Exhibit
10.73


EMPLOYMENT
AGREEMENT


This Agreement is by
and between Source Interlink Companies Inc., (“Company”), and Steven R. Parr, (“Employee”).


WHEREAS, Company
wishes to retain Employee in its employ; and


WHEREAS, Employee
desires to be retained by Company pursuant to the terms of this Agreement;


NOW, THEREFORE, in
consideration of the mutual covenants herein contained, the parties hereto
agree as follows:


1.                                       Services.  Employee hereby agrees to be retained by
Company, as President, PEM Division, Source Interlink Companies Inc. with
duties and responsibilities subject to the management and direction of the Company’s
officers and directors.  Employee agrees
to devote 100% of his professional time to this position and will perform his
duties to the best of his abilities.


2.                                       Duration.   This agreement will be for a term of three
years.


3.                                       Compensation
and Benefits.


(a)                                                          Base
Salary.  Employee shall be paid an
aggregate annual base salary as follows: (1) during the period from the first
day of employment through and including June 30, 2008, Six Hundred Twenty
Thousand Dollars, ($620,000); (2) during the period from July 1, 2008, through
and including June 30, 2009, Six Hundred Forty Thousand Dollars, ($640,000); (3)
during the period from July 1, 2009, through and including June 30, 2010,  Six Hundred Sixty Thousand Dollars ($660,000);
provided however, that such annual rates may be adjusted from time to time by
the Compensation Committee of the Board after having taken into account the
performance of the Executive and such other factors deemed relevant by such Committee.  Base Compensation shall be payable in such
installments and at intervals prescribed from time to time under the Company’s
payroll policies and practices, and shall be subject to such withholdings as
are required by applicable law.


(b)                                                         Cash
Bonus Plan. Starting with the full 2008 calendar year, employee shall
participate in the Company’s Bonus Plan at a target opportunity of 75% of
annual earned base salary.  As regards Employee’s first year bonus, payment shall be guaranteed at
target if Employee’s Division meets an



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agreed upon $111 million EBITDA goal and such
other business initiatives to be set forth in a separate written agreement
between Employee and the Chairman of the Board of Directors, which shall be
incorporated herein by reference.  Bonus
payment in all subsequent years will be in accordance with the controlling Cash
Bonus Plan. 


(c)                                                          Benefits.  Company shall provide Employee with benefits
commensurate with those provided to Company executives generally, including
eligibility for coverage under the Exec-U-Care Health and Welfare Plan (a
portion of the premiums under this plan are paid for by Employee through salary
deductions) and participation in the 401(k) plan.


(d)                                                         Stock
Option Plan.  Employee shall be
eligible to participate in the Company’s Executive Stock Option Plan as
determined and approved by the Board of Directors.  As a sign-on incentive, Employee shall be
granted One Hundred Fifty Thousand (150,000) options under such Plan.


4.               Term and
Termination.


(a)                                                          Term.  This Agreement shall continue in effect
through July 1, 2010 unless earlier terminated in accordance with Section 4(b).


(b)                                                         Early
Termination Due to Resignation or Death, Disability or For Cause.


(1)                                  This
Agreement:


(A)                              shall
terminate automatically upon Employee’s resignation or death;


(B)                                may
be terminated by the Company upon Employee incurring a “Permanent Disability”
which shall mean a disability which renders Employee unable by reason of
physical or mental illness, to perform the services specified herein in a
reasonable professional manner for a period of more than three consecutive
months, as reasonably determined by Company’s management; and


(C)                                May
be terminated by the Company for “Cause” which shall mean any intentional act
of dishonesty committed by Employee in connection with Employee’s employment,
substance abuse, conviction of a felony,



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behavior injurious to the Company, the willful or
repeated failure or refusal to perform Employee’s duties, or gross insubordination.


(2)                                              Amounts
Payable Upon Early Termination.  In
the event that this Agreement shall terminate pursuant to any of the provisions
of Section 4(b) hereof, Employee shall be entitled to receive only any
outstanding salary for time actually worked, and actual business expenses
incurred subject to Company’s regular approval process.


(c)                                                                                  Termination
Without Cause.  Employee’s employment
status is at will.  The Company reserves
the right to terminate Employee at any time, with or without cause.  In the event the Company terminates Employee’s
employment for any reason other than as described in Section 4(b), and provided
that Employee executes a separation and release agreement in the form then
being used by the Company:  (i) if the termination is during the
term of this Agreement, Employee shall be entitled to receive the greater of
(A) the remaining amounts due under this Agreement less applicable withholding
taxes which shall mean (1) base salary from the date of termination up to and
including July 1, 2010, plus (2) Employee’s target bonus for any applicable
calendar years in whole or pro rata; or (B) an aggregate amount equal to (1) 12
month’s base salary at the rate being paid on the date of termination plus (2) Employee’s
target bonus for the calendar year in which such termination occurs; (ii) if the termination is after the term of
this Agreement, the amount set forth in subsection (c)(i)(B) above.


5.               Expenses.  The Company shall reimburse Employee for all
reasonable and customary out-of-pocket travel and entertainment expenses
incurred in the performance of Employee’s duties hereunder provided such
expenses have been approved in advance or are in accordance with a budget that
has been so approved.


6.               Confidentiality/Non-Compete/Non
solicitation.  Employee will be
required to execute standard Company agreements on these matters.


7.               Specific
Performance.  The parties acknowledge
that there may be no adequate remedy at law for breach by Employee of Section 6
of this Agreement and that money damages may not be an adequate remedy for such
breach.  Therefore, Employee agrees that
the company shall have the right, in addition to any other rights it may have,
to injunctive relief and



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specific performance of such Section in the event of
any breach by the Employee.  The remedy
set forth in the preceding two sentences is cumulative and shall in no way
limit any other remedy any party hereto has at law, in equity or pursuant
hereto.


8.               Governing Law.  This Agreement shall be governed, interpreted
and enforced in accordance with the laws of Florida.


9.               Miscellaneous.


(a)                                  Waiver
by either party of a breach of any provision of this Agreement by the other
party shall not operate or be construed as a waiver of any subsequent breach by
such waiving party.


(b)                                 This
Agreement shall not be assignable by either party except that the Company may
assign its rights and obligations hereunder to any of its sister companies or
subsidiaries or to any successor in interest, provided that such assignment
shall not result in any change in the terms of this Agreement and Company shall
remain secondarily liable for its obligations hereunder.


(c)                                  This
instrument contains the entire agreement and understanding of the parties
hereto and supercedes all other agreements, oral or written, concerning the
subject matter hereof.  This Agreement
may not be changed except by an agreement in writing signed by both parties.


(d)                                 If
any term, condition or provision of this Agreement shall be declared, to any
extent, invalid or unenforceable, the remainder of the Agreement, other than
the term, condition or provision held invalid or unenforceable, shall not be
affected thereby and shall be considered in full force and effect and shall be
valid and be enforced to the fullest extent permitted by law.


Agreed to this 27th
day of June, 2007.


	
  

  	
   

  	
  On behalf of Source Interlink Companies:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael R.
  Duckworth

  
	
   

  	
   

  	
  Michael
  R. Duckworth

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Steven
  R. Parr:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
     /s/
  Steven R. Parr

  



 



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