Document:

Exhibit 10.18.3

Exhibit 10.18.3 
 
FIRST AMENDMENT TO 
SECOND AMENDED AND RESTATED 
RECEIVABLES PURCHASE AGREEMENT 
 
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED RECEIVABLES
PURCHASE AGREEMENT (the “Amendment”), dated March 27, 2003, to the Second Amended and Restated Receivables Purchase Agreement, dated as of November 20, 2002, by and among CADMUS RECEIVABLES CORP., as Seller, CADMUS
COMMUNICATIONS CORPORATION, as Master Servicer, BLUE RIDGE ASSET FUNDING CORPORATION, as Purchaser and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (as amended, modified or supplemented from time to time, the “Receivables Purchase
Agreement”). Capitalized terms used and not defined herein shall have the same meanings as defined in the Receivables Purchase Agreement. 
 
WHEREAS, the parties hereto desire to amend the Receivables Purchase Agreement in certain respects as provided herein; 
 
NOW THEREFORE, in consideration of the premises and the other
mutual covenants contained herein, the parties hereto agree as follows: 
 
SECTION 1.    Amendments.    The Agreement is, as of the Amendment Effective Date defined in Section 2 hereof, and subject to the satisfaction of the conditions precedent
set forth in Section 2 hereof, hereby amended as follows: 
 
(a)    Section 10.1(h) of the Receivables Purchase Agreement, is hereby amended and restated in its entirety to read as follows: 
 
(h)    At any Cut-Off Date during the period from January 31, 2003
through June 30, 2003, the average of the Delinquency Ratio for the immediately preceding three months exceeds 5.00% or at any other Cut-Off Date, the average of the Delinquency Ratio for the immediately preceding three months exceeds 4.25%; or

 
(b)    The definition of
“Obligor Concentration Limit” in Appendix A to the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
 
“Obligor Concentration Limit”:  At any time, in relation to the aggregate Unpaid Balance of Receivables
owed by any single Obligor and its Affiliated obligors (if any): 
 

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(a)    for Obligors who have a short term unsecured debt rating currently assigned to them by either S&P or Moody’s, the applicable concentration limit shall be determined according to the following table
(and, if such Obligor is rated by both agencies and has a split rating, the applicable rating will be the lower of the two): 
 

	 S&P RATING

	 	 OR
	    	 MOODY’S
 RATING

	    	 ALLOWABLE
 % OF ELIGIBLE
 RECEIVABLES

	 	 	 	    	 	    	 
	 A-1+
	 	 	    	 P-1
	    	 10%

	 A-1  
	 	 	    	 P-1
	    	   8%

	 A-2  
	 	 	    	 P-2
	    	   6%

	 A-3  
	 	 	    	 P-3
	    	         3%; or

 
(b)    for Obligors who do not have a debt rating listed above, 2% of the aggregate Unpaid Balance of Eligible Receivables at such time; 
 
; provided, however, that subject to an increase in the percentage set forth in
clause (iv) of the definition of “Required Reserve Factor Floor”, upon the Seller’s request and in the Agent’s sole discretion, the Agent may designate certain Obligors as “Special Obligor” and permit such Obligors to
have an Obligor Concentration Limit in excess of those described in clauses (a) and (b) above, it being understood that at any time the Agent may cancel any Obligor’s status as a Special Obligor upon not less than five (5) Business Days’
written notice to the Seller Parties. 
 
(c)    The definition of “Required Reserve Factor Floor” in Appendix A to the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
 
“Required Reserve Factor
Floor”:  On any day during the Settlement Period, the amount (expressed as a percentage) equal to the sum of (i) the product of (a) the Adjusted Dilution Ratio and (b) the Dilution Horizon Ratio, (ii) the greater of (a) four
times the Obligor Concentration Limit applicable to Obligors which are unrated or noninvestment grade, (b) two times the Obligor Concentration Limit applicable to Obligors which are A-3/P-3 rated or (c) one times the Obligor Concentration Limit
applicable to Obligors which are A-2/P-2 rated, (iii) 2% and (iv) so long as there shall be a Special Obligor, 5%. 
 
(d)    The following definition is added to Appendix A to the Receivables Purchase Agreement in alphabetical order
thereto: 
 

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Special
Obligor:  As defined in the Fee Letter. 
 
SECTION 2.    This Amendment shall become effective as of January 31, 2003 (the “Amendment Effective Date”) on the date on which the Agent shall have received an executed copy of the First
Amendment to the Amended and Restated Blue Ridge Fee Letter, dated March 27, 2003 by and among the Seller, the Master Servicer, the Purchaser and the Agent. 
 
SECTION 3.    Representations and Warranties.    Each Seller Party hereby certifies that,
subject to the effectiveness of this Amendment, each of the representations and warranties set forth in Article VI of the Receivables Purchase Agreement is true and correct on the date hereof, as if each such representation and warranty were made on
the date hereof. 
 
SECTION
4.    Receivables Purchase Agreement in Full Force and Effect as Amended.    Except as specifically amended hereby, the Receivables Purchase Agreement shall remain in full force and effect. All
references to the Receivables Purchase Agreement shall be deemed to mean the Receivables Purchase Agreement as modified hereby. This Amendment shall not constitute a novation of the Receivables Purchase Agreement, but shall constitute an amendment
thereof. The parties hereto agree to be bound by the terms and conditions of the Receivables Purchase Agreement, as amended by this Amendment, as though such terms and conditions were set forth herein. 
 
SECTION 5.    Miscellaneous.

 
(a)    This Amendment may be
executed in any number of counterparts, and by the different parties hereto on the same or separate counterparts, each of which shall be deemed to be an original instrument but all of which together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment. 
 
(b)    The descriptive headings of the various sections of this Amendment are inserted for convenience of reference
only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. 
 
(c)    This Amendment may not be amended or otherwise modified except as provided in the Agreement. 
 
(d)    THIS AMENDMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 
[remainder of page intentionally left blank] 
 

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IN WITNESS
WHEREOF, the parties have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written. 
 
 

	 CADMUS RECEIVABLES CORP.,
as Seller

	
	 By:
	 	 /s/    Christopher T. Schools        

	 	 	 Name:  Christopher T. Schools
 Title:  Vice President and Treasurer

 
 

	 CADMUS COMMUNICATIONS CORPORATION,
as Master
Servicer

	
	 By:
	 	 /s/    Christopher T. Schools        

	 	 	 Name:  Christopher T. Schools
 Title:  Vice President and Treasurer

 
[additional signatures to follow] 

 

	 BLUE RIDGE ASSET FUNDING CORPORATION,
as Purchaser
  
 By Wachovia Securities, Inc.
as
Attorney-In-Fact

	
	 By:
	 	 /s/    Douglas R. Wilson, Sr.        

	 	 	 Name:  Douglas R. Wilson, Sr.
 Title:  Vice President

 
 

	 WACHOVIA BANK, NATIONAL ASSOCIATION,
as Agent

	
	 By:
	 	 /s/    Gary G. Fleming, Jr.        

	 	 	 Name:  Gary G. Fleming, Jr.
 Title:  Director

 
[end of signatures]2003 CORPORATE BONUS PLAN

Exhibit 10.25 
 
Moore Medical Corp. 2003 Corporate Bonus Plan 
 
1. Purpose 
 
This plan (the “Plan”) is designed to provide incentive
compensation to select employee groups [i.e. employees not participating in commission-based compensation plans] of Moore Medical Corp. (the “Company”) for the successful achievement of its financial objectives. This Plan supersedes
and replaces the Moore Medical Corp. 2002 Bonus Plan. 
 
Its
purposes are to: 
 

	 	•	 	pay for performance. 

 

	 	•	 	align organization behavior to achieve company goals. 

 

	 	•	 	encourage over achievement. 

 
2. Plan Year/Payout 
 
The Plan is for the 2003 calendar year. The President with the approval of the Compensation Committee of the Board of Directors has the right to terminate
and/or amend the Plan at any time. 
 
If a Bonus Target is met, the
payout will be made in the first quarter of 2004. 
 
3.
Eligibility 
 
You are eligible to participate in the 2003
Bonus Plan if you are not in a job or position with a commission-based compensation plan and you meet all of the following criteria: 
 

	 	•	 	were hired before October 1, 2003. If you are hired between January 1, 2003 and September 30, 2003, any potential bonus payout will be pro-rated and,

 

	 	•	 	have an overall rating of “Meets Objectives” or above in your most recent 2003 performance review. Any competency area rating of “Take
Action” can preclude an individual from participating in said bonus and, 

 

	 	•	 	are actively employed with Moore Medical at our fiscal year end, December 27, 2003. 

 
If you are an exempt employee who receives commissions, you are not eligible to participate in the Plan. 
 
4. Eligible Pay 
 
Eligible pay is defined as a Participant’s base regular pay for 2003,
excluding: overtime, commissions, any Company 401(K) match contribution, auto allowance, any compensation paid for a period (other than normal vacation) during which the participant was not actively working full time, such as for a period of
disability or for severance, any bonus paid under this Plan or any other agreement or bonus plan. 
 

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5. Bonus Calculation Based
On Net Sales and EBITDA 
 
In order for the exempt
employee’s bonus to be paid, the Company must achieve specific Net Sales and Earnings Before Interest, Taxes, Depreciation and Amortization milestones (EBITDA). 
 
Net Sales is defined as: 
 
Net Sales equals Gross Sales less all adjustments as defined by Generally Accepted Accounting Principles. 
 
EBITDA is defined as: 
 
EBITDA is defined as Net Sales less Cost of Goods Sold less Fulfillment
Expenses less Sales and Marketing Expenses equals Business Unit Contribution. Business Unit Contribution less General & Administrative Expenses equals Earnings Before Interest, Taxes, Depreciation and Amortization. 
 
6. Non-Exempt Employees – Holiday Bonus Plan 
 
Non-exempt employees whose most current performance rating is “Meets
Objectives” or better are eligible to receive a Holiday Bonus to be paid out in early December 2003. The intent of the Holiday Bonus is to ensure that non-exempt employees who are contributing have their accomplishments recognized and rewarded
since they are critical to the success of the entire organization. Bonus payout is contingent on the Company’s achievement of a minimum EBITDA. Net Sales is not used as a factor for this non-exempt Holiday Bonus Plan. Bonus will be paid as a
‘net’ cash payment. 
 
7. Bonus Percentages for Exempt
Employees 
 
The percentage of your base regular pay that is
used in calculating the Bonus payout is based on your position in the company on 12/31/2003. A change in position during the year may require pro-ration of the bonus calculation. 
 

	 Position

	    	 Bonus Payouts

	 Director
	    	 15%

	 Senior Manager
	    	 15%

	 Manager/Assistant Manager
	    	 10%

	 Project Leader, Supervisor, Sr. Project Specialist, Team Leader/Group
 Leader
	    	 7.5%

	 All other exempt employees
	    	   5%

 

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8. Exempt Employee Bonus
Category 
 
Since certain groups of employees have a greater
ability to impact either Net Sales or EBITDA, different milestones will drive bonus attainment based on an employee’s function/position held. For the purpose of this Plan, non-commissioned exempt employees will fall into one of two categories,
which are defined below. Both financial thresholds must be met in order for a bonus to be paid out. 
 

	 8a. Market Specific Exempt Employees

	 Market Managers/Senior Managers/Directors

	 Dedicated Market Specific Support

	 •     Sales Support Admin
	  	 Market Specialists

	 •     Bids & Quotes
	  	 National Accounts Coordinators

	
	 8b. Non-Market Specific Exempt Employees

	 Human Resources
	  	 Information Technology

	 Purchasing/Supply Chain
	  	 Customer Relations Management/Customer Support Management

	 Accounting/Finance
	  	 Creative Media

 
9. Impact of
Incentive Compensation based on specific Management By Objectives (MBO)s 
 
Every employee has performance objectives sometimes called MBO’s. Some positions in particular (i.e. Market Managers, Sales Managers and National Account Managers) have MBO’s (such as Customer Retention) that are used to
determine Incentive Compensation. 
 
If the Plan meets a bonus
payout threshold, eligible employees who participate in MBO Incentive Plans will be eligible to receive the difference between what they receive as MBO Incentive compensation and their target Plan payout only. In other words, the sum total of
MBO Incentives earned will be deducted from the target bonus payout of the Plan. 
 
NOTE: Any competency area rating of “Take Action” can preclude an individual from participating in said bonus. 
 
10. President and Vice President Team Bonus Plan 
 
If you are the President & CEO, an Executive Vice President, Senior Vice President or Vice President, the granting of stock options will represent the
bonus payout. Both Net Sales and EBITDA thresholds must be met in order for a bonus to be paid out. 
 

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