EMPLOYMENT AGREEMENT

Exhibit 10.14

[BLOCKBUSTER LOGO]

March 1, 2003

CONFIDENTIAL

Nicholas P. Shepherd

1201 Elm Street

Dallas, Texas 75270

Dear Nick,

I am pleased to confirm your continued eligibility and participation in the following benefits connected with your Blockbuster Inc. assignment in the US, in addition to those described in your Employment Agreement, effective as of the date of such Employment Agreement. This letter will serve as an addendum to your Employment Agreement with Blockbuster Inc.

Assignment Commencement & Duration

For purposes of this addendum your assignment commencement date is June 30, 1999. This addendum extends your assignment until February 28, 2005.

Pension

While on assignment in the US, you will continue to participate in the Blockbuster Inc. Pension and Death Benefits Scheme at a contribution level of 15% of Salary for each twelve (12) month period during your Employment Term. This contribution will be on a tax-free basis, and the pension company’s commitment to your retirement account is subject to the inland revenue earnings cap. Such participation in the Pension and Death Benefits Scheme is in lieu of your eligibility to participate in the Blockbuster Investment Plan (401(k)) and excess investment plan as provided for in the Employment Agreement.

Life Insurance/Assurance

While on assignment, you will be provided two times your annual salary in life insurance under the US life insurance benefit plan, or any other additional coverage that may be established for executives at your level. In addition, you will be covered at two times your annual salary under the UK life assurance plan. Between these two plans and any supplemental life insurance you may voluntarily elect under the US plan, your total life insurance/assurance shall not exceed six times your annual salary.

Home Country Housing

Assuming you continue to retain your UK residence during the assignment, the Company will extend the standard applicable provisions of its International Relocation Policy including:

Home Retention Allowance (HRA): An HRA will be provided if you choose to rent your home in the UK while on assignment. The HRA is paid to you upon your return to the UK if you retained and rented your home during your assignment. The HRA is based on 5% of the appraised value

of the ho