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Annual Report & Accounts 2012 - NOTES
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GVC HOLDINGS PLC NOTES TO THE FINANCIAL STATEMENTS 3. CONTRACT WITH EAST PIONEER CORPORATION B.V. As part of the agreement between the Group and EPC the Group agreed to guarantee the performance of EPC's obligations to SBT and therefore entered into the acquisition agreement alongside EPC as its guarantor. A contingent liability has been disclosed in respect of this guarantee as detailed in note 23. 4. OPERATING COSTS 2012 2011 Notes €000's €000's Wages and salaries, including Directors remuneration 8,700 4,717 Amounts paid to long term contractors 868 588 Compulsory social security contributions 718 401 Compulsory pension contributions 195 139 Health and other benefits 45 22 Recruitment and training 285 161 Personnel expenditure (excluding share option charges) 10,811 6,028 Professional fees 1,177 932 Technology costs 1,463 617 Office, travel and other costs 1,909 1,329 Third party service costs* 3,925 3,088 Foreign exchange differences 346 174 Other operating costs 19,631 12,168 Share option charges 79 440 Exceptional items 4.1 (208) 3,919 Depreciation 248 197 Amortisation 2,299 1,827 22,049 18,551 *provided to Betboo by external providers 4.1 Exceptional Items The Group incurred expenditure on exceptional items (as defined in accounting policy note 1.14). These are items which are both exceptional in size and nature. 2012 2011 Notes €000's €000's Transaction with East Pioneer Corporation B.V. - legal and professional costs a - 2,275 - bonuses paid to Directors and staff a - 1,310 Boss dispute b (208) 334 (208) 3,919 Note a: On 21 November 2011 the Group entered into a service agreement and guarantee relating to the acquisition by East Pioneer Corporation B.V. from Sportingbet plc of Superbahis. The pre contract costs of entering into this agreement along with the Directors transaction success bonuses have been taken as an exceptional item. Note b: The Group has been in a number of legal disputes with Boss Media and these have now ended. The net costs incurred by the Group relating to these disputes has been taken as an exceptional item. 37