entitled to enforce clause 11 (Concession Stores) and all other provisions of this Agreement necessary to give due effect to such rights, but this
Agreement may be amended or varied by the Parties in any way, or terminated, in accordance with its terms without any such person’s consent. 

  

	14.	Further assurance 

  

	14.1	The Seller, from time to time on being required to do so by the Buyer, and the Buyer, from time to time being required to do so by the Seller, shall promptly and, save as expressly
set out in this Agreement, at the cost and expense of the Party requesting it do or procure the doing of all such acts and/or execute or procure the execution of all such documents as are necessary for giving full effect to this Agreement (or to
such parts of it as remain operative after termination). 

  

 22 

	15.	Confidentiality; announcements 

 Prohibition
on disclosure 
  

	15.1	The Parties acknowledge and agree that the letter agreement regarding confidentiality dated 14 March 2006 between Seller and Buyer (the “Confidentiality
Agreement”), remains in full force and effect pursuant to the terms thereof (notwithstanding any provision therein for the termination of the Confidentiality Agreement upon execution of this Agreement) and is expressly incorporated by
reference into this Agreement as if it were set forth herein. The Confidentiality Agreement shall expressly terminate with respect to information about the Company immediately upon Completion but not for any other purpose. 

Announcements 
  

	15.2	No Party shall make any formal press release, disclosure or other public announcement in connection with any of the transactions contemplated by this Agreement except an
announcement or disclosure in the agreed form or in any other form agreed by the Buyer and the Seller or any announcement or disclosure required by any applicable Regulatory Requirements (provided that, unless such consultation is prohibited by
Regulatory Requirements or, acting reasonably, is impracticable in the circumstances, it is made only after consultation with the Buyer or the Seller (as the case may be)). 

  

	15.3	Without prejudice to the generality of 15.2, the Parties hereto acknowledge and agree that within four Business Days after the date of this Agreement, the Seller shall file with the
United States Securities and Exchange Commission a Current Report on Form 8-K to disclose this Agreement and shall attach a copy of this Agreement to such Form 8-K. 

  

	16.	Assignment 

 No assignment without consent

  

	16.1	Subject to clause 16.2, neither the Buyer nor the Seller may: 

  

	 	16.1.1	assign, transfer, charge or deal in any way with the benefit of, or any of its rights under or interest in, this Agreement; or 

  

	 	16.1.2	sub-contract any or all of its obligations under it or do any such thing in relation to any document or arrangement expressed to be supplemental to this Agreement, or which this
Agreement expressly preserves or requires to be executed, except in accordance with a prior waiver given by (in the case of the Buyer) the Seller or (in the case of the Seller) the Buyer. 

  

	16.2	The Buyer may, upon giving a notice to the Seller, assign the benefit of this agreement and/or the Tax Deed by way of security to any bank(s) and/or financial institution(s) lending
money or making other banking facilities available to the Buyer or a member of the Buyer’s Group for the financing of the acquisition of the Shares and if it does so: 

  

	 	16.2.1	the assignee may enforce the obligations on the part of the Seller under this Agreement and/or the Tax Deed (including the Warranties) as if it had been named in this Agreement
and/or the Tax Deed as the Buyer; 

  

	 	16.2.2	as between the Seller and the Buyer, the Seller may nevertheless enforce this Agreement and/or the Tax Deed against the Buyer as if the assignment had not occurred; and

  

 23 

	 	16.2.3	the assignment shall be without cost to the Seller or its Affiliates and shall not in any way operate so as to increase the liability or reduce the rights of the Seller or its
Affiliates under this Agreement. 

 Successors in title 
  

	16.3	This Agreement shall be binding upon and operate for the benefit of the personal representatives and permitted assigns and successors in title of each of the Parties and references
to the Parties shall be construed accordingly. 

  

	17.	Waiver; variation; invalidity 

 No waiver by
omission, delay or partial exercise 
  

	17.1	No right, power or remedy provided by law or under this Agreement shall be waived, impaired or precluded by any delay or omission to exercise it, any single or partial exercise of
it on an earlier occasion or any delay or omission to exercise, or single or partial exercise, of any other such right, power or remedy. 

 Waivers and variations to be in writing 
  

	17.2	Any waiver of any right, power or remedy under this Agreement must be in writing, and no variation to this Agreement shall be of any effect unless it is agreed in writing and signed
by or on behalf of each Party. 

 No unreasonable withholding or delay 
  

	17.3	In this Agreement: 

  

	 	17.3.1	where any person is required to give or is entitled to withhold its consent or approval to terms and conditions of this Agreement or to any other act, matter or thing under or
referred to in this Agreement such person shall act in good faith and be reasonable in giving or withholding such consent or approval or in imposing conditions to such consent or approval; and 

  

	 	17.3.2	where any person is required to perform any act or give any consent or notification or do any other thing, it shall, in the absence of any specified time limit, perform, give or do
or (as the case may be) notify its withholding of its consent or approval as soon as is reasonably practicable in all the circumstances and in any event no later than 5 Business Days following the relevant request for consent or approval.

 Invalidity 
  

	17.4	Each of the provisions of this Agreement is severable. If any such provision is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that
shall not affect or impair the legality, validity or enforceability in that jurisdiction of the other provisions of this Agreement, or of that or any other provisions of this Agreement in any other jurisdiction; and (subject to sub-clause 7.9
(Severability of covenants)) the Parties will use reasonable endeavours to negotiate in good faith with a view to replacing it with one or more provisions satisfactory to any relevant competent authority but differing from the replaced
provision as little as possible. 

  

 24 

	18.	Costs and expenses 

 Payment of costs

  

	18.1	Except as otherwise stated in this Agreement, each Party shall bear its own costs and expenses in relation to the negotiation, preparation, execution and carrying into effect of
this Agreement and all other agreements forming part of the transactions contemplated by this Agreement. All stamp, transfer and registration taxes, duties and charges and all (if any) notarial fees payable in relation to the transactions
contemplated by this Agreement shall be payable by the Buyer. 

 Company and Subsidiary to pay no costs

  

	18.2	For the avoidance of doubt, neither the Company nor any of the Subsidiary shall pay any legal or other professional charges and expenses in connection with any investigation of the
affairs of the Group or the negotiation, preparation, execution and carrying into effect of this Agreement. 

  

	19.	Payments 

 All payments to be made under this
Agreement shall be made in full without any set-off or counterclaim and free from any deduction or withholding except as may be required by law (in which event such deduction or withholding shall not exceed the minimum amount required by law and the
payer will simultaneously pay to the payee whatever additional amount is required for the net amount received to equal what would have been received if no such deduction or withholding had been required). 
  

	20.	Entire agreement and financial promotion 

 This Agreement 
  

	20.1	In this clause, references to this Agreement include the Confidentiality Agreement, the Disclosure Letter and all other written agreements and arrangements between the Parties which
are expressed to be supplemental to this Agreement or which this Agreement expressly preserves or requires to be executed. 

 Entire agreement 
  

	20.2	This Agreement constitutes the whole and only agreement and understanding between the Parties in relation to its subject matter. Subject to sub-clause 20.5 (Fraud):

  

	 	20.2.1	all previous drafts, agreements, understandings, undertakings, representations, warranties, promises and arrangements of any nature whatsoever between the Parties with any bearing
on the subject matter of this Agreement are superseded and extinguished; and 

  

	 	20.2.2	all rights and liabilities arising by reason of them, whether accrued or not at the date of this Agreement, are cancelled 

 to the extent that they have such a bearing, except insofar as any such thing is in terms repeated or otherwise reflected in this Agreement. 

Financial Promotion 
  

	20.3	Each of the Parties acknowledges to the other, after due and careful consideration, that: 

  

	 	20.3.1	it is not entering into this Agreement in consequence of or in reliance on any unlawful communication (as defined in section 30(1) of the Financial Services and Markets Act 2000)
made by the other Party or the other Party’s professional advisers; 

  

 25 

	 	20.3.2	except as expressly provided in this Agreement, it is entering into this Agreement solely in reliance on its own commercial assessment and investigations and advice from its own
professional advisers; and 

  

	 	20.3.3	the other Party is entering into this Agreement in reliance on the acknowledgements given in this clause. 

 Other remedies 
  

	20.4	This Agreement sets out the remedies available to the Parties and how they may be pursued. Except as provided in sub-clause 20.5 (Fraud), other substantive (as opposed to
procedural) rights, powers or remedies (express or implied) which would otherwise be available in connection with this Agreement as a matter of common law, statute, custom or otherwise, including actions brought in negligence and/or nuisance, are
excluded and waived to the fullest possible extent in relation to the Parties and their respective officers, employees and agents. 

 Fraud 
  

	20.5	Nothing in this Agreement shall be read or construed as excluding any liability or remedy in respect of fraud. 

  

	21.	Counterparts 

 This Agreement may be executed in any
number of counterparts and by the Parties on different counterparts. Each counterpart shall constitute an original of this Agreement but all the counterparts shall together constitute one and the same Agreement. 
  

	22.	Whether time is of the essence 

 Time shall not be
of the essence of this Agreement. 
  

	23.	Notices 

 Form of notices 

 

	23.1	Any communication to be given in connection with the matters contemplated by this Agreement shall be in writing and shall either be delivered by hand or sent by first class pre-paid
post or facsimile transmission. Delivery by courier shall be regarded as delivery by hand. 

 Address and facsimile

  

	23.2	Such communication shall be sent to the address of the relevant Party referred to in this Agreement or the facsimile number set out below or to such other address or facsimile
number as may previously have been communicated to the sending Party in accordance with this clause. Each communication shall be marked for the attention of the relevant person. 

  

 26 

 If to the Seller, to: 
 Blockbuster Inc. 
 1201 Elm Street, Suite 2100 
 Dallas, Texas 75270 
 USA 
 Attention: Susan Gerhard 
 facsimile number:
+1-214-854-3271 
 With a copy (which shall not constitute notice) to: 
 Blockbuster Entertainment Limited 
 Harefield
Place 
 The Drive 
 Ickenham

 Uxbridge UB10 8AQ 
 Attention:
The Legal Department 
 facsimile number: +44-1895-866-345 
 With a copy (which shall not constitute notice) to: 
 CMS Cameron McKenna LLP 
 Mitre House 
 160 Aldersgate Street

 London EC1A 4DD 
 Attention:
Richard Price 
 facsimile number: +44-207-367-2000 
 If to the Buyer: 
 Game Group PLC 
 Unity House 
 Telford Road 
 Basingstoke 
 Hampshire RG21 6YJ 

Attention: David Thomas 
 facsimile number:
+44-125-678-4093 
 With a copy (which shall not constitute notice) to: 
 Clifford Chance LLP 
 10 Upper Bank Street

 London E14 5JJ 
 Attention: Lee
Coney 
 facsimile number: +44-207-006-5555 
 Deemed time of service 
  

	23.3	A communication shall be deemed to have been served: 

  

	 	23.3.1	if delivered by hand at the address referred to in sub-clause 23.2 (Address and facsimile) at the time of delivery; 

  

 27 

	 	23.3.2	if sent by first class pre-paid post to the address referred to in that sub-clause, at the expiration of two clear days after the time of posting; and 

  

	 	23.3.3	if sent by facsimile to the number referred to in that sub-clause, at the time of completion of transmission by the sender. 

 If a communication would otherwise be deemed to have been delivered outside normal business hours (being 9:30 a.m. to 5:30 p.m. on a Business Day) in the
time zone of the territory of the recipient under the preceding provisions of this clause, it shall be deemed to have been delivered at the next opening of such normal business hours in the territory of the recipient. 
 Proof of service 
  

	23.4	In proving service of the communication, it shall be sufficient to show that delivery by hand was made or that the envelope containing the communication was properly addressed and
posted as a first class pre-paid letter or that the facsimile was despatched and a confirmatory transmission report received. 

 Change of details 
  

	23.5	A Party may notify the other Parties of a change to its name, relevant person, address or facsimile number for the purposes of sub-clause 23.2 (Address and facsimile)
provided that such notification shall only be effective on: 

  

	 	23.5.1	the date specified in the notification as the date on which the change is to take place; or 

  

	 	23.5.2	if no date is specified or the date specified is less than five clear Business Days after the date on which notice is deemed to have been served, the date falling five clear
Business Days after notice of any such change is deemed to have been given. 

 Non-applicability to Proceedings

  

	23.6	For the avoidance of doubt, the Parties agree that the provisions of this clause shall not apply in relation to the service of any claim form, application notice, order, judgment or
other document relating to or in connection with any Proceedings. 

  

	24.	Governing law and jurisdiction 

 English
law 
  

	24.1	This Agreement shall be governed by and construed in accordance with English law. 

 Courts of England and Wales 
  

	24.2	The Parties irrevocably agree that the courts of England shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Agreement and that
accordingly any Proceedings may only be brought in such courts. 

 AS WITNESS the hands of the Parties or their duly authorised
representatives on the date first appearing at the head of this Agreement. 
  

 28 

 Schedule 1 
 Details of the Group 
 Part 1 
 The Company 
  

			
	 Name:
	  	GAMES STATION LIMITED
	 Number:
	  	03547594
	 Date of incorporation:
	  	17 April 1998
	 Registered office:
	  	Harefield Place, The Drive, Uxbridge, Middlesex, UB10 8AQ
	 Share capital:
	  	
	 - authorised:
	  	2,000,000
	 - issued:
	  	1,000,000
	 Shareholders:
	  	
	 Directors
	  	T.E.Kurrikoff. N.P.Shepherd, E.Feeney, M.Logue
	 Secretary:
	  	Mitre Secretaries Limited

 Part 2 
 The Subsidiary 
  

			
	 Name:
	  	GAMESTATION LIMITED
	 Number:
	  	04120965
	 Date of incorporation:
	  	7 December 2000
	 Registered office:
	  	Harefield Place, The Drive, Uxbridge, Middlesex, UB10 8AQ
	 Share capital:
	  	
	 - authorised:
	  	100
	 - issued:
	  	1
	 Shareholders:
	  	
	 Directors
	  	T.E. Kurrikoff, N.P. Shepherd, E Feeney, M Logue
	 Secretary:
	  	Mitre Secretaries Limited

  

 29 

 Schedule 2 
 Part 1 
 Properties 
  

			
	 	  	 ADDRESS

	1.	  	177 Union Street, Aberdeen, AB11 6BB
	2.	  	29 Broadway ACCRINGTON BB5 1ES
	3.	  	97 George Street, ALTRINCHAM, WA14 1RN
	4.	  	49 High Street, ANDOVER. SP10 1LP
	5.	  	1 New Rents, ASHFORD, Kent, TN23 1LE
	6.	  	54 High Street, AYR, KA7 1PA
	7.	  	4B Castle Quay Shopping Centre, BANBURY, OX16 5UW
	8.	  	263 High Street BANGOR LL57 1PB
	9.	  	66 East Street, BARKING, Greater London, IG11 8EQ
	10.	  	32 Market Street, BARNSLEY, S70 1SL
	11.	  	30 High Street BARNSTAPLE EX31 1BL
	12.	  	6 Portland Walk, BARROW in FURNESS, LA14 1DB
	13.	  	12 East Walk, BASILDON, SS14 1HH
	14.	  	3 Mayfair House, Festival Place Shopping Centre, BASINGSTOKE, Hants, RG21 7JT
	15.	  	29a Westgate Street, BATH, Somerset, BA1 1EP
	16.	  	15 Silver Street BEDFORD MK40 1SY
	17.	  	28, Milton Pavement, The Grange Shopping Centre, BIRKENHEAD, CH41 2YA
	18.	  	138 New St, BIRMINGHAM, B2 4NS
	19.	  	Unit 70 South Mall, The Pallasades Shopping Centre, BIRMINGHAM B2 4XJ
	20.	  	59 Newgate Street, BISHOP AUCKLAND, DL14 7EW
	21.	  	35 Corporation Street, BLACKPOOL, FY1 1EJ
	22.	  	24 London Road BOGNOR REGIS, PO21 1PY
	23.	  	37, Newport Street, BOLTON, BL1 1NE
	24.	  	315 Stanley Road, BOOTLE, Merseyside, L20 3LQ
	25.	  	18a Sliver Street, Pescod Square, BOSTON, PE21 6QU
	26.	  	49 Commercial Street BOURNEMOUTH BH2 5RH
	27.	  	40 High Street, BRACKNELL, RG12 1LL
	28.	  	58, James Street, BRADFORD, BD1 3PZ
	29.	  	32A Darley Street BRADFORD BD1 3HH
	30.	  	10-12 Fore Street, BRIDGWATER, TA6 3NF
	31.	  	69 Western Road BRIGHTON BN1 2HA
	32.	  	28 Broadmead BRISTOL BS1 3HA
	33.	  	17, High Street, BROMLEY, BR1 1LG
	34.	  	68/70 St James Street BURNLEY BB11 1NH

  

 30 

			
	35.	  	6-8 Dame Paulet Walk, BURTON ON TRENT. DE14 1DQ
	36.	  	20 Princess Parade, BURY, BL9 0QL
	37.	  	11 Fitzroy Street CAMBRIDGE CB1 1ER
	38.	  	43A Camden High Street, CAMDEN. London. NW1 7JH
	39.	  	6 Market Hall Street Cannock Shopping Centre CANNOCK WS11 1EB
	40.	  	2 St Davids Way St Davids Shopping Centre CARDIFF CF10 2DP
	41.	  	67 English Street CARLISLE, CA3 8JU
	42.	  	152 High Street, CHATHAM, ME4 4AS
	43.	  	39 Foregate Street CHESTER CH1 1HD
	44.	  	26 Burlington Street CHESTERFIELD S40 1RR
	45.	  	30 South Street, CHICHESTER, Sussex, PO19 1EL
	46.	  	290 Chiswick High Road CHISWICK W4 1PA
	47.	  	30 Market Walk CHORLEY PR7 1DE
	48.	  	20-22 Station Road, CLACTON ON SEA, Essex, CO15 1SX
	49.	  	46/48 Long Wyre Street, COLCHESTER, CO1 1LJ
	50.	  	27 Corporation Street, CORBY, Northants, NN17 1NG
	51.	  	47, Hertford Street, COVENTRY CV1 1LF
	52.	  	4 Dudley Court Manor Shopping Centre CRAMLINGTON NE23 6QW
	53.	  	4 Queens Square, CRAWLEY, RH10 1DY
	54.	  	46 Market Street, CREWE, CW1 2EL
	55.	  	64, George Street , CROYDON , CR0 1PD
	56.	  	15 The Parade Cwmbran Shopping Centre CWMBRAN NP44 1QR
	57.	  	6 East Street, DERBY DE1 2AU
	58.	  	43/44 Market Place DONCASTER DN1 1NJ
	59.	  	Unit 3A, 11-16 Biggin Street DOVER CT16 1BD
	60.	  	7 Churchill Parade DUDLEY DY2 7BL
	61.	  	40 Murraygate, DUNDEE, DD1 2AZ
	62.	  	35 Silver Street DURHAM DH1 3RD
	63.	  	111 High Street North, EAST HAM, London, E6 1HZ
	64.	  	24 Princes Mall, EAST KILBRIDE, G74 1JU
	65.	  	134A Princes Street, EDINBURGH, EH2 4AH
	66.	  	70 High Street, ELGIN, IV30 1BJ
	67.	  	18 Mercers Walk, Port Arcade Shopping Centre, Ellesmere Port, Cheshire, CH65 0AP
	68.	  	71 High Street, ELTHAM, Middlesex, SE9 1TD
	69.	  	37 Church street, ENFIELD, EN2 6AJ
	70.	  	30 High St, EPSOM, Surrey, KT19 8AH
	71.	  	43 Union Street GLASGOW G1 3RB
	72.	  	83 Sauchiehall Street, GLASGOW, G2 3DD
	73.	  	42 Unicorn Way, GLENROTHES, KY7 5NU

  

 31 

			
	74.	  	Unit 8b Market Way, Eastgate Shopping Centre, GLOUCESTER, GL1 1QH
	75.	  	Unit 10 Market Gates Shopping Centre, Great YARMOUTH, NR30 2AX
	76.	  	24 Victoria Street West GRIMSBY DN31 1DG
	77.	  	12 Woolshops HALIFAX HX1 1RU
	78.	  	13 Duke Street HAMILTON ML3 7DT
	79.	  	19 Parliament Row, HANLEY ST1 1PW
	80.	  	2D Cheltenham Parade, HARROGATE, HG1 1DB
	81.	  	92 Middleton Grange Shopping Centre HARTLEPOOL TS24 7RW
	82.	  	19 Queens Road, HASTINGS, TN34 1QY
	83.	  	222 The Marlowes, HEMEL HEMPSTEAD, HP1 1BJ
	84.	  	56 Commercial Street HEREFORD HR1 2DJ
	85.	  	16 Church St, HIGH WYCOMBE, HP11 2DE
	86.	  	189 High Street HOUNSLOW TW3 1BL
	87.	  	88, New Street, HUDDERSFIELD. West Yorkshire, HD1 2TR
	88.	  	92, Prospect Street, HULL HU1 3RT
	89.	  	6 Albion Centre, ILKESTON, DE7 8AG
	90.	  	6-8 Ingliss Street INVERNESS, IV1 1HN
	91.	  	13 Carr Street, IPSWICH, IP4 1ER
	92.	  	27 Gold Street KETTERING NN16 8JB
	93.	  	82 Worcester Street KIDDERMINSTER DY10 1EH
	94.	  	52 King Street KILMARNOCK KA1 1NP
	95.	  	6 Norfolk Street, KING’S LYNN, PE30 1AR
	96.	  	107-109 High Street, KIRKCALDY, KY1 1LW
	97.	  	3 Lancaster Gate .St Nicholas Arcade LANCASTER LA1 1NB
	98.	  	2 & 3, 1904 Building Vicar Lane, LEEDS (aka 2/3 Kirkgate Market Buildings, Leeds )
	99.	  	42 Granby Street, LEICESTER LE1 1DH
	100.	  	37 Bradshawgate, LEIGH, Lancs, WN7 4NB
	101.	  	212 Lewisham High St LEWISHAM SE13 6JP
	102.	  	Unit 2 St Peter At Arches, LINCOLN, Lincolnshire, LN2 1AJ
	103.	  	45 Hougthon Way, St Johns Shopping Centre, LIVERPOOL L1 1LN
	104.	  	72 Lord Street, LIVERPOOL, L2 1TL
	105.	  	6 Almondvale Centre South LIVINGSTON EH54 6NB
	106.	  	11 Vaughan Street LLANELLI SA15 3TY
	107.	  	10 Market Place, LONG EATON, Notts, NG10 1LS
	108.	  	43 London Road North, LOWESTOFT, NR32 1BH
	109.	  	39 George Street, LUTON, LU1 2AQ
	110.	  	27 Nicholsons Walk MAIDENHEAD SL6 1LB

  

 32 

			
	111.	  	180A Halle Mall, The Arndale Centre, MANCHESTER M4 2HU
	112.	  	38A Westgate MANSFIELD NG18 1RS
	113.	  	95 High Street, MARGATE, Kent CT9 1JT
	114.	  	Unit 52 MERRY HILL Centre, Brierley Hill DY5 1SR
	115.	  	Unit 3 Beacons Place Shopping Centre, MERTHYR TYDFIL, Wales, CF47 0AE
	116.	  	Unit 112 Lower blue hall, METRO CENTRE, Gateshead, NE11 9YZ
	117.	  	108 Linthorpe Road, Cleveland Centre, MIDDLESBROUGH, TS1 2JZ
	118.	  	28 Crown Walk, MILTON KEYNES, MK9 3AH
	119.	  	25 Royalty Mall, MORECAMBE, LA4 5DH
	120.	  	29 Brandon south parade, MOTHERWELL, ML1 1LB
	121.	  	9 St Marks Place, NEWARK, NG24 1XT
	122.	  	63A North Brook Street NEWBURY, RG14 1AE
	123.	  	78 Grainger Street NEWCASTLE upon TYNE NE1 5JQ
	124.	  	90 High Street, NEWCASTLE-UNDER-LYME, ST5 1QQ
	125.	  	46 Commercial Street, NEWPORT, Gwent, NP20 1LP
	126.	  	9 Market Walk, NEWTON ABBOT, Devon, TQ12 2RX
	127.	  	43 Drapery, NORTHAMPTON, NN1 2EU
	128.	  	3-4 Castle Mall Shopping Centre, NORWICH, Norfolk NR1 3DD
	129.	  	16 Angel Row, NOTTINGHAM NG1 6HL
	130.	  	2A Market Place NUNEATON CV11 4EA
	131.	  	22-24 Henshaw Street, OLDHAM, OL1 3AA
	132.	  	Unit 10 Westgate Centre, OXFORD, OX1 1NU
	133.	  	Unit 3, 4 High Street, PAISLEY PA1 2YA
	134.	  	9 Scott Street, PERTH, PH1 5EJ
	135.	  	45 Bridge Street, PETERBOROUGH PE1 1HA
	136.	  	104 Cornwall Street, PLYMOUTH PL1 1NF
	137.	  	70 Taff Street, PONTYPRIDD, CF37 4SU
	138.	  	139 High Street POOLE BH15 1AS
	139.	  	Unit 10 West Mall Aberafan Centre PORT TALBOT SA13 1PB
	140.	  	24 Arundel Street, PORTSMOUTH PO1 1NL
	141.	  	172 Friargate PRESTON PR1 2EJ
	142.	  	6 Queen Victoria Street, READING, Berkshire RG1 1TG
	143.	  	1 New Walk Kingfisher Shopping Centre REDDITCH B97 4YP
	144.	  	27 High Street, REDHILL, RH1 1RH
	145.	  	52 Rochdale Exchange Shopping Centre, ROCHDALE, Lancs, OL16 1EA
	146.	  	12 Stewards Walk ROMFORD RM1 3RJ

  

 33 

			
	147.	  	16 College Street ROTHERHAM S65 1AG
	148.	  	83 Parade, ROYAL LEAMINGTON SPA, Warwickshire, CV32 4AY
	149.	  	33 Manning Walk The Clock Tower Centre RUGBY CV21 2JT
	150.	  	56 Fitzgerald Way, Salford Shopping Centre, SALFORD, M6 5HW
	151.	  	11 High Street SALISBURY SP1 2NJ
	152.	  	112B Westborough SCARBOROUGH YO11 1LP
	153.	  	72 High Street, SCUNTHORPE, DN15 6SD
	154.	  	3-4 Castle Street SHREWSBURY SY1 2BD
	155.	  	U6 the forum shopping centre, SITTINGBOURNE, ME10 3DL
	156.	  	UNIT 27 Upper Mall, The Concourse Shopping Centre, SKELMERSDALE, WN8 6LE
	157.	  	4 Queensmere Shopping Centre SLOUGH SL1 1EQ
	158.	  	123 King Street SOUTH SHIELDS NE33 1DP
	159.	  	82 Above Bar Street SOUTHAMPTON SO14 7DT
	160.	  	11 Southchurch Road, SOUTHEND-ON-SEA, Essex, SS1 2NG
	161.	  	203 Lord Street, SOUTHPORT. PR8 1PF
	162.	  	30/32 Lagrange Arcade, ST HELENS, WA10 1BN
	163.	  	21 Gaolgate Street, Unit F Sheridan Shopping Centre STAFFORD ST16 2AD
	164.	  	54 High Street, STAINES, TW18 4DY
	165.	  	54 Queensway, STEVENAGE, SG1 1EE
	166.	  	26 Murray Place, STIRLING, FK8 2DD
	167.	  	65 Princes Street STOCKPORT SK1 1RW
	168.	  	134B High Street STOCKTON-ON TEES TS18 1LP
	169.	  	27 Blandford Street SUNDERLAND SR1 3JH
	170.	  	192 High Street, SUTTON, Greater London, SM1 1NR
	171.	  	212 Gracechurch Shopping Centre, The Parade, SUTTON COLDFIELD, B72 1PA
	172.	  	12 Union Street, SWANSEA, SA1 3EF
	173.	  	35 The Parade, SWINDON, SN1 1BB
	174.	  	35/35A George Street, TAMWORTH, Staffordshire B79 7LJ
	175.	  	47 North Street TAUNTON TA1 1LX
	176.	  	40 Southwater Way, Telford Shopping Centre, TELFORD, Shropshire, TF3 4AA
	177.	  	5 Union House, Union Street, TORQUAY TQ1 3YA
	178.	  	46 The Shires Shopping Centre TROWBRIDGE, BA14 8AT
	179.	  	31 Chequers Square, UXBRIDGE, UB8 1LN

  

 34 

			
	180.	  	17 Kirkgate WAKEFIELD WF1 1HS
	181.	  	42 Old Square Shopping Centre, WALSALL, WS1 1PY
	182.	  	Unit 106b, 13 Golden Square, WARRINGTON, WA1 1QB
	183.	  	95 London Road, WATERLOOVILLE, PO7 7EQ
	184.	  	97 The Parade, High Street, WATFORD, WD17 1LN
	185.	  	64 Howardsgate, WELWYN GARDEN CITY, AL8 6BP
	186.	  	458 High Road, WEMBLEY, HA9 7AY
	187.	  	6 Queens Sq Sandwell Shopping Centre WEST BROMWICH, B70 7NG
	188.	  	79 High Street WESTON-SUPER-MARE BS23 1HE
	189.	  	95 St Mary Street WEYMOUTH DT4 8NY
	190.	  	18 King Street, WHITEHAVEN, CA28 7JN
	191.	  	32 Albert Square, WIDNES, WA8 6JW
	192.	  	23 Market Place WIGAN WN1 1PE
	193.	  	4 Middle Walk, WOKING, GU21 6XT
	194.	  	33 Wulfrun Centre, Wulfrun Way, WOLVERHAMPTON. WV1 3HG
	195.	  	83 High Road, WOOD GREEN, N22 6BB
	196.	  	112 Powis Street, London, WOOLWICH SE18 6LU
	197.	  	63 Broad Street, WORCESTER, WR1 3LY
	198.	  	70 Bridge Place WORKSOP S80 1JN
	199.	  	6 Montague Street WORTHING BN11 3HA
	200.	  	50/52 Regent Street, WREXHAM, LL11 1RR
	201.	  	10 High Street, YEOVIL, BA20 1RG
	202.	  	5 Church Street, YORK, YO1 8BG
	203.	  	10/11 Sterling Park, Clifton Moor, YORK
	204.	  	12 Sterling Park, Clifton Moor YORK

  

 35 

 Part 2 
 Additional Stores 
  

			
	 	  	 Name

	1.	  	Dartford
	2.	  	Peterlee
	3.	  	Rhyl
	4.	  	Middleton
	5.	  	Washington
	6.	  	Bridgend
	7.	  	Walthamstow
	8.	  	Northfield
	9.	  	Northwich
	10.	  	Ilford
	11.	  	Greenock
	12.	  	Clydebank
	13.	  	Falkirk
	14.	  	Barry
	15.	  	Canterbury
	16.	  	York (Kettlestring Office)
	17.	  	Sheffield (63 The Moor)
	18.	  	Ramsgate
	19.	  	Caerphilly
	20.	  	Eastbourne

  

 36 

 Part 3 
 Concession Stores 
  

			
	 	  	 Name

	21.	  	Aberdeen
	22.	  	Ashton under Lyne
	23.	  	Bayswater
	24.	  	Blackburn
	25.	  	Chatham
	26.	  	Cheltenham
	27.	  	Clapham
	28.	  	Coventry Canley
	29.	  	Crawley
	30.	  	Crossgates
	31.	  	Dewsbury
	32.	  	Eastbourne
	33.	  	Edinburgh St John
	34.	  	Erdington
	35.	  	Fallowfield
	36.	  	Farnborough
	37.	  	Holloway
	38.	  	Hull Anlaby
	39.	  	Leamington Spa
	40.	  	Letchworth
	41.	  	Maidstone
	42.	  	Manchester Wilmslow Rd
	43.	  	Newport I.O.W.
	44.	  	Orpington
	45.	  	Partick
	46.	  	Peckham
	47.	  	Reading #2
	48.	  	Runcorn
	49.	  	St Albans
	50.	  	Walkden
	51.	  	Walsall Road*
	52.	  	West Denton
	53.	  	West Ealing
	54.	  	Willenhall

	*	NB: Walsall Road, Birmingham—this is currently a concession store. Blockbuster has now entered into an agreement for the surrender of this store and Games Station Limited has
exchanged an agreement for lease of part. The deal is conditional upon the landlord obtaining planning permission and carrying out works to split the store. Completion is not expected until late summer. The date of the agreement for lease is
29 March 2007. 

  

 37 

 Schedule 3 
 Intellectual Property 
 Part 1 
 Registered IP 
 The Company owns the following registered Community trade marks: 
  

							
	 Mark Name
	  	Status	  	Registration No.	  	Renewal Date
	 GAMESTATION
	  	Registered	  	2698991	  	16/05/2012
	 GAMESTATION
	  	Registered	  	1935675	  	02/11/2010
	 GAMESTATION
	  	Registered	  	3263928	  	10/07/2013
	 G bubble logo
	  	Registered	  	3281987	  	10/07/2013

 The Company owns the following domain names: 
  

					
	 Domain Names
	  	Registration Date	  	Renewal Date
	 gamestation.co.uk
	  	17/03/1998	  	17/03/2008
	 buycomputergamesonline.co.uk
	  	06/01/2006	  	06/01/2008
	 buycomputergamesonline.com
	  	06/01/2006	  	06/01/2008
	 buycomputergamesonline.net
	  	06/01/2006	  	06/01/2008
	 buycomputergamesonline.uk.com
	  	06/01/2006	  	06/01/2008
	 buyvideogamesonline.co.uk
	  	06/01/2006	  	06/01/2008
	 buyvideogamesonline.uk.com
	  	06/01/2006	  	06/01/2008
	 buyvideogamesonline.uk.net
	  	06/01/2006	  	06/01/2008
	 game-exchange.uk.com
	  	06/01/2006	  	06/01/2008
	 game-exchange.uk.net
	  	06/01/2006	  	06/01/2008
	 games-station.biz
	  	06/01/2006	  	06/01/2008
	 games-station.uk.com
	  	06/01/2006	  	06/01/2008
	 games-station.uk.net
	  	06/01/2006	  	06/01/2008
	 game-station.uk.com
	  	06/01/2006	  	06/01/2008
	 game-station.uk.net
	  	06/01/2006	  	06/01/2008
	 gamestationonline.biz
	  	06/01/2006	  	06/01/2008
	 gamestationonline.co.uk
	  	06/01/2006	  	06/01/2008
	 gamestationonline.uk.com
	  	06/01/2006	  	06/01/2008
	 gamestationonline.uk.net
	  	06/01/2006	  	06/01/2008
	 gamestationonline.uk.net
	  	06/01/2006	  	06/01/2008
	 gamestationshop.co.uk
	  	06/01/2006	  	06/01/2008
	 gamestationshop.com
	  	06/01/2006	  	06/01/2008
	 gamestationshop.net
	  	06/01/2006	  	06/01/2008
	 gamestationshop.uk.com
	  	06/01/2006	  	06/01/2008
	 gamestationshop.uk.com
	  	06/01/2006	  	06/01/2008
	 ilovegames.net
	  	06/01/2006	  	06/01/2008
	 onlinegames.uk.com
	  	06/01/2006	  	06/01/2008
	 onlinegames.uk.net
	  	06/01/2006	  	06/01/2008
	 pre-order-games.co.uk
	  	06/01/2006	  	06/01/2008
	 pre-order-games.com
	  	06/01/2006	  	06/01/2008
	 pre-owned-games.co.uk
	  	06/01/2006	  	06/01/2008

  

 38 

					
	 Domain Names
	  	Registration Date	  	Renewal Date
	 pre-owned-games.com
	  	06/01/2006	  	06/01/2008
	 pre-owned-games.net
	  	06/01/2006	  	06/01/2008
	 stealoftheweek.co.uk
	  	06/01/2006	  	06/01/2008
	 stealoftheweek.tv
	  	06/01/2006	  	06/01/2008
	 trade-in-games.co.uk
	  	06/01/2006	  	06/01/2008
	 trade-in-games.com
	  	06/01/2006	  	06/01/2008
	 trade-in-games.uk.com
	  	06/01/2006	  	06/01/2008
	 trade-in-games.uk.net
	  	06/01/2006	  	06/01/2008
	 gamestation.ie
	  		  	09/03/2007
	 gamesdownloads.co.uk
	  	23/06/1999	  	23/06/2007
	 ultimategamer.co.uk
	  	30/05/2006	  	30/05/2007
	 gamestation.co.uk
	  	09/08/2006	  	09/08/2008
	 gamedownloads.co.uk
	  	26/04/2006	  	26/04/2008
	 gamenation.co.uk
	  	09/08/2006	  	09/08/2008

 Part 2 
 Material Unregistered IP 
  

			
	Gamestation logo	  	The Company owns the copyright in the Gamestation logo (which is depicted below)

 

 
 Part 3 
 Example of tantrum font 
 

 
  

 39 

 Schedule 4 
 Completion Obligations 
  

	1.	Seller’s Completion obligations 

 The Seller
will be obliged to deliver to the Buyer (or otherwise make available to the satisfaction of the Buyer): 
  

	 	(a)	transfers of the Shares duly executed by the registered holders in favour of the Buyer or its nominee(s) together with the relevant share certificates in the names of such
registered holders; 

  

	 	(b)	certificates in respect of all issued shares in the capital of the Subsidiary and duly executed transfers of all shares in the Subsidiary held by any person other than the Company
in favour of such persons as the Buyer shall direct; 

  

	 	(c)	the statutory registers and minute books (properly written up to the time immediately prior to Completion), the common seal (if any), the certificate of incorporation and (if
applicable) any certificate of incorporation on change of name, of the Company and the Subsidiary; 

  

	 	(d)	the documents of title to the Properties and the Registered IP; 

  

	 	(e)	the Tax Deed duly executed as a deed by or on behalf of the Seller; 

  

	 	(f)	evidence in the agreed form that all debts and accounts between any member of the Group (of the one part) and the Seller or any Connected Person or any Affiliate of the Seller (of
the other part) have been fully paid and settled; 

  

	 	(g)	the written resignations in the agreed form of all the directors (except Michael Logue) and the secretary or secretaries of the Company and the Subsidiary from their respective
offices, such resignations to take effect from Completion; 

  

	 	(h)	the written resignation of the auditors of the Company and each of the Subsidiary in the agreed form to take effect from Completion containing the statements referred to in section
394(1) CA 85 that they consider there are no such circumstances as are mentioned in that section; 

  

	 	(i)	evidence reasonably satisfactory to the Buyer of the termination of any agreement between the Company, the Seller and any of the Seller’s Affiliates, including the Original
Concession Agreement dated 8 April 2004 between the Company and Blockbuster Entertainment Limited; and 

  

	 	(j)	the IP Assignment duly executed as a deed by or on behalf of Blockbuster Inc and the Company; 

  

	 	(k)	the IP Licence duly executed by or on behalf of Blockbuster Inc and the Company; 

  

	 	(l)	(if the Buyer so requires) an irrevocable power of attorney duly executed by the Seller in favour of the Buyer or its nominee(s) to enable the Buyer (pending registration of the
relevant transfers) to exercise all voting and other rights attaching to the Shares and to appoint proxies for this purpose generally in respect of the Shares in the agreed form; 

  

 40 

	 	(m)	trade marks certificates in respect of marks which are registered in the name of the Company; 

  

	 	(n)	a copy of the minutes of a meeting of the directors of the Seller authorising the execution by the Seller of this Agreement and the Tax Deed; 

 and to cause a board meeting of the Company and the Subsidiary to be held at which: 
  

	 	(i)	in the case of the Company only, the transfers of the Shares will be approved for registration (subject to their being duly stamped, which shall be at the cost of the Buyer);

  

	 	(ii)	all resignations provided for above will be tendered and accepted so as to take effect at the close of the meeting; 

  

	 	(iii)	all persons nominated by the Buyer (in the case of directors, subject to any maximum number imposed by the relevant articles of association) will be appointed additional directors
and appointed secretaries; 

  

	 	(iv)	all existing instructions and authorities to bankers will be revoked and will be replaced with alternative instructions, mandates and authorities in the agreed form;

  

	 	(v)	the registered office will be changed to Unity House, Telford Road, Basingstoke, Hampshire RG21 6YJ; 

  

	 	(vi)	the accounting reference date will be changed to 31 January; and 

  

	 	(vii)	Messrs. BDO Stoy Hayward LLP will be appointed auditors. 

  

	2.	Buyer’s Completion obligations 

 The Buyer
shall deliver to the Seller: 
  

	 	(a)	a counterpart Tax Deed duly executed as a deed by the Buyer; and 

  

	 	(b)	a copy of the minutes of a meeting of the directors of the Buyer authorising the execution by the Buyer of this Agreement and the Tax Deed; 

  

 41 

 Schedule 5 
 Basis for preparation of the Preliminary Adjustment Statement 
  

	1.	General 

  

	1.1	The Preliminary Adjustment Statement shall consist of the balance sheet of the Company as at 11.59 p.m. on 1 May 2007 (the “Effective Time”) which shall be
prepared in the form set out in the Appendix to this Schedule 5 and adjusted as set out in paragraph 5 below. 

  

	1.2	The unadjusted balance sheet items (appearing in Column A of the Preliminary Adjustment Statement) shall: 

  

	 	1.2.1	be prepared on the same basis and in accordance with the same accounting principles, policies and practices as have been applied in the 2006 Accounts; 

  

	 	1.2.2	be prepared under the historical cost accounting convention and in accordance with GAAP so as to comply with the CA 85; and 

  

	 	1.2.3	be prepared in accordance with the accounting policies, principles, methodologies and practices set out in Part B of this Schedule 5. 

  

	1.3	In the event of any conflict between the application of paragraphs 1.2.1, 1.2.2 and 1.2.3, the application of paragraph 1.2.3 shall take precedence over that in paragraphs 1.2.1 and
1.2.2, and the application of paragraph 1.2.1 shall take precedence over that in paragraph 1.2.2. 

  

	2.	Specific Policies, Methodologies, Principles and Practices to be applied in the preparation of the Preliminary Adjustment Statement 

  

	2.1	The specific policies, methodologies, principles and practices to be applied in the preparation of the Preliminary Adjustment Statement shall be as follows:

  

	2.2	References to the Company shall include references to the Subsidiary. 

  

	3.	Debtors and Prepayments 

  

	3.1	Trade debtors represent sales invoices raised with VAT added where appropriate. 

  

	3.2	All debts which are over 90 days old from the invoice date shall be provided for in full. An additional provision shall be made for all debts with customers who are insolvent or are
in liquidation, and all other known or suspected bad, doubtful or irrecoverable debts, or debts with no value to the Buyer post Completion. 

  

	3.3	All invoices and debts for which a credit note has been issued after the Effective Time shall be provided for in full. 

  

	3.4	A prepayment will only be included in the Preliminary Adjustment Statement to the extent that it gives rise to benefits or value to the Company post-Completion.

  

	4.	Inventory 

  

	4.1	Inventory is valued at the lower of cost or net realisable value. Cost will be determined using the average cost basis. 

  

 42 

	5.	Adjustments applied to the unadjusted balance sheet items 

  

	5.1	The adjustments to be made to the unadjusted balance sheet (together with the column of the Preliminary Adjustment Statement in which these appear) shall be as follows:

  

	 	5.1.1	Column C—adjustments to strip out balances relating to the Concession Stores. Policies which will apply in calculating the relevant adjustment amounts in respect of the
Concession Stores are: 

  

	 	(a)	where possible actual information on balances relating to the Concession Stores extracted from the Company’s accounting records at Effective Date will be used to make the
adjustments to each balance in respect of the Concession Stores; 

  

	 	(b)	where the actual information on balances relating to the Concession Stores cannot be easily extracted from the Company’s accounting records as per 5.1.1(a), the adjustment made
in respect of the Concession Stores shall be the percentage of the relevant aggregate Company balance which has been attributable to the Concession Stores in the Management Accounts where 

  

	 	(i)	any value in respect of Inventory will represent the actual value of the New/Mint and Traded Inventory value at Completion; 

  

	 	(ii)	Accounts receivable to be attributed to the Concession Stores will be the percentage of the Concession Store new/mint inventory which equates to the total accounts receivable for
the Company expressed as a percentage of the total new/mint inventory of the Company; 

  

	 	(iii)	Other current assets to be attributed to the Concession Stores will be the percentage of the total other current assets of the Company which equates to the percentage of the total
sales for the Company accounted for the by the total sales of the Concession Stores; 

  

	 	(iv)	Accounts payable to be attributed to the Concession Stores will be the percentage of the new/mint inventory of the Concession Stores which equates to the total accounts payable for
the Company expressed as a percentage of new/mint inventory for the Company; and 

  

	 	(v)	Accrued liabilities will be calculated as a percent of sales, identical to the methodology used for other current assets. 

  

	5.2	Columns I, G and K of the Preliminary Adjustment Statement represent the assignment of the line items of the balance sheet into each category required in respect of the
post-completion adjustment mechanism, i.e. Working Capital, Cash Balance and Indebtedness respectively. 

  

	5.3	The parties agree that any unpaid tax relating to the Group for the period to Completion will be for the account of the Seller and that the Parties will work together in good faith
to agree the amount of any such tax liability (the “Tax Liability”). Once the Tax Liability has been calculated the parties agree that such amount shall count as a factor diminishing the Working Capital or increasing the Indebtedness of
the Company to be calculated in accordance with this Schedule 5, with the effect of reducing the Consideration payable by the Buyer pursuant to clause 3.2. 

  

 43 

 Illustrative Form of Preliminary Adjustment Statement 
 Appendix 
  

 44 

 Schedule 6 
 Warranties 
 Part 1 
 General 
  

	1.	Organisation 

  

	1.1	Seller is a company duly incorporated and validly existing under the laws of England and Wales. 

  

	1.2	The Company is a company duly incorporated and validly existing under the laws of England and Wales. The Company has all requisite company power and authority to own and lease its
assets and to operate its business as the same are now being owned, leased and operated. 

  

	2.	Authority 

  

	2.1	The Seller possesses all requisite power and authority to execute, deliver and perform this Agreement, and each other Transaction Document to which the Seller is a party. The
execution, delivery and performance by the Seller of this Agreement, and each other Transaction Document to which the Seller is a party, have been duly authorised by all necessary action of the Seller and no other action on the part of the Seller is
necessary to authorize the execution and delivery by the Seller of this Agreement or the Transaction Documents to which it is a party. 

  

	2.2	The Company possesses all requisite power and authority to execute, deliver and perform each Transaction Document to which the Company is a party. The execution, delivery and
performance by the Company of each Transaction Document to which the Company is a party, have been duly authorised by all necessary action of the Company and no other action on the part of the Company is necessary to authorise the execution and
delivery by the Company of the Transaction Documents to which it is a party. 

  

	3.	Ownership of the Shares 

  

					
	3.1	 	(a)	    	The Seller is the sole legal and beneficial owner of the Shares.

  

	 	(b)	The Shares constitute the whole of the allotted and issued share capital of the Company and are fully paid. There is no Encumbrance on, over or affecting any of the Shares or any
unissued shares, debentures or other securities of the Company. No claim has been made by any person to be entitled to the benefit of any such Encumbrance and no person has the right (exercisable now or in the future and whether contingent or not)
to call for the issue of any share or loan capital of the Company. 

  

	3.2	There are no voting trusts, proxies, or other agreements or understandings with respect to the voting of any shares in the capital of the Company or the Subsidiary.

  

	4.	The Subsidiary 

  

	4.1	The Subsidiary is a company duly incorporated and validly existing under the laws of England. 

  

 45 

	4.2	The Company is the sole legal and beneficial owner of the whole allotted and issued share capital of the Subsidiary, free and clear of all Encumbrances. 

  

	4.3	Except for the Company’s ownership of 100% of the outstanding equity securities of the Subsidiary, the Company does not own, and so far as the Seller is aware has never owned,
any interest in any corporation, partnership, limited liability company, limited partnership, joint venture or other business association or entity. 

  

	4.4	The Subsidiary does not have any assets, liabilities, operations or employees and has not traded since the Seller acquired the Company. 

  

	5.	Dividends 

  

	5.1	During the Seller’s ownership of the Company, all dividends or distributions declared, made or paid by the Company and the Subsidiary have been declared, made or paid in
accordance with its memorandum, articles of association and the applicable provisions of the CA85. 

  

	6.	Execution and Delivery 

  

	6.1	This Agreement has been, and each other Transaction Document to which the Seller is a party will upon such delivery be, duly executed and delivered by the Seller and constitutes, or
will upon such delivery constitute, the legal, valid and binding obligation of the Seller. 

  

	6.2	Each Transaction Document to which the Company is a party will upon delivery be, duly executed and delivered by the Company and constitutes, or will upon such delivery constitute,
the legal, a valid and binding obligation of the Company. 

  

	7.	Constitutional and Corporate Documents 

  

	7.1	The copies of the memorandum and articles of association of the Company and the Subsidiary included in the Disclosure Documents are complete in all material respects; and copies of
all the resolutions and agreements required to be annexed to or incorporated in those documents by applicable legislation are annexed or incorporated. 

  

	7.2	To the extent applicable to the period of the Seller’s ownership of the Company and the Subsidiary, all statutory books and registers of the Company and the Subsidiary have
been properly kept and no written notice or allegation that any of them is incorrect or should be rectified has been received by the Company. 

  

	7.3	To the extent applicable to the period of the Seller’s ownership of the Company and the Subsidiary, all material returns, particulars, resolutions and other documents which the
Company or the Subsidiary is required by applicable legislation to file with or deliver to the Registrar of Companies in England and Wales have been made up and filed or, as the case may be, delivered. 

  

	8.	Insurance 

 The particulars of the insurance
policies maintained by or on behalf of the Company and the Subsidiary are set out in the Disclosure Documents. All such insurance policies are in full force and effect with all premiums due under these policies having been paid, and as of the date
of this Agreement there are no material outstanding claims under any such insurance policies. 
  

 46 

	9.	Power of attorney 

 There are no powers of attorney
in force given by the Company or the Subsidiary. 
  

	10.	Financial Statements 

  

	10.1	Copies of the Accounts, the 2006 Accounts and the Management Accounts are included in the Disclosure Documents. The 2006 Accounts have been prepared and audited on a consistent
basis in accordance with GAAP and no change in the accounting policies has been made in preparing the accounts of the Company for each of the three financial years of the Company ended on the 2006 Accounts Date, except as stated in the audited
balance sheets and profit and loss accounts for those years. 

  

	10.2	The Accounts show a true and fair view of the financial position of the Company (and, in relation to the consolidated accounts of the Company and the Subsidiary, of the Group as a
whole) as at the Accounts Date and of the profit and loss of the Company, the Subsidiary, and of the Group, for the financial year ended on the Accounts Date. 

  

	10.3	The 2006 Accounts show a true and fair view of the financial position of the Company (and, in relation to the consolidated accounts of the Company and the Subsidiary, of the Group
as a whole) as at the 2006 Accounts Date and of the profit and loss of the Company, the Subsidiary, and of the Group, for the financial year ended on the 2006 Accounts Date. 

  

	10.4	The Management Accounts have been prepared on a basis materially consistent with that employed in preparing the 2006 Accounts. 

  

	10.5	The Accounts and the 2006 Accounts are not affected by any unusual or non-recurring items that would make the financial position and results shown by the Accounts and the 2006
Accounts, respectively, unusual in any material respect. 

  

	11.	Financial and Other Records 

  

	11.1	The Company’s accounting records comply with section 221 of the CA85 in all material respects. 

  

	12.	Changes Since 2006 Accounts Date 

  

	12.1	Since the 2006 Accounts Date: 

  

	 	12.1.1	except for the negotiation, execution and delivery of this Agreement, each of the Company and the Subsidiary has conducted its business in the ordinary course;

  

	 	12.1.2	there has not been any material change in the business, assets, financial position, operations or results of operations of the Company; 

  

	 	12.1.3	no dividend or other distribution of profits or assets has been, or agreed to be, declared, made or paid by the Company or the Subsidiary; 

  

	 	12.1.4	neither the Company nor the Subsidiary has incurred any indebtedness for borrowed money; 

  

	 	12.1.5	neither the Company nor the Subsidiary has taken or given any form of financial security and no capital expenditures have been incurred by the Company or the Subsidiary aggregating
in excess of £100,000 and neither the Company nor the Subsidiary has acquired, invested or disposed of (or agreed to acquire, invest or dispose of) any items in excess of £100,000 in the aggregate, other than inventory in the ordinary
course of business; 

  

 47 

	 	12.1.6	no shareholder resolutions of the Company or the Subsidiary have been passed other than as routine business at the annual general meeting; and 

  

	 	12.1.7	the Company’s business has not been materially and adversely affected by the loss of a supplier or by an abnormal factor not affecting similar businesses.

  

	13.	Brokerage 

 The acquisition of the Shares by the
Buyer pursuant to this Agreement will not entitle any person to receive from the Company or the Subsidiary any finder’s fee, brokerage or other commission. 
  

	14.	Employees 

  

	14.1	Included in the Disclosure Documents is a schedule which is anonymised so far as is necessary to comply with the Data Protection Act 1998, and as of the date of this Agreement
constitutes complete list of all the employees of the Company (the “Employees”) and the material terms of their contracts of employment as follows: 

  

	 	14.1.1	the identity of their employer; 

  

	 	14.1.2	their salary and details of their entitlement to holidays, overtime, profit share, bonus, commission, incentive payments and pension; 

  

	 	14.1.3	the date on which their continuous service began; 

  

	 	14.1.4	notice periods or, if a fixed term, the expiry date of the fixed term and details of any previous renewals; 

  

	 	14.1.5	the type of contract (whether full or part-time or other); and 

  

	 	14.1.6	their date of birth. 

  

	14.2	The Disclosure Documents contain copies of all current standard form employment contracts used by the Company as at the date of this Agreement. 

  

	14.3	Neither the Company or the Subsidiary are party to any consultancy agreement. 

  

	14.4	Included in the Disclosure Documents is a schedule which includes details of all Employees of the Company who are currently on secondment, maternity, paternity or adoption leave or
who have been absent due to ill-health for a period in excess of six months. 

  

	14.5	The Subsidiary has no Employees. 

  

	14.6	No notice to terminate the contract of employment of any Senior Employee of the Company (whether given by the Company or by the employee or consultant) is pending, outstanding or,
so far as the Seller is aware, threatened and, so far as the Seller is aware, no dispute exists between the Company and any Senior Employee relating to his or her employment or engagement. 

  

	14.7	No offer of employment has been made by the Company or the Subsidiary for a position of a Senior Employee that has not yet been accepted, or which has been accepted but where the
employment has not yet started. 

  

 48 

	14.8	The Company is not a party to, bound by or proposing to introduce in respect of any of its employees any enhanced redundancy payment scheme. 

  

	14.9	Neither the Company nor the Subsidiary has made in the past twelve months or agreed to make a payment or provided in the past twelve months or agreed to provide a benefit to a
present or former director, officer or employee or to their dependants, in each case, in connection with the actual or proposed termination of an employment contract or loss of office. 

  

	14.10	Neither the Company nor the Subsidiary is a party to any collective agreement with any trade union, nor does the Company or the Subsidiary have a works council, and, as of the date
of this Agreement, there is no application for union recognition in relation to employees of the Company outstanding nor, as of the date of this Agreement, so far as the Seller is aware, is there any ongoing attempt to establish a works council or
trade union. 

  

	14.11	Neither the Company nor the Subsidiary is involved in any industrial or trade dispute and there is no strike, slowdown or stoppage pending or, so far as the Seller is aware,
threatened against the Company. 

  

	14.12	Neither the Company nor the Subsidiary has in the past twelve months altered or agreed to alter any of the terms of employment of any employee other than in relation to wage or
salary increases or promotions in the ordinary course of business. 

  

	14.13	There are no sums owing to or from any employee or consultant other than reimbursement of expenses, or accrued but unpaid wages for the current salary period and accrued but unpaid
holiday pay for the current holiday year. 

  

	14.14	The Company has, so far as the Seller is aware, maintained suitable records regarding the service, terms and conditions of employment of each of its employees and workers.

  

	14.15	As at the date of Completion so far as the Seller is aware, the Seller has, in relation to the Company, complied with any material obligations imposed on it by statute, regulation
or custom and practice in relation to the current and former employees, workers or consultants of the Company. 

  

	15.	Employee Benefit Plans and Other Compensation Arrangements 

  

	15.1	Particulars of all Employee Benefit Plans are included in the Disclosure Documents. 

  

	15.2	Except for the Employee Benefit Plans, the Company has not at any time prior to Completion paid, provided or contributed towards, and the Company has not proposed nor is under any
obligation, liability or commitment however established and whether or not legally enforceable to pay, provide or contribute towards any other Employee Benefit Plan or any ex-gratia pensions, lump sums or like benefits for any current or former
employees (or any spouse, child or dependant of any of them) of the Company or of any predecessor in business of the Company. 

  

	15.3	Particulars of the Employee Benefit Plans are included in the Disclosure Documents, and such particulars are true, complete and not misleading. The particulars include a true and
complete copy of the trust deed and rules, and amendments and additions to them, booklets and any subsequent announcements to scheme members, full details of members and those who could become eligible to join including contributions payable by
members and employer, details of current investments, latest scheme accounts and trustee reports and schedule of payments complying with Section 87 of the Pensions Act of 1995. 

  

 49 

	15.4	All contributions to the Employee Benefit Plans which are due have been paid by the due date for payment. There are no expenses outstanding in relation to the Employee Benefit
Plans. In respect of any employee who is covered for lump sum death benefits, those benefits are fully insured with an insurance company authorised to carry on business under the Financial Services and Markets Act 2000 on normal terms and all
premiums payable have been paid. All contracts of insurance relating to the Employee Benefit Plans are valid and, so far as the Seller is aware, no circumstances exist which may enable the insurers to avoid liability under them.

  

	15.5	The Employee Benefit Plans are registered within the meaning of the Finance Act 2004 and so far as the Seller is aware comply in all material respects with the provisions of all
relevant documentation statutes, regulations and requirements including those of the Pensions Regulator. 

  

	15.6	The Company has complied with all of its obligations and duties in respect of the Employee Benefit Plans (without limiting the generality of the foregoing), the requirements of the
Employee Benefit Plan’s documentation, Her Majesty’s Revenue and Customs, The Pensions Regulator the Department of Work and Pensions. 

  

	15.7	The Company does not hold nor is named on a contracting-out certificate (within the meaning of the Pension Schemes Act 1993). 

  

	15.8	The Employee Benefit Plans provide only money purchase benefits within the meaning of Section 181 of the Pension Schemes Act 1993. Neither the Company nor the trustees of the
Employee Benefit Plans have given any promise or assurance (oral or written) to any beneficiary that his benefits under the Employee Benefit Plans will be calculated wholly or partly by reference to any persons remuneration or will constitute
(approximately or exactly) any particular amount. For the avoidance of doubt, this clause does not relate to any death benefits provided under the Employee Benefit Plans where the insured benefit provided is a multiple of salary.

  

	15.9	There are no claims or actions in progress or pending, nor, so far as the Seller is aware, any reason for such claims or actions, in respect of any pension arrangement. There are no
unresolved disputes under the internal dispute resolution procedures of the Employee Benefit Plans. In particular: 

  

	 	15.9.1	there has been no notification of any matter to or any investigation by the Pensions Regulator, the Pensions Advisory Service, or the Pensions Ombudsman. 

 

	 	15.9.2	no civil or criminal penalty, fine or sanction has been imposed on or against the trustees, the Company or any participating employer of any Employee Benefits Plan.

  

	 	15.9.3	neither the Company nor any participating employer has given any indemnity to any person in connection with any Employee Benefit Plan. 

 So far as the Seller is aware, there are no circumstances which may give rise to any of the above. 
  

	15.10	If any employee’s employment has previously been transferred to the Seller or the Company as a consequence of the transfer of an undertaking within the meaning of the
Regulations, no liability to provide a benefit under any occupational pension scheme will transfer to the Buyer notwithstanding the exclusion in Regulation 7 of the Regulations. 

  

 50 

	15.11	Since 27 April 2004, neither the Company nor any member of the Seller’s Group has been a party to an act or a deliberate failure to act (or knowingly assist in an act or
failure to act) to: 

  

	 	15.11.1	prevent the recovery of any amount of a debt due, or which might become due, in relation to any occupational pension scheme under section 75 or 75A of the Pensions Act 1995; or

  

	 	15.11.2	prevent such a debt becoming due, compromise or otherwise settle such a debt or reduce the amount of such a debt due, or which would otherwise become due. 

 

	15.12	No member of the Seller’s Group is, or has since April 27, 2004, been, an associate of or connected with (within the meaning of sections 435 and 249 respectively of the
Insolvency Act 1986) any person who is an employer in relation to any occupational pension scheme which is not a money purchase scheme. 

  

	15.13	No contribution notice has at any time been issued to the Company under section 38 or 47 of the Pensions Act 2004 or section 75A of the Pensions Act 1995 and no financial support
direction issued under section 43 of the Pension Act 2004 has at any time been issued to the Company. The Company is not a party to and has no obligations or liabilities under any arrangements made in relation to any such financial support
directions. 

  

	15.14	The Company has at all times since 8 October 2001 complied in all material respects with its obligations relating to the stakeholder pensions under the Welfare Reform and
Pensions Act 1999. 

  

	15.15	Completion will not cause any automatic, immediate or contingent amendments to the governing provisions of the Employee Benefit Plans, whether as to the identity of the persons
entitled to exercise any powers or discretions, employer’s or member’s contribution rates, increases to pensions in payment and/or deferment, the benefit structure or otherwise. 

  

	15.16	No event has occurred or will occur on or as a result of Completion which would result in or entitle any person or body of persons (without the consent of the Company) to wind up,
terminate or close the Employee Benefit Plans in whole or in part. 

  

	15.17	Completion will not cause or result in any increase in the amount of retirement benefits payable or prospectively or contingently payable in respect of any employee and will not
accelerate the vesting, timing of funding or payment of any retirement benefits in respect of any employee under the terms of the Employee Benefit Plans. 

  

	16.	Properties 

  

	16.1	The Company owns no freehold property and does not have any binding contractual obligation to purchase or sell freehold property. 

  

	16.2	The Properties and the Concession Stores are the only land and buildings used or occupied by or in possession of the Company and the Subsidiary. 

  

	16.3	Neither the Company nor the Subsidiary has any right of ownership, right of use, or contractual obligation to purchase or sell, or any other legal or equitable right, estate or
interest in, or affecting, any land or buildings other than the Properties and the Concession Stores. 

  

 51 

	16.4	During the period of the Seller’s ownership of the Company and the Subsidiary, neither the Company, nor any company that is or has at any time been a subsidiary of the Company,
has any actual or contingent liability in respect of Previously-owned Land and Buildings. 

  

	16.5	Neither the Company nor the Subsidiary has given any guarantee or indemnity for any material liability relating to any of the Properties. 

  

	16.6	The Company is in and is legally entitled to possession and actual occupation of the Properties and the Company has not granted or agreed to grant any right of occupation or
enjoyment in respect of the Properties to any third party. 

  

	16.7	There is no circumstance that could render any transaction affecting the title of the Company or the Subsidiary to any of the Properties liable to be set aside under the Insolvency
Act 1986. 

  

	16.8	The Seller is not aware of any breach by the Company or the Subsidiary (as the case may be) of any of the Leases which is reasonably expected to give rise to any landlord exercising
a right to forfeit any of the Properties. 

  

	16.9	There are, appurtenant to each of the Properties, all rights and easements necessary for the current use and enjoyment of the Properties and there are in existence all necessary
rights of access to and egress from the same for customers and employees. 

  

	16.10	Each utility service necessary for the Properties existing uses is available to the Company. 

  

	16.11	The Properties are not subject to the payment of any outgoings other than non-domestic local business rates and water and sewerage charges, principal rent, insurance premiums and
service charges, and all outgoings have been paid when due. 

  

	16.12	So far as the Seller is aware, there are no covenants, restrictions, stipulations, easements, profits à prendre, wayleaves, licences, grants or other encumbrances (whether of
a private or public nature, and whether legal or equitable) affecting the Properties which materially impair the business and operations of the Store at such location. 

  

	16.13	No written notice of any alleged breach by the Company has been received by the Company or the Subsidiary in respect of any covenant, restriction, stipulation, or other Encumbrance
affecting the Properties. 

  

	16.14	So far as the Seller is aware, there is no material deficiency which has arisen during the period of its ownership of the Properties and which relates to the actual use of the
Property by the Company which requires the correction in the state or condition of any building or other structure on or forming part of the Properties. 

  

	16.15	The Company and the Subsidiary have not (nor, so far as the Seller is aware, has anyone on their behalf) expressly waived any breach by any person of any covenant, agreement,
restriction, stipulation or obligation relating to the Properties or of which the Properties have the benefit. 

  

	16.16	All planning and building regulation consents have been obtained both in relation to the current use of the Properties and any alterations and improvements to them and the Seller is
not aware of and has not received written notice from any local authority in connection with any breach of or dispute concerning such planning and building regulation consents. 

  

	16.17	There are no development works, redevelopment works or fitting-out works being carried out by the Company outstanding in respect of any of the Properties. 

 

 52 

	16.18	There exists no dispute between the Company and the owner or occupier of any other premises adjacent to or neighbouring the Properties and, so far as the Seller is aware, there are
no circumstances that would reasonably be expected to give rise to any such dispute after the date of this Agreement. 

  

	16.19	The Leases (including any change of control provisions) are included in the Disclosure Documents. 

  

	16.20	Neither the Company nor the Subsidiary have received written notice of Compulsory Purchase Orders (“CPO”) in respect of the Properties. 

  

	17.	Litigation 

  

	17.1	The Seller has not received written notice of any actions, suits, arbitrations, litigation, administrative, mediation or arbitration proceedings, investigations by or hearings
before any statutory or governmental body, department, board or agency (except for debt collection in the normal course of business) or claims of any kind whatsoever, at law or in equity. 

  

	17.2	Neither the Company nor the Subsidiary has received written notice of any judgment, decree, injunction, or order of any Competent Authority that imposes material restrictions or
liabilities on the Company or the Subsidiary. 

  

	18.	Finance 

  

	18.1	The Disclosure Documents contain copies of all documents relating to all debentures, acceptance lines, overdrafts, loans or other financial facilities outstanding or available to
the Company or the Subsidiary. 

  

	18.2	No guarantee, mortgage, charge, pledge, Encumbrance, assignment or other security agreement or arrangement has been given by or entered into by the Company or the Subsidiary or, so
far as the Seller is aware, any third party in respect of borrowings or other obligations of the Company or the Subsidiary. 

  

	18.3	The total amount borrowed by the Company or the Subsidiary does not exceed any limitations on the borrowing powers contained: 

  

	 	18.3.1	in the memorandum and articles of association of the Company or the Subsidiary; or 

  

	 	18.3.2	in any debenture or other deed or document binding on the Company or the Subsidiary. 

  

	18.4	Neither the Company nor the Subsidiary has factored any of its debts or discounted any of its debts or engaged in financing of a type which would not need to be shown or reflected
in the 2006 Accounts. 

  

	18.5	So far as the Seller is aware, no event has occurred or has been alleged in writing to the Company to have occurred which constitutes an event of default, or otherwise gives rise to
an obligation to repay, under an agreement relating to borrowing or indebtedness in the nature of borrowing (or will do so with the giving of notice or lapse of time or both). 

  

 53 

	19.	Insolvency 

  

	19.1	The Company has not entered into any scheme of arrangement or voluntary arrangement with any of its creditors, is not insolvent or unable to pay its debts as defined by
section 123 Insolvency Act 1986 and no order has been made or, so far as the Seller is aware, no petition presented or resolution passed for the winding up of the Company. 

  

	19.2	No administrative or other receiver has been appointed by any person over the whole or any part of the business or assets of the Company, nor, so far as the Seller is aware, has any
petition been presented or application made for the appointment of an administrator in respect of the Company. 

  

	19.3	So far as the Seller is aware, there are no circumstances which would entitle any person to present a petition for the winding up of the Company, to appoint an administrator in
respect of the Company or to appoint an administrative or other receiver over the whole or any part of the Company’s undertaking or assets. 

  

	19.4	The Company has not stopped payment of, nor is it unable to pay, its debts as they fall due, nor has the Company commenced negotiations with one or more of its creditors with a view
to rescheduling or restructuring any of its Indebtedness. So far as the Seller is aware, no action has been taken or, is being taken by the Registrar of Companies to strike the Company off the register under section 652 of the CA85.

  

	19.5	So far as the Seller is aware, the Company is not, in any jurisdiction, subject to or in receipt of written notice threatening any other procedures or steps which are analogous to
those set out above in this paragraph 19. 

  

	19.6	So far as the Seller is aware, the Company has not at any time during the two years immediately prior to the date of this Agreement knowingly entered into a transaction with any
person at an undervalue (as referred to in section 238(4) of the Insolvency Act 1986); or been given a preference by, or given a preference to, any person (as referred to in section 239(4) of the Insolvency Act 1986). 

  

	20.	Assets 

  

	20.1	Save in respect of the Properties, the Leases and any matter connected thereto and save in respect of assets disposed of in the ordinary course of trading, the Company has legal and
beneficial title (free from any Encumbrance other than Permitted Encumbrances) to all assets of the Company which (a) are included in the 2006 Accounts or (b) were at the 2006 Accounts Date used or held for the purposes of its business or
(c) have been acquired by the Company since the 2006 Accounts Date. 

  

	20.2	The Company or the Subsidiary is in possession and control of all the assets included in the 2006 Accounts or acquired since the 2006 Accounts Date, except for those in the
possession of a third party in the ordinary course of business or disposed of since the 2006 Accounts Date in the ordinary course of business. Such assets are in good condition and working order (ordinary wear and tear excepted).

  

	20.3	There are no material services, support or technology provided to the Company by the Seller or any Affiliate of the Seller that are necessary for the operation of the business
currently conducted by the Company. 

  

	20.4	Save in each case in respect of any pre-owned, used, ex-rental or traded hardware, software or other items, so far as the Seller is aware the Company’s stock is of satisfactory
quality and saleable in the usual course of its business and, so far as the Seller is aware, the Company has not supplied goods which it knew to be defective or unsafe or which failed to comply with their terms of sale. 

  

 54 

	21.	Compliance with Applicable Laws; Permits 

  

	21.1	So far as the Seller is aware neither the Company nor the Subsidiary has during the period of the Seller’s ownership of the Company and the Subsidiary received any notice
relating to any breach or alleged breach of applicable legislation in any material respect. Neither the Company nor the Subsidiary has any liability under, nor is a party to, any agreement, arrangement or concerted practice which is prohibited by
any competition law. 

  

	21.2	The Company holds all necessary licenses, permits, variances, consents, authorizations, waivers, grants, franchises, concessions, exemptions, orders, registrations and approvals of
Competent Authorities (“Licences”) to carry on its business in the places and in the manner in which its business is now carried on, all of which are valid and in full force and effect, except where the failure to hold such Licences
or the failure of such Licences to be valid and in full force and effect does not and would not reasonably be expected to materially impair the business and operations of the Company or any of the Stores or the Additional Stores.

  

	21.3	The Company has not received written notice that the operations of the Company are being conducted in violation of any such Licence, except where such violation does not and would
not reasonably be expected to materially impair the business and operations of the Company or any of the Stores or the Additional Stores. So far as the Seller is aware, there is no reason why any of the Licences should be suspended, cancelled,
revoked or not renewed on the same terms. 

  

	21.4	The Company has not received a communication or request for information relating to any aspect of the Company’s business from or by the Director General of Fair Trading, the
Office of Fair Trading, Competition Commission, Secretary of State for Trade and Industry, any other UK competition authority, Commission of the European Communities or EFTA Surveillance Authority or a competition authority of another jurisdiction.
No agreement, arrangement or conduct (by omission or otherwise) of the Company is or has been the subject of an investigation, report or decision by any of those persons or bodies and none is pending or threatened. So far as the Seller is aware no
fact or circumstance exists which might give rise to an investigation, report or decision by any of those persons or bodies. 

  

	22.	Material Contracts 

  

	22.1	Material particulars of the Material Contracts are included in the Disclosure Documents. 

  

	22.2	The Company has not received written notice that the Company is (and, so far as the Seller is aware, no other party is) in breach of or default in any material respect under any
Material Contract. So far as the Seller is aware, no fact or circumstance exists that is likely to give rise to a breach of or default in any material respect under any Material Contract. 

  

	22.3	The Company has not received any written notice or claim of default under any Material Contract or any written notice of an intention to, and so far as the Seller is aware, no other
party to any Material Contract intends to, terminate, not renew or challenge the validity or enforceability of any Material Contract (including as a result of the execution and performance of this Agreement). So far as the Seller is aware, no fact
or circumstance exists that is likely to give rise to a ground for termination or non-renewal or a challenge to the validity or enforceability of any Material Contract 

  

 55 

	22.4	Neither the Company nor the Subsidiary is a party to, subject to any agreement or arrangement which: 

  

	 	22.4.1	is not in the ordinary and usual course of business of the Company or the Subsidiary; 

  

	 	22.4.2	is material to the Company and may be terminated by or require the consent of the other party thereto as a result of the transfer of the Shares to the Buyer at Completion;

  

	 	22.4.3	other than restrictions in the Leases, includes any material restriction with respect to the Company’s or the Subsidiary’s right or ability to operate the whole or part of
its business or engage in any business or compete with any person; 

  

	 	22.4.4	involves franchise, agency or distributorship; or 

  

	 	22.4.5	involves partnership, joint venture, consortium, joint development, shareholders, or similar arrangements. 

  

	23.	Environmental Matters and Health and Safety 

 The
definitions in this paragraph apply in this agreement. 
  

	23.1	All information provided by the Company or the Subsidiary and, so far as the Seller is aware, all information provided on behalf of the Company or the Subsidiary, to any relevant
Competent Authority and all records and data required to be maintained by the Company or the Subsidiary under the provisions of any Environmental Laws or Health and Safety Laws are complete and accurate in all material respects.

  

	23.2	(a)With respect to the period of Seller’s ownership of the Company and the Subsidiary (and with respect to the period prior to such ownership, so far as the Seller is aware),
there have been no claims, investigations (of which written notice has been given to the Company and/or the Subsidiary), or prosecutions against the Company, the Subsidiary or any of its respective directors, officers or employees (in their
capacities as such) in respect of Harm arising from the operation of the Business or occupation by the Company or the Subsidiary of any of the Properties or for any breach or alleged breach of any Permits, Environmental Laws or Health and Safety
Laws; (b) so far as the Seller is aware, no such claims, investigations or prosecutions are threatened; and (c) so far as the Seller is aware, there are no facts or circumstances which may lead to any such claims, investigations or
prosecutions. 

  

	23.3	Neither the Company nor the Subsidiary has received any written enforcement, prohibition, stop, remediation, improvement or other notice from any Competent Authority with regard to
any breach or alleged breach of any Environmental Laws or Health and Safety Laws or so far as the Seller is aware, any written notice threatening the issue of any such notice, during the period of the Seller’s ownership of the Company and the
Subsidiary. 

  

	23.4	So far as the Seller is aware, neither the Company nor the Subsidiary has any actual liability under any Environmental Laws or Health and Safety Laws by reason of it having owned,
occupied or used any Previously-owned Land and Buildings. 

  

	23.5	So far as the Seller is aware, there are no environmental or health and safety audit reports relating to the Properties and business of the Company within the control of the Seller
and dating from the period of the Seller’s ownership of the Company other than those which have been supplied to the Buyer. 

  

 56 

	24.	Intellectual Property 

  

	24.1	Parts 1 and 2 of Schedule 3 respectively contain complete particulars of all registered Intellectual Property Rights (including applications for such rights) and material
unregistered Intellectual Property Rights owned by the Company and the Subsidiary. 

  

	24.2	Particulars are included in the Disclosure Documents of all material licences, agreements, authorizations and permissions (in whatever form and whether express or implied) under
which: 

  

	 	24.2.1	the Company or the Subsidiary use or exploit Intellectual Property Rights owned by the Seller, its Affiliates or any third party; or 

  

	 	24.2.2	the Company or the Subsidiary has licensed or agreed to license Intellectual Property Rights to, or otherwise permitted the use of any Intellectual Property Rights by, the Seller,
its Affiliates or any third party. 

  

	24.3	The Company and the Subsidiary do not require any material Intellectual Property Rights other than those Disclosed in order to carry on their business as currently conducted.

  

	24.4	The Intellectual Property Rights set out in Parts 1 and 2 of Schedule 3 are owned by the Company free and clear of all Encumbrances other than Permitted Encumbrances.

  

	24.5	The Intellectual Property Rights set out in Parts 1 and 2 of Schedule 3 are subsisting and, so far as the Seller is aware, nothing has been done or not been done as a result of
which any of them has ceased or would reasonably be expected to cease to be subsisting. In particular: 

  

	 	24.5.1	all application and renewal fees and other steps required for the maintenance or protection of such rights have been paid in full on time or taken; 

  

	 	24.5.2	all confidential information (including know-how and trade secrets) owned or used by the Company or the Subsidiary has been kept confidential by them and has not been disclosed
(other than in accordance with the terms of written confidentiality agreements) to third parties (other than third parties who have signed written confidentiality undertakings in respect of such information); 

  

	 	24.5.3	so far as the Seller is aware, no mark, trade name or domain name identical to any such rights has been registered, or is being used by any person in the same or a similar business
to that of the Company or the Subsidiary, in any country in which the Company or the Subsidiary has registered or is using that mark, trade name or domain name; and 

  

	 	24.5.4	neither the Company nor the Subsidiary has received written notice within the preceding 12 months of any claims, challenges, disputes or proceedings, pending or threatened, in
relation to the ownership, validity or use of such rights. 

  

	24.6	No action is required within 30 days after the date of Completion the omission of which would invalidate or materially impair any of the Intellectual Property Rights owned or used
by the Company or the Subsidiary which are registered or the subject of an application for registration. 

  

	24.7	The conduct of the business of the Company as currently conducted does not, so far as the Seller is aware, materially infringe upon any Intellectual Property Rights of any third
party. 

  

 57 

	24.8	The execution and delivery of this Agreement will not result in the loss of, or any Encumbrance on, the rights of the Company with respect to the Intellectual Property Rights set
out in Parts 1 and 2 of Schedule 3. 

  

	24.9	So far as the Seller is aware, no third party is materially infringing or materially violating any Intellectual Property Rights of the Company. 

  

	24.10	So far as the Seller is aware, (a) no claim by any third party contesting the validity, enforceability, use or ownership of any of the Intellectual Property Rights set out in
Part 1 of Schedule 3 of the Seller Disclosure Schedule has been made, is currently outstanding or, has been threatened, (b) there are no grounds for the same and (c) no settlement agreements, consents, judgments, orders, awards,
forbearance to sue or similar obligations limit or restrict the Company’s rights in and to such Intellectual Property Rights. 

  

	24.11	No loss or expiration of any of the Intellectual Property Rights set out in Part 1 of Schedule 3 is pending or, so far as the Seller is aware, threatened or reasonably foreseeable.

  

	24.12	Each of the licences Disclosed in the Disclosure Documents has, where required, been duly recorded or registered and neither the Company nor, so far as the Seller is aware, any
third party, is in default under any such licences, and so far as the Seller is aware, no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder, nor is there any claim, dispute or
proceeding, pending or, so far as the Seller is aware, threatened. 

  

	25.	Information Technology 

  

	25.1	Material particulars of the IT System and all IT Contracts are included in the Disclosure Documents. 

  

	25.2	The Company and the Subsidiary are the owners of the IT System free from Encumbrances, except for Permitted Encumbrances. The Company and the Subsidiaries have obtained all
necessary rights from third parties to enable them to make exclusive and unrestricted use of the IT System. 

  

	25.3	The Company has all material agreements with third parties, licences and consents in relation to the IT System that are required to operate its business as at the date of this
Agreement. 

  

	25.4	The IT Contracts are in full force and effect and, so far as the Seller is aware, no event has occurred that, with or without notice or lapse of time or both, would result in a
breach or default under any IT Contract. 

  

	25.5	The Company has not received any written notice or claim of default under any IT Contract or any written notice of an intention to, and so far as the Seller is aware, no other party
to any IT Contract intends to terminate, not renew or challenge the validity or enforceability of any IT Contract (including as a result of the execution and performance of this Agreement). So far as the Seller is aware, no other party to any IT
Contract has grounds to terminate or challenge the validity or enforceability of any IT Contract. 

  

	25.6	None of the IT Contracts are terminable as a result of the transfer of the Shares to the Buyer at Completion and, so far as the Seller is aware, there is no reason to believe that
any IT Contracts will not be renewed on the same or substantially the same terms when they expire. 

  

 58 

	25.7	The Company and the Subsidiary have possession or control of the source code of all software in the IT System (other than software licensed to them by third parties), or have the
right to gain access to such code under the terms of source code deposit agreements with the owners of the rights in the relevant software and reputable deposit agents. 

  

	25.8	So far as the Seller is aware the elements of the IT System are in good working order (usual wear and tear excepted) and are functioning in accordance with all material applicable
specifications and are not materially defective. 

  

	25.9	The Company and the Subsidiary have implemented appropriate procedures, including in relation to off-site working where applicable, for ensuring the security of the IT System and
the confidentiality and integrity of all data stored in it. 

  

	25.10	The Company and the Subsidiary have in place a reasonable disaster recovery plan which in the opinion of the directors of the Company would enable the business of the Company and
the Subsidiary to continue if there were significant damage to or destruction of some or all of the IT System. 

  

	26.	Data Protection 

  

	26.1	So far as the Seller is aware, the Company has not received: 

  

	 	26.1.1	any enforcement, information or equivalent notice under the Data Protection Act 1998; or 

  

	 	26.1.2	any written communication from the Information Commissioner or any other data protection or privacy authority with competent authority over the Company’s data processing
activities, indicating that he or she is investigating an allegation that the Company is in breach of the Data Protection Act 1998 or that he or she proposes to take, or is considering taking, enforcement action under the Data Protection Act 1998.

  

	27.	Transactions with Affiliates 

  

	27.1	There is not outstanding: 

  

	 	27.1.1	any indebtedness or other liability (actual or contingent) owing by the Company to the Seller or director of the Company or any Connected Person or owing to the Company by the
Seller or director of the Company or any Connected Person; or 

  

	 	27.1.2	any guarantee or security for any such indebtedness or liability. 

  

	27.2	There is not outstanding any agreement or arrangement to which the Company is a party and in which the Seller, director of the Company or any Connected Person is interested whether
directly or indirectly. 

  

	28.	Contributions 

 So far as the Seller is aware, since
1 January 2004, neither the Company, nor any of its current or former shareholders, directors, officers, employees or agents or other representatives, nor any other person acting on the Company’s behalf, has directly or indirectly given or
agreed to give any material contribution, gift or similar benefit to or for the private use of or at the direction of any customer, client, supplier, governmental employee or other person who is in a position to help or hinder the Company that is
reasonably likely to subject the Company to any damage or penalty in any action or proceeding in any jurisdiction. 
  

 59 

 Part 2 
 Tax 
  

	29.	General 

  

	29.1	Provision or reserve has been made in the 2006 Accounts in accordance with GAAP for all Taxation liable to be assessed on each Group Company or for which the Group is accountable
(whether primarily or otherwise) in respect of all income, profits or gains earned, accrued or received on or before the 2006 Accounts Date or deemed to have been or treated as earned, accrued or received for Taxation purposes on or before the 2006
Accounts Date and/or in respect of any event occurring or deemed to have occurred on or before the 2006 Accounts Date, including distributions made on or before the Accounts Date or provided for in the 2006 Accounts. 

  

	29.2	Provision has been made in the 2006 Accounts for deferred Taxation in accordance with GAAP. 

  

	29.3	No charge to Taxation will arise on any Group Company as a result of entry into or completion of this Agreement. 

  

	30.	Payment of Tax 

  

	30.1	Each Group Company has properly paid all Taxation prior to Completion which it has become liable to pay prior to Completion and it has never paid or become liable to pay, nor so far
as the Seller is aware are there any circumstances which may cause it to become liable to pay, any penalty, fine, surcharge or interest in connection with Taxation. 

  

	30.2	All payments by any Group Company to any person which ought to have been made under deduction or withholding of Taxation have been so made and the Taxation so deducted or withheld
has been properly and punctually accounted to the relevant Taxation Authority. 

  

	31.	Compliance 

  

	31.1	Each Group Company has made all returns, claims for relief, applications, notifications, computations, reports, accounts, statements, registrations and assessments (whether
physically in existence or electronically stored) (“Returns”) it is required by law to make. All Returns have been properly submitted by the relevant Group Company within any relevant time limits to each relevant Taxation Authority and the
Returns so far as the Seller is aware give full disclosure of all material facts and circumstances and are not likely to be the subject of any question or dispute with any Taxation Authority. 

  

	31.2	Each Group Company has prepared, kept and preserved sufficient records to enable it to make and complete returns for Taxation purposes and to calculate the liability to Taxation or
the amount of a Relief arising on the disposal of any asset owned at the 2006 Accounts Date or acquired since the 2006 Accounts Date but before Completion and otherwise as required by law. 

  

	31.3	The Disclosure Letter contains details so far as they affect any member of the Group of all arrangements with any Taxation Authority that are not based on a strict application of
the law relating to Taxation (other than published extra-statutory concessions, statements of practice and statements of a similar nature) and so far as the Seller is aware no such arrangement is liable to be withdrawn for any reason.

  

 60 

	31.4	No Group Company is in dispute with any Taxation Authority and so far as the Seller is aware there are no circumstances that exist which are likely to give rise to any such dispute.
No Taxation Authority has investigated or indicated in writing that it may investigate any Group Company’s Taxation affairs and so far as the Seller is aware no Group Company is subject to any ongoing investigation. 

  

	31.5	So far as the Seller is aware, all particulars furnished to any Taxation Authority in connection with an application for any consent or clearance made on behalf of or affecting any
Group Company during the last six years were made to the appropriate office, section, department or body and disclosed all material facts, circumstances and (where appropriate) law material to the decision of the relevant Taxation Authority and any
such consent or clearance given remains valid and effective and any transaction for which such consent or clearance has previously been obtained has been carried into effect (if at all) in all material respects in accordance with the terms of the
relevant application, consent or clearance. 

  

	32.	Taxation Claims Reliefs and Liabilities 

  

	32.1	So far as the Seller is aware no Group Company is liable or may become liable to pay, or make reimbursement or indemnity in respect of, any Taxation (or amounts corresponding to any
Taxation) payable by or chargeable on or attributable to any other person, whether in consequence of the failure by that person to discharge that Taxation within any specified period or otherwise, where such Taxation relates to profits, income,
gains or a transaction, event, omission or circumstance arising, occurring or deemed to arise or occur on or prior to Completion. 

  

	32.2	There is no charge referred to in section 237 Inheritance Tax Act 1984 outstanding in respect of any asset of a Group Company or the Shares. 

  

	33.	Corporation Tax/Capital Allowances 

  

	33.1	If all of the capital assets of each Group Company were disposed of on the date of this Agreement for a consideration equal to the book value of those assets in, or adopted for the
purposes of the 2006 Accounts or, in the case of assets acquired since the 2006 Accounts Date, equal to the consideration given upon their acquisition, no liability to corporation tax on chargeable gains or balancing charge under the CAA would arise
and for the purpose of determining the liability to corporation tax on chargeable gains there shall be disregarded any relief and allowances available to each Group Company other than amounts falling to be deducted under section 38 TCGA.

  

	33.2	No Group Company has since the 2006 Accounts Date made any distribution within the meaning of section 209 TA (meaning of “distribution”) save for any dividend disclosed in
the 2006 Accounts nor is it bound to make such a distribution. 

  

	33.3	No Group Company has at any time repaid, redeemed or repurchased or agreed to repay, redeem or repurchase or granted an option under which it may become liable to purchase any
shares of any class of its issued share capital nor has any Group Company capitalised or agreed to capitalise in the form of shares or debentures any profits or reserves of any class or description or otherwise issued or agreed to issue any share
capital other than for receipt of new consideration (within the meaning of Part VI TA) or passed or agreed to pass any resolution to do so. 

  

 61 

	33.4	So far as the Seller is aware, no rents, interest, annual payments or other sums of an income nature paid or payable by any Group Company or which any Group Company is under an
existing obligation to pay in the future are or may be wholly or partially disallowable as deductions, management expenses or charges in computing profits for the purposes of corporation tax. 

  

	34.	Close Companies 

 No Group Company is or ever has
been a close company within the meaning of sections 414 and 415 TA. 
  

	35.	Tax Avoidance 

  

	35.1	No Group Company has entered into or so far as the Seller is aware been a party to any scheme, arrangement or transaction designed wholly or mainly, or containing artificial steps
or stages designed wholly or mainly, for the purpose of avoiding or deferring Taxation or reducing a liability to Taxation. 

  

	35.2	No Group Company has been party so far as the Seller is aware to any arrangements, transaction or series of transactions which it has or may become liable to notify to any Tax
Authority under any legislation requiring the disclosure of tax avoidance schemes. 

  

	36.	Value Added Tax 

  

	36.1	The Company has, throughout the whole of the period beginning three years before the 2006 Accounts Date and ending on the date hereof, been registered and been eligible to be
registered and is a taxable person for the purposes of the VATA as a member of a group of companies for the purposes of sections 43 to 43C VATA (groups of companies) of which the representative member is Blockbuster Entertainment Limited (registered
in England with number 02111417) whose registered office is at Harefield Place, The Drive, Uxbridge, Middlesex UB10 8AQ (the “Representative Member”) and such registration is not subject to any conditions imposed by or agreed with HM
Revenue and Customs (“HMRC”) 

  

	36.2	The Representative Member is a registered and taxable person for the purposes of the VATA, such registration not being pursuant to paragraph 2 Schedule 1 VATA and not subject to any
conditions imposed by or agreed with HMRC. The Representative Member has complied with the terms of all statutory provisions, regulations, directions, conditions, notices and agreements with HMRC relating to VAT. The Representative Member has not
been required by HMRC to give security. 

  

	36.3	All supplies of goods and services made by the Company are taxable supplies for the purposes of the VATA and all input tax is deductible in accordance with the provisions of
sections 25 and 26 VATA. 

  

	36.4	No Group Company nor any relevant associate (within the meaning of paragraph 3(7) Schedule 10 VATA) has made any election under paragraph 2(1) Schedule 10 VATA in respect of any
land in, over or in respect of which the relevant Group Company has any interest, right or licence to occupy and the relevant Group Company has no obligation to make such an election. 

  

	36.5	No Group Company owns or has at any time within the period of ten years preceding the date of this Agreement owned any assets which are capital items subject to the Capital Goods
Scheme under Part XV of the VAT Regulations 1995. 

  

 62 

	37.	Share Schemes/Restricted Securities 

  

	37.1	No shares or securities have been issued by any Group Company to which the provisions of section 140A or 140D TA, chapter 2 of Part VII IT(EP)A (as originally enacted) or Part VII
of IT(EP)A (as amended in accordance with Schedule 22 of FA 2003) apply or have been applied. 

  

	37.2	No Group Company has established (or is a participant in) any bonus, share option, profit related pay or other scheme or arrangement, whether or not approved by HMRC, for the
benefit of its current or former officers or employees or any of them. 

  

	38.	International 

  

	38.1	Each Group Company was incorporated in and is and always has been resident only in the United Kingdom for Taxation purposes and for the purposes of any double taxation agreement. No
Group Company is liable to, and has at no time incurred any, or is required to be registered for any Taxation in any jurisdiction other than the United Kingdom or had a branch outside the United Kingdom or any permanent establishment (as that
expression is defined in the respective double taxation relief orders current at the date of this Agreement) outside the United Kingdom. 

  

	38.2	No Group Company has without the prior consent of the Treasury carried out or agreed to carry out any transaction (including under section 765 TA) which would be unlawful in the
absence of such consent and has, where relevant, complied with the requirements of section 765A(2) TA (supply of information on movement of capital within the EU) and any regulations made or notice given by that section. 

  

	39.	Non-arm’s Length Transactions 

 No Group
Company has in the period of six years ending on the date of this Agreement been party to any non-arms length transaction or been party to any transaction or arrangement to which the provisions of section 770A and Schedule 28AA TA or section 18 TCGA
may apply. No Group Company will receive any payment for an asset or any services or facilities of any kind that it has supplied or provided or is liable to supply or provide which is less than the market value of that asset or those services or
facilities. 
  

	40.	Groups of Companies 

  

	40.1	No Group Company has ever been a 51 per cent subsidiary of any person within the meaning of section 838 TA (subsidiaries) other than a 51 per cent subsidiary of another
Group Company. 

  

	40.2	No Group Company has at any time during the last six years acquired any asset from any company which at the time of the acquisition was a member of the same group of companies as
defined in section 170 TCGA; 

  

	40.3	No Group Company has since the 2006 Accounts Date ceased to be a member of a group of companies in such circumstances that a profit or gain was deemed to accrue to it under section
178 or 179 TCGA and neither the execution of this Agreement nor Completion will result in any profit or gain being deemed to accrue to it for any Taxation purpose under section 179 TCGA or otherwise; 

  

	41.	Stamp Duties 

  

	41.1	There is no instrument to which any Group Company is a party and which is necessary to establish any Group Company’s rights or any Group Company’s title to any asset,
which is liable to stamp duty and which has not been duly stamped, or which would attract stamp duty, interest or penalties if brought into the United Kingdom. 

  

 63 

	41.2	Within the 3 years ending on the date of this Agreement, no Group Company has made any claim for relief, exemption or deferral of stamp duty, stamp duty land tax or stamp duty
reserve tax. 

  

	41.3	No Group Company is or may become liable to pay stamp duty land tax after Completion by reference to any land transaction, as defined in section 43 FA 2003, to which it has been a
party prior to Completion. 

  

	42.	Loan Relationships 

 There are no outstanding debts
owed to or by any Group Company, or any securities issued by any Group Company or which any member of the Group owns or in which it has an interest, which will not be repaid at Completion, other than trade debts which fall within the exemption in
section 251(1) TCGA and which do not arise out of loan relationships of the Group Company for the purposes of section 81(1) FA 1996. 
  

	43.	Group Payment Arrangements 

 No Group Company has
entered into any group payment arrangements under the provisions of section 36 FA 1998. 
  

	44.	Actions affecting a Group Company 

 Neither the
entering into this Agreement nor the Completion of this Agreement nor the performance of any obligations under this Agreement will give rise to any liability to Tax of a Group Company. 
  

 64 

 Schedule 7 
 Limitation of Seller’s liability 
  

	1.	General 

  

	1.1	Unless otherwise stated and subject to clause 6.5, the provisions of this Schedule shall operate to limit the liability of the Seller under and in respect of the provisions of the
Warranties, all other provisions of this Agreement and to the extent provided, the Tax Deed (in addition to the limitations set out in that document). Expressions defined in the Tax Deed shall, where the context so requires, have the same meanings
in this Schedule. 

  

	2.	Disclosure 

  

	2.1	The Seller shall not be liable in respect of a Warranty Claim if its subject matter arises directly or indirectly from or consists of any fact, matter or circumstance which has been
Disclosed to the Buyer. 

  

	2.2	The general disclosures of the Local Land Charges Registry and local authorities set out in paragraph 9(h) of the Disclosure Letter shall not be disclosed against the Warranties set
out in paragraphs 16.16 and 16.20 of Schedule 6. 

  

	3.	Minimum and Maximum Claims 

  

	3.1	The Seller shall not be liable in respect of any individual Warranty Claim or a series of related Warranty Claims or Warranty Claims arising from substantially the same facts or
circumstances unless (and then only to the extent that) the amount that would otherwise be recoverable from the Seller in respect of such Warranty Claim or series of related Warranty Claims or Warranty Claims arising from substantially the same
facts or circumstances exceeds £50,000. For the purposes of this paragraph, where a Warranty Claim relates to more than one Event which would separately constitute a Warranty Claim, it shall be treated as a separate Warranty Claim in respect
of each such Event. 

  

	3.2	The Seller shall not be liable in respect of any Warranty Claim or Warranty Claims unless and until the aggregate amount that would otherwise be recoverable from the Seller in
respect of all such Warranty Claims (after giving due effect to paragraph 3.1 above in relation to each Warranty Claim) exceeds £740,000 (in which event the Seller shall be liable for the whole amount and not merely the excess over
£740,000). 

  

	3.3	The total aggregate liability of the Seller in respect of all and any Relevant Claims and claims under the Tax Deed (inclusive of costs and interest) shall not exceed 45% of the
Consideration (as adjusted in accordance with this Agreement) paid pursuant to clause 3.2 of this Agreement. 

  

	3.4	Solely for the purposes of clause 3.3, claims under clause 2.4 of the Tax Deed (a “Traded Goods VAT Claims”) shall not be deemed a liability of the Seller unless and until
the aggregate of such Traded Goods VAT Claims exceeds £15 million in which event any amount by which the aggregate of such Traded Goods VAT Claim exceeds £15 million (and not, for the avoidance of doubt, the whole amount) shall
be a liability of the Seller for the purposes of clause 3.3. 

  

	4.	Time Limits 

  

	4.1	Specific written notice of any Warranty Claim setting out the Buyer’s calculation of the amount and all relevant details shall be given by the Buyer to the Seller:

  

	 	4.1.1	in the case of any claim under the warranties set out in Part 2 of Schedule 6 (the Tax Warranties), on or prior to one month after the sixth anniversary of the end of the accounting
period in which Completion takes place; and 

  

 65 

	 	4.1.2	in the case of any other Warranty Claim, on or before the date following 18 months after the date of Completion; 

 (such date being referred to in this schedule as the “Expiry Date”) and the Seller shall cease to be under any liability to the Buyer or
otherwise in respect of all and any Warranty Claims not so notified to the Seller. 
  

	4.2	Any Warranty Claim made before the Expiry Date shall, if it has not been previously satisfied, settled or withdrawn, be deemed to have been withdrawn and shall become fully barred
and unenforceable (and the Seller’s liability in respect of such Warranty Claim shall absolutely terminate) on the expiry of the period of six months after notice of such Warranty Claim was given to the Seller in accordance with paragraph 4.1
unless proceedings in respect of the Warranty Claim shall have been commenced against the Seller (and for this purpose proceedings shall not be deemed to have been commenced unless they shall have been issued and validly served on the Seller).

  

	4.3	The provisions of paragraph 3.4 will cease to apply from the earlier of: 

  

	 	4.3.1	3 years and one month from the end of the VAT period of the Company in which Completion falls; and 

  

	 	4.3.2	the date on which HM Revenue & Customs confirms in writing, following a VAT audit, that no adjustment is required in relation to the policy applied by the Company prior to
Completion with regard to VAT on second hand goods. 

  

	5.	Single Recovery 

 The Buyer shall not be entitled to
recover from the Seller under this Agreement more than once in respect of the same loss suffered. If in any respect of any one matter a Relevant Claim may be made under the Warranties and under the Tax Deed, then to the extent that the Relevant
Claim is satisfied under the Warranties, an amount payable under the Tax Deed in respect of the same matter is reduced accordingly and vice versa. 
  

	6.	Reliance 

 The Buyer acknowledges and declares that
in entering into this Agreement it has not relied and is not relying on any warranties, representations, covenants, undertakings, indemnities, promises, forecasts or other statements whatsoever, whether written or oral (and whether implied or
otherwise) (collectively “Representations”), other than those expressly set out in this Agreement and in the Tax Deed, and the Buyer irrevocably and unconditionally waives any right it may have to claim damages for, or to rescind
this Agreement by reason of, any Representation not expressly set out in this Agreement or the Tax Deed unless such Representation was made fraudulently. 
  

	7.	Rescission 

 Save in respect of a breach of the
terms of the Confidentiality Agreement and clause 7.12 to which the remedies set out therein shall apply, the sole remedy against the Seller for any breach of any of the Warranties, any other breach of this Agreement by the Seller or any event
giving rise to liability on the Seller under the Tax Deed, shall be an action for damages. Except in the event of fraudulent misrepresentation, no right of rescission shall be available after Completion to the Buyer by reason of any breach of the
Warranties or any other provision of this Agreement or the Tax Deed. 
  

 66 

	8.	Specific Limitations 

  

	8.1	The Seller shall have no liability in respect of any Relevant Claim if and to the extent that such Relevant Claim (or its subject matter): 

  

	 	8.1.1	occurs or arises or is increased as a result of any legislation not in force at the date of this Agreement or any change of law, regulation, directive, requirement or administrative
practice (including by the Inland Revenue or any other taxing authority), or any change in the rates of Taxation which in each case is not in force at the date of this Agreement; 

  

	 	8.1.2	occurs or arises or, such Relevant Claim otherwise having arisen, is increased as a result of any change made, after the date of this Agreement in any accounting or taxation
policies of any Group Company; 

  

	 	8.1.3	would not have arisen or occurred but for (or is increased as a result of): 

  

	 	(a)	any voluntary act, event, omission, transaction or arrangement after Completion by the Buyer or any Group Company (or on their respective behalves) otherwise than, in the case of
any Group Company, in the ordinary course of its business as now carried on; or 

  

	 	(b)	any claim, election, surrender or disclaimer made, or notice or consent given after Completion (other than anything the making, giving or doing of which was taken into account in
computing any provision for Taxation in the Accounts or the 2006 Accounts) by any Group Company in connection with the provisions of any enactment or regulation relating to Taxation; or 

  

	 	(c)	any failure or omission by the Company to make any claim, election, surrender or disclaimer, or give any notice, or consent or do any other thing, in connection with the provisions
of any enactment or regulation relating to Taxation after Completion, the anticipated making, giving or doing of which was taken into account in computing the provision for Taxation in the Accounts or the 2006 Accounts; 

  

	 	8.1.4	arises from an act, event, omission, transaction or arrangement of the Seller or any Group Company prior to Completion occurring at the request or direction of, or with the consent
of the Buyer; 

  

	 	8.1.5	is recoverable by the Buyer or any Group Company under the terms of any insurance policy of the Buyer or any Group Company (or would have been so recoverable but for any change in
the terms of any such insurance policy after Completion); 

  

	 	8.1.6	is a liability of a Group Company arising because the assets of the relevant Group Company are greater than, or the liabilities are less than, were taken into account in computing
the provision for Taxation in the Accounts or in the 2006 Accounts; 

  

	 	8.1.7	is a liability for Taxation which arises in consequence of an Event occurring since the 2006 Accounts Date in the ordinary and usual course of business of the Group;

  

 67 

	 	8.1.8	is a liability for Taxation which arises directly or indirectly as a result of: 

  

	 	(a)	the payment of any unusual or abnormal dividend by any Group Company after Completion; 

  

	 	(b)	the change of the date to which any Group Company makes up its accounts; 

  

	 	(c)	the cessation of any business carried on by any Group Company occurring after Completion. 

  

	8.2	The Seller shall have no liability in respect of any Relevant Claim: 

  

	 	8.2.1	to the extent that allowance, provision or reserve has been made in the Accounts, the 2006 Accounts or the Management Accounts in respect of the matter to which such liability
relates; or 

  

	 	8.2.2	to the extent of the amount by which any liability (including any provision against liabilities) included in the Accounts, the 2006 Accounts or the Management Accounts is
overstated. 

  

	8.3	If any specific provision or reserve for Taxation shall at the date of any payment required to be made by the Seller have proved to have been an over-provision or over-reserve, the
amount of such over-provision or over-reserve shall be set off against any actual liability of the Seller in respect of any Relevant Claim. 

  

	8.4	For the avoidance of doubt, in determining the amount of any Relevant Claim for the purposes of the limits set out in paragraphs 3.1 and 3.2, the amount of such Claim shall be the
net amount after giving effect to the provisions of paragraphs 8.1, 8.2 and 8.3. 

  

	9.	Recovery 

  

	9.1	Where the Buyer or any Group Company is or may be entitled to recover from some other person any sum in respect of any matter or event which could give rise to a Relevant Claim, the
person so entitled shall use his best endeavours to recover that sum before making the Relevant Claim (keeping the Seller fully and promptly informed of the conduct of such recovery), and any sum recovered will reduce the amount of the Relevant
Claim. 

  

	9.2	Without prejudice to the provisions of paragraph 9.1, if the Seller pays to the Buyer an amount in respect of any Relevant Claim, and the Buyer or any Group Company subsequently
recovers (whether by payment, credit, discount, relief or otherwise) from a third party (including any Taxation Authority) an amount which is referable to the matter giving rise to such Relevant Claim, then: 

  

	 	9.2.1	if the amount paid by the Seller in respect of such Relevant Claim is more than the Sum Recovered (as such term is defined in paragraph 9.3), the Buyer shall (or, where appropriate,
shall procure that the relevant Group Company shall) immediately pay to the Seller the Sum Recovered; and 

  

	 	9.2.2	if the amount paid by the Seller in respect of such Claim is less than or equal to the Sum Recovered, the Buyer shall immediately pay to the Seller an amount equal to the amount
paid by the Seller 

 so as to leave the Buyer, taking into account the amounts received from the third party and from the
Seller and those payable to the Seller under this paragraph, in no better or worse position than it would have been in (subject always to the other provisions of this paragraph 9) had the Relevant Claim not arisen. 
  

 68 

	9.3	For the purposes of this paragraph, the expression “Sum Recovered” means an amount equal to the amount recovered from the third party (and for this purpose, in
addition to any cash payment, any payment in kind or discount, credit or similar benefit obtained shall constitute an amount recovered) plus any repayment supplements in respect of the amount recovered from the third party (as defined in section 85
of TA 88) plus any interest in respect of the amount recovered from the third party, less all reasonable costs and expenses incurred by the Buyer or (as the case may be) the relevant Group Company in recovering the amount from the third party and
any tax suffered on the receipt. 

  

	9.4	This paragraph 9 shall not apply to a Relevant Claim arising from a breach of a Tax Warranty. 

  

	10.	Contingent Liabilities 

 If any Relevant Claim
arises by reason of a liability of any Group Company which is a contingent liability when the Relevant Claim is notified to the Seller, the Seller shall not be obliged to make any payment to the Buyer until the contingent liability ceases to be
contingent and becomes an actual liability and is due and payable. 
  

	11.	Notice of Claims 

  

	11.1	Subject as provided below, the Seller shall be afforded every opportunity of resisting in the name of the relevant Group Company any claims against the relevant Group Company which
might constitute a breach of any of the Warranties (or otherwise give rise to a Relevant Claim), and the Seller shall (if it so requires) be allowed to have the conduct of any negotiations, proceedings or appeals incidental to it and to use
professional advisers nominated by the Seller. Accordingly, if the Buyer becomes aware from time to time of any third party claim or potential claim, matter or event (a “Third Party Claim”) the Buyer shall, and shall procure that
each relevant Group Company shall: 

  

	 	11.1.1	within 14 days of becoming so aware give notice of, and consult with the Seller in respect of, the Third Party Claim; 

  

	 	11.1.2	subject to paragraphs 11.1.2(a) and 11.1.2(b) below, if so requested by the Seller, and subject to the Buyer or relevant Group Company (as appropriate) being indemnified by the
Seller against all reasonable costs and expenses incurred in doing so, take all reasonable steps or proceedings as the Seller may consider necessary in order to mitigate, avoid, resist, appeal, dispute, contest, remedy, compromise or defend any
Third Party Claim and any adjudication in respect of it or enforce against any person (other than the Seller) the rights of the relevant Group Company and the Buyer in relation to the matter that is the subject of the Third Party Claim, provided
that to the extent that: 

  

	 	(a)	the Buyer can show that it would be a necessary consequence of such action that the goodwill in the “Gamestation” brand would be materially damaged in which event the
Buyer shall be entitled to take such action in respect of such Third Party Claim as it shall reasonably deem necessary to prevent such damage but shall consult with the Seller before taking such action; and 

  

 69 

	 	(b)	if any action taken under this clause 11.1.2 imposes or creates new or additional obligations or liabilities of the Buyer or extends the liability of a Group Company under such
claim, the Seller shall indemnify the Buyer to such extent. 

  

	 	11.1.3	at all reasonable times allow the Seller and its agents access to and to inspect and take copies of all necessary books, correspondence and records of the relevant Group Company
provided that in no circumstances shall the Buyer or any Group Company be required to make available any documents or records which are legally privileged; 

  

	 	11.1.4	require the personnel of the relevant Group Company to provide statements and proofs of evidence, and to attend at any trial or hearing to give evidence or otherwise, and to provide
similar assistance to enable the Seller to mitigate, avoid, resist, appeal, dispute, contest, remedy, compromise or defend any Relevant Claim; 

  

	 	11.1.5	except with the Seller’s prior written consent, not admit liability in respect of, or compromise or settle, the Third Party Claim. 

  

	11.2	Without prejudice to paragraphs 4, 11.1 and 12, if the Buyer considers that it will make a Relevant Claim against the Seller, it shall promptly so notify the Seller in writing,
giving reasonable particulars of the Relevant Claim and for a period of 45 days after such notification shall afford the Seller the opportunity to take steps to remedy the matter giving rise to the Relevant Claim. 

  

	11.3	This paragraph 11 shall not apply in the case of any claim which is a Tax Claim (as that term is defined in the Tax Deed). 

  

	12.	Mitigation 

  

	12.1	In assessing any damages or other amounts recoverable under this Agreement, there shall be taken into account any benefit accruing to the Buyer or the relevant Group Company in
consequence of the event or breach giving rise to the claim in question. 

  

	12.2	Nothing in this Schedule shall in any way restrict or limit the general obligation of the Buyer to mitigate any loss or damage which it may suffer in consequence of any breach by
the Seller of the terms of this Agreement or in consequence of any matter giving rise to a claim against the Seller under this Agreement or the Tax Deed. 

  

 70 

 Schedule 8 
 Relevant Employees of Concession Stores 
  

			
	Employee No	  	 Job Title

	4116	  	Sales Assistant
	4236	  	Sales Assistant
	5095	  	Sales Assistant
	6007	  	Sales Assistant
	6809	  	Store Manager
	2130	  	Store Manager
	2400	  	Sales Assistant
	2457	  	Assistant Manager
	3019	  	Sales Assistant
	4524	  	Sales Assistant
	4842	  	Sales Assistant
	4963	  	Sales Assistant
	2151	  	Store Manager
	3552	  	Sales Assistant
	4518	  	Assistant Manager
	4521	  	Sales Assistant
	4744	  	Sales Assistant
	6636	  	Sales Assistant
	6776	  	Sales Assistant
	6777	  	Sales Assistant
	3023	  	Assistant Manager
	3632	  	Store Manager
	3682	  	Sales Assistant
	4899	  	Sales Assistant
	5011	  	Sales Assistant
	5312	  	Sales Assistant
	6424	  	Sales Assistant
	6425	  	Sales Assistant
	6496	  	Sales Assistant
	6709	  	Sales Assistant
	1093	  	Assistant Manager
	2026	  	Sales Assistant
	2266	  	Sales Assistant
	3263	  	Sales Assistant
	4538	  	Sales Assistant
	5961	  	Sales Assistant
	5966	  	Sales Assistant
	3957	  	Assistant Manager
	3999	  	Store Manager
	4077	  	Sales Assistant
	4763	  	Senior Sales Assistant
	6609	  	Sales Assistant
	2024	  	Senior Sales Assistant
	2471	  	Assistant Manager
	2580	  	Store Manager

  

 71 

			
	Employee No	  	 Job Title

	3841	  	Sales Assistant
	5345	  	Sales Assistant
	6276	  	Sales Assistant
	5046	  	Acting Assistant Manager
	5133	  	Sales Assistant
	5176	  	Senior Sales Assistant
	5274	  	Sales Assistant
	6393	  	Sales Assistant
	6752	  	Sales Assistant
	6827	  	Sales Assistant
	922	  	Senior Sales Assistant
	1022	  	Store Manager
	3966	  	Sales Assistant
	5125	  	Assistant Manager
	5444	  	Sales Assistant
	6558	  	Sales Assistant
	3523	  	Assistant Manager
	3991	  	Senior Sales Assistant
	4708	  	Sales Assistant
	5266	  	Sales Assistant
	5986	  	Sales Assistant
	2000	  	Sales Assistant
	2282	  	Sales Assistant
	2816	  	Sales Assistant
	3788	  	Sales Assistant
	4970	  	Store Manager
	5121	  	Assistant Manager
	6812	  	Sales Assistant
	6823	  	Sales Assistant
	6824	  	Sales Assistant
	1050	  	Acting Assistant Manager
	3883	  	Acting Store Manager
	5131	  	Sales Assistant
	5406	  	Sales Assistant
	5799	  	Sales Assistant
	6710	  	Sales Assistant
	1138	  	Store Manager
	1255	  	Senior Sales Assistant
	2253	  	Sales Assistant
	2353	  	Sales Assistant
	5067	  	Sales Assistant
	6673	  	Sales Assistant
	1924	  	Assistant Manager
	2494	  	Sales Assistant
	3844	  	Sales Assistant
	4208	  	Sales Assistant
	5382	  	Sales Assistant
	6675	  	Sales Assistant

  

 72 

			
	Employee No	  	 Job Title

	3812	  	Sales Assistant
	3899	  	Sales Assistant
	5052	  	Sales Assistant
	5265	  	Assistant Manager
	5938	  	Sales Assistant
	5944	  	Sales Assistant
	1358	  	Assistant Manager
	1567	  	Store Manager
	4247	  	Sales Assistant
	4795	  	Sales Assistant
	4799	  	Sales Assistant
	5337	  	Sales Assistant
	5456	  	Sales Assistant
	1149	  	Store Manager
	1064	  	Senior Sales Assistant
	1795	  	Sales Assistant
	2251	  	Sales Assistant
	2290	  	Sales Assistant
	4190	  	Senior Sales Assistant
	4536	  	Assistant Manager
	5086	  	Sales Assistant
	5189	  	Sales Assistant
	5344	  	Sales Assistant
	6665	  	Sales Assistant
	6849	  	Sales Assistant
	193	  	Store Manager
	2661	  	Sales Assistant
	4290	  	Sales Assistant
	5899	  	Sales Assistant
	5900	  	Sales Assistant
	6074	  	Assistant Manager
	6112	  	Sales Assistant
	6282	  	Sales Assistant
	1500	  	Sales Assistant
	2575	  	Sales Assistant
	3658	  	Sales Assistant
	4607	  	Assistant Manager
	5036	  	Sales Assistant
	5171	  	Sales Assistant
	5255	  	Sales Assistant
	6749	  	Sales Assistant
	3862	  	Assistant Manager
	4045	  	Sales Assistant
	5004	  	Sales Assistant
	5246	  	Sales Assistant
	5645	  	Sales Assistant
	4228	  	Sales Assistant
	4863	  	Senior Sales Assistant

  

 73 

			
	Employee No	  	 Job Title

	5062	  	Assistant Manager
	5870	  	Sales Assistant
	6471	  	Sales Assistant
	1142	  	Store Manager
	2630	  	Senior Sales Assistant
	4156	  	Assistant Manager
	4304	  	Sales Assistant
	5753	  	Sales Assistant
	5754	  	Sales Assistant
	5755	  	Sales Assistant
	1122	  	Sales Assistant
	2394	  	Store Manager
	2647	  	Acting Assistant Manager
	4144	  	Sales Assistant
	5488	  	Sales Assistant
	5556	  	Sales Assistant
	5557	  	Sales Assistant
	5761	  	Sales Assistant
	6588	  	Sales Assistant
	1855	  	Senior Sales Assistant
	1889	  	Assistant Manager
	1904	  	Store Manager
	3259	  	Sales Assistant
	3281	  	Sales Assistant
	3985	  	Sales Assistant
	4545	  	Sales Assistant
	5621	  	Sales Assistant
	1344	  	Sales Assistant
	1346	  	Sales Assistant
	1951	  	Assistant Manager
	2086	  	Sales Assistant
	5049	  	Sales Assistant
	5748	  	Sales Assistant
	6631	  	Store Manager
	6800	  	Sales Assistant
	1563	  	Assistant Manager
	1680	  	Store Manager
	2716	  	Senior Sales Assistant
	4088	  	Sales Assistant
	4182	  	Sales Assistant
	4222	  	Sales Assistant
	5260	  	Sales Assistant
	5489	  	Sales Assistant
	5683	  	Sales Assistant
	1859	  	Assistant Manager
	2751	  	Sales Assistant
	4204	  	Store Manager
	4951	  	Sales Assistant

  

 74 

			
	Employee No	  	 Job Title

	4968	  	Senior Sales Assistant
	6555	  	Sales Assistant
	6679	  	Sales Assistant
	1788	  	Sales Assistant
	3036	  	Assistant Manager
	3432	  	Store Manager
	4007	  	Sales Assistant
	5351	  	Sales Assistant
	5462	  	Senior Sales Assistant
	5465	  	Sales Assistant
	5686	  	Sales Assistant
	6414	  	Sales Assistant
	6457	  	Sales Assistant
	243	  	Store Manager
	244	  	Assistant Manager
	1288	  	Senior Sales Assistant
	3983	  	Sales Assistant
	4768	  	Sales Assistant
	5129	  	Sales Assistant
	5541	  	Sales Assistant
	5638	  	Sales Assistant
	473	  	Store Manager
	2436	  	Assistant Manager
	3736	  	Sales Assistant
	4154	  	Sales Assistant
	5135	  	Sales Assistant
	5256	  	Sales Assistant
	5836	  	Sales Assistant
	416	  	Store Manager
	2317	  	Sales Assistant
	2318	  	Assistant Manager
	2515	  	Sales Assistant
	2883	  	Sales Assistant
	4482	  	Sales Assistant
	6794	  	Sales Assistant
	3889	  	Assistant Manager
	4872	  	Sales Assistant
	5375	  	Sales Assistant
	5443	  	Sales Assistant
	6305	  	Sales Assistant
	6717	  	Sales Assistant
	6718	  	Sales Assistant
	2090	  	Assistant Manager
	2930	  	Sales Assistant
	3941	  	Sales Assistant
	5168	  	Sales Assistant

  

 75 

 Schedule 9 
 Additional Stores Cost 
  

								
	 	  	 Name
	  	No.	  	Capex
(£K’s)
	1.	  	Dartford	  	276	  	£	97,190
	2.	  	Peterlee	  	272	  	£	38,948
	3.	  	Rhyl	  	280	  	£	68,878
	4.	  	Middleton	  	278	  	£	25,060
	5.	  	Washington	  	279	  	£	25,521
	6.	  	Bridgend	  	281	  	£	15,115
	7.	  	Walthamstow	  	275	  	£	7,487
	8.	  	Northfield	  	283	  	£	3,721
	9.	  	Northwich	  	286	  	£	720
	10.	  	Eastbourne	  	287	  	£	0
	11.	  	Ilford	  	289	  	£	720
	12.	  	Greenock	  	284	  	£	720
	13.	  	Clydebank	  	285	  	£	720
	14.	  	Falkirk	  	273	  	£	720
	15.	  	Canterbury	  	N/A	  	£	720
	16.	  	Ramsgate	  	277	  	£	1,350
	17.	  	Barry	  	292	  	£	0
		  		  		  	 	 
	Total	  		  		  	£	287,590

  

 76 

 Schedule 10 
 Guarantees and Authorised Guarantee Agreements 
  

	 	•	 	 Authorised Guarantee Agreement between Krikor Didonian, Games Station Ltd and Hutchinson 3G UK Ltd, dated 24/11/06 (in respect of 290 Chiswick High Road, London W4)

  

	 	•	 	 Licence to Assign, Change Use and Authorised Guarantee Agreement between Valeberry Ltd, Games Station Ltd and Lush Retail Ltd, dated 25/09/06 ( in respect of 112
Peascod Street, Windsor) 

  

 77 

 Schedule 11 
 List of documents in the agreed form 
  

	1.	Tax Deed (Schedule 4 paragraphs 1(e) and 2(a) (Completion Obligations)) 

  

	2.	Evidence of payment of debts and accounts (Schedule 4 paragraph 1(f) (Completion Obligations)) 

  

	3.	Directors’ resignations (Schedule 4 paragraph 1(g) (Completion Obligations)) 

  

	4.	Auditors’ resignation (Schedule 4 paragraph 1(h) (Completion Obligations)) 

  

	5.	IP Assignment (Schedule 4 paragraph 1(j) (Completion Obligations)) 

  

	6.	IP Licence (Schedule 4 paragraph 1(k) (Completion Obligations)) 

  

 78 

					
	 SIGNED by Eamonn Feeney
	 	)	  	
	 for and on behalf of
	 	)	  	/s/ Eamonn Feeney
	 BLOCKBUSTER UK LIMITED
	 	)	  	

  

					
	 SIGNED by David Thomas
	 	)	  	
	 for and on behalf of
	 	)	  	/s/ David Thomas
	 THE GAME GROUP PLC
	 	)	  	

  

 79

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