Document:

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                                                                   EXHIBIT 4.03

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                                     BYLAWS

                                       OF

                                HNC SOFTWARE INC.

                            (A DELAWARE CORPORATION)

                            AS ADOPTED APRIL 19, 1995
                           AND AMENDED MARCH 13, 1996,
                        MARCH 20, 1998, DECEMBER 10, 1999
                         APRIL 10, 2001, AUGUST 31, 2001
                              AND DECEMBER 6, 2001

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                                     BYLAWS
                                       OF
                                HNC SOFTWARE INC.

                            (a Delaware corporation)

                                TABLE OF CONTENTS

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ARTICLE I - STOCKHOLDERS    ............................................................          1

         Section 1.1:       Annual Meetings.............................................          1

         Section 1.2:       Special Meetings............................................          1

         Section 1.3:       Notice of Meetings..........................................          1

         Section 1.4:       Adjournments................................................          1

         Section 1.5:       Quorum......................................................          2

         Section 1.6:       Organization................................................          2

         Section 1.7:       Voting; Proxies.............................................          2

         Section 1.8:       Fixing Date for Determination of Stockholders
                            of Record ..................................................          2

         Section 1.9:       List of Stockholders Entitled to Vote.......................          3

         Section 1.10:      Action by Written Consent of Stockholders....................         3

         Section 1.11:      Inspectors of Elections.....................................          4

         Section 1.12:      Notice of Stockholder Business; Nominations.................          4

ARTICLE II - BOARD OF DIRECTORS.........................................................          6

         Section 2.1:       Number; Qualifications......................................          6

         Section 2.2:       Election; Resignation; Removal; Vacancies...................          6

         Section 2.3:       Regular Meetings............................................          6

         Section 2.4:       Special Meetings............................................          7

         Section 2.5:       Telephonic Meetings Permitted...............................          7

         Section 2.6:       Quorum; Vote Required for Action............................          7
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         Section 2.7:       Organization................................................         7

         Section 2.8:       Written Action by Directors.................................         7

         Section 2.9:       Powers......................................................         7

         Section 2.10:      Compensation of Directors...................................         7

ARTICLE III - COMMITTEES................................................................         7

         Section 3.1:       Committees..................................................         7

         Section 3.2:       Committee Rules.............................................         8

ARTICLE IV - OFFICERS...................................................................         8

         Section 4.1:       Generally...................................................         8

         Section 4.2:       Chief Executive Officer.....................................         8

         Section 4.3:       Chairman of the Board.......................................         8

         Section 4.4:       President...................................................         8

         Section 4.5:       Vice President..............................................         9

         Section 4.6:       Chief Financial Officer.....................................         9

         Section 4.7:       Treasurer...................................................         9

         Section 4.8:       Secretary...................................................         9

         Section 4.9:       Delegation of Authority.....................................         9

         Section 4.10:      Removal.....................................................         9

ARTICLE V - STOCK           ............................................................         9

         Section 5.l:       Certificates................................................         9

         Section 5.2:       Lost, Stolen or Destroyed Stock Certificates;
                            Issuance of New Certificate.................................         9

         Section 5.3:       Other Regulations...........................................        10
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ARTICLE VI - INDEMNIFICATION............................................................         10

         Section 6.1:       Indemnification of Officers and Directors...................         10

         Section 6.2:       Advance of Expenses.........................................         10

         Section 6.3:       Non-Exclusivity of Rights...................................         10

         Section 6.4:       Indemnification Contracts...................................         10

         Section 6.5:       Effect of Amendment.........................................         11

ARTICLE VII - NOTICES...................................................................         11

         Section 7.l:       Notice......................................................         11

         Section 7.2:       Waiver of Notice............................................         11

ARTICLE VIII - INTERESTED DIRECTORS.....................................................         11

         Section 8.1:       Interested Directors; Quorum................................         11

ARTICLE IX - MISCELLANEOUS..............................................................         12

         Section 9.1:       Fiscal Year.................................................         12

         Section 9.2:       Seal........................................................         12

         Section 9.3:       Form of Records.............................................         12

         Section 9.4:       Reliance Upon Books and Records.............................         12

         Section 9.5:       Certificate of Incorporation Governs........................         12

         Section 9.6:       Severability................................................         12

ARTICLE X - AMENDMENT...................................................................         13

         Section 10.1:      Amendments..................................................         13
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                                     BYLAWS

                                       OF

                                HNC SOFTWARE INC.

                            (a Delaware corporation)

                          As Adopted April 19, 1995 and
                             Amended March 13, 1996,
                       March 20, 1998, December 10, 1999,
                       April 10, 2001, August 31, 2001 and
                                December 6, 2001

                                    ARTICLE I

                                  STOCKHOLDERS

        Section 1.1: Annual Meetings. An annual meeting of stockholders shall be
held for the election of directors at such date and time, as the Board of
Directors shall each year fix. The meeting may be held either at a place, within
or without the State of Delaware, and/or by means of remote communication, as
the Board of Directors in its sole discretion may determine. Any other proper
business may be transacted at the annual meeting.

        Section 1.2 Special Meetings. Special meetings of stockholders for any
purpose or purposes may be called at any time by the Chairman of the Board, the
Chief Executive Officer, the President, the holders of shares of the Corporation
that are entitled to cast not less than ten percent (10%) of the total number of
votes entitled to be cast by all stockholders at such meeting, or by a majority
of the members of the Board of Directors. Special meetings may not be called by
any other person or persons. If a special meeting of stockholders is called by
any person or persons other than by a majority of the members of the Board of
Directors, then such person or persons shall call such meeting by delivering a
written request to call such meeting to each member of the Board of Directors,
and the Board of Directors shall then determine the time, date and place, if
any, of such special meeting, which shall be held not more than one hundred
twenty (120) nor less than thirty-five (35) days after the written request to
call such special meeting was delivered to each member of the Board of
Directors. The special meeting may be held either at a place, within or without
the State of Delaware, and/or by means of remote communication, as the Board of
Directors in its sole discretion may determine.

        Section 1.3: Notice of Meetings. Written notice of all meetings of
stockholders shall be given in writing or by electronic transmission in any
manner permitted by law (including, without limitation, as set forth in Section
7.1(b) of these Bylaws) stating the date, time and place, if any, of the meeting
and, in the case of a special meeting, the purpose or purposes for which the
meeting is called. Unless otherwise required by applicable law or the
Certificate of Incorporation of the Corporation, such notice shall be given not
less than ten (10) nor more than sixty (60) days before the date of the meeting
to each stockholder of record entitled to vote at such meeting.

        Section 1.4: Adjournments. The chairman of any meeting of stockholders
shall determine the order of business and the procedure at the meeting,
including such regulation of the manner of voting and the conduct of discussion
as seems to him or her to be in order. The chairman of the meeting shall have
the power to adjourn the meeting to another time, date and place (if any). Any
meeting of stockholders may adjourn from time to time to reconvene, and notice
need not be given of any such adjourned meeting if the time, date and place (if
any) thereof are announced at the meeting at which the adjournment is taken;
provided, however, that if the adjournment is for more than thirty (30) days, or
if after the adjournment a new record date is fixed for the adjourned meeting,
then a notice of the adjourned meeting shall be given to each stockholder of
record entitled to vote at the meeting. At the adjourned meeting the Corporation
may transact any business that might have been transacted at the original
meeting.

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        Section 1.5: Quorum. At each meeting of stockholders the holders of a
majority of the shares of stock entitled to vote at the meeting, present in
person or represented by proxy, shall constitute a quorum for the transaction of
business, except if otherwise required by applicable law. If a quorum shall fail
to attend any meeting, the chairman of the meeting or the holders of a majority
of the shares entitled to vote who are present, in person or by proxy, at the
meeting may adjourn the meeting. Shares of the Corporation's stock belonging to
the Corporation (or to another corporation, if a majority of the shares entitled
to vote in the election of directors of such other corporation are held,
directly or indirectly, by the Corporation), shall neither be entitled to vote
nor be counted for quorum purposes; provided, however, that the foregoing shall
not limit the right of the Corporation or any other corporation to vote any
shares of the Corporation's stock held by it in a fiduciary capacity and to
count such shares for purposes of determining a quorum.

        Section 1.6: Organization. Meetings of stockholders shall be presided
over by such person as the Board of Directors may designate, or, in the absence
of such a person, the Chairman of the Board of Directors, or, in the absence of
such person, the President of the Corporation, or, in the absence of such
person, such person as may be chosen by the holders of a majority of the shares
entitled to vote who are present, in person or by proxy, at the meeting. Such
person shall be chairman of the meeting and, subject to Section 1.11 hereof,
shall determine the order of business and the procedure at the meeting,
including such regulation of the manner of voting and the conduct of discussion
as seems to him or her to be in order. The Secretary of the Corporation shall
act as secretary of the meeting, but in his or her absence the chairman of the
meeting may appoint any person to act as secretary of the meeting.

        Section 1.7: Voting; Proxies. Unless otherwise provided by law or the
Certificate of Incorporation, and subject to the provisions of Section 1.8 of
these Bylaws, each stockholder shall be entitled to one (1) vote for each share
of stock held by such stockholder. Each stockholder entitled to vote at a
meeting of stockholders, or to express consent or dissent to corporate action in
writing without a meeting, may authorize another person or persons to act for
such stockholder by proxy. Such a proxy may be prepared, transmitted and
delivered in any manner permitted by applicable law. Voting at meetings of
stockholders need not be by written ballot unless such is demanded at the
meeting before voting begins by a stockholder or stockholders holding shares
representing at least one percent (1%) of the votes entitled to vote at such
meeting, or by such stockholder's or stockholders' proxy; provided, however,
that an election of directors shall be by written ballot if demand is so made by
any stockholder at the meeting before voting begins. If a vote is to be taken by
written ballot, then each such ballot shall state the name of the stockholder or
proxy voting and such other information as the chairman of the meeting deems
appropriate and, if authorized by the Board of Directors, the ballot may be
submitted by electronic transmission in any manner permitted by law. Directors
shall be elected by a plurality of the votes of the shares present in person or
represented by proxy at the meeting and entitled to vote on the election of
directors. Unless otherwise provided by applicable law, the Certificate of
Incorporation or these Bylaws, every matter other than the election of directors
shall be decided by the affirmative vote of the holders of a majority of the
shares of stock entitled to vote thereon that are present in person or
represented by proxy at the meeting and are voted for or against the matter.

        Section 1.8: Fixing Date for Determination of Stockholders of Record.

        (a) Generally. In order that the Corporation may determine the
stockholders entitled to notice of or to vote at any meeting of stockholders or
any adjournment thereof, or to express consent to corporate action in writing
without a meeting, or entitled to receive payment of any dividend or other
distribution or allotment of any rights, or entitled to exercise any rights in
respect of any change, conversion or exchange of stock or for the purpose of any
other lawful action, the Board of Directors may fix, in advance, a record date,
which shall not precede the date upon which the resolution fixing the record
date is adopted by the Board of Directors and which shall not be more than sixty
(60) nor less than ten (10) days before the date of such meeting, nor more than
sixty (60) days prior to any other action. If no record date is fixed by the
Board of Directors, then the record date shall be as provided by applicable law.
A determination of stockholders of record entitled to notice of or to vote at a
meeting of stockholders shall apply to any adjournment of the meeting; provided,
however, that the Board of Directors may fix a new record date for the adjourned
meeting.

        (b) Stockholder Request for Action by Written Consent. Any stockholder
of record seeking to have the stockholders authorize or take corporate action by
written consent without a meeting shall, by written notice to the Secretary of
the Corporation, request the Board of Directors to fix a record date for such
consent. Such request

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shall include a brief description of the action proposed to be taken. The Board
of Directors shall, within ten (10) days after the date on which such a request
is received, adopt a resolution fixing the record date. Such record date shall
not precede the date upon which the resolution fixing the record date is adopted
by the Board of Directors, and shall not be more than ten (10) days after the
date upon which the resolution fixing the record date is adopted by the Board of
Directors. If no record date has been fixed by the Board of Directors within ten
(10) days after the date on which such a request is received, then the record
date for determining stockholders entitled to consent to corporate action in
writing without a meeting, when no prior action by the Board of Directors is
required by applicable law, shall be the first date on which a signed written
consent setting forth the action taken or proposed to be taken is delivered to
the Corporation by delivery to its registered office in the State of Delaware,
to its principal place of business, or to any officer or agent of the
Corporation having custody of the book in which proceedings of meetings of
stockholders are recorded. Delivery made to the Corporation's registered office
shall be by hand or by certified or registered mail, return receipt requested.
If no record date has been fixed by the Board of Directors and prior action by
the Board of Directors is required by applicable law, then the record date for
determining stockholders entitled to consent to corporate action in writing
without a meeting shall be at the close of business on the date on which the
Board of Directors adopts the resolution taking such prior action.

        Section 1.9: List of Stockholders Entitled to Vote. A complete list of
stockholders entitled to vote at any meeting of stockholders, arranged in
alphabetical order and showing the address of each stockholder and the number of
shares registered in the name of each stockholder, shall be open to the
examination of any stockholder, for any purpose germane to the meeting, during
ordinary business hours, for a period of at least ten (10) days prior to the
meeting, either on a reasonably accessible electronic network as permitted by
law (provided that the information required to gain access to the list is
provided with the notice of the meeting) or during ordinary business hours at
the principal place of business of the Corporation. If the meeting is held at a
place, the list shall also be produced and kept at the time and place of the
meeting during the whole time thereof and may be inspected by any stockholder
who is present at the meeting. If the meeting is held solely by means of remote
communication, then the list shall be open to the examination of any stockholder
during the whole time of the meeting on a reasonably accessible electronic
network, and the information required to access the list shall be provided with
the notice of the meeting.

        Section 1.10: Action by Written Consent of Stockholders

        (a) Procedure. Unless otherwise provided by the Certificate of
Incorporation, and except as set forth in Section 1.8(b) above, any action
required or permitted to be taken at any annual or special meeting of the
stockholders may be taken without a meeting, without prior notice and without a
vote, if a consent or consents in writing, setting forth the action so taken,
shall be signed by the holders of outstanding stock having not less than the
number of votes that would be necessary to authorize or take such action at a
meeting at which all shares entitled to vote thereon were present and voted.
Written stockholder consents shall bear the date of signature of each
stockholder who signs the consent and shall be delivered to the Corporation by
delivery to its registered office in the State of Delaware, to its principal
place of business or to any officer or agent of the Corporation having custody
of the book in which proceedings of meetings of stockholders are recorded.
Delivery made to the Corporation's registered office shall be by hand or by
certified or registered mail, return receipt requested. No written consent shall
be effective to take the action set forth therein unless, within sixty (60) days
of the earliest dated consent delivered to the Corporation in the manner
provided above, written consents signed by a sufficient number of stockholders
to take the action set forth therein are delivered to the Corporation in the
manner provided above.

        (b) Notice of Consent. Prompt notice of the taking of corporate action
by stockholders without a meeting by less than unanimous written consent of the
stockholders shall be given to those stockholders who have not consented thereto
in writing and, in the case of a Certificate Action (as defined below), if the
Delaware General Corporation Law so requires, such notice shall be given prior
to filing of the certificate in question. If the action which is consented to
requires the filing of a certificate under the Delaware General Corporation Law
(a "Certificate Action"), then if the Delaware General Corporation Law so
requires, the certificate so filed shall state that written stockholder consent
has been given in accordance with Section 228 of the Delaware General
Corporation Law and that written notice of the taking of corporate action by
stockholders without a meeting as described herein has been given as provided in
such section.

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        Section 1.11: Inspectors of Elections.

        (a) Applicability. Unless otherwise provided in the Corporation's
Certificate of Incorporation or required by the Delaware General Corporation
Law, the following provisions of this Section 1.11 shall apply only if and when
the Corporation has a class of voting stock that is: (i) listed on a national
securities exchange; (ii) authorized for quotation on an automated interdealer
quotation system of a registered national securities association; or (iii) held
of record by more than 2,000 stockholders; in all other cases, observance of the
provisions of this Section 1.11 shall be optional, and at the discretion of the
Corporation.

        (b) Appointment. The Corporation shall, in advance of any meeting of
stockholders, appoint one or more inspectors of election to act at the meeting
and make a written report thereof. The Corporation may designate one or more
persons as alternate inspectors to replace any inspector who fails to act. If no
inspector or alternate is able to act at a meeting of stockholders, the person
presiding at the meeting shall appoint one or more inspectors to act at the
meeting.

        (c) Inspector's Oath. Each inspector of election, before entering upon
the discharge of his duties, shall take and sign an oath faithfully to execute
the duties of inspector with strict impartiality and according to the best of
his ability.

        (d) Duties of Inspectors. At a meeting of stockholders, the inspectors
of election shall (i) ascertain the number of shares outstanding and the voting
power of each share, (ii) determine the shares represented at a meeting and the
validity of proxies and ballots, (iii) count all votes and ballots, (iv)
determine and retain for a reasonable period of time a record of the disposition
of any challenges made to any determination by the inspectors, and (v) certify
their determination of the number of shares represented at the meeting, and
their count of all votes and ballots. The inspectors may appoint or retain other
persons or entities to assist the inspectors in the performance of the duties of
the inspectors.

        (e) Opening and Closing of Polls. The date and time of the opening and
the closing of the polls for each matter upon which the stockholders will vote
at a meeting shall be announced by the chairman of the meeting. No ballot,
proxies or votes, nor any revocations thereof or changes thereto, shall be
accepted by the inspectors after the closing of the polls unless the Court of
Chancery upon application by a stockholder shall determine otherwise.

        (f) Determinations. In determining the validity and counting of proxies
and ballots, the inspectors shall be limited to an examination of the proxies,
any envelopes submitted with those proxies, any information provided in
connection with proxies in accordance with Section 212(c)(2) of the Delaware
General Corporation Law, ballots and the regular books and records of the
Corporation, except that the inspectors may consider other reliable information
for the limited purpose of reconciling proxies and ballots submitted by or on
behalf of banks, brokers, their nominees or similar persons which represent more
votes than the holder of a proxy is authorized by the record owner to cast or
more votes than the stockholder holds of record. If the inspectors consider
other reliable information for the limited purpose permitted herein, the
inspectors at the time they make their certification of their determinations
pursuant to this Section 1.11 shall specify the precise information considered
by them, including the person or persons from whom they obtained the
information, when the information was obtained, the means by which the
information was obtained and the basis for the inspectors' belief that such
information is accurate and reliable.

        Section 1.12: Notice of Stockholder Business; Nominations.

        (a) Annual Meeting of Stockholders.

            (i) Nominations of persons for election to the Board of Directors
and the proposal of business to be considered by the stockholders shall be made
at an annual meeting of stockholders (A) pursuant to the Corporation's notice of
such meeting, (B) by or at the direction of the Board of Directors or (C) by any
stockholder of the Corporation who was a stockholder of record at the time of
giving of the notice provided for in this Section 1.12, who is entitled to vote
at such meeting and who complies with the notice procedures set forth in this
Section 1.12.

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            (ii) For nominations or other business to be properly brought before
an annual meeting by a stockholder pursuant to clause (C) of subparagraph (a)(i)
of this Section 1.12, the stockholder must have given timely notice thereof (as
provided below) in writing to the Secretary of the Corporation and such other
business must otherwise be a proper matter for stockholder action. To be timely,
a stockholder's notice must be delivered to the Secretary at the principal
executive offices of the Corporation not later than the close of business on the
seventy-fifth (75th) day nor earlier than the close of business on the one
hundred and fifth (105th) day prior to the first anniversary of the preceding
year's annual meeting (except in the case of the 2002 annual meeting, for which
such notice shall be timely if delivered not later than the close of business on
the sixtieth (60th) day nor earlier than the close of business on the ninetieth
(90th) day prior to the first anniversary of the preceding year's annual
meeting); provided, however, that in the event that the date of the annual
meeting is more than thirty (30) days before or more than sixty (60) days after
the first anniversary of the preceding year's annual meeting, notice by the
stockholder to be timely must be so delivered not earlier than the close of
business on the one hundred and fifth (105th) day prior to such annual meeting
and not later than the close of business on the later of the seventy-fifth
(75th) day prior to such annual meeting or the close of business on the tenth
(10th) day following the day on which public announcement of the date of such
annual meeting is first made by the Corporation (except in the case of the 2002
annual meeting, for which such notice shall be timely if delivered not earlier
than the close of business on the ninetieth (90th) day prior to such annual
meeting and not later than the close of business on the later of the sixtieth
(60th) day prior to such annual meeting or the close of business on the tenth
(10th) day following the day on which public announcement of the date of such
annual meeting is first made by the Corporation). Such stockholder's notice
shall set forth: (a) as to each person whom the stockholder proposes to nominate
for election or reelection as a director all information relating to such person
that is required to be disclosed in solicitations of proxies for election of
directors, or is otherwise required, in each case pursuant to Regulation 14A
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including such person's written consent to being named in the proxy statement as
a nominee and to serving as a director if elected; (b) as to any other business
that the stockholder proposes to bring before the meeting, a brief description
of the business desired to be brought before the meeting, the reasons for
conducting such business at the meeting and any material interest in such
business of such stockholder and the beneficial owner, if any, on whose behalf
the proposal is made; and (c) as to the stockholder giving the notice and the
beneficial owner, if any, on whose behalf the nomination or proposal is made (1)
the name and address of such stockholder, as they appear on the Corporation's
books, and of such beneficial owner, and (2) the class and number of shares of
the Corporation that are owned beneficially and held of record by such
stockholder and such beneficial owner.

            (iii) Notwithstanding anything in the second sentence of
subparagraph (a)(ii) of this Section 1.12 to the contrary, in the event that the
number of directors to be elected to the Board of Directors of the Corporation
is increased and there is no public announcement by the Corporation naming all
of the nominees for director or specifying the size of the increased board of
directors at least seventy-five (75) days prior to the first anniversary of the
preceding year's annual meeting (or, if the annual meeting is held more than
thirty (30) days before or sixty (60) days after such anniversary date, at least
seventy-five (75) days prior to such annual meeting), a stockholder's notice
required by this Section 1.12 shall also be considered timely, but only with
respect to nominees for any new positions created by such increase, if it shall
be delivered to the Secretary of the Corporation at the principal executive
office of the Corporation not later than the close of business on the tenth
(10th) day following the day on which such public announcement is first made by
the Corporation.

        (b) Special Meetings of Stockholders. Only such business shall be
conducted at a special meeting of stockholders as shall have been brought before
the meeting pursuant to the Corporation's notice of such meeting. Nominations of
persons for election to the Board of Directors may be made at a special meeting
of stockholders at which directors are to be elected pursuant to the
Corporation's notice of such meeting (i) by or at the direction of the Board of
Directors or (ii) provided that the Board of Directors has determined that
directors shall be elected at such meeting, by any stockholder of the
Corporation who is a stockholder of record at the time of giving of notice of
the special meeting, who shall be entitled to vote at the meeting and who
complies with the notice procedures set forth in this Section 1.12. In the event
the Corporation calls a special meeting of stockholders for the purpose of
electing one or more directors to the Board of Directors, any such stockholder
may nominate a person or persons (as the case may be), for election to such
position(s) as specified in the Corporation's notice of meeting, if the
stockholder's notice required by subparagraph (a)(ii) of this Section 1.12 shall
be delivered to the Secretary of the Corporation at the principal executive
offices of the Corporation not earlier than the one hundred and fifth (105th)
day prior to such special meeting and not later than the close of business on
the later of the seventy-fifth (75th) day prior to such

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special meeting or the tenth (10th) day following the day on which public
announcement is first made of the date of the special meeting and of the
nominees proposed by the Board of Directors to be elected at such meeting.

        (c) General.

            (i) Only such persons who are nominated in accordance with the
procedures set forth in this Section 1.12 shall be eligible to serve as
directors and only such business shall be conducted at a meeting of stockholders
as shall have been brought before the meeting in accordance with the procedures
set forth in this Section 1.12. Except as otherwise provided by law or these
bylaws, the chairman of the meeting shall have the power and duty to determine
whether a nomination or any business proposed to be brought before the meeting
was made or proposed, as the case may be, in accordance with the procedures set
forth in this Section 1.12 and, if any proposed nomination or business is not in
compliance herewith, to declare that such defective proposal or nomination shall
be disregarded.

            (ii) For purposes of this Section 1.12, the term "public
announcement" shall mean disclosure in a press release reported by the Dow Jones
News Service, Associated Press or comparable national news service or in a
document publicly filed by the Corporation with the Securities and Exchange
Commission pursuant to section 13, 14 or 15(d) of the Exchange Act.

            (iii) Notwithstanding the foregoing provisions of this Section 1.12,
a stockholder shall also comply with all applicable requirements of the Exchange
Act and the rules and regulations thereunder with respect to the matters set
forth herein. Nothing in this Section 1.12 shall be deemed to affect any rights
of stockholders to request inclusion of proposals in the Corporation's proxy
statement pursuant to Rule 14a-8 under the Exchange Act.

                                   ARTICLE II

                               BOARD OF DIRECTORS

        Section 2.1: Number; Qualifications. The Board of Directors shall
consist of one or more members. The current number of directors shall be six
(6),* and thereafter shall be fixed from time to time by resolution of the Board
of Directors. No decrease in the authorized number of directors constituting the
Board of Directors shall shorten the term of any incumbent director. Directors
need not be stockholders of the Corporation.

        Section 2.2: Election; Resignation; Removal; Vacancies. The Board of
Directors shall initially consist of the person or persons elected by the
incorporator or named in the Corporation's initial Certificate of Incorporation.
Each director shall hold office until the next annual meeting of stockholders
and until his or her successor is elected and qualified, or until his or her
earlier death, resignation or removal. Any director may resign at any time upon
written notice to the Corporation. Subject to the rights of any holders of
Preferred Stock then outstanding: (i) any director or the entire Board of
Directors may be removed, with or without cause, by the holders of a majority of
the shares then entitled to vote at an election of directors and (ii) any
vacancy occurring in the Board of Directors for any cause, and any newly created
directorship resulting from any increase in the authorized number of directors
to be elected by all stockholders having the right to vote as a single class,
may be filled by the stockholders, by a majority of the directors then in
office, although less than a quorum, or by a sole remaining director.

        Section 2.3: Regular Meetings. Regular meetings of the Board of
Directors may be held at such places, within or without the State of Delaware,
and at such times as the Board of Directors may from time to time determine.
Notice of regular meetings need not be given if the date, times and places
thereof are fixed by resolution of the Board of Directors.

----------

*    Amendment on December 10, 1999 changed the number of directors from five
     (5) to six (6). Amendment on March 20, 1998 changed the number of directors
     from six (6) to five (5).

                                       6
<PAGE>

        Section 2.4: Special Meetings. Special meetings of the Board of
Directors may be called by the Chairman of the Board of Directors, Chief
Executive Officer (or if there is no Chief Executive Officer, the President) or
a majority of the members of the Board of Directors then in office and may be
held at any time, date or place, within or without the State of Delaware, as the
person or persons calling the meeting shall fix. Notice of the time, date and
place of such meeting shall be given, orally, in writing or by electronic
transmission (including electronic mail), by the person or persons calling the
meeting to all directors at least four (4) days before the meeting if the notice
is mailed, or at least twenty-four (24) hours before the meeting if such notice
is given by telephone, hand delivery, telegram, telex, mailgram, facsimile,
electronic mail or other means of electronic transmission. Unless otherwise
indicated in the notice, any and all business may be transacted at a special
meeting.

        Section 2.5: Telephonic Meetings Permitted. Members of the Board of
Directors, or any committee of the Board, may participate in a meeting of the
Board or such committee by means of conference telephone or other communications
equipment by means of which all persons participating in the meeting can hear
each other, and participation in a meeting pursuant to conference telephone or
such other communications equipment shall constitute presence in person at such
meeting.

        Section 2.6: Quorum; Vote Required for Action. At all meetings of the
Board of Directors a majority of the total number of authorized directors shall
constitute a quorum for the transaction of business. Except as otherwise
provided herein or in the Certificate of Incorporation, or required by law, the
vote of a majority of the directors present at a meeting at which a quorum is
present shall be the act of the Board of Directors.

        Section 2.7: Organization. Meetings of the Board of Directors shall be
presided over by the Chairman of the Board of Directors, or in his or her
absence by the President, or in his or her absence by a chairman chosen at the
meeting. The Secretary shall act as secretary of the meeting, but in his or her
absence the chairman of the meeting may appoint any person to act as secretary
of the meeting.

        Section 2.8: Written Action by Directors. Any action required or
permitted to be taken at any meeting of the Board of Directors, or of any
committee thereof, may be taken without a meeting if all members of the Board or
such committee, as the case may be, consent thereto in writing or by electronic
transmission, and the writing or writings or electronic transmission or
transmissions are filed with the minutes of proceedings of the Board or
committee, respectively. Such filing shall be in paper form if the minutes are
maintained in paper form and shall be in electronic form if the minutes are
maintained in electronic form.

        Section 2.9: Powers. The Board of Directors may, except as otherwise
required by law or the Certificate of Incorporation, exercise all such powers
and do all such acts and things as may be exercised or done by the Corporation.

        Section 2.10: Compensation of Directors. Directors, as such, may
receive, pursuant to a resolution of the Board of Directors, fees and other
compensation for their services as directors, including without limitation their
services as members of committees of the Board of Directors.

                                   ARTICLE III

                                   COMMITTEES

        Section 3.1: Committees. The Board of Directors may, by resolution
passed by a majority of the whole Board of Directors, designate one or more
committees, each committee to consist of one or more of the directors of the
Corporation. The Board may designate one or more directors as alternate members
of any committee, who may replace any absent or disqualified member at any
meeting of the committee. In the absence or disqualification of a member of the
committee, the member or members thereof present at any meeting of such
committee who are not disqualified from voting, whether or not such member or
members constitute a quorum, may unanimously appoint another member of the Board
of Directors to act at the meeting in place of any such absent or disqualified
member. Any such committee, to the extent provided in a resolution of the Board
of Directors, shall have and may exercise all the powers and authority of the
Board of Directors in the management of the business and affairs of the
Corporation and may authorize the seal of the Corporation to be affixed to all
papers that may require

                                       7
<PAGE>

it; but no such committee shall have the power or authority in reference to the
following matters: (i) approving or adopting, or recommending to the
stockholders, any action or matter expressly required by the Delaware General
Corporation Law to be submitted to stockholders for approval or (ii) adopting,
amending or repealing any bylaw of the Corporation.

        Section 3.2: Committee Rules. Unless the Board of Directors otherwise
provides, each committee of members of the Board of Directors designated by the
Board of Directors may make, alter and repeal rules for the conduct of its
business. In the absence of such rules each committee shall conduct its business
in the same manner as the Board of Directors conducts its business pursuant to
Article II of these Bylaws.

                                   ARTICLE IV

                                    OFFICERS

        Section 4.1: Generally. The officers of the Corporation shall consist of
a Chief Executive Officer and/or a President, one or more Vice Presidents, a
Secretary, a Treasurer and such other officers, including a Chairman of the
Board of Directors and/or Chief Financial Officer, as may from time to time be
appointed by the Board of Directors. All officers shall be elected by the Board
of Directors; provided, however, that the Board of Directors may empower the
Chief Executive Officer of the Corporation to appoint officers other than the
Chairman of the Board, the Chief Executive Officer, the President, the Chief
Financial Officer or the Treasurer. Each officer shall hold office until his or
her successor is elected and qualified or until his or her earlier resignation
or removal. Any number of offices may be held by the same person. Any officer
may resign at any time upon written notice to the Corporation. Any vacancy
occurring in any office of the Corporation by death, resignation, removal or
otherwise may be filled by the Board of Directors.

        Section 4.2: Chief Executive Officer. Subject to the control of the
Board of Directors and such supervisory powers, if any, as may be given by the
Board of Directors, the powers and duties of the Chief Executive Officer of the
Corporation are:

        (a) To act as the general manager and, subject to the control of the
Board of Directors, to have general supervision, direction and control of the
business and affairs of the Corporation;

        (b) To preside at all meetings of the stockholders;

        (c) To call meetings of the stockholders to be held at such times and,
subject to the limitations prescribed by law or by these Bylaws, at such places
as he or she shall deem proper; and

        (d) To affix the signature of the Corporation to all deeds, conveyances,
mortgages, guarantees, leases, obligations, bonds, certificates and other papers
and instruments in writing which have been authorized by the Board of Directors
or which, in the judgment of the Chief Executive Officer, should be executed on
behalf of the Corporation; to sign certificates for shares of stock of the
Corporation; and, subject to the direction of the Board of Directors, to have
general charge of the property of the Corporation and to supervise and control
all officers, agents and employees of the Corporation.

        The President shall be the Chief Executive Officer of the Corporation
unless the Board of Directors shall designate another officer to be the Chief
Executive Officer. If there is no President, and the Board of Directors has not
designated any other officer to be the Chief Executive Officer, then the
Chairman of the Board of Directors shall be the Chief Executive Officer.

        Section 4.3: Chairman of the Board. The Chairman of the Board of
Directors shall have the power to preside at all meetings of the Board of
Directors and shall have such other powers and duties as provided in these
bylaws and as the Board of Directors may from time to time prescribe.

        Section 4.4: President. The President shall be the Chief Executive
Officer of the Corporation unless the Board of Directors shall have designated
another officer as the Chief Executive Officer of the Corporation.

                                       8
<PAGE>

Subject to the provisions of these Bylaws and to the direction of the Board of
Directors, and subject to the supervisory powers of the Chief Executive Officer
(if the Chief Executive Officer is an officer other than the President), and
subject to such supervisory powers and authority as may be given by the Board of
Directors to the Chairman of the Board of Directors and/or to any other officer,
the President shall have the responsibility for the general management the
control of the business and affairs of the Corporation and the general
supervision and direction of all of the officers, employees and agents of the
Corporation (other than the Chief Executive Officer, if the Chief Executive
Officer is an officer other than the President) and shall perform all duties and
have all powers that are commonly incident to the office of President or that
are delegated to the President by the Board of Directors.

        Section 4.5: Vice President. Each Vice President shall have all such
powers and duties as are commonly incident to the office of Vice President, or
that are delegated to him or her by the Board of Directors or the Chief
Executive Officer. A Vice President may be designated by the Board of Directors
to perform the duties and exercise the powers of the Chief Executive Officer in
the event of the Chief Executive Officer's absence or disability.

        Section 4.6: Chief Financial Officer. The Chief Financial Officer shall
be the Treasurer of the Corporation unless the Board of Directors shall have
designated another officer as the Treasurer of the Corporation. Subject to the
direction of the Board of Directors and the President, the Chief Financial
Officer shall perform all duties and have all powers that are commonly incident
to the office of chief financial officer.

        Section 4.7: Treasurer. The Treasurer shall have custody of all monies
and securities of the Corporation. The Treasurer shall make such disbursements
of the funds of the Corporation as are authorized and shall render from time to
time an account of all such transactions. The Treasurer shall also perform such
other duties and have such other powers as are commonly incident to the office
of Treasurer, or as the Board of Directors or the President may from time to
time prescribe.

        Section 4.8: Secretary. The Secretary shall issue or cause to be issued
all authorized notices for, and shall keep, or cause to be kept, minutes of all
meetings of the stockholders and the Board of Directors. The Secretary shall
have charge of the corporate minute books and similar records and shall perform
such other duties and have such other powers as are commonly incident to the
office of Secretary, or as the Board of Directors or the President may from time
to time prescribe.

        Section 4.9: Delegation of Authority. The Board of Directors may from
time to time delegate the powers or duties of any officer to any other officers
or agents, notwithstanding any provision hereof.

        Section 4.10: Removal. Any officer of the Corporation shall serve at the
pleasure of the Board of Directors and may be removed at any time, with or
without cause, by the Board of Directors. Such removal shall be without
prejudice to the contractual rights of such officer, if any, with the
Corporation.

                                    ARTICLE V

                                      STOCK

        Section 5.1: Certificates. Every holder of stock shall be entitled to
have a certificate signed by or in the name of the Corporation by the Chairman
or Vice-Chairman of the Board of Directors, or the President or a Vice
President, and by the Treasurer or an Assistant Treasurer, or the Secretary or
an Assistant Secretary, of the Corporation, certifying the number of shares
owned by such stockholder in the Corporation. Any or all of the signatures on
the certificate may be a facsimile.

        Section 5.2: Lost, Stolen or Destroyed Stock Certificates; Issuance of
New Certificates. The Corporation may issue a new certificate of stock in the
place of any certificate previously issued by it, alleged to have been lost,
stolen or destroyed, and the Corporation may require the owner of the lost,
stolen or destroyed certificate, or such owner's legal representative, to agree
to indemnify the Corporation and/or to give the Corporation a bond sufficient to
indemnify it, against any claim that may be made against it on account of the
alleged loss, theft or destruction of any such certificate or the issuance of
such new certificate.

                                       9
<PAGE>

        Section 5.3: Other Regulations. The issue, transfer, conversion and
registration of stock certificates shall be governed by such other regulations
as the Board of Directors may establish.

                                   ARTICLE VI

                                 INDEMNIFICATION

        Section 6.1 Indemnification of Officers and Directors. Each person who
was or is made a party to, or is threatened to be made a party to, or is
involved in any action, suit or proceeding, whether civil, criminal,
administrative or investigative (a "proceeding"), by reason of the fact that he
or she (or a person of whom he or she is the legal representative), is or was a
director or officer of the Corporation or a Reincorporated Predecessor (as
defined below) or is or was serving at the request of the Corporation or a
Reincorporated Predecessor (as defined below) as a director or officer of
another corporation, or of a partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, shall be
indemnified and held harmless by the Corporation to the fullest extent permitted
by the Delaware General Corporation Law, against all expenses, liability and
loss (including attorneys' fees, judgments, fines, ERISA excise taxes and
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by such person in connection therewith, provided such person acted in
good faith and in a manner which the person reasonably believed to be in or not
opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe the person's
conduct was unlawful. Such indemnification shall continue as to a person who has
ceased to be a director or officer and shall inure to the benefit of his or her
heirs, executors and administrators; provided, however, that the Corporation
shall indemnify any such person seeking indemnity in connection with a
proceeding (or part thereof) initiated by such person only if such proceeding
(or part thereof) was authorized by the Board of Directors of the Corporation.
As used herein, the term "Reincorporated Predecessor" means a corporation that
is merged with and into the Corporation in a statutory merger where (a) the
Corporation is the surviving corporation of such merger; (b) the primary purpose
of such merger is to change the corporate domicile of the Reincorporated
Predecessor to Delaware.

        Section 6.2: Advance of Expenses. The Corporation shall pay all expenses
(including attorneys' fees) incurred by such a director or officer in defending
any such proceeding as they are incurred in advance of its final disposition;
provided, however, that if the Delaware General Corporation Law then so
requires, the payment of such expenses incurred by such a director or officer in
advance of the final disposition of such proceeding shall be made only upon
delivery to the Corporation of an undertaking, by or on behalf of such director
or officer, to repay all amounts so advanced if it should be determined
ultimately that such director or officer is not entitled to be indemnified under
this Article VI or otherwise; and provided, further, that the Corporation shall
not be required to advance any expenses to a person against whom the Corporation
directly brings a claim, in a proceeding, alleging that such person has breached
his or her duty of loyalty to the Corporation, committed an act or omission not
in good faith or that involves intentional misconduct or a knowing violation of
law, or derived an improper personal benefit from a transaction.

        Section 6.3: Non-Exclusivity of Rights. The rights conferred on any
person in this Article VI shall not be exclusive of any other right that such
person may have or hereafter acquire under any statute, provision of the
Certificate of Incorporation, Bylaw, agreement, vote or consent of stockholders
or disinterested directors, or otherwise. Additionally, nothing in this Article
VI shall limit the ability of the Corporation, in its discretion, to indemnify
or advance expenses to persons whom the Corporation is not obligated to
indemnify or advance expenses pursuant to this Article VI.

        Section 6.4: Indemnification Contracts. The Board of Directors is
authorized to cause the Corporation to enter into indemnification contracts with
any director, officer, employee or agent of the Corporation, or any person
serving at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, including employee benefit plans, providing indemnification rights
to such person. Such rights may be greater than those provided in this Article
VI.

                                       10
<PAGE>

        Section 6.5: Effect of Amendment. Any amendment, repeal or modification
of any provision of this Article VI shall be prospective only, and shall not
adversely affect any right or protection conferred on a person pursuant to this
Article VI and existing at the time of such amendment, repeal or modification.

                                   ARTICLE VII

                                     NOTICES

        Section 7.1: Notice. (a) Except as otherwise specifically provided
herein or required by law, all notices required to be given pursuant to these
Bylaws shall be in writing and may in every instance be effectively given by
hand delivery (including use of a delivery service), by depositing such notice
in the mail, postage prepaid, or by sending such notice by prepaid telegram,
telex, overnight express courier, mailgram or facsimile. Any such notice shall
be addressed to the person to whom notice is to be given at such person's
address as it appears on the records of the Corporation. The notice shall be
deemed given (i) in the case of hand delivery, when received by the person to
whom notice is to be given or by any person accepting such notice on behalf of
such person, (ii) in the case of delivery by mail, upon deposit in the mail,
(iii) in the case of delivery by overnight express courier, when dispatched, and
(iv) in the case of delivery via telegram, telex, mailgram or facsimile, when
dispatched.

        (b) Without limiting the manner by which notice otherwise may be given
effectively to stockholders, any notice to stockholders given by the Corporation
under any provision of the Delaware General Corporation Law, the Certificate of
Incorporation, or these bylaws shall be effective if given by a form of
electronic transmission consented to by the stockholder to whom the notice is
given. Any such consent shall be revocable by the stockholder by written notice
to the Corporation. Any such consent shall be deemed revoked if (i) the
Corporation is unable to deliver by electronic transmission two consecutive
notices given by the Corporation in accordance with such consent and (ii) such
inability becomes known to the Secretary or an Assistant Secretary of the
Corporation or to the transfer agent, or other person responsible for the giving
of notice; provided, however, the inadvertent failure to treat such inability as
a revocation shall not invalidate any meeting or other action. Notice given
pursuant to this Section 7.1(b) shall be deemed given: (i) if by facsimile
telecommunication, when directed to a number at which the stockholder has
consented to receive notice; (ii) if by electronic mail, when directed to an
electronic mail address at which the stockholder has consented to receive
notice; (iii) if by a posting on an electronic network together with separate
notice to the stockholder of such specific posting, upon the later of (A) such
posting and (B) the giving of such separate notice; and (iv) if by any other
form of electronic transmission, when directed to the stockholder.

        (c) An affidavit of the Secretary or an Assistant Secretary or of the
transfer agent or other agent of the Corporation that the notice has been given
in writing or by a form of electronic transmission shall, in the absence of
fraud, be prima facie evidence of the facts stated therein.

        Section 7.2: Waiver of Notice. Whenever notice is required to be given
under any provision of these bylaws, a written waiver of notice, signed by the
person entitled to notice, or waiver of notice by electronic transmission by
such person, whether before or after the time stated therein, shall be deemed
equivalent to notice. Attendance of a person at a meeting shall constitute a
waiver of notice of such meeting, except when the person attends a meeting for
the express purpose of objecting at the beginning of the meeting to the
transaction of any business because the meeting is not lawfully called or
convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the stockholders, directors or members of a
committee of directors need be specified in any written waiver of notice.

                                  ARTICLE VIII

                              INTERESTED DIRECTORS

        Section 8.1: Interested Directors; Quorum. No contract or transaction
between the Corporation and one or more of its directors or officers, or between
the Corporation and any other corporation, partnership, association or other
organization in which one or more of its directors or officers are directors or
officers, or have a financial interest, shall be void or voidable solely for
this reason, or solely because the director or officer is present at or
participates in the meeting of the Board of Directors or committee thereof that
authorizes the contract or

                                       11
<PAGE>

transaction, or solely because his, her or their votes are counted for such
purpose, if: (i) the material facts as to his, her or their relationship or
interest and as to the contract or transaction are disclosed or are known to the
Board of Directors or the committee, and the Board of Directors or committee in
good faith authorizes the contract or transaction by the affirmative votes of a
majority of the disinterested directors, even though the disinterested directors
be less than a quorum; (ii) the material facts as to his, her or their
relationship or interest and as to the contract or transaction are disclosed or
are known to the stockholders entitled to vote thereon, and the contract or
transaction is specifically approved in good faith by vote of the stockholders;
or (iii) the contract or transaction is fair as to the Corporation as of the
time it is authorized, approved or ratified by the Board of Directors, a
committee thereof, or the stockholders. Common or interested directors may be
counted in determining the presence of a quorum at a meeting of the Board of
Directors or of a committee which authorizes the contract or transaction.

                                   ARTICLE IX

                                  MISCELLANEOUS

        Section 9.1: Fiscal Year. The fiscal year of the Corporation shall be
determined by resolution of the Board of Directors.

        Section 9.2: Seal. The Board of Directors may provide for a corporate
seal, which shall have the name of the Corporation inscribed thereon and shall
otherwise be in such form as may be approved from time to time by the Board of
Directors.

        Section 9.3: Form of Records. Any records maintained by the Corporation
in the regular course of its business, including its stock ledger, books of
account and minute books, may be kept on, or by means of, or be in the form of
any information storage device or method, provided that the records so kept can
be converted into clearly legible paper form within a reasonable time. The
Corporation shall so convert any records so kept upon the request of any person
entitled to inspect such records pursuant to any provision of the Delaware
General Corporation Law.

        Section 9.4: Reliance Upon Books and Records. A member of the Board of
Directors, or a member of any committee designated by the Board of Directors
shall, in the performance of his or her duties, be fully protected in relying in
good faith upon records of the Corporation and upon such information, opinions,
reports or statements presented to the Corporation by any of the Corporation's
officers or employees, or committees of the Board of Directors, or by any other
person as to matters the member reasonably believes are within such other
person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Corporation.

        Section 9.5: Certificate of Incorporation Governs. In the event of any
conflict between the provisions of the Corporation's Certificate of
Incorporation and Bylaws, the provisions of the Certificate of Incorporation
shall govern.

        Section 9.6: Severability. If any provision of these Bylaws shall be
held to be invalid, illegal, unenforceable or in conflict with the provisions of
the Corporation's Certificate of Incorporation, then such provision shall
nonetheless be enforced to the maximum extent possible consistent with such
holding and the remaining provisions of these Bylaws (including without
limitation, all portions of any section of these Bylaws containing any such
provision held to be invalid, illegal, unenforceable or in conflict with the
Certificate of Incorporation, that are not themselves invalid, illegal,
unenforceable or in conflict with the Certificate of Incorporation) shall remain
in full force and effect.

                                       12
<PAGE>

                                    ARTICLE X

                                    AMENDMENT

        Section 10.1: Amendments. Stockholders of the Corporation holding a
majority of the Corporation's outstanding voting stock then entitled to vote at
any election of directors shall have the power to adopt, amend or repeal Bylaws.
To the extent provided in the Corporation's Certificate of Incorporation, the
Board of Directors of the Corporation shall also have the power to adopt, amend
or repeal Bylaws of the Corporation, except insofar as Bylaws adopted by the
stockholders shall otherwise provide.

                                       13<PAGE>
                                                                    EXHIBIT 10.1

                              SEPARATION AGREEMENT

         This SEPARATION AGREEMENT (the "Agreement") is made and entered into as
of January 1, 2002, by and between Barnes & Noble, Inc., a Delaware corporation
("Barnes & Noble"), and GameStop Corp., a Delaware corporation and a wholly
owned subsidiary of Barnes & Noble ("GameStop"). Certain capitalized terms used
herein are defined in Section 1 of this Agreement.

                               W I T N E S S E T H

         WHEREAS, Barnes & Noble currently owns all of the issued and
outstanding GameStop Common Stock;

         WHEREAS, GameStop has filed the IPO Registration Statement with the SEC
but it has not yet become effective;

         WHEREAS, the parties currently contemplate that, reasonably promptly
following the execution of this Agreement, GameStop shall consummate the Initial
Public Offering;

         WHEREAS, immediately following the consummation of the Initial Public
Offering, Barnes & Noble shall own 100% of the outstanding Class B Common Stock
of GameStop, which will constitute in excess of 90% (by vote) of the outstanding
GameStop Capital Stock;

         WHEREAS, concurrently with the execution of this Agreement, Barnes &
Noble and GameStop are entering into the Registration Rights Agreement;

         WHEREAS, Barnes & Noble currently intends to evaluate its strategic
options with respect to its entire ownership interest in GameStop remaining
after the Initial Public Offering, including Barnes & Noble's divestiture of its
entire ownership of GameStop in a Distribution by means of a split-off, a
spin-off or some combination thereof;

         WHEREAS, Barnes & Noble and GameStop intend that the Distribution, if
it occurs, will be tax-free to Barnes & Noble and its stockholders under Section
355 of the Code; and

         WHEREAS, the parties intend in this Agreement to set forth the
principal arrangements between them regarding the Initial Public Offering and
the Distribution;

         NOW, THEREFORE, in consideration of the premises and the
representations, warranties, covenants and agreements herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties
hereby agree as follows:
<PAGE>
         1. Definitions. Capitalized terms used in this Agreement shall have the
following meaning:

         "AAA" means the American Arbitration Association or any successor
organization thereto.

         "Active Trade or Business" means the active conduct of the trade or
business (as defined in Section 355(b)(2) of the Code) conducted by GameStop
immediately prior to the applicable Distribution Date.

         "Affiliate" means a GameStop Affiliate or a Barnes & Noble Affiliate,
as the case may be.

         "Annual Financial Statements" means (A) the consolidated financial
statements of GameStop (and notes thereto) for such year, setting forth in each
case in comparative form the consolidated figures (and notes thereto) for the
previous fiscal year and all in reasonable detail and prepared in accordance
with Regulation S-X and (B) a discussion and analysis by management of
GameStop's and its Subsidiaries' financial condition and results of operations
for such year, including an explanation of any material adverse change, all in
reasonable detail and prepared in accordance with Item 303(a) of Regulation S-K.

         "Barnes & Noble Affiliate" means a Person that, after giving effect to
the Distribution, directly or indirectly through one or more intermediaries, is
Controlled by Barnes & Noble.

         "Barnes & Noble Annual Statements" means Barnes & Noble's audited
annual financial statements.

         "Barnes & Noble Auditors" means Barnes & Noble's independent certified
public accountants. As of the date of this Agreement, the Barnes & Noble
Auditors are BDO Seidman, LLP.

         "Barnes & Noble Business" means any business or operations of Barnes &
Noble or any Barnes & Noble Affiliates other than the GameStop Business.

         "Barnes & Noble Common Stock" means the common stock, par value $0.001
per share, of Barnes & Noble.

         "Barnes & Noble Disclosure Portions" means all material set forth in,
or incorporated by reference into, either the IPO Registration Statement or the
Distribution Registration Statement, as applicable, to the extent relating
exclusively to (i) Barnes & Noble and the Barnes & Noble Affiliates (excluding
GameStop and the GameStop Affiliates), (ii) the Barnes & Noble Business, (iii)
Barnes & Noble's intentions with respect to the Distribution or (iv) the terms
of the

                                       -2-
<PAGE>
Distribution, including the form, structure and terms of any transaction(s)
and/or offering(s) to effect the Distribution and the timing of and conditions
to the consummation of the Distribution.

         "Barnes & Noble Public Filings" means public earnings releases,
quarterly reports on Form 10-Q, Annual Reports to Shareholders, Annual Reports
on Form 10-K, any Current Reports on Form 8-K and any other proxy, information
and registration statements, reports, notices, prospectuses and any other
filings made by Barnes & Noble with the SEC, any national securities exchange or
otherwise made publicly available.

         "Barnes & Noble Transfer Agent" means The Bank of New York, or any
successor transfer agent and registrar for the Barnes & Noble Common Stock, in
its capacity as the transfer agent and registrar for the Barnes & Noble Common
Stock.

         "Business Day" means any day other than a Saturday, a Sunday, or a day
on which banking institutions located in the State of New York are authorized or
obligated by law or executive order to close.

         "Business" means the GameStop Business or the Barnes & Noble Business,
as the case may be.

         "Class A Common Stock" means the Class A Common Stock, par value $.001
per share, of GameStop.

         "Class B Common Stock" means the Class B Common Stock, par value $.001
per share, of GameStop.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with the rules and regulations promulgated thereunder.

         "Control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

         "Dispute Notice" means written notice of any dispute between Barnes &
Noble and GameStop arising out of or relating to this Agreement, which shall set
forth, in reasonable detail, the nature of the dispute.

         "Distribution Registration Statement" means any and all registration
statements, information statements or other documents filed by any party with
the SEC in connection with any transaction constituting part of the
Distribution, in each case as supplemented or amended from time to time.

                                       -3-
<PAGE>
         "Distribution Date" means any date or dates, as the case may be,
determined by Barnes & Noble, in its sole and absolute discretion, to be a date
on which shares of GameStop Common Stock held by Barnes & Noble are distributed
in connection with the Distribution.

         "Distribution" means the distribution of GameStop Common Stock by
Barnes & Noble in one or more transactions occurring after the Initial Public
Offering that collectively have the effect that shares of GameStop Common Stock
held by Barnes & Noble constituting Tax Control are distributed to Barnes &
Noble stockholders, whenever such transaction(s) shall occur.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, together with the rules and regulations promulgated
thereunder.

         "GAAP" means generally accepted accounting principles, consistently
applied.

         "GameStop Auditors" means GameStop's independent certified public
accountants. As of the date of this Agreement, the GameStop Auditors are BDO
Seidman, LLP.

         "GameStop Transfer Agent" means The Bank of New York, or any successor
transfer agent and registrar for the Class A Common Stock, in its capacity as
the transfer agent and registrar for the Class A Common Stock.

         "GameStop Affiliate" means a Person that, after giving effect to the
Distribution, directly or indirectly through one or more intermediaries, is
Controlled by, or is under common Control with GameStop.

         "GameStop Public Documents" means (x) all reports, notices and proxy
and information statements to be sent or made available by GameStop or any of
its Subsidiaries to their security holders, (y) all regular, periodic and other
reports to be filed under Sections 13, 14 and 15 of the Exchange Act (including
Reports on Forms 10-K, 10-Q and 8-K and Annual Reports to Shareholders), and (z)
all registration statements and prospectuses to be filed by GameStop or any of
its Subsidiaries with the SEC or any securities exchange pursuant to the listed
company manual (or similar requirements) of such exchange.

         "GameStop Common Stock" means collectively, the Class A Common Stock
and the Class B Common Stock.

         "GameStop Capital Stock" means all classes or series of capital stock
of GameStop.

         "GameStop Business" means any business or operations of GameStop or any
GameStop Affiliates, including, in all cases, any predecessor entities.

         "Indemnifying Party" means a Person that is obligated to provide
indemnification under this Agreement.

                                       -4-
<PAGE>
         "Indemnitee" means a Person that is entitled to seek indemnification
under this Agreement.

         "Indemnity Payment" means an amount that an Indemnifying Party is
required to pay to an Indemnitee under this Agreement.

         "Initial Public Offering" means the initial public offering by GameStop
of shares of GameStop Common Stock as contemplated by the IPO Registration
Statement.

         "Insurance Proceeds" means the payment received by an insured from an
insurance carrier or paid by an insurance carrier on behalf of the insured, net
of any applicable premium adjustment and tax effect.

         "IPO Registration Statement" means the Registration Statement on Form
S-1, Registration No. 333-68294 of GameStop, as supplemented and amended from
time to time.

         "IRS" means Internal Revenue Service of the U.S. Department of Treasury
or any successor agency.

         "Losses" means all losses, liabilities, claims, obligations, demands,
judgments, damages, dues, penalties, assessments, fines (civil or criminal),
costs, liens, expenses, forfeitures, settlements, or fees, reasonable attorneys'
fees and court costs, of any nature or kind, whether or not the same would
properly be reflected on a balance sheet, and "Loss" means any of these.

         "Negotiation Period" means the period of 20 Business Days following the
initial meeting of the representatives of Barnes & Noble and GameStop following
the receipt of a Dispute Notice.

         "Notice" means any notice, request, claim, demand, or other
communication under this Agreement.

         "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

         "Pre-Distribution Period" means the period of time from the date hereof
until the completion of the Distribution.

         "Proposed Acquisition Transaction" means a transaction or series of
transactions as a result of which one or more Persons would (directly or
indirectly) acquire, or have the right to acquire, from GameStop or one or more
holders of outstanding shares of GameStop Capital Stock, a number of shares of
GameStop Capital Stock that would, when combined with the number of shares of
GameStop Capital Stock sold pursuant to the Initial Public Offering,

                                       -5-
<PAGE>
comprise 50% or more of (A) the value of all outstanding shares of GameStop
Capital Stock as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the total
combined voting power of all outstanding shares of Voting Stock of GameStop as
of the date of such transaction, or in the case of a series of transactions, the
date of the last transaction of such series.

         "Quarterly Financial Statements" means (A) the consolidated financial
statements of GameStop and its Subsidiaries (and notes thereto) for such quarter
period and for the period from the beginning of the current fiscal year to the
end of such quarter, setting forth in each case in comparative form for each
such fiscal quarter of GameStop the consolidated figures (and notes thereto) for
the corresponding quarter and periods of the previous fiscal year and all in
reasonable detail and prepared in accordance with Article 10 of Regulation S-X,
and (B) a discussion and analysis by management of GameStop's and its
Subsidiaries' financial condition and results of operations for such fiscal
period, including an explanation of any material adverse change, all in
reasonable detail and prepared in accordance with Item 303(b) of Regulation S-K.

         "Registration Rights Agreement" means the Registration Rights Agreement
to be entered into between Barnes & Noble and GameStop concurrently with the
execution and delivery of this Agreement.

         "Regulation S-K" means Regulation S-K of the General Rules and
Regulations promulgated by the SEC.

         "Regulation S-X" means Regulation S-X of the General Rules and
Regulations promulgated by the SEC.

         "Representation Date" means any date on which GameStop makes any
representation (i) to the IRS or to counsel selected by Barnes & Noble for the
purpose of obtaining a Subsequent Tax Opinion/Ruling, or (ii) to Barnes & Noble
for the purpose of any determination required to be made by Barnes & Noble
pursuant to Section 4.1.

         "Representation Letters" means the representation letters and any other
materials (including the ruling request and the related supplemental submissions
to the IRS) delivered or deliverable by Barnes & Noble and others in connection
with the rendering by Barnes & Noble's tax counsel and the issuance by the IRS
of the Tax Opinions/Rulings, which to the extent related to GameStop shall be in
form and substance reasonably satisfactory to GameStop.

         "Representative" means, with respect to any Person, any of such
Person's directors, officers, employees, agents, consultants, advisors,
accountants or attorneys.

         "SEC" means the United States Securities and Exchange Commission.

                                       -6-
<PAGE>
         "Securities Act" means the Securities Act of 1933, as amended from time
to time, together with the rules and regulations promulgated thereunder.

         "Subsequent Tax Opinion/Ruling" means either (i) an opinion of counsel
selected by Barnes & Noble, in its sole and absolute discretion, confirming, in
form and substance reasonably satisfactory to Barnes & Noble, that, as a
consequence of the consummation of a subsequent transaction, no income, gain or
loss for U.S. federal income tax purposes will be recognized by Barnes & Noble,
the stockholders or former stockholders of Barnes & Noble, or any Barnes & Noble
Affiliate with respect to the Distribution, or (ii) an IRS private letter ruling
to the same effect.

         "Subsidiary" means with respect to any specified Person, any
corporation or other legal entity of which such Person or any of its
Subsidiaries Controls or owns, directly or indirectly, more than 50% of the
stock or other equity interest entitled to vote with respect to the election of
members to the board of directors or similar governing body; provided, however,
that for the purposes of this Agreement, neither GameStop nor any of the
Subsidiaries of GameStop shall be deemed to be Subsidiaries of Barnes & Noble or
of any of the Subsidiaries of Barnes & Noble.

         "Tax Opinions/Rulings" means any opinions of Tax Counsel and any
rulings by the IRS deliverable to Barnes & Noble in connection with the
Distribution.

         "Tax Agreements" means, collectively, the (i) Tax Disaffiliation
Agreement between Barnes & Noble and GameStop, dated as of January 1, 2002, as
amended from time to time and (ii) this Agreement.

         "Tax Control" means the definition of "control" set forth in Section
368(c) of the Code (or in any successor statute or provision), as such
definition may be amended from time to time.

         "Tax-Free Status of the Distribution" means the nonrecognition of
taxable gain or loss for U.S. federal income tax purposes to Barnes & Noble,
Barnes & Noble Affiliates and Barnes & Noble's stockholders in connection with
the Distribution.

         "Tax-Related Losses" means (i) all federal, state and local Taxes
(including interest and penalties thereon) imposed pursuant to any settlement,
final determination, judgment or otherwise; (ii) all accounting, legal and other
professional fees, and court costs incurred in connection with such taxes; and
(iii) all costs and expenses that may result from adverse tax consequences to
Barnes & Noble or Barnes & Noble's stockholders (including all costs, expenses
and damages associated with stockholder litigation or controversies) payable by
Barnes & Noble or Barnes & Noble Affiliates.

         "Tax" means (i) any income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental (including taxes under Section 59A of the Code), customs duties,
capital stock, franchise, profits, withholding, social

                                       -7-
<PAGE>
security (or similar),unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or
add-on, minimum, estimated, or other tax, assessment, or governmental charge of
any kind whatsoever imposed by any governmental authority, including any
interest, penalty, or addition thereto, whether disputed or not; (ii) liability
for the payment of any amounts of the type described in clause (i) above arising
as a result of being (or having been) a member of any group or being (or having
been) included or required to be included in any Tax Return related thereto; and
(iii) liability for the payment of any amounts of the type described in clause
(i) above as a result of any express or implied obligation to indemnify or
otherwise assume or succeed to the liability of any other Person.

         "Third-Party Claim" means any claim, suit, arbitration, inquiry,
proceeding or investigation by or before any court, governmental or other
regulatory or administrative agency or commission or any arbitration tribunal
asserted by a Person other than Barnes & Noble or any Barnes & Noble Affiliate
or GameStop or any GameStop Affiliate which gives rise to a right of
indemnification hereunder.

         "Underwriting Agreement" means the Underwriting Agreement between
GameStop and the underwriters relating to the Initial Public Offering, as
amended from time to time.

         "Value" means with respect to any trade or business (or portion
thereof), the fair market value of the assets constituting such trade or
business (or portion thereof), less the current liabilities associated with such
trade or business (or portion thereof), in each case determined as of the
applicable Distribution Date.

         "Voting Stock" means with respect to any Person, all classes and series
of the capital stock of such Person entitled to vote generally in the election
of directors.

         2.       The Initial Public Offering And The Distribution.

                  2.1 The Initial Public Offering. GameStop shall consult with,
and cooperate in all respects with, Barnes & Noble in connection with the
pricing of the GameStop Common Stock to be offered in the Initial Public
Offering and shall, at Barnes & Noble's direction, promptly take any and all
actions necessary or desirable to consummate the Initial Public Offering as
contemplated by the IPO Registration Statement and the Underwriting Agreement.

                  2.2 The Distribution. Barnes & Noble currently intends, from
time to time following the consummation of the Initial Public Offering, to
evaluate its strategic options with respect to its remaining ownership interest
in GameStop, including to effect the Distribution by means of a split-off, a
spin-off or some combination thereof. Barnes & Noble shall, in its sole and
absolute discretion, determine whether to proceed with all or any part of the
Distribution and all terms of the Distribution, including the form, structure
and terms of any transaction(s) and/or offering(s) to effect the Distribution
and the timing of and conditions to the consummation of the Distribution. In
addition, if Barnes & Noble decides to proceed with the Distribution, Barnes &

                                       -8-
<PAGE>
Noble may at any time and from time to time until the completion of the
Distribution modify or change the terms of the Distribution, including by
accelerating or delaying the timing of the consummation of all or part of the
Distribution. GameStop shall use its best efforts to cooperate with Barnes &
Noble in all respects to accomplish the Distribution and shall, at Barnes &
Noble's direction, promptly take any and all actions necessary or desirable to
effect the Distribution, including the registration under the Securities Act of
GameStop Common Stock on an appropriate registration form or forms to be
designated by Barnes & Noble. Barnes & Noble shall have the right to select any
investment banker(s) and manager(s) in connection with the Distribution, as well
as any financial printer, solicitation and/or exchange agent and outside counsel
for Barnes & Noble; provided that nothing herein shall prohibit GameStop from
engaging (at its own expense) its own financial, legal, accounting and other
advisors in connection with the Distribution.

                  2.3 Certain Stockholder Matters. From and after the
distribution of GameStop Common Stock in connection with any transaction(s)
included as part of the Distribution and until such time as GameStop Common
Stock is duly transferred in accordance with applicable law, GameStop shall
regard the Persons receiving GameStop Common Stock in such transaction(s) as
record holders of GameStop Common Stock in accordance with the terms of such
transaction(s) without requiring any action on the part of such Persons.
GameStop agrees that, subject to any transfers of such stock, (a) each such
holder shall be entitled to receive all dividends payable on, and exercise
voting rights and all other rights and privileges with respect to, the shares of
GameStop Common Stock then held by such holder and (b) each such holder shall be
entitled, without any action on the part of such holder, to receive one or more
certificates representing, or other evidence of ownership of, the shares of
GameStop Common Stock then held by such holder. Barnes & Noble shall cooperate,
and shall instruct the Barnes & Noble Transfer Agent to cooperate, with GameStop
and the GameStop Transfer Agent, and GameStop shall cooperate, and shall
instruct the GameStop Transfer Agent to cooperate, with Barnes & Noble and the
Barnes & Noble Transfer Agent, in connection with all aspects of the
Distribution and all other matters relating to the issuance and delivery of
certificates representing, or other evidence of ownership of, the shares of
GameStop Common Stock distributed to the holders of Barnes & Noble Common Stock
in connection with any transaction(s) included as part of the Distribution.
Following the Distribution, Barnes & Noble shall instruct the Barnes & Noble
Transfer Agent to deliver to the GameStop Transfer Agent true, correct and
complete copies of the stock and transfer records reflecting the holders of
Barnes & Noble Common Stock receiving shares of GameStop Common Stock in
connection with any transaction(s) included as part of the Distribution.

                  2.4 Prior Relationship. Except as mutually agreed between the
parties hereto, GameStop, with respect to GameStop and all of the GameStop
Affiliates, and Barnes & Noble, with respect to Barnes & Noble and all of the
Barnes & Noble Affiliates, agree to take all commercially reasonable action as
promptly as is commercially reasonable to discontinue their respective uses of
any printed material that indicates an ownership or other relationship between
or among Barnes & Noble and GameStop or any of their respective Affiliates that
has changed as

                                       -9-
<PAGE>
a result of the Initial Public Offering, the Distribution or any other
transactions contemplated hereby; provided that this Section 2.4 shall not
prohibit the use of printed material containing appropriate and accurate
references to such relationship.

                  2.5 Further Assurances Regarding the Distribution. In addition
to the actions specifically provided for elsewhere in this Agreement, if Barnes
& Noble decides to proceed with the Distribution, GameStop shall, at Barnes &
Noble's direction, use all commercially reasonable efforts to take, or cause to
be taken, all actions, and to do, or cause to be done, all things commercially
reasonably necessary, proper or expeditious under applicable laws, regulations
and agreements in order to consummate and make effective the Distribution as
promptly as reasonably practicable. Without limiting the generality of the
foregoing, GameStop shall, at Barnes & Noble's direction, cooperate with Barnes
& Noble, and execute and deliver, or use all commercially reasonable efforts to
cause to have executed and delivered, all instruments, including instruments of
conveyance, assignment and transfer, and to make all filings with, and to obtain
all consents, approvals or authorizations of, any domestic or foreign
governmental or regulatory authority requested by Barnes & Noble in order to
consummate and make effective the Distribution.

                  2.6 Abandonment of the Distribution. The parties expressly
acknowledge and agree that Barnes & Noble from time to time intends to evaluate
its strategic options with respect to its ownership interest in GameStop
remaining after the Initial Public Offering, including the Distribution. The
parties further acknowledge and agree that, should Barnes & Noble decide to
pursue the Distribution, Barnes & Noble will not be obligated in any respect to
proceed with or complete the Distribution and that Barnes & Noble may, in its
sole and absolute discretion, at any time abandon its plans to proceed with or
complete the Distribution.

         3.       Expenses.

                  3.1 General. Except as otherwise provided in this Agreement or
any other agreement entered into between the parties relating to the Initial
Public Offering or the Distribution, all costs and expenses of either party
hereto in connection with the Initial Public Offering and the Distribution shall
be paid by the party that incurs such costs and expenses.

                  3.2 Certain Expenses Relating to the Initial Public Offering.
GameStop shall be responsible for the payment of all costs, fees and expenses
relating to the Initial Public Offering, including the payment of (a) the costs,
fees and expenses of all of Barnes & Noble's financial, legal, accounting and
other advisors incurred in connection with the Initial Public Offering and (b)
any internal fees, costs and expenses incurred by Barnes & Noble or any Barnes &
Noble Affiliate in connection with the Initial Public Offering. Barnes & Noble
shall be entitled to any and all amounts received from the underwriters as
reimbursement for any costs, fees and expenses relating to the Initial Public
Offering.

                                      -10-
<PAGE>
                  3.3 Certain Expenses Relating to the Distribution. Barnes &
Noble shall generally be responsible for the payment of all costs, fees and
expenses relating to the Distribution; provided that GameStop shall be
responsible for the payment of (a) the costs, fees and expenses of all of
GameStop's financial, legal, accounting and other advisors incurred in
connection with the Distribution and (b) any internal fees, costs and expenses
incurred by GameStop or any GameStop Affiliate in connection with the
Distribution.

         4. Covenants to Preserve Tax-free Status of the Distribution. GameStop
and Barnes & Noble hereby represent and warrant to, and covenant and agree with,
each other as follows:

                  4.1      Restrictions on GameStop.

                           (a) Pre-Distribution Period. GameStop shall not take
any action (such action to include, if relevant, the issuance of GameStop
Capital Stock upon the exercise by the holders thereof of all options or
convertible securities issued by GameStop) during the Pre-Distribution Period
if, as a result of taking such action, GameStop would issue a number of shares
of GameStop Capital Stock (including by way of the exercise of stock options or
the issuance of restricted stock) that would cause Barnes & Noble to cease to
have Tax Control of GameStop, unless prior to the consummation of such
transaction Barnes & Noble has determined, in its sole and absolute discretion,
that such transaction would not jeopardize the Tax-Free Status of the
Distribution. Notwithstanding the foregoing provisions of this Section 4.1(a),
GameStop shall be permitted to issue stock options and restricted stock awards
to its employees so long as (i) GameStop repurchases sufficient shares of issued
and outstanding GameStop Capital Stock on or prior to the date such options are
exercisable or restricted stock is vested (or deemed vested) to insure that,
assuming the exercise of all exercisable options and vesting of such restricted
stock, Barnes & Noble would not cease to have Tax Control of GameStop and (ii)
GameStop provides Barnes & Noble with prior written notification of the
procedures by which GameStop intends to comply with its obligation described in
clause (i) above and Barnes & Noble approves of such procedures (which approval
shall not be unreasonably withheld).

                           (b) Proposed Acquisition Transactions. From the date
of this Agreement until the first day after the two-year anniversary of the
latest Distribution Date, GameStop shall not enter into any Proposed Acquisition
Transaction or, to the extent GameStop has the right to prohibit any Proposed
Acquisition Transaction, permit any Proposed Acquisition Transaction to occur
unless prior to the consummation of such Proposed Acquisition Transaction,
Barnes & Noble has determined, in its sole and absolute discretion, that such
Proposed Acquisition Transaction would not jeopardize the Tax-Free Status of the
Distribution.

                           (c) Continuation of Active Trade or Business. From
the date of this Agreement until the first day after the two-year anniversary of
the latest Distribution Date:

                                      -11-
<PAGE>
                                    (i) GameStop shall continue to conduct the
Active Trade or Business;

                                    (ii) subject to clause (c)(iii) below,
GameStop shall not (A) liquidate, dispose of, or otherwise discontinue the
conduct of any portion of the Active Trade or Business with a Value in excess of
$25 million or (B) dispose of any business or assets that would cause GameStop
to be operated in a manner inconsistent in any material respect with the
business purposes for the Distribution as set forth in the Representation
Letters and any Tax Opinions/Rulings, in each case unless Barnes & Noble has
determined, in its sole and absolute discretion, that such liquidation,
disposition or discontinuance would not jeopardize the Tax-Free Status of the
Distribution;

                                    (iii) GameStop shall not under any
circumstances liquidate, dispose of, or otherwise discontinue the conduct of any
portion of the Active Trade or Business if such liquidation, disposition or
discontinuance would breach Section 4.1(d). GameStop shall continue the active
conduct of the Active Trade or Business primarily through officers and employees
of GameStop or its Subsidiaries (and not primarily through independent
contractors) who are not also officers or employees of Barnes & Noble or of any
Barnes & Noble Affiliates. Notwithstanding the foregoing, (A) except with
respect to any corporation or other entity the status of which as the direct
owner of an active trade or business is material to the Tax-Free Status of the
Distribution, liquidations of any of GameStop's Subsidiaries into GameStop or
one or more Subsidiaries directly or indirectly controlled by GameStop shall not
be deemed to breach this Section 4.1(c) and (B) GameStop shall not be prohibited
from liquidating, disposing of or otherwise discontinuing the conduct of one or
more trades or businesses that constituted part of the Active Trade or Business,
or any portion thereof, provided that, in the case of this clause (B), the
aggregate Value of such trades or businesses, or portions thereof, so
liquidated, disposed of or discontinued shall not exceed $25 million. For
purposes of the foregoing, asset retirements, sale-leaseback arrangements and
discontinuances of product lines within a trade or business the active conduct
of which is continued shall not be deemed a liquidation, disposition or
discontinuance of a trade or business or portion thereof;

                                    (iv) solely for purposes of this Section
4.1(c), GameStop shall not be treated as directly or indirectly controlling a
Subsidiary unless GameStop owns, directly or indirectly, shares of capital stock
of such Subsidiary constituting Tax Control.

                           (d)      Continuity of Business.

                                    (i) From the date of this Agreement until
the first day after the two-year anniversary of the Distribution Date, (A)
GameStop shall not voluntarily dissolve or liquidate, and (B) except in the
ordinary course of business, neither GameStop nor any Subsidiaries directly or
indirectly controlled by GameStop shall sell, transfer, or otherwise dispose of
or agree to dispose of assets (including, for such purpose, any shares of
capital stock of such Subsidiaries) that, in the aggregate, constitute more than
(x) 60% of the gross assets of

                                      -12-
<PAGE>
GameStop or (y) 60% of the consolidated gross assets of GameStop and such
Subsidiaries, unless prior to the consummation of such transaction Barnes &
Noble has determined, in its sole and absolute discretion, that such transaction
would not jeopardize the Tax-Free Status of the Distribution. The amount of
gross assets of GameStop and such Subsidiaries shall be based on the fair market
value of each such asset as of the applicable Distribution Date.

                                    (ii) Sales, transfers or other dispositions
by GameStop or any of its Subsidiaries to GameStop or one or more Subsidiaries
directly or indirectly controlled by GameStop shall not be included in any
determinations under this Section 4.1(d) of whether such 60% or more of the
gross assets of GameStop or 60% of the consolidated gross assets of GameStop and
such Subsidiaries have been sold, transferred or otherwise disposed of.

                                    (iii) Solely for purposes of this Section
4.1(d), GameStop shall not be treated as directly or indirectly controlling a
Subsidiary unless GameStop owns, directly or indirectly, shares of capital stock
of such Subsidiary constituting Tax Control.

                           (e) Discharge of Intra-company Indebtedness. Prior to
the first Distribution Date, GameStop shall fully discharge and satisfy all of
the then existing indebtedness owed to Barnes & Noble or any Barnes & Noble
Affiliate (other than payables incurred in the ordinary course of the business).
From such date until the first day after the two-year anniversary of the latest
Distribution Date, GameStop shall not, and shall not permit any of its
Subsidiaries to, create, incur, assume or allow to exist any indebtedness with
Barnes & Noble or any Barnes & Noble Affiliate.

                           (f) Miscellaneous Actions. From the date of this
Agreement until the first day after the two-year anniversary of the latest
Distribution Date, GameStop shall not take, or permit any of its Subsidiaries to
take, any other actions or enter into any transaction or series of transactions
or agree to enter into any other transactions that would be reasonably likely to
jeopardize the Tax-Free Status of the Distribution, including any action or
transaction that would be reasonably likely to be inconsistent with any
representation made in the Representation Letters, unless prior to the
consummation of such action or transaction Barnes & Noble has determined, in its
sole and absolute discretion, that such action or transaction would not
jeopardize the Tax-Free Status of the Distribution. Notwithstanding the
foregoing, if and to the extent that any action or transaction is described in
and permitted pursuant to Sections 4.1(a), (b), (c), (d) and (e), such action or
transaction shall not be prohibited by this Section 4.1(f).

                           (g) Permitted Actions and Transactions.
Notwithstanding the foregoing, the provisions of Section 4.1 shall not prohibit
GameStop from implementing any transaction upon which the IRS has granted a
favorable ruling in, or which is described in reasonable detail in, any Tax
Opinions/Rulings.

                                      -13-
<PAGE>
                  4.2      Cooperation and Other Covenants.

                           (a) Notice of Subsequent GameStop Actions. Each of
GameStop and Barnes & Noble shall furnish the other with a copy of any ruling
requests or other documents delivered to the IRS that relates to the
Distribution or that could otherwise be reasonably expected to have an effect on
the Tax-Free Status of the Distribution.

                           (b) Cooperation.

                                    (i) Each of GameStop and Barnes & Noble
shall cooperate with the other and shall take (or refrain from taking) all such
actions as the other may reasonably request in connection with obtaining any
Barnes & Noble determination referred to in Section 4.1. Such cooperation shall
include providing any information and/or representations reasonably requested by
the other to enable either party (or counsel for such party) to obtain and
maintain any Subsequent Tax Opinion/Ruling that would permit any action
described in Section 4.1 to be taken by GameStop or a GameStop Affiliate. From
and after any Representation Date in connection with obtaining any such
determination or the receipt of a Subsequent Tax Opinion/Ruling and until the
first day after the two-year anniversary of the date of such determination or
receipt, neither party shall take (nor shall it refrain from taking) any action
that would have caused such representation to be untrue unless the other party
has determined, in its sole and absolute discretion, that such action would not
jeopardize the Tax-Free Status of the Distribution.

                                    (ii) In the event that GameStop notifies
Barnes & Noble that it desires to take one of the actions described in Section
4.1 and Barnes & Noble concludes that such action might jeopardize the Tax-Free
Status of the Distribution, Barnes & Noble shall, at the request of GameStop,
elect either to (i) use all commercially reasonable efforts to obtain a
Subsequent Tax Opinion/Ruling that would permit GameStop to take the specified
action, and GameStop shall cooperate in connection with such efforts, or (ii)
provide all reasonable cooperation to GameStop in connection with GameStop
obtaining such a Subsequent Tax Opinion/Ruling in form and substance reasonably
satisfactory to Barnes & Noble; provided, however, that the reasonable costs and
expenses incurred by Barnes & Noble of obtaining any such Subsequent Tax
Opinion/Ruling shall be borne by Barnes & Noble.

                                    (iii) In the event that Barnes & Noble, at
any time prior to the latest Distribution Date, ceases to own GameStop Capital
Stock constituting Tax Control and such failure was not caused by any breach by
GameStop of any of its representations, warranties, covenants or other
agreements made pursuant to this Agreement or otherwise, GameStop shall
cooperate with Barnes & Noble and shall take (or refrain from taking) all
actions as Barnes & Noble may reasonably request so as to permit Barnes & Noble
to regain ownership of GameStop Capital Stock which constitutes Tax Control and
would not jeopardize the Tax-Free Status of the Distribution.

                                      -14-
<PAGE>
                                    (iv) In the event that Barnes & Noble, at
any time prior to the latest Distribution Date, ceases to own GameStop Capital
Stock constituting Tax Control and such failure was caused by any breach by
GameStop of any of its representations, warranties, covenants or other
agreements made pursuant to this Agreement or otherwise, in addition to any
monetary damages or other indemnification obligations owing pursuant to Section
4.3 hereof, GameStop shall promptly take (or refrain from taking) all actions,
including the purchase of GameStop Capital Stock in the open market, necessary
so as to permit Barnes & Noble to regain ownership of GameStop Capital Stock
which constitutes Tax Control and would not jeopardize the Tax-Free Status of
the Distribution.

                           (c)      Notice.

                                    (i) Until all restrictions set forth in
Section 4.1 have expired, GameStop shall give Barnes & Noble written notice of
any intention to effect or permit an action or transaction described in Section
4.1 and which is prohibited thereunder at such time within a period of time
reasonably sufficient to enable Barnes & Noble (A) to make the determination
referred to in Section 4.1 or (B) to prepare and seek any Subsequent Tax
Opinion/ Ruling in connection with such proposed action or transaction. Each
such notice by GameStop shall set forth the terms and conditions of the proposed
action or transaction, including, as applicable, the nature of any related
action proposed to be taken by the Board of Directors of GameStop, the
approximate number of shares of GameStop Capital Stock proposed to be
transferred or issued, the approximate Value of GameStop's assets (or assets of
any of GameStop's Subsidiaries) proposed to be transferred, the proposed
timetable for such action or transaction, and the number of shares of GameStop
Capital Stock otherwise then owned by the other party to the proposed action or
transaction, all with sufficient particularity to enable Barnes & Noble to make
any such required determination, including information required to prepare and
seek a Subsequent Tax Opinion/Ruling in connection with such proposed action or
transaction.

                                    (ii) Promptly, but in any event within 30
Business Days after Barnes & Noble receives such written notice from GameStop,
Barnes & Noble shall evaluate such information and notify GameStop in writing of
(A) such determination or (B) of Barnes & Noble's intent to seek a Subsequent
Tax Opinion/Ruling and the proposed date for submission of the request therefor,
which date shall not be more than 45 days after the date Barnes & Noble so
notifies GameStop of Barnes & Noble's intent to seek a Subsequent Tax
Opinion/Ruling, provided that such 45-day period shall be appropriately extended
for any period of noncompliance by GameStop with Section 4.2(b). If Barnes &
Noble makes a determination that an action or transaction described in Section
4.1 would jeopardize the Tax-Free Status of the Distribution, such notice to
GameStop shall set forth, in reasonable detail, the reasons therefor. Barnes &
Noble shall notify GameStop promptly, but in any event within two Business Days,
after the receipt of a Subsequent Tax Opinion/Ruling.

                                      -15-
<PAGE>
                  4.3      Indemnification For Tax Liabilities.

                           (a) Indemnification. Notwithstanding any other
provision of this Agreement or any provision of any of the Tax Agreements to the
contrary but subject to Section 4.3(b), GameStop shall indemnify, defend and
hold harmless Barnes & Noble and each Barnes & Noble Affiliate (or any successor
to any of them) against any and all Tax-Related Losses incurred by Barnes &
Noble in connection with any proposed tax assessment or tax controversy with
respect to the Distribution to the extent caused by any breach by GameStop of
any of its representations, warranties or covenants made pursuant to this
Agreement. All interest or penalties incurred in connection with such
Tax-Related Losses shall be computed for the time period up to and including the
date that GameStop pays its indemnification obligation in full.

                           (b) Exceptions to GameStop's Indemnification. If
Barnes & Noble (i) makes a determination pursuant to any clause of Section 4.1,
on the basis of a Subsequent Tax Opinion/Ruling or otherwise, and (ii) delivers
to GameStop written notice of such determination pursuant to Section 4.2(c)(ii),
GameStop shall have no obligation pursuant to Section 4.3(a), except to the
extent that any Tax-Related Losses so incurred resulted from the inaccuracy,
incorrectness or incompleteness of any representation provided by GameStop upon
which such Subsequent Tax Opinion/Ruling and/or determination was based.

                           (c) Timing and Method of Tax Indemnification
Payments. GameStop shall pay any amount due and payable to Barnes & Noble
pursuant to this Section 4.3 on or before the 15th day following the earlier of
agreement or determination that such amount is due and payable to Barnes &
Noble. All payments pursuant to this Section 4.3 shall be made by wire transfer
to the bank account designated by Barnes & Noble for such purpose, and on the
date of such wire transfer GameStop shall give Barnes & Noble notice of the
transfer.

                  4.4      Procedure for Indemnification for Tax Liabilities.

                           (a) Notice of Claim. If Barnes & Noble receives
notice of the assertion of any Third-Party Claim with respect to which GameStop
may be obligated under Section 4.3 to provide indemnification, Barnes & Noble
shall give GameStop notice thereof (together with a copy of such Third-Party
Claim, process or other legal pleading) promptly after becoming aware of such
Third-Party Claim; provided, however, that the failure of Barnes & Noble to give
notice as provided in this Section shall not relieve GameStop of its obligations
under Section 4.3, except to the extent that GameStop is actually prejudiced by
such failure to give notice. Such notice shall describe such Third-Party Claim
in reasonable detail.

                           (b) Obligation of Indemnifying Party.

                                    (i) Barnes & Noble and GameStop shall
jointly control the defense of, and cooperate with each other with respect to
defending, any Third-Party Claim with respect to which GameStop is obligated
under Section 4.3 to provide indemnification, provided

                                      -16-
<PAGE>
that GameStop shall forfeit such joint control right with respect to a
particular Third-Party Claim if GameStop or any GameStop Affiliate makes any
public statement or filing, or takes any action (including the filing of any
submission or pleading, or the giving of a deposition or production of
documents, in any administrative or court proceeding) in connection with such
Third-Party Claim that is inconsistent in any material respect with any
representation or warranty made by GameStop in this Agreement, the Tax
Opinions/Rulings, or the Representation Letters.

                                    (ii) GameStop and Barnes & Noble shall
exercise their rights to jointly control the defense of any such Third-Party
Claim solely for the purpose of defeating such Third-Party Claim and, unless
required by applicable law, neither GameStop nor Barnes & Noble shall make any
statements or take any actions that could reasonably result in the shifting of
liability for any Losses arising out of such Third-Party Claim from the party
making such statement or taking such action (or any of its Affiliates) to the
other party (or any of its Affiliates).

                                    (iii) Statements made or actions taken by
either GameStop or Barnes & Noble in connection with the defense of any such
Third-Party Claim shall not prejudice the rights of such party in any subsequent
action or proceeding between the parties.

                                    (iv) If either Barnes & Noble or GameStop
fails to jointly defend any such Third-Party Claim, the other party shall solely
defend such Third-Party Claim and the party failing to jointly defend shall use
commercially reasonable efforts to cooperate with the other party in its defense
of such Third-Party Claim; provided, however, that Barnes & Noble may not
compromise or settle any such Third-Party Claim without the prior written
consent of GameStop, which consent shall not be unreasonably withheld or
delayed. All costs and expenses of either party in connection with, and during
the course of, the joint control of the defense of any such Third-Party Claim
shall be initially paid by the party that incurs such costs and expenses. Such
costs and expenses shall be reallocated and reimbursed in accordance with the
respective indemnification obligations of the parties at the conclusion of the
defense of such Third-Party Claim.

                  4.5 Arbitration. Any dispute between the parties arising out
of or relating to this Section 4, including the interpretation of this Section
4, or any actual or purported breach of this Section 4, shall be resolved only
in accordance with the following provisions:

                           (a) Negotiation. Barnes & Noble and GameStop shall
attempt in good faith to resolve any such dispute promptly through negotiations
of the parties. In the event of any such dispute, either party may deliver a
Dispute Notice to the other party, and within 20 Business Days after the receipt
of such Dispute Notice, the appropriate representatives of Barnes & Noble and
GameStop shall meet to attempt to resolve such dispute. If such dispute has not
been resolved within the Negotiation Period, or if one of the parties fails or
refuses to negotiate such dispute, the issue shall be settled by arbitration
pursuant to Section 4.5(b). The results of such arbitration shall be final and
binding on the parties.

                                      -17-
<PAGE>
                           (b) Arbitration Procedure. Either party may initiate
arbitration with regard to such dispute by giving the other party written notice
either (i) at any time following the end of the Negotiation Period, or (ii) if
the parties do not meet within 20 Business Days after the receipt of the Dispute
Notice, at any time thereafter. The arbitration shall be conducted by three
arbitrators in accordance with the applicable rules of the AAA then in force and
effect, except as otherwise provided in this Section 4.5. Within 20 days
following receipt of the written notice of arbitration, Barnes & Noble and
GameStop shall each appoint one arbitrator. The two arbitrators so appointed
shall appoint the third arbitrator. If either Barnes & Noble or GameStop shall
fail to appoint an arbitrator within such 20-day period, the arbitration shall
be by the sole arbitrator appointed by the other party. Whether selected by
Barnes & Noble and GameStop or otherwise, each arbitrator selected to resolve
such dispute shall be a tax attorney or tax accountant who is generally
recognized in the tax community as a qualified and competent tax practitioner
with experience in the tax area involved in the issue or issues to be resolved.
Such arbitrators shall be empowered to determine whether GameStop is required to
indemnify Barnes & Noble pursuant to Section 4.3 and to determine the amount of
the related indemnification payment. Each of Barnes & Noble and GameStop shall
bear 50% of the aggregate expenses of the arbitrators. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-14. The place
of arbitration shall be New York, New York. The final decision of the
arbitrators shall be rendered no later than one year from the date of the
written notice of arbitration.

                  4.6 Exclusive Remedies. Except for the right to pursue
equitable remedies, the remedies provided in this Section 4 shall be deemed the
sole and exclusive remedies of the parties with respect to the subject matters
of the indemnification provisions of this Section 4.

         5.       Certain Other Covenants.

                  5.1      Financial and Other Information.

                           (a) Financial Information. GameStop agrees that, for
so long as Barnes & Noble is required to consolidate GameStop's results of
operations and financial position or to account for its investment in GameStop
under the equity method of accounting (determined in accordance with generally
accepted accounting principles consistently applied):

                                    (i) GameStop shall, and shall cause each of
its Subsidiaries to, maintain a system of internal accounting controls that will
provide reasonable assurance that: (A) GameStop's and such Subsidiaries' books,
records and accounts fairly reflect all transactions and dispositions of assets
and (B) the specific objectives of accounting control are achieved.

                                    (ii) GameStop shall, and shall cause each of
its Subsidiaries to, maintain a fiscal year comprised of 52 or 53 weeks, ending
on the Saturday closest to the last day of January.

                                      -18-
<PAGE>
                                    (iii) GameStop shall deliver to Barnes &
Noble a trial balance submission, which shall include amounts relating to each
of its Subsidiaries, in such format and detail as Barnes & Noble may request,
(A) with respect to each month (other than the last month of each fiscal year),
within nine Business Days following the last day of each such month, and (B)
with respect to each fiscal year, within 14 Business Days following the end of
such fiscal year.

                                    (iv) As soon as practicable, and in any
event within nine Business Days after the end of each of the first three fiscal
quarters in each fiscal year of GameStop and within 14 Business Days after the
end of each such fiscal year, GameStop shall deliver to Barnes & Noble a
consolidated income statement and balance sheet for GameStop and its
Subsidiaries for such fiscal quarter or year, as the case may be.

                                    (v) As soon as practicable, and in any event
within 35 days after the end of each of the first three fiscal quarters in each
fiscal year of GameStop and no later than five days before GameStop intends to
file its Quarterly Financial Statements with the SEC, GameStop shall deliver to
Barnes & Noble drafts of such Quarterly Financial Statements. No later than the
earlier of (x) two Business Days prior to the date GameStop publicly files the
Quarterly Financial Statements with the SEC or otherwise makes such Quarterly
Financial Statements publicly available or (y) two Business Days prior to the
date on which Barnes & Noble has notified GameStop that it intends to file its
quarterly financial statements with the SEC, GameStop shall deliver to Barnes &
Noble the final form of the Quarterly Financial Statements, certified by the
chief financial officer of GameStop as presenting fairly, in all material
respects, the financial condition and results of operations of GameStop and its
Subsidiaries; provided that GameStop may continue to revise such Quarterly
Financial Statements prior to the filing thereof in order to make corrections
and non-substantive changes which corrections and changes shall be delivered by
GameStop to Barnes & Noble as soon as practicable, and in any event within eight
hours thereafter; and, provided, further, that Barnes & Noble and GameStop
financial representatives shall actively consult with each other regarding any
changes (whether or not substantive) which GameStop may consider making to its
Quarterly Financial Statements and related disclosures during the three Business
Days immediately prior to any anticipated filing with the SEC, and GameStop
shall obtain Barnes & Noble's consent prior to making any change to GameStop's
Quarterly Financial Statements or related disclosures which would have an effect
upon Barnes & Noble's financial statements or related disclosures. In addition
to the foregoing, no Quarterly Financial Statement or any other document which
refers, or contains information with respect, to the ownership of GameStop by
Barnes & Noble, the separation of GameStop from Barnes & Noble or the
Distribution shall be filed with the SEC or otherwise made public by GameStop or
any of its Subsidiaries without the prior written consent of Barnes & Noble.

                                    (vi) GameStop shall deliver to Barnes &
Noble as soon as practicable, and in any event within 45 days after the end of
each fiscal year of GameStop and no later than 10 days before GameStop intends
to file its Annual Financial Statements with the SEC,

                                      -19-
<PAGE>
drafts of the Annual Financial Statements. GameStop shall deliver to Barnes &
Noble all revisions to such drafts as soon as any such revisions are prepared or
made. No later than the earlier of (1) five Business Days prior to the date
GameStop publicly files the Annual Financial Statements with the SEC or
otherwise makes such Annual Financial Statements publicly available or (2) five
Business Days prior to the date on which Barnes & Noble has notified GameStop
that it intends to file its annual financial statements with the SEC, GameStop
shall deliver to Barnes & Noble the final form of the Annual Financial
Statements certified by the chief financial officer of GameStop as presenting
fairly, in all material respects, the financial condition and results of
operations of GameStop and its Subsidiaries; provided that GameStop may continue
to revise such Annual Financial Statements prior to the filing thereof in order
to make corrections and non-substantive changes which corrections and changes
shall be delivered by GameStop to Barnes & Noble as soon as practicable, and in
any event within eight hours thereafter; and, provided, further, that Barnes &
Noble and GameStop financial representatives shall actively consult with each
other regarding any changes (whether or not substantive) which GameStop may
consider making to its Annual Financial Statements and related disclosures
during the three Business Days immediately prior to any anticipated filing with
the SEC, and GameStop shall obtain Barnes & Noble's consent prior to making any
change to GameStop's Annual Financial Statements or related disclosures which
would have an effect upon Barnes & Noble's financial statements or related
disclosures. In addition to the foregoing, no Annual Financial Statement or any
other document which refers, or contains information with respect, to the
ownership of GameStop by Barnes & Noble, the separation of GameStop from Barnes
& Noble or the Distribution shall be filed with the SEC or otherwise made public
by GameStop or any of its Subsidiaries without the prior written consent of
Barnes & Noble. In any event, GameStop shall deliver to Barnes & Noble, no later
than 80 days after the end of each fiscal year of GameStop, the final form of
the Annual Financial Statements accompanied by an opinion thereon by GameStop's
independent certified public accountants.

                                    (vii) GameStop shall deliver to Barnes &
Noble all Quarterly and Annual Financial Statements of each Subsidiary of
GameStop which is itself required to file financial statements with the SEC or
otherwise make such financial statements publicly available, with such financial
statements to be provided in the same manner and detail and on the same time
schedule as those financial statements of GameStop required to be delivered to
Barnes & Noble pursuant to this Section 5.1.

                                    (viii) All information provided by GameStop
or any of its Subsidiaries to Barnes & Noble pursuant to Sections 5.1(a)(iii)
through (vii) inclusive shall be consistent in terms of format and detail and
otherwise with the procedures in effect on the date hereof with respect to the
provision of such financial information by GameStop and its Subsidiaries, as
applicable, to Barnes & Noble (and, where appropriate, as presently presented in
financial reports to Barnes & Noble's Board of Directors), with such changes
therein as may be requested by Barnes & Noble from time to time consistent with
changes in reporting by sectors and Subsidiaries of Barnes & Noble.

                                      -20-
<PAGE>
                                    (ix) GameStop and each of its Subsidiaries
which files information with the SEC shall deliver to Barnes & Noble: (A) as
soon as the same are prepared, substantially final drafts of GameStop Public
Documents, and (B) as soon as practicable, but in no event later than four
Business Days prior to the date the same are printed, sent or filed, whichever
is earliest, final copies of all such GameStop Public Documents; provided that
GameStop may continue to revise such GameStop Public Documents prior to the
filing thereof in order to make corrections and non-substantive changes which
corrections and changes shall be delivered by GameStop to Barnes & Noble as soon
as practicable, and in any event within eight hours thereafter; and, provided,
further, that Barnes & Noble and GameStop financial representatives shall
actively consult with each other regarding any changes (whether or not
substantive) which GameStop may consider making to any of its GameStop Public
Documents and related disclosures prior to any anticipated filing with the SEC,
and GameStop shall obtain Barnes & Noble's consent prior to making any change to
its GameStop Public Documents or related disclosures which would have an effect
upon Barnes & Noble's financial statements or related disclosures. In addition
to the foregoing, no GameStop Public Document or any other document which
refers, or contains information with respect, to the ownership of GameStop by
Barnes & Noble, the separation of GameStop from Barnes & Noble or the
Distribution shall be filed with the SEC or otherwise made public by GameStop or
any of its Subsidiaries without the prior written consent of Barnes & Noble.

                                    (x) GameStop shall, as promptly as
practicable, deliver to Barnes & Noble copies of all annual and other budgets
and financial projections (consistent in terms of format and detail and
otherwise with the procedures in effect on the date hereof) relating to GameStop
or any of its Subsidiaries and shall provide Barnes & Noble an opportunity to
meet with management of GameStop to discuss such budgets and projections.

                                    (xi) With reasonable promptness, GameStop
shall deliver to Barnes & Noble such additional financial and other information
and data with respect to GameStop and its Subsidiaries and their business,
properties, financial positions, results of operations and prospects as from
time to time may be reasonably requested by Barnes & Noble.

                                    (xii) Not later than one day prior to
issuance, GameStop shall deliver to Barnes & Noble copies of substantially final
drafts of all press releases and other statements to be made available by
GameStop or any of its Subsidiaries to employees of GameStop or any of its
Subsidiaries or to the public concerning material developments in the business,
properties, earnings, results of operations, financial condition or prospects of
GameStop or any of its Subsidiaries or the relationship between (A) GameStop or
any of its Subsidiaries and (B) Barnes & Noble or any of its Affiliates. In
addition, prior to the issuance of any such press release or public statement,
GameStop shall consult with Barnes & Noble regarding any changes (other than
typographical or other similar minor changes) to such substantially final
drafts. Immediately following the issuance thereof, GameStop shall deliver to
Barnes & Noble copies of final drafts of all press releases and other public
statements. GameStop and Barnes & Noble will consult with each other as to the
timing of their annual and

                                      -21-
<PAGE>
quarterly earnings releases and will give each other an opportunity to review
the information therein relating to GameStop and its Subsidiaries and to comment
thereon.

                                    (xiii) GameStop shall cooperate fully, and
cause its accountants to cooperate fully, with Barnes & Noble to the extent
requested by Barnes & Noble in the preparation of Barnes & Noble Public Filings.
GameStop agrees to provide to Barnes & Noble all information that Barnes & Noble
reasonably requests in connection with any Barnes & Noble Public Filings or
that, in the judgment of Barnes & Noble's legal department, is required to be
disclosed or incorporated by reference therein under any law, rule or
regulation. Such information shall be provided by GameStop in a timely manner on
the dates requested by Barnes & Noble (which may be earlier than the dates on
which GameStop otherwise would be required hereunder to have such information
available) to enable Barnes & Noble to prepare, print and release all Barnes &
Noble Public Filings on such dates as Barnes & Noble shall determine. GameStop
shall cause its accountants to consent to any reference to them as experts in
any Barnes & Noble Public Filings required under any law, rule or regulation. If
and to the extent requested by Barnes & Noble, GameStop shall diligently and
promptly review all drafts of such Barnes & Noble Public Filings and prepare in
a diligent and timely fashion any portion of such Barnes & Noble Public Filing
pertaining to GameStop. Prior to any printing or public release of any Barnes &
Noble Public Filing, an appropriate executive officer of GameStop shall, if
requested by Barnes & Noble, certify that the information relating to GameStop,
any GameStop Affiliate or the GameStop Business in such Barnes & Noble Public
Filing is accurate, true and correct in all material respects. Unless required
by law, rule or regulation, GameStop shall not publicly release any financial or
other information which conflicts with the information with respect to GameStop,
any GameStop Affiliate or the GameStop Business that is included in any Barnes &
Noble Public Filing without Barnes & Noble's prior written consent. Prior to the
release or filing thereof, Barnes & Noble shall provide GameStop with a draft of
any portion of a Barnes & Noble Public Filing containing information relating to
GameStop and its Subsidiaries and shall give GameStop an opportunity to review
such information and comment thereon; provided that Barnes & Noble shall
determine in its sole discretion the final form and content of all Barnes &
Noble Public Filings.

                           (b) Auditors and Audits; Annual Statements and
Accounting. GameStop agrees that, for so long as Barnes & Noble is required to
consolidate GameStop's results of operations and financial position or to
account for its investment in GameStop under the equity method of accounting (in
accordance with generally accepted accounting principles):

                                    (i) GameStop shall use its best efforts to
enable the GameStop Auditors to complete their audit such that they will date
their opinion on GameStop's audited annual financial statements on the same date
that the Barnes & Noble Auditors date their opinion on Barnes & Noble Annual
Statements and to enable Barnes & Noble to meet its timetable for the printing,
filing and public dissemination of the Barnes & Noble Annual Statements.

                                      -22-
<PAGE>
                                    (ii) GameStop shall provide to Barnes &
Noble on a timely basis all information that Barnes & Noble reasonably requires
to meet its schedule for the preparation, printing, filing, and public
dissemination of the Barnes & Noble Annual Statements. Without limiting the
generality of the foregoing, GameStop will provide all required financial
information with respect to GameStop and its Subsidiaries to GameStop's Auditors
in a sufficient and reasonable time and in sufficient detail to permit
GameStop's Auditors to take all steps and perform all reviews necessary to
provide sufficient assistance to Barnes & Noble's Auditors with respect to
information to be included or contained in the Barnes & Noble Annual Statements.

                                    (iii) GameStop shall authorize GameStop's
Auditors to make available to Barnes & Noble's Auditors both the personnel who
performed or are performing the annual audit of GameStop and work papers related
to the annual audit of GameStop, in all cases within a reasonable time prior to
GameStop's Auditors' opinion date, so that the Barnes & Noble Auditors are able
to perform the procedures they consider necessary to take responsibility for the
work of the GameStop Auditors as it relates to the Barnes & Noble Auditors'
report on Barnes & Noble Annual Statements, all within sufficient time to enable
Barnes & Noble to meet its timetable for the printing, filing and public
dissemination of the Barnes & Noble Annual Statements.

                                    (iv) GameStop shall provide Barnes & Noble's
internal auditors access to GameStop's and its Subsidiaries' books and records
so that Barnes & Noble may conduct reasonable audits relating to the financial
statements provided by GameStop pursuant hereto as well as to the internal
accounting controls and operations of GameStop and its Subsidiaries.

                                    (v) GameStop shall give Barnes & Noble as
much prior notice as reasonably practical of any proposed determination of, or
any significant changes in, its accounting estimates or accounting principles
from those in effect on the date hereof. GameStop will consult with Barnes &
Noble and, if requested by Barnes & Noble, GameStop will consult with Barnes &
Noble's independent public accountants with respect thereto. GameStop will not
make any such determination or changes without Barnes & Noble's prior written
consent if such a determination or a change would be sufficiently material to be
required to be disclosed in GameStop's financial statements as filed with the
SEC or otherwise publicly disclosed therein.

                                    (vi) Notwithstanding clause (vi) above,
GameStop shall make any changes in its accounting estimates or accounting
principles that are requested by Barnes & Noble in order for GameStop's
accounting estimates and principles to be consistent with those of Barnes &
Noble.

                                            Nothing in this Section 5.1 shall
require GameStop to violate any agreement with any of its customers regarding
the confidentiality of commercially sensitive information relating to that
customer or its business; provided that in the event that GameStop is required
under this Section 5.1 to disclose any such information, GameStop shall

                                      -23-
<PAGE>
use all commercially reasonable efforts to seek to obtain such customer's
consent to the disclosure of such information.

                  5.2 Other Covenants. GameStop hereby covenants and agrees
that, for so long as Barnes & Noble beneficially owns at least 50% (by vote) of
the outstanding shares of GameStop Common Stock:

                           (a) GameStop shall not, without the prior written
consent of Barnes & Noble (which it may withhold in its sole and absolute
discretion), take, or cause to be taken, directly or indirectly, any action,
including making or failing to make any election under the law of any state,
which has the effect, directly or indirectly, of restricting or limiting the
ability of Barnes & Noble to freely sell, transfer, assign, pledge or otherwise
dispose of shares of GameStop Common Stock or would restrict or limit the rights
of any transferee of Barnes & Noble as a holder of GameStop Common Stock.
Without limiting the generality of the foregoing, GameStop shall not, without
the prior written consent of Barnes & Noble (which it may withhold in its sole
and absolute discretion), take any action, or take any action to recommend to
its stockholders any action, which would among other things, limit the legal
rights of, or deny any benefit to, Barnes & Noble as a GameStop stockholder in a
manner not applicable to GameStop stockholders generally.

                           (b) GameStop shall not, without the prior written
consent of Barnes & Noble (which it may withhold in its sole and absolute
discretion), issue any shares of GameStop Capital Stock or any rights, warrants
or options to acquire GameStop Capital Stock (including securities convertible
or exchangeable for GameStop Capital Stock), if after giving effect to such
issuances and considering all of the shares of GameStop Capital Stock acquirable
pursuant to such rights, warrants and options to be outstanding on the date of
such issuance (whether or not then exercisable), Barnes & Noble would own less
than 50% (by vote) of the then outstanding shares of GameStop Common Stock.

                           (c) To the extent that Barnes & Noble now or
hereafter is a party to any contracts or agreements that provide that certain
actions of Barnes & Noble's Subsidiaries may result in Barnes & Noble being in
breach of or in default under such agreements and Barnes & Noble has advised
GameStop of the existence, and has furnished GameStop with copies, of such
contracts or agreements (or the relevant portions thereof), GameStop shall not
take any actions that reasonably could result in Barnes & Noble being in breach
of or in default under any such contract or agreement. GameStop hereby
acknowledges and agrees that Barnes & Noble has furnished it with copies of each
such contract or agreement (or the relevant portion thereof) currently in
effect. The parties acknowledge and agree that, after the date hereof, Barnes &
Noble may in good faith (and not solely with the intention of imposing
restrictions on GameStop pursuant to this covenant) enter into additional
contracts or agreements that provide that certain actions of Barnes & Noble's
Subsidiaries may result in Barnes & Noble being in breach of or in default under
such agreements. GameStop agrees to keep confidential and not to disclose any
information provided to it pursuant to this Section 5.2(c).

                                      -24-
<PAGE>
         6.       Indemnification.

                  6.1 Indemnification by GameStop. Subject to Section 6.3,
GameStop shall indemnify, defend and hold harmless Barnes & Noble, all Barnes &
Noble Affiliates and each of their respective directors, officers and employees
(in their capacities as such), from and against (i) all Losses relating to,
arising out of, or due to, directly or indirectly, any breach by GameStop or any
GameStop Affiliate of any of the provisions of this Agreement; (ii) all Losses
relating to, arising out of, or due to, directly or indirectly, any incorrect,
inaccurate or incomplete financial or other information provided by GameStop or
any GameStop Affiliate to Barnes & Noble pursuant to Section 5.1 of this
Agreement; (iii) all Losses relating to, arising out of, or due to any untrue
statement or alleged untrue statement of a material fact contained in, or
incorporated by reference into, the IPO Registration Statement or the omission
or alleged omission to state (whether pursuant to direct statement or
incorporation by reference) in the IPO Registration Statement a material fact
required to be stated therein or necessary to make the statements therein not
misleading other than with respect to the Barnes & Noble Disclosure Portions;
and (iv) all Losses relating to, arising out of, or due to any untrue statement
or alleged untrue statement of a material fact contained in, or incorporated by
reference into, the Distribution Registration Statement or the omission or
alleged omission to state (whether pursuant to direct statement or incorporation
by reference) in the Distribution Registration Statement a material fact
required to be stated therein or necessary to make the statements therein not
misleading other than with respect to the Barnes & Noble Disclosure Portions.

                  6.2 Indemnification by Barnes & Noble. Subject to Section 6.3,
Barnes & Noble shall indemnify, defend, and hold harmless GameStop, all GameStop
Affiliates, and each of their respective directors, officers and employees (in
their capacities as such), from and against (i) all Losses relating to, arising
out of, or due to, directly or indirectly, any breach by Barnes & Noble or any
Barnes & Noble Affiliate of any of the provisions of this Agreement; (ii) all
Losses relating to, arising out of, or due to any untrue statement or alleged
untrue statement of a material fact contained in, or incorporated by reference
into, the Barnes & Noble Disclosure Portions of the IPO Registration Statement
or the omission or alleged omission to state (whether pursuant to direct
statement or incorporation by reference) in the Barnes & Noble Disclosure
Portions of the IPO Registration Statement a material fact required to be stated
therein or necessary to make the statements therein not misleading; and (iii)
all Losses relating to, arising out of, or due to any untrue statement or
alleged untrue statement of a material fact contained in, or incorporated by
reference into, the Barnes & Noble Disclosure Portions of the Distribution
Registration Statement or the omission or alleged omission to state (whether
pursuant to direct statement or incorporation by reference) in the Barnes &
Noble Disclosure Portions of the Distribution Registration Statement a material
fact required to be stated therein or necessary to make the statements therein
not misleading.

                                      -25-
<PAGE>
                  6.3      Other Liabilities.

                           (a) Except as provided in Section 6.4, this Section 6
shall not be applicable to any Tax-Related Losses, which shall be governed by
Section 4 of this Agreement.

                           (b) This Section 6 shall not be applicable to any
Losses relating to, arising out of, or due to any breach of the provisions of
any other contract, agreement or understanding between Barnes & Noble or any
Barnes & Noble Affiliate and GameStop or any GameStop Affiliate, which Losses
shall be governed by the terms of such contract, agreement or understanding.

                  6.4      Tax Effects of Indemnification.

                           (a) Any indemnification payment made under this
Agreement shall be characterized for tax purposes as if such payment were made
immediately prior to the latest Distribution Date, and shall therefore be
treated, to the extent permitted by law, as either (i) a distribution from
GameStop to Barnes & Noble or (ii) a capital contribution from Barnes & Noble to
GameStop.

                           (b) The amount of any Loss or Tax-Related Losses for
which indemnification is provided under this Agreement shall be (i) increased to
take account of net Tax cost, if any, incurred by the Indemnitee arising from
the receipt or accrual of an Indemnity Payment hereunder (grossed up for such
increase) and (ii) reduced to take account of net Tax benefit, if any, realized
by the Indemnitee arising from incurring or paying such Loss or Tax-Related
Losses. In computing the amount of any such Tax cost or Tax benefit, the
Indemnitee shall be deemed to recognize all other items of income, gain, loss,
deduction or credit before recognizing any item arising from the receipt or
accrual of any Indemnity Payment hereunder or incurring or paying any
indemnified Loss or Tax-Related Losses. Any Indemnity Payment hereunder shall
initially be made without regard to this Section 6.4 and shall be increased or
reduced to reflect any such net Tax cost (including gross-up) or net Tax benefit
only after the Indemnitee has actually realized such cost or benefit. For
purposes of this Agreement, an Indemnitee shall be deemed to have "actually
realized" a net Tax cost or a net Tax benefit to the extent that, and at such
time as, the amount of Taxes payable by such Indemnitee is increased above or
reduced below, as the case may be, the amount of Taxes that such Indemnitee
would be required to pay but for the receipt or accrual of the Indemnity Payment
or the incurrence or payment of such Loss or Tax-Related Losses, as the case may
be. The amount of any increase or reduction hereunder shall be adjusted to
reflect any final determination (which shall include the execution of Form
870-AD or successor form) with respect to the Indemnitee's liability for Taxes,
and payments between Barnes & Noble and GameStop to reflect such adjustment
shall be made if necessary.

                  6.5 Effect of Insurance Upon Indemnification. The amount which
an Indemnifying Party is required to pay to any Indemnitee pursuant to this
Section 6 shall be

                                      -26-
<PAGE>
reduced (including retroactively) by any Insurance Proceeds and other amounts
actually recovered by such Indemnitee in reduction of the related Loss, it being
understood and agreed that each of GameStop and Barnes & Noble shall use
commercially reasonable efforts to collect any such proceeds or other amounts to
which it or any of its Affiliates is entitled, without regard to whether it is
the Indemnifying Party hereunder. No Indemnitee shall be required, however, to
collect any such proceeds or other amounts prior to being entitled to
indemnification from an Indemnifying Party hereunder. If an Indemnitee receives
an Indemnity Payment in respect of a Loss and subsequently receives Insurance
Proceeds or other amounts in respect of such Loss, then such Indemnitee shall
pay to such Indemnifying Party an amount equal to the difference between (a) the
sum of the amount of such Indemnity Payment and the amount of such Insurance
Proceeds or other amounts actually received and (b) the amount of such Loss, in
each case adjusted (at such time as appropriate adjustment can be determined) to
reflect any premium adjustment attributable to such claim.

                  6.6 Procedure for Indemnification Involving Third-party
Claims.

                           (a) Notice of Claim. If any Indemnitee receives
notice of the assertion of any Third-Party Claim with respect to which an
Indemnifying Party is obligated under this Agreement to provide indemnification
(other than pursuant to Section 4), such Indemnitee shall give such Indemnifying
Party notice thereof (together with a copy of such Third-Party Claim, process or
other legal pleading) promptly after becoming aware of such Third-Party Claim;
provided, however, that the failure of any Indemnitee to give notice as provided
in this Section shall not relieve any Indemnifying Party of its obligations
under this Section 6, except to the extent that such Indemnifying Party is
actually prejudiced by such failure to give notice. Such notice shall describe
such Third-Party Claim in reasonable detail.

                           (b) Obligation of Indemnifying Party. An Indemnifying
Party, at such Indemnifying Party's own expense and through counsel chosen by
such Indemnifying Party (which counsel shall be reasonably acceptable to the
Indemnitee), may elect to defend any Third-Party Claim. If an Indemnifying Party
elects to defend a Third-Party Claim, then, within ten Business Days after
receiving notice of such Third-Party Claim (or sooner, if the nature of such
Third-Party Claim so requires), such Indemnifying Party shall notify the
Indemnitee of its intent to do so, and such Indemnitee shall cooperate in the
defense of such Third-Party Claim. Such Indemnifying Party shall pay such
Indemnitee's reasonable out-of-pocket expenses incurred in connection with such
cooperation. Such Indemnifying Party shall keep the Indemnitee reasonably
informed as to the status of the defense of such Third-Party Claim. After notice
from an Indemnifying Party to an Indemnitee of its election to assume the
defense of a Third-Party Claim, such Indemnifying Party shall not be liable to
such Indemnitee under this Section 6 for any legal or other expenses
subsequently incurred by such Indemnitee in connection with the defense thereof
other than those expenses referred to in the preceding sentence; provided,
however, that such Indemnitee shall have the right to employ one law firm as
counsel, together with a separate local law firm in each applicable jurisdiction
("Separate Counsel"), to represent such Indemnitee in any action or group of
related actions (which firm or firms shall be reasonably

                                      -27-
<PAGE>
acceptable to the Indemnifying Party) if, in such Indemnitee's reasonable
judgment at any time, either a conflict of interest between such Indemnitee and
such Indemnifying Party exists in respect of such claim, or there may be
defenses available to such Indemnitee which are different from or in addition to
those available to such Indemnifying Party and the representation of both
parties by the same counsel would be inappropriate, and in that event (i) the
reasonable fees and expenses of such Separate Counsel shall be paid by such
Indemnifying Party (it being understood, however, that the Indemnifying Party
shall not be liable for the expenses of more than one Separate Counsel
(excluding local counsel) with respect to any Third-Party Claim (even if against
multiple Indemnitees) and (ii) each of such Indemnifying Party and such
Indemnitee shall have the right to conduct its own defense in respect of such
claim. If an Indemnifying Party elects not to defend against a Third-Party
Claim, or fails to notify an Indemnitee of its election as provided in this
Section 6 within the period of ten Business Days described above, the Indemnitee
may defend, compromise, and settle such Third-Party Claim and shall be entitled
to indemnification hereunder (to the extent permitted hereunder); provided,
however, that no such Indemnitee may compromise or settle any such Third-Party
Claim without the prior written consent of the Indemnifying Party, which consent
shall not be unreasonably withheld or delayed. Notwithstanding the foregoing,
the Indemnifying Party shall not, without the prior written consent of the
Indemnitee, (i) settle or compromise any Third-Party Claim or consent to the
entry of any judgment which does not include as an unconditional term thereof
the delivery by the claimant or plaintiff to the Indemnitee of a written release
from all liability in respect of such Third-Party Claim or (ii) settle or
compromise any Third-Party Claim in any manner that would be reasonably likely
to have a material adverse effect on the Indemnitee.

                           (c) Joint Defense of Certain Claims. Notwithstanding
the provisions of Section 6.6(b), Barnes & Noble and GameStop shall jointly
control the defense of, and cooperate with each other with respect to defending,
any Third-Party Claim with respect to which each party is claiming that it is
entitled to indemnification under Section 6.1 or 6.2. If either Barnes & Noble
or GameStop fails to defend jointly any such Third-Party Claim, the other party
shall solely defend such Third-Party Claim and the party failing to defend
jointly shall use all commercially reasonable efforts to cooperate with the
other party in its defense of such Third-Party Claim; provided, however, that
neither party may compromise or settle any such Third-Party Claim without the
prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed. All costs and expenses of either party in
connection with, and during the course of, the joint control of the defense of
any such Third-Party Claim shall be initially paid by the party that incurs such
costs and expenses. Such costs and expenses shall be reallocated and reimbursed
in accordance with the respective indemnification obligations of the parties at
the conclusion of the defense of such Third-Party Claim.

                  6.7 Procedure for Indemnification Not Involving Third-party
Claims.

                           (a) If any Indemnitee desires to assert against an
Indemnifying Party any claim for indemnification under this Section 6 other than
a Third-Party Claim (a "Claim"), the Indemnitee shall deliver to the
Indemnifying Party notice of its demand for satisfaction of

                                      -28-
<PAGE>
such Claim (a "Request"), specifying in reasonable detail the amount of such
Claim and the basis for asserting such Claim. Within 30 days after the
Indemnifying Party has been given a Request, the Indemnifying Party shall either
(i) satisfy the Claim requested to be satisfied in such Request by delivering to
the Indemnitee payment by wire transfer or a certified or bank cashier's check
payable to the Indemnified Party in immediately available funds in an amount
equal to the amount of such Claim, or (ii) notify the Indemnitee that the
Indemnifying Party contests such Claim by delivering to the Indemnitee a Dispute
Notice, stating that the Indemnifying Party objects to such Claim and specifying
in reasonable detail the basis for contesting such Claim.

                           (b) If, within 20 Business Days after the delivery of
a Dispute Notice, the Indemnitee and the Indemnifying Party are unable to agree
to a resolution to the Request at issue, either party may submit the dispute to
arbitration. The results of such arbitration shall be final and binding on the
parties. The arbitration shall be conducted by three arbitrators in accordance
with the applicable rules of the AAA then in force and effect. Within 20 days
following receipt of the written notice of arbitration, each party shall each
appoint one arbitrator. The two arbitrators so appointed shall appoint the third
arbitrator. If either party shall fail to appoint an arbitrator within such
20-day period, the arbitration shall be by the sole arbitrator appointed by the
other party.

                           (c) Such arbitrators shall be empowered to determine
whether indemnification is required under this Section 6 and to determine the
amount of the related indemnification payment. Each of the parties shall bear
50% of the aggregate expenses of the arbitrators. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-14. The place
of arbitration shall be New York, New York. The final decision of the
arbitrators shall be rendered no later than one year from the date of the
written notice of arbitration. The arbitration award shall be final and binding
upon the parties and judgment thereon may be entered in any court of the State
of New York and federal courts in said state, the jurisdiction of which courts
is hereby consented to by the parties for such purposes. The service of any
notice, process, motion or other documents in connection with an arbitration
award hereunder may be effectuated either by personal service upon a party or by
certified or registered mail. The arbitrator shall not have the right to modify
or amend any of the terms or provisions of this Agreement.

                  6.8 Exclusive Remedies. Except for the right to pursue
equitable remedies, the remedies provided in this Section 6 shall be deemed the
sole and exclusive remedies of the parties with respect to the subject matters
of the indemnification provisions of this Section 6.

         7.       Miscellaneous.

                  7.1 Entire Agreement; Amendments; Waivers. This Agreement
constitutes the entire Agreement of the parties hereto with respect to the
subject matter hereof and shall supersede all prior agreements and
understandings, whether written or oral, between the parties with respect to
such subject matter and shall not be modified, amended or terminated, nor shall
any provisions hereof be waived except by a writing signed by the parties
hereto.

                                      -29-
<PAGE>
                  7.2 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be wholly performed in the State of New York.

                  7.3 Jurisdiction; Venue. Subject to arbitration requirements
of Sections 4.5 and Section 6.7, each party hereto hereby irrevocably submits to
the jurisdiction of any New York State or United States Federal Court sitting in
the Southern District of New York over any action or proceeding arising out of
this Agreement, and each party hereby irrevocably agrees that all claims in
respect of such action or proceeding may be held and determined in such New York
State or Federal Court. Each party hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in any other
jurisdiction by suit on the judgment or in any other manner provided by law.
Each party hereto hereby further waives, to the fullest extent permitted by law,
any objection which he or it may now or hereafter have to the laying of venue in
such State and any objection to any action or proceeding in such State on the
basis of an inconvenient forum.

                  7.4 Notices. All notices required or permitted to be given
hereunder shall be given in writing and shall be delivered by hand, by
nationally recognized overnight courier, or by certified or registered first
class United States mail, return receipt requested, postage prepaid, addressed
as follows:

                  If to Barnes & Noble, to:

                  Barnes & Noble, Inc.
                  122 Fifth Avenue
                  New York, New York  10011
                  Attn:  Chief Financial Officer

                  If to GameStop to:

                  GameStop Corp.
                  2250 William D. Tate Avenue
                  Grapevine, Texas  76051
                  Attn:  Chief Financial Officer

         Any party may change its address for notices in the manner set forth in
this Section 7.4.

                  7.5 Assignment; Binding Effect. No party to this Agreement may
assign any of its rights or obligations hereunder without the prior written
consent of the other parties hereto. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their permitted successors
and assigns.

                                      -30-
<PAGE>
                  7.6 Third Party Beneficiaries. The Indemnitees and their
respective successors shall be third party beneficiaries of the indemnification
provisions of Sections 4 and 6, as applicable, and shall be entitled to enforce
those provisions in each such case as fully and to the same extent as if they
were parties to this Agreement. Except as provided in the previous sentence,
nothing in this Agreement, express or implied, is intended to or shall confer
upon any Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement, and no Person (other than as
provided in the previous sentence) shall be deemed a third party beneficiary
under or by reason of this Agreement.

                  7.7 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same Agreement.

                  7.8 Invalidity. If any provision of this Agreement is held to
be unenforceable by a court of competent jurisdiction, then such provision shall
be deemed modified so that such provision is enforceable to the maximum extent
possible, and any such invalidity shall not affect any of the other provisions
of this Agreement.

                  7.9 Headings. The Section headings used in this Agreement are
for the convenience of the parties only, are not substantive, and shall not be
used to interpret or construe any of the provisions of this Agreement. Whenever
the words "include," "includes" or "including" are used in this Agreement,
unless otherwise specifically provided, they shall be deemed to be followed by
the words "without limitation." This Agreement shall be construed without regard
to any presumption or rule requiring construction or interpretation against the
party drafting or causing the document to be drafted.

                                      -31-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                            BARNES & NOBLE, INC.

                                               /s/ Maureen O'Connell
                                            By:__________________________
                                            Name:  Maureen O'Connell
                                            Title:  Chief Financial Officer

                                            GAMESTOP CORP.

                                               /s/ David Carlson
                                            By:_________________________
                                            Name:  David Carlson
                                            Title:  Chief Financial Officer

                                               10762-00007/910076.6

                                      -32-

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