(1)If agreements which fall within a particular category of agreement are, in the opinion of the Director, likely to be agreements to which section 9 applies, the Director may recommend that the Secretary of State make an order specifying that category for the purposes of this section.
(2)The Secretary of State may make an order (“a block exemption order”) giving effect to such a recommendation—
(a)in the form in which the recommendation is made; or
(b)subject to such modifications as he considers appropriate.
(3)An agreement which falls within a category specified in a block exemption order is exempt from the Chapter I prohibition.
(4)An exemption under this section is referred to in this Part as a block exemption.
(5)A block exemption order may impose conditions or obligations subject to which a block exemption is to have effect.
(6)A block exemption order may provide—
(a)that breach of a condition imposed by the order has the effect of cancelling the block exemption in respect of an agreement;
(b)that if there is a failure to comply with an obligation imposed by the order, the Director may, by notice in writing, cancel the block exemption in respect of the agreement;
(c)that if the Director considers that a particular agreement is not one to which section 9 applies, he may cancel the block exemption in respect of that agreement.
(7)A block exemption order may provide that the order is to cease to have effect at the end of a specified period.
(8)In this section and section 7 “specified” means specified in a block exemption order.