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$^{1}$ Refer Note 22(b)(i) for corresponding amount reflecting the related contingent assets. 

## (iv) Other contingent liabilities – Income Tax: 

As disclosed in Note 22(a)(vi) in the 30 June 2013 financial report, the VRL group anticipates that tax audits may occur from time to time in Australia, and the VRL group is subject to routine tax audits in certain overseas jurisdictions. 

## (v) Belfast Rent Dispute: 

As disclosed in Note 22(a)(vii) in the 30 June 2013 financial report, Village Theatres 3 Limited (“VT3”), a wholly-owned subsidiary in the VRL group, is continuing to take action against its landlord seeking damages. The landlord is also seeking payment of unpaid rent, which has been fully accrued in VT3’s accounts as at 30 June 2014. 

## (vi) Other contingent liabilities – Legal action relating to former subsidiary in Sydney Attractions Group: 

As disclosed in Note 22(a)(viii) in the 30 June 2013 financial report, a former subsidiary of VRL, within the Sydney Attractions Group (“SAG”), had taken legal proceedings to claim amounts owed by the vendor of a business sold to SAG. The vendor had lodged a counter-claim in those proceedings. Settlement was reached in December 2013, resulting in a payment by VRL of approximately $4.6 million. This settlement amount, together with related legal expenses incurred, has been expensed in the accounts to 30 June 2014 (refer Material Items of Income and Expense in the Reconciliation of Results, which forms part of the Directors’ Report). 

## (vii) Guarantee issued in relation to Associate: 

In the year ended 30 June 2014, VRL has procured a bank guarantee to support the financing of an associated entity, VR iPic Finance LLC (“VRIF”), in which the VRL group has a 42.86% (3/7th) interest. VRIF has obtained debt financing to contribute funds to iPic-Gold Class Entertainment LLC (“IGCE”), which is also an associated entity of VRL. Another shareholder of IGCE is also providing guarantee support to VRIF. VRL’s guarantee exposure is expected to increase to approximately USD 11.7 million by around June 2015. 

## (viii) Dormant subsidiary placed into liquidation: 

In the year ended 30 June 2014, VC Eye Pty. Ltd., a dormant wholly-owned subsidiary, was placed into creditors’ voluntary liquidation. As VC Eye Pty. Ltd. has only nominal assets, no material impact on the VRL group is expected from this liquidation. 

## (ix) Legal action relating to ride constructed at Sea World, Gold Coast: 

In the year ended 30 June 2014, following the termination of a contract for construction of a new ride at Sea World by SX Projects Pty. Ltd. (“SX Projects”), a writ has been filed by SX Projects seeking approximately $3 million from the VRL group. A Defence and Counter-Claim has been filed to the effect that the VRL group’s termination was lawful. The matter is making its way through the court process. The VRL group has not provided any amount in relation to this claim. 

## (x) Legal action relating to cancelled New Year’s Eve event at Wet’n’Wild Sydney: 

In the year ended 30 June 2014, following the cancellation of a New Year’s Eve event at Wet’n’Wild Sydney, which was being organised and promoted by an external party, One Cube Entertainment Pty. Ltd. (“OC”), legal proceedings have been commenced by OC, claiming approximately $1 million. The VRL group has filed a defence and the matter is currently progressing through the court process. No trial date has been set and the VRL group has not provided any amount in relation to this claim. 

