Document:

exv10w7

 

Exhibit 10.7

AMENDED AND RESTATED GAMESTOP CORP.

SUPPLEMENTAL COMPENSATION PLAN

     GameStop Corp., a Delaware corporation (the “Company”), hereby adopts this Amended and
Restated GameStop Corp. Supplemental Compensation Plan (the “Plan”). The Company intends that
bonus compensation payable pursuant to this Plan shall constitute “performance-based compensation”
within the meaning of Section 162(m) (“Section 162(m)”) of the Internal Revenue Code of 1986, as
amended (the “Code”), and the regulations from time to time promulgated thereunder.

     1. Purposes of Plan. The purposes of the Plan are to provide personal incentive and
financial rewards to senior management who, because of the extent of their responsibilities, can
and do make significant contributions to the success of the Company by their ability, industry,
loyalty and exceptional services, by making them participants in that success.

     2. Eligible Employees. The Company’s Chief Executive Officer (the “CEO”), the
Company’s Chief Operating Officer (the “COO”), and such other executive officers of the Company and
its subsidiaries and affiliates as may from time to time be designated as Plan participants by the
Committee (as defined herein), shall be eligible to receive cash bonus awards under the Plan. The
CEO, the COO and each other executive officer designated by the Committee concurrently with or
prior to the establishment of the applicable Target (defined below) pursuant to Section 6 below for
any Plan Year (defined below) (or, if later, prior to the commencement of such individual’s service
as an executive officer or such other time as shall be specified under Section 162(m)) shall be an
“Eligible Participant” for such Plan Year.

     3. Plan Year. The Plan Year shall be the fiscal year of the Company.

     4. Effective Date. The GameStop Corp. Supplemental Compensation Plan was adopted by
the board of directors of GameStop Holdings Corp. (f/k/a GameStop Corp.) on May 14, 2003 and became
effective on July 3, 2003 upon approval of the material terms thereof by the then applicable
stockholders and was assumed by the Company on October 3, 2005. This amendment and restatement was
adopted by the Board of Directors on May 10, 2006 and shall become effective upon approval of the
material terms hereof by the Company’s stockholders in accordance with the requirements of Section
162(m).

     5. Administration.

     (a) The Committee. The term “Committee” as used herein shall mean the Committee of
the Board of Directors or such other committee of the Board of Directors designated to administer
this Plan, in either case consisting of two or more members of the Board and with each such member
qualifying as an outside director as defined under Section 162(m).

     (b) Authority. Subject to the provisions of the Plan, the Committee shall interpret
the Plan and the awards granted under the Plan, shall make all other determinations necessary or
advisable for the administration of the Plan and shall correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any award, in the manner and to the extent the
Committee deems desirable to carry the Plan or award into effect.

     (c) Procedure. All determinations of the Committee shall be made by not less than a
majority of its members at a meeting at which a quorum is present. A majority of the entire
Committee shall constitute a quorum for the transaction of business. Any action required or
permitted to be taken at a meeting of the Committee may be taken without a meeting, if a unanimous
written consent which sets forth the action is signed by each member of the Committee and filed
with the minutes of the proceedings of the Committee. No member of the Committee shall be liable,
in the absence of bad faith, for any act or omission with respect to his services. Without
limiting the generality of the foregoing or the scope of any applicable provision of the Company’s
Certificate of Incorporation or Bylaws or any indemnification agreement, no member of the Committee
shall be liable for any action or determination made in good faith with respect to

 

 

the Plan or any award granted thereunder.

     6. Awards. Not later than 90 days after the commencement of each Plan Year (and
before 25% of the relevant period of service for each Eligible Participant has elapsed), the
Committee shall establish in writing separately for each Eligible Participant (a) the percentage of
such Eligible Participant’s base salary that shall be the subject of an award and (b) a performance
target (the “Target”), the attainment of which shall be substantially uncertain. The Committee may
use the following performance measures (either individually or in any combination) to set
performance targets: net sales; pretax income before allocation of corporate overhead and bonus;
budget; earnings per share; net income; division, group or corporate financial goals; return on
stockholders’ equity; return on assets; attainment of strategic and operational initiatives;
appreciation in and/or maintenance of the price of the Class A common stock or any other
publicly-traded securities of the Company; market share; gross profits; earnings before taxes;
earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization;
economic value-added models; comparisons with various stock market indices; and/or reductions in
costs. Targets which are based in whole or part on per share amounts, such as earnings per share,
shall be, and, at the discretion of the Committee, any other Targets may be, subject to adjustment
for recapitalizations, dividends, stock splits and reverse splits, reorganizations, issuances of
additional shares, redemptions of shares, option or warrant exercises, reclassifications,
significant acquisitions and divestitures or other extraordinary events.

     Each Eligible Participant will receive a cash bonus in the amount of the pre-determined
percentage of his or her base salary (the “Target Bonus”) as follows:

	 	 	 	 	 
	 	 	Then the Percentage of the
	If the Plan Year Results were:	 	Target Bonus Received is:
	Less than 85% of Target
	 	None	 
	85% or more but less than 90% of Target

	 	 	50	%
	90% or more but less than 100% of Target

	 	 	75	%
	100% or more but less than 110% of Target

	 	 	100	%
	110% or more but less than 125% of Target

	 	 	110	%
	125% or more of Target
	 	 	125	%

     Notwithstanding the foregoing, in no event shall the maximum cash bonus payable to any
Eligible Participant under the Plan exceed $2,500,000 with respect to any Plan Year. Cash bonuses
will not become payable and will not be paid until the Committee certifies the extent to which the
Target has been attained. The Committee has no discretion to increase the amount of compensation
that would otherwise be due upon attainment of the Target.

     7. Form and Payment of Awards. Awards to Eligible Participants shall be made only
when the Committee has certified that the Targets have been attained. Awards shall be made in cash
and shall be payable in a lump sum. To comply with Section 409A of the Code, certification of
Targets and payment of awards shall be made not later than the later of (i) the 15th day
of the third month following the Eligible Participant’s first taxable year in which the award is no
longer subject to a substantial risk of forfeiture (within the meaning of Section 409A of the Code)
or (ii) the 15th day of the third month following the Company’s first taxable year in
which the award is no longer subject to a substantial risk of forfeiture (within the meaning of
Section 409A of the Code).

     All awards shall be paid from the general funds of the Company and no special or separate fund
shall be established and no other segregation of assets shall be made to assure the payment of
awards hereunder. An Eligible Participant shall have no right, title, or interest whatsoever in or
to any investments which the Company may make to aid it in meeting its obligations hereunder.
Nothing contained in this instrument, and no action taken pursuant to its provisions, shall create
or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and
an Eligible Participant or any other person. To the extent that any person acquires a right to
receive payments from the Company, such right shall be no greater than the right of an unsecured
creditor.

2

 

     Except as provided in the following sentence, an Eligible Participant must be employed by the
Company or one of its subsidiaries or affiliates on the last day of the Plan Year to be eligible to
receive an award for such Plan Year. If an Eligible Participant dies or becomes incapacitated, any
award so made shall be paid to his estate or legal representative at such time and in such manner
as if he were living or not incapacitated, prorated for the portion of the Plan Year in which
services were rendered.

     8. Amendment. The Board of Directors of the Company retains the authority to amend
the Plan, subject to the stockholder approval requirements of Section 162(m).

     9. Section 162(m) of the Code. Unless otherwise determined by the Committee, the
provisions of this Plan shall be administered and interpreted in accordance with Section 162(m) of
the Code to ensure the deductibility by the Company or its subsidiaries of the payment of Awards.

     10. Tax Withholding. The Company or any subsidiary shall have the right to make all
payments or distributions pursuant to the Plan to an Eligible Participant, net of any applicable
Federal, State and local taxes required to be paid or withheld. The Company or any subsidiary
shall have the right to withhold from wages, Awards or other amounts otherwise payable to such
Eligible Participant such withholding taxes as may be required by law, or to otherwise require the
Eligible Participant to pay such withholding taxes. If the Eligible Participant shall fail to make
such tax payments as are required, the Company or any subsidiary shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind otherwise due to such
Eligible Participant or to take such other action as may be necessary to satisfy such withholding
obligations.

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EXHIBIT
4.32

SECURITIES PURCHASE AGREEMENT

THIS
SECURITIES PURCHASE AGREEMENT (the
‘‘Agreement’’) is made as of the 14th day
of August, 2006 by and among the persons listed on Schedule A hereto
(each, a ‘‘Seller’’ and, collectively, the
‘‘Sellers’’) and Brio Capital, L.P. and
Centurion Microcap, L.P., (each a
‘‘Purchaser’’).

W  I  T  N  E  S  S  E  T  H:

WHEREAS,
the Sellers acquired units (each, a
‘‘Unit’’) of securities issued by CepTor
Corporation (the ‘‘Company’’) in a private
placement of such Units, each Unit consisting of one share of the
Company’s Series A Convertible Preferred, par value $.0001 per
share (the ‘‘Series A Preferred’’),
convertible initially into 10,000 shares of the Company’s Common
Stock, par value $.0001 per share (the ‘‘Common
Stock’’) and warrants (the
‘‘Warrants’’) to purchase 5,000 shares of
Common Stock; and

WHEREAS, the Company has agreed to adjust the
Units for holders of Units who invest in certain convertible notes (the
‘‘Convertible Notes’’) being offered (the
‘‘Offering’’) by the Company in accordance
with an offering memorandum dated May  26,  2006, as
supplemented (as so supplemented, the ‘‘Offering
Memorandum’’)’ and

WHEREAS, the Purchaser
wants to purchase Units held by the Sellers and/or rights the Sellers
have with respect to the Units they hold or held, and the Sellers wants
to sell such Units or rights to the Purchaser on the terms and subject
to the conditions set forth herein;

WHEREAS, the Purchaser wishes
to subscribe for Convertible Notes simultaneously with his purchase of
the Units and/or rights related thereto and, with respect to such Units
and/or rights, to obtain the benefits of the adjustments described in
the Offering Memorandum, and the Company desires that the Purchaser
effect such subscription and agrees that, under such circumstances, the
Purchaser would be entitled to such adjustments in accordance with the
Offering Memorandum with respect to such Units and/or related rights
purchased by Purchaser;    

NOW, THEREFORE, the parties
hereto, for good and valid consideration, the receipt of which is
hereby acknowledged, hereby agree as
follows:

1.    Purchase of Units.    Each Seller
hereby agrees to sell to the Purchaser, and the Purchaser agrees to
purchase from the Seller, the Units set forth in Schedule A hereto,
and/or the rights of the Seller with respect to Units purchased by the
Seller from the Company, for a cash payment of (a)  $5,000 per
Unit or, (b) if the Seller has converted the Series A Preferred in a
Unit or Units purchased by such Seller and not sold the resulting
Common Stock, $5,000 for each 10,000 shares of Common Stock and
Warrants to purchase 5,000 shares of Common Stock or, (c) if the Seller
has converted the Series A Preferred in a Unit or Units purchased by
such Seller and sold the resulting Common Stock, $3,500 for the rights
of the Seller, in accordance with the Offering Memorandum, for each
10,000 shares of Common Stock sold by the Seller, together with
Warrants to purchase 5,000 shares of Common Stock (the
‘‘Cash Purchase Price’’).

2.    Payment of the Purchase Price and Delivery of the Units
or Rights Related Thereto; Subscription for the Convertible
Notes.    The Cash Purchase Price shall be paid by wire transfer
to the account of Andrew J. Levinson Attorney at Law IOLA (the
‘‘Escrow Agent’’) in accordance with the
instructions annexed hereto upon confirmation by the Escrow Agent to
the Purchaser that he has received the certificates representing the
Units or the Common Stock and Warrants, together with stock powers or
other instruments of transfer executed in blank, with signatures
Medallion Guaranteed as to the stock powers for the Series A Preferred
or Common Stock or, in the case of a transfer of rights, an executed
instrument assigning rights with respect to Units in accordance with
the Offering Memorandum to the Purchaser, together with the original
Warrants and an executed instrument of assignment with respect thereto.
The Purchaser understands that the Escrow Agent is also the Escrow
Agent with respect to subscriptions for the Convertible Notes and
instructs the 

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Escrow Agent to release his funds hereunder
only upon the simultaneous closing of the Purchaser’s
subscription for Convertible Notes in the Offering. This Agreement
shall be effective only upon receipt by the Escrow Agent of all of the
deliveries contemplated by this Section with respect the purchase and
sale of Units and/or related rights and with respect to the
subscription contemplated hereby for the Convertible Notes entitling
the Purchase to the adjustment of such Units and/or related rights in
accordance with the Offering Memorandum. With respect to any shares of
Common Stock sold by any of the Sellers pursuant to this Agreement,
such Sellers agree that they are effecting such sale pursuant to the
currently effective registration statement covering such shares of
Common Stock under the Securities Act of 1933, as amended (the
‘‘Securities Act’’), and the Company
acknowledges that the prospectus delivery requirement of the Securities
Act has been met with respect to such Common Stock and agrees to direct
its transfer agent to reissue such shares of Common Stock in the name
of Purchaser without a restrictive legend under the Securities Act.

3.    Representations of Seller.    Each Seller,
severally and not jointly, represents that it owns the Units or Common
Stock and Warrants or rights with respect to Units and Warrants
(collectively, the ‘‘Securities’’) being
sold by it hereunder, in each case free and clear of any liens or
encumbrances, and that it has taken all necessary action required to
enter into this Agreement and to sell such Securities in accordance
with this Agreement.

4.    Representations of
Purchaser.    The Purchaser represents as follows:

(a) The
Purchaser understands that the Common Stock underlying the Units
(without giving effect to the adjustments as described in the Offering
Memorandum) has been registered under the Securities Act but that a
post-effective amendment to such registration statement (the
‘‘Post-Effective Amendment’’) would have to
be filed by the Company with respect to sales of such Common Stock by
the Purchaser and that such Common Stock may not be sold until the
Post-Effective Amendment has been filed and become effective and that
the remaining Common Stock underlying the Units or rights related
thereto, as adjusted m accordance with the Offering Memorandum, may not
be sold unless registered under the Securities Act or pursuant to an
exemption from such registration requirements, including the
limitations of Rule 144 promulgated under the Securities Act
(‘‘Rule 144’’).

(b) The Purchaser is
purchasing the Securities for his own account for investment and not
with a view to or for sale in violation of the Securities Act. The
Purchaser understands that he must bear the economic risk of owning the
Securities for an indeterminate period of time, and that he may suffer,
and is able to bear, a total loss with respect to the
Securities.

(c) The Purchaser individually or with his investor
representative has such knowledge and experience in financial and
business matters that he is capable of evaluating the merits and risks
of the acquisition of the Securities and, having reviewed all public
information concerning the Company, has concluded that he is able to
bear those risks. In this regard, the Purchaser represents that he is
an ‘‘accredited investor’’ within the
meaning of Regulation D promulgated by the Securities and Exchange
Commission pursuant to the Securities Act.

(d) The Securities
were not offered or sold to the Purchaser by any form of general
solicitation or general advertising.

(e) The Purchaser
acknowledges that if any further transfer of the Securities is to be
made in reliance upon an exemption under the Securities Act, the
Company will, unless such Securities are registered pursuant to then
effective registration statement under the Securities Act, require an
opinion of counsel satisfactory to it that such transfer may be made
pursuant to an exemption under the Securities Act and applicable state
law.

(f) The Purchaser is not (either alone or together with
others) directly or indirectly controlling or controlled by the Company
or under direct or indirect common control with the Company within the
meaning of the Securities Act.

(g) In making any subsequent
offering or sale of the Securities, the Purchaser will be acting only
for himself and not as part of a sale or planned distribution that
would be in violation of the Securities Act.

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(h) The Purchaser acknowledges that, so
long as necessary and except as otherwise provided herein, a legend may
appear on the certificates representing the Securities or any Common
Stock into which they are convertible stating the restrictions under
which the Securities or such Common Stock may be sold.

(i) The
Purchaser acknowledges that the purchase of the Securities does not
violate any law or regulation applicable to him or his
business.

(j) The Purchaser acknowledges that the Company and its
counsel are entitled to and will rely on these representations in
connection with the transfer of the Securities by the Seller to the
Purchaser.

5.    Acknowledgments and Agreements of the
Company.    The Company acknowledges that the rights to
adjustment of the Securities in accordance with the Offering Memorandum
will be fully effective with respect to the Securities acquired by the
Purchaser from the Sellers hereunder and that, upon the simultaneous
subscription for Convertible Notes contemplated hereunder, such
adjustments will be effected, notwithstanding the fact that certain
Common Stock may have been purchased hereunder pursuant to the
registration statement related thereto under the Securities Act. To
induce the Purchaser to purchase the Securities pursuant hereto and
subscribe for Convertible Notes, the Company agrees that it will file
the Post-Effective Amendment naming the Purchaser as a selling
stockholder with respect to the Common Stock underlying the Series A
Preferred and Warrants and any shares of Common Stock so acquired by
the Purchaser (without giving effect to any adjustment thereto pursuant
to the Offering Memorandum, provided, however, that this limitation
does not diminish in any respect the rights of the Purchaser with
respect to the Securities, including, without limitation, the right to
have the Common Stock resulting from such adjustment included in a
registration statement under the Securities Act) within 15 days of the
effectiveness of this Agreement. The Company acknowledges that, upon
purchase of the Securities hereunder, the Purchaser shall have all of
the rights of an original subscriber for the Units, including, without
limitation, the registration rights and indemnification provisions set
forth in the agreements related to such original subscriptions. The
Company also acknowledges, in part on the basis of the representations
of the Purchaser set forth herein, that the holding period of the
Securities in the hands of the Purchaser for purposes of Rule 144 will
include the holding period thereof of the Sellers hereunder. As an
additional inducement to Purchaser, the Company further agrees that, in
the event of any future modification of the terms of the Offering,
Purchaser shall be entitled to the benefits thereof with respect to any
Securities purchased hereunder and any Convertible Notes simultaneously
acquired as contemplated herein.

6.    Entire
Agreement.    This Agreement constitutes the entire agreement
between the parties and supersedes any prior understandings,
representations or agreements by or between the parties, written or
oral, to the extent they related in any way to the subject matter
hereof.

7.    Counterparts; Facsimile
Signatures.    This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of
which together will constitute one and the same instrument, and
delivery of such executed counterparts by facsimile transmission shall
be fully effective whether or not followed by delivery of delivery of
manually executed counterparts.

8.    Governing
Law.    This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York applicable
to contracts made and to be wholly performed within such
State.

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IN WITNESS WHEREOF, the parties have
executed this Securities Purchase Agreement as the date first above
written.

		SELLERS

		\s\
Margie
Chasman                    

		PURCHASER

		\s\
Shaye Hirsch                          

Brio
Capital, L.P.

		\s\ Abraham
Schwartz                

Centurion Microcap,
L.P.

Acknowledged and Agreed as to the

provisions of Sections 2 and 5 of this
Agreement:

CEPTOR
CORPORATION

By: \s\ William H.
Pursley                    

       William
H. Pursley

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Schedule
A

							
	Seller			Securities
Being Sold			Cash Purchase
Price
	Margie
Chassman			Series A
Preferred A-150; 4 shares
Warrant No. 150; 20,000 shares			 
	Margie Chassman			Series A Preferred A-175; 4
shares
Warrant No. 175; 20,000 shares			 
	Margie
Chassman			Series A Preferred A-151; 4 shares
Warrant No.
151; 20,000
shares			 
	Purchaser			Securities
Being Purchased			Cash Purchase Price
	Brio
Capital, L.P.			Series A Preferred A-300; 2.5 shares
Warrant
No. 300; 12,500 shares			 
	Centurion Microcap,
L.P.			Series A Preferred A-301; 9.5 shares
Warrant No. 301;
47,500 shares

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