Document:

Amendment to Employment Agreement - Blockbuster and Nicholas Shepherd 3-01-03

 Exhibit 10.14 
  
 [BLOCKBUSTER LOGO] 
  
 March 1, 2003 
  
 CONFIDENTIAL 
  
 Nicholas P. Shepherd 
 1201 Elm Street 
 Dallas, Texas 75270 
  
 Dear Nick, 
  
 I am pleased to confirm your continued eligibility and participation in the following
benefits connected with your Blockbuster Inc. assignment in the US, in addition to those described in your Employment Agreement, effective as of the date of such Employment Agreement. This letter will serve as an addendum to your Employment
Agreement with Blockbuster Inc. 
  
 Assignment Commencement & Duration

  
 For purposes of this addendum your assignment commencement date is June 30,
1999. This addendum extends your assignment until February 28, 2005. 
  
 Pension 
  
 While on assignment in the US,
you will continue to participate in the Blockbuster Inc. Pension and Death Benefits Scheme at a contribution level of 15% of Salary for each twelve (12) month period during your Employment Term. This contribution will be on a tax-free basis, and the
pension company’s commitment to your retirement account is subject to the inland revenue earnings cap. Such participation in the Pension and Death Benefits Scheme is in lieu of your eligibility to participate in the Blockbuster Investment Plan
(401(k)) and excess investment plan as provided for in the Employment Agreement. 
  
 Life Insurance/Assurance 
  
 While on assignment, you will be
provided two times your annual salary in life insurance under the US life insurance benefit plan, or any other additional coverage that may be established for executives at your level. In addition, you will be covered at two times your annual salary
under the UK life assurance plan. Between these two plans and any supplemental life insurance you may voluntarily elect under the US plan, your total life insurance/assurance shall not exceed six times your annual salary. 
  
 Home Country Housing 
  
 Assuming you continue to retain your UK residence during the assignment, the Company will extend the standard applicable provisions of its
International Relocation Policy including: 
  
 Home Retention
Allowance (HRA): An HRA will be provided if you choose to rent your home in the UK while on assignment. The HRA is paid to you upon your return to the UK if you retained and rented your home during your assignment. The HRA is based on 5% of the
appraised value 

 of the home prior to the assignment, up to a maximum of US$ 15,000. The HRA is considered taxable income
and is not grossed-up. 
  
 Home Management Fees: Should you
choose to rent your home in the UK while on assignment, the Company will reimburse you for the monthly management fees associated with the professional property management of your home. Additionally, the Company will reimburse you a one-time
commission fee to retain the services of a property management company, if necessary. 
  
 Storage of Household Goods 
  
 The Company will reimburse the cost of storing in your Home Location any goods you do not wish to ship to the US. Storage costs will be covered for the duration of your
assignment. 
  
 Car Allowance 
  
 The Company will provide you with a US$ 300 per month automobile allowance plus insurance on
one vehicle. The payment is subject to normal tax deductions. 
  
 Vacation
& Holidays 
  
 Vacation entitlement will continue to be determined in
accordance with policy in effect within Blockbuster UK up to a maximum of 25 days per year. You will adopt the work schedule, including hours of work, time off, and public holidays in accordance with Blockbuster US policies and practices.

  
 Home Leave 
  
 After each anniversary (twelve months) of your assignment, you and your dependents in the US
will be eligible for a Home Leave. This may be taken after each twelve months of assignment (provided the assignment is scheduled to last at least another eight weeks), at a time that is mutually convenient for you and the Company. 
  
 Home leave includes all dependents in the US living with you and dependent children in the UK
visiting the US. Home Leave includes airfare, accommodations, and car rental. Meals and other incidentals are not included. Business-class travel is permitted to and from the UK for Home Leave. 
  
 For the period of your assignment, your spouse will be eligible for 2 (two) Home Leave trips
per year (including the one above) traveling in Business Class. 
  
 Dependent
Schooling 
  
 It is the Company’s understanding that you intend to
utilize public schools for your children’s education. During the next 2-year term of your assignment, should you decide that the public educational system is inadequate for your children, Blockbuster will provide an educational stipend to you
for use in private education for your children. The stipend will be 50% of the private school’s annual tuition, up to a maximum of US$ 4,000 per child per year. The stipend will not be provided if your children use the public school system. The
stipend is not grossed-up and is considered taxable income. 
  
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 Tax Services 
  
 The Company will retain the services of an expert international tax advisor annually to assist in the preparation of your personal US and UK tax returns during any full
or partial years of your assignment. Personal financial information provided to these advisors remains confidential and details of that information are not shared with the Company, except as necessary. 
  
 Social Security, Medicare, and Workers’ Compensation 
  
 During the assignment, you and the Company will continue FICA contributions as required by
the US Federal Government. Benefits for occupational injury or illness will be paid in accordance with legal requirements of the US. 
  
 Assignment Completion 
  
 At the end of your assignment, or if your position is made redundant during your assignment, the Company will assist in your repatriation to the UK. This includes reimbursement of expenses associated with return
travel; movement of household goods; resettlement allowance of US$ 50,000 (net); temporary living in the home country for up to 30 days; rental of a car for up to 15 days; and temporary storage of household goods in the US for up to 90 days. Also,
the Company will pay closing costs associated with the selling of your home in the US up to a maximum of 3% of the sale price. 
  
 Shipment of Household Pets 
  
 The Company will not pay costs associated with the relocation of household pets. All costs incurred, including transportation, kennel expenses, travel documentation,
veterinary inspections, and quarantine costs will be your sole responsibility. 
  
 Return Shipment 
  
 At the end of your assignment, the Company
will pay for the return shipment of your household goods. On the return shipment, you may ship up to an additional 1,500 pounds of household goods beyond your original shipment. 
  
 Assignment Review 
  
 During the term of your assignment, the Company and/or you can and should identify and bring forward any issues associated with the assignment that have impacted your
ability to effectively perform your job duties. These issues may include, but are not limited to, family adjustment concerns, change in roles and responsibilities, management changes, or unacceptable performance of your job duties. 
  
 If issues are identified, the Company will meet and work with you to mutually resolve the
issues. Alternatives will be identified to resolve the issues up to and including the possibility of relocation back to the UK. The objective of this section is to demonstrate your desire and the Company’s desire to make this assignment highly
successful, however acknowledging the potential for assignment related issues that may require mutually agreeable resolutions. If you and the Company mutually agree that you will return to the UK, the Company will assist you in trying to find
comparable alternative employment opportunities within Blockbuster or one of its affiliated entities. 
  
 If at any time you resign your employment with the Company, or if your employment is involuntarily terminated, the Company will pay your relocation back to the UK provided the relocation occurs within 
  
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 six (6) months from the date of your resignation or termination. The terms of your Employment Agreement shall govern any
salary continuation and other benefits after your separation from employment. 
  
 Agreement 
  
 Nick, if the foregoing correctly sets forth your
understanding, please sign this letter and return the original to me whereupon this letter shall constitute a binding Addendum to the Employment Agreement between you and Blockbuster. 
  
 Sincerely yours, 
  
 /s/  Larry J. Zine 
  
 Larry J. Zine 
 EVP, CFO & CAO 
  

 
 Accepted and Agreed: 
  
 /s/  Nicholas P. Shepherd 

 Nicholas P. Shepherd 
  
 7-30-03 

 Date: 
  
 4AMENDMENT NO 2 Initicial Public Offering

 Exhibit 10.21 
  
 AMENDMENT NO. 2 TO INITIAL PUBLIC OFFERING AND SPLIT-OFF AGREEMENT 
  
 This is Amendment No. 2 (“Amendment”), dated November 17, 2003 to
be effective for all purposes as of August 16, 2002 (the “Effective Date”), by and among Viacom Inc., a Delaware corporation (“Viacom”), Viacom International Inc., a Delaware corporation and a wholly owned subsidiary of Viacom
(“Viacom International”) and Blockbuster Inc., a Delaware corporation (“Blockbuster”), to that certain Initial Public Offering and Split-Off Agreement entered into by and among Viacom, Viacom International and Blockbuster as of
August 16, 1999, as previously amended (the “IPO Agreement”). 
  
 WHEREAS, the confidentiality provisions contained in Section 4.01 of the IPO Agreement expired by their express terms on August 16, 2002; and 
  
 WHEREAS, the parties wish to maintain their respective rights, duties, and obligations with respect to the handling and treatment of their respective
Confidential Information for an additional three years; and 
  
 WHEREAS, the parties also wish to make certain other amendments. 
  
 NOW, THEREFORE, in consideration of the premises set forth above and pursuant to Section 10.07 of the IPO Agreement, the parties hereto agree as follows: 
  

	1.	 	Section 4.01 of the IPO Agreement is hereby amended to delete the word “three” in the third line and replace it with the word “six”. 

  

	2.	 	Section 4.02 of the IPO Agreement is hereby amended (a) to insert “Disclosure of Information (a)” in the first line before the words “Legally Required
Disclosure of Confidential Information”, and (b) to change all of the references in the body of Section 4.02(a) from “Section 4.02” to “Section 4.02(a)”. 

  

	3.	 	New paragraph (b) is hereby added to Section 4.02 of the IPO Agreement to read in full as follows: 

  
 “(b) Disclosure of Tax Treatment and Tax Structure. Notwithstanding anything in this Agreement to the contrary, except as
necessary to comply with applicable securities laws, any party to this Agreement (and any employee, representative, or other agent of any party to this Agreement) may (i) consult any tax advisor regarding the U.S. federal income tax treatment and
tax structure of any possible transaction between or among, or otherwise involving, any of the parties hereto (the “Transaction”) and (ii) disclose to any and all persons, without limitation of any kind, the U.S. federal income tax
treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure; provided, however, that clause (ii) shall not apply
until the earliest of (x) the date of the public announcement of discussions relating to the Transaction, (y) the date of the public announcement of the Transaction, and (z) the date of the execution of an agreement (with or without conditions) to
enter into the Transaction. For this purpose, “tax structure” is limited to any facts relevant to the U.S. federal tax treatment 

 
of the Transaction and does not include information relating to the identities of the parties to this Agreement. The preceding two sentences are intended to
cause any Transaction contemplated by this Agreement to be treated as not having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations promulgated under
Section 6011 of the Code, and must be construed in a manner consistent with such purpose.” 
  

	4.	 	A new definition is hereby added to Section 1.01 of the IPO Agreement in appropriate alphabetical order to read in full as follows: 

  
 ““Transaction” has the meaning ascribed thereto in Section 4.02
(b)” 
  

	5.	 	This Amendment shall be deemed effective for all purposes as of the Effective Date. 

  

	6.	 	Except as expressly provided in this Amendment, the IPO Agreement shall not be deemed amended, modified or altered in any manner whatsoever. 

  

	7.	 	Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the IPO Agreement. 

  
 [THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK] 
  

 2 

 IN WITNESS WHEREOF, the undersigned have caused this Amendment No. 2 to the Initial Public Offering and
Split-Off Agreement to be duly executed and delivered as of the date first written above, to be effective for all purposes as of the Effective Date. 
  

			
	VIACOM INC.
		
	 By:
	 	/s/    MICHAEL D. FRICKLAS
	 	 	

	 	 	 Name:
 Title:

  

			
	VIACOM INTERNATIONAL INC.
		
	 By:
	 	/s/    MICHAEL D. FRICKLAS
	 	 	

	 	 	 Name:
 Title:

  

							
	BLOCKBUSTER INC.	 	 
		
	 By:
	 	/s/    EDWARD B. STEAD
	 	 	

	 	 	 Name:
 Title:
	 	 Edward B. Stead
 Executive Vice President
 and General Counsel

  

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