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                                                                    EXHIBIT 10.3

                                 ADDENDUM #1 TO
                      LICENSING AND DISTRIBUTION AGREEMENTS
                            (2004-2005 AND 2005-2007)

         THIS ADDENDUM #1 TO LICENSING AND DISTRIBUTION AGREEMENTS (this
"Addendum") is dated as of April 13, 2004 ("Effective Date"), by and between
Encore Software, Inc., a Minnesota corporation ("Distributor"), and RIVERDEEP
INC., A LIMITED LIABILITY COMPANY, a Delaware limited liability company
("Riverdeep"), with respect to the following Recitals.

         A.       Distributor and Riverdeep have entered into (i) that certain
Licensing and Development Agreement (Manufacturing Rights)(2004-2005), dated as
of March 29, 2004 ("Agreement One"), and (ii) that certain Licensing and
Development Agreement (Manufacturing Rights)(2005-2007), dated as of March 29,
2004 ("Agreement Two", and together with Agreement One, the "Agreements"; each
initially-capitalized term used herein and not otherwise defined shall have the
meaning ascribed to such term in the Agreements), pursuant to which, among other
things, Riverdeep has granted Distributor exclusive rights to replicate, sell,
and distribute the Products into the Channel and the Territory, as more
particularly described in each of the Agreements.

         B.       Riverdeep currently distributes some or all of the Products
into the Channel through certain agreements with COKeM and has requested
Distributor's consent to maintain such agreements in effect through the
expiration of their terms, or earlier termination. Distributor is willing to
agree to such arrangements upon the terms and subject to the conditions set
forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1.       CERTAIN DEFINITIONS. As used herein, the following
initially-capitalized terms shall the meaning ascribed to them below.

         1.1      "COKeM" means COKeM International, Ltd., and any of its
permitted successors or assigns under the COKeM Agreements.

         1.2      "COKeM Agreements" has the meaning ascribed to such term in
Section 2.1 below.

         1.3      "COKeM Inventory" means COKeM's on-hand inventory of finished
units of the Products (as defined in either of the Agreements) in COKeM's
possession or control as of December 31, 2004, but only if and to the extent
that any such inventory is repurchased by Riverdeep as of such date.

         1.4      "COKeM Products" means any and all products to which COKeM has
been granted rights under the COKeM Agreements.

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2.       COKeM AGREEMENTS; SELL-OFF AND INVENTORY PURCHASE.

         2.1      Riverdeep hereby represents and warrants to Distributor that
(i) attached hereto as Exhibit A is a true and correct schedule of all of the
agreements between Riverdeep and COKeM in effect as of the date hereof other
than the agreement with COKeM set forth on Exhibit C of Agreement One (such
agreements being collectively referred to as the "COKeM Agreements), true,
correct, and complete copies of which have heretofore been provided to
Distributor; (ii) there are no extensions, supplements, amendments or other
modifications ("Modifications") to any of the COKeM Agreements; and, (iii)
notwithstanding the provisions of each of the COKeM Agreements, COKeM currently
has no ability to manufacture any of the COKeM Products.

         2.2      From and after the date hereof until the expiration or sooner
termination of all of the COKeM Agreements, Riverdeep shall (i) perform all of
Riverdeep's obligations under the COKeM Agreements (except to the extent
Distributor is responsible therefor hereunder) and shall not enter into or
otherwise agree to any Modifications thereto without Distributor's prior written
consent, to be granted or denied in Distributor's sole discretion; (ii) not
waive any of COKeM's obligations, grant any additional rights, or give any
consents or approvals to COKeM, under any of the COKeM Agreements without
Distributor's prior written consent, to be granted or denied in Distributor's
sole discretion; and, (iii) provide, supply, and fulfill all COKeM Products to
COKeM solely in accordance with the terms of this Addendum.

         2.3      Riverdeep hereby appoints Distributor its exclusive inventory
manager to manage, fulfill, and process all purchase orders for COKeM Products
that Riverdeep receives from COKeM from and after April 13, 2004, until the
expiration or sooner termination of all of the COKeM Agreements. To that end, in
respect of the COKeM Agreements, Distributor shall fill purchase orders received
by Riverdeep from COKeM; assist in inventory management; subject to the
reimbursement herein, arrange for the manufacture of all finished goods of COKeM
Products so ordered; and process and ship such units to such locations directed
by Riverdeep. Unless otherwise agreed to between the parties, Riverdeep shall
remain the point of contact with COKeM. In addition, Riverdeep shall remain
directly responsible and solely liable (i) for collecting all amounts due under
the COKeM Agreements and shall remain entitled to collect all amounts in
connection therewith, and (ii) for all amounts due under, and for all
liabilities associated with, the COKeM Products or COKeM Agreements. Riverdeep
shall cooperate with Distributor in order to enable Distributor to carry out its
obligations hereunder.

         2.4      No later than 30 days after each month, Riverdeep shall
reimburse Distributor, or Distributor in its sole discretion may deduct from
amounts otherwise payable by Distributor to Riverdeep, all direct costs, fees,
charges, and expenses incurred or owed by Distributor to manufacture, process,
fulfill, handle, and ship all COKeM Products during such period in accordance
with Riverdeep's obligations under the COKeM Agreements (including, without
limitation, cost of goods, shipping, handling, and insurance to the extent
applicable). In addition, Riverdeep shall pay Distributor, or Distributor in its
sole discretion may deduct from amounts otherwise payable by Distributor to
Riverdeep, each month, concurrently with the foregoing amounts, a nonrefundable,
irrevocable management fee equal to [*].

*  The material has been omitted pursuant to a request for confidential
   treatment and the material has been filed separately with the Office of the
   Secretary of the Securities and Exchange Commission.

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         2.5      Distributor acknowledges that (i) Distributor's exclusivity
under the Agreements to the accounts serviced by COKeM under the COKeM
Agreements shall be limited to such extent; and (ii) Riverdeep shall not be
deemed to be in breach of that representation and warranty stated at 7.1(iv) of
the Agreements by reason of COKeM's rights under the COKeM Agreements so long as
Riverdeep complies with the terms of this Addendum. However, immediately upon
the expiration of the terms of the COKeM Agreements, or upon their earlier
termination for whatever reason, the exclusivity granted to Encore with respect
to those retail accounts serviced by COKeM under the COKeM Agreements shall
immediately revert back to Encore as was originally contemplated under the
Agreements, and that certain representation and warranty stated at 7.1(iv) of
the Agreements shall apply to Riverdeep without exception.

         2.6      Subject to the terms and conditions of this Addendum,
Distributor hereby agrees to purchase from Riverdeep the COKeM Inventory;
provided however, [*]; and provided further, that Riverdeep shall have ceased
accepting purchase orders from COKeM as of December 31, 2004. The purchase price
for the COKeM Inventory shall be that amount that COKeM originally paid
Riverdeep for such inventory and shall be payable within 60 days after each
month in which any such inventory is sold by Distributor.

         2.7      Notwithstanding anything to the contrary in the Agreements,
and without limiting any other credits, offsets, or reimbursements available to
Distributor under the Agreements:

                  2.7.1 Riverdeep shall not be entitled to earn Royalties under
         the Agreements (i) on COKeM Products for which Distributor acts as
         inventory manager pursuant to Section 2.2 above, or (ii) on the COKeM
         Inventory. Distributor shall maintain and provide to Riverdeep such
         sales information and other data necessary to confirm sales of the
         COKeM Inventory by Distributor and the royalty treatment of such
         inventory as provided herein.

                  2.7.2 Distributor shall be entitled to a credit on a monthly
         basis against the Guaranteed Royalties under Agreement One (or, if the
         entire Guaranteed Royalty under Agreement One has been paid, then the
         Guaranteed Royalties under Agreement Two) in an amount equal to that
         which Riverdeep would have earned in Royalties under Agreement One
         (without regard to Section 2.3.1 above) if each of the following
         categories of Products had been distributed by Distributor in
         accordance with the terms of Agreement One: (i) those COKeM Products
         sold by COKeM from and after the date upon which the COKeM Termination
         Event (as defined below) occurs, and (ii) the COKeM Inventory sold by
         Distributor. Riverdeep shall provide such sales data to Distributor to
         enable Distributor to calculate the amount of such credit.

                  2.7.3 In addition, Distributor shall be entitled to a credit
         on a monthly basis against the Guaranteed Royalties under Agreement One
         (or, if the entire Guaranteed Royalty under Agreement One has been
         paid, then the Guaranteed Royalties under Agreement Two) in an amount
         equal to (i) the amount by which the purchase price paid by Distributor
         for the COKeM Inventory under Section 2.2 above, exceeds (ii) the
         wholesale price for which Distributor is able to sell the COKeM
         Inventory.

*  The material has been omitted pursuant to a request for confidential
   treatment and the material has been filed separately with the Office of the
   Secretary of the Securities and Exchange Commission.

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3.       MODIFICATIONS TO THE AGREEMENTS.

         3.1      The first sentence of Section 4.2.1 of Agreement One is hereby
amended in its entirety to read as follows:

                  "Distributor shall pay a guaranteed, irrevocable,
                  non-refundable payment (recouped against royalties as
                  hereinafter provided) for the Sales Year (as the same may be
                  increased in accordance with this Section 4.2.1 below, the
                  "Guaranteed Royalty") in the amount of [*]. In the event that
                  Riverdeep is able to obtain for Encore during the first Sales
                  Year (i) all of the rights granted to COKeM under all of the
                  COKeM Agreements, and (ii) a mutual termination and release,
                  in form and substance satisfactory to Distributor in its sole
                  discretion, pursuant to which COKeM shall have relinquished
                  all its rights under the COKeM Agreements to distribute the
                  Products into the Channel and shall have released all claims
                  related to the distribution of Products in the Channel by
                  Distributor or otherwise arising under the COKeM Agreements
                  (the satisfaction of the aforementioned conditions being
                  referred to herein as the "COKeM Termination Event"), the
                  Guaranteed Royalty shall be increased by [*], such amount to
                  be pro-rated based on the remaining portion of the Sales Year.
                  (Thus, for example, if the COKeM Termination Event occurs at
                  the end of 6 months after the Commencement Date, then the
                  Guaranteed Royalty shall be increased by [*].)"

         3.2      Section 9.1 of Agreement Two is hereby amended in its entirety
to read as follows:

                  "This Agreement shall commence on the Commencement Date and
                  shall continue in effect for a period of five (5) years from
                  the Commencement Date (as the same may be extended hereunder,
                  the "Term"). The Term shall be extended for any extended
                  recoupment periods under Section 4 hereof. Each of the first,
                  second, third, fourth, and fifth Sales Year is conditioned on
                  the payment of the applicable Guaranteed Royalty for the
                  preceding Sales Year."

         3.3      Section 4.2.1(ii) of Agreement Two is hereby amended in its
entirety to read as follows:

                  "In respect of each of the second, third, fourth, and fifth
                  Sales Years, the Guaranteed Royalty shall be 80% of the actual
                  Royalties earned by Riverdeep from sales of the Products
                  during the preceding Sales Year; provided however, that such
                  Guaranteed Royalty shall be prorated in respect of any portion
                  of a Sales Year hereunder; provided further, that no
                  Guaranteed Royalty shall be payable under any circumstances
                  for any period of time that the Term is extended solely in
                  order to accommodate any extended recoupment periods under
                  Section 4.2.2. For clarity, any adjustments or credits that
                  could accrue in any Sales Year under Agreement Two prior to
                  this Addendum shall accrue in the same manner and be applied
                  to the same extent during the third, fourth, and fifth Sales
                  Years created by this Addendum."

*  The material has been omitted pursuant to a request for confidential
   treatment and the material has been filed separately with the Office of the
   Secretary of the Securities and Exchange Commission.

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         3.4      All references in each Agreement to the term "Agreement" shall
hereafter mean such Agreement as the same has been amended in accordance with
the terms hereof.

4.       REAFFIRMATION OF REPRESENTATIONS AND WARRANTIES. Both parties reaffirm
the representations and warranties set forth in the Agreements, as amended by
the terms hereof.

5.       CONFLICT. In the event of any conflict between the terms of the
Agreements and the terms of this Addendum, the terms of this Addendum shall
prevail. Otherwise, except as specifically set forth in this Addendum, all the
terms and conditions of the Agreements are hereby ratified and affirmed.

6        ENTIRE AGREEMENT. This Addendum is the sole agreement between the
parties to the subject matter hereof and supersedes all prior understandings,
writings, proposals, representations, or communications, oral or written, of
either party relating to the subject matter of this Addendum. This Addendum may
be executed in any number of counterparts.

7.       NO THIRD PARTY BENEFICIARIES. Nothing contained herein shall be deemed
or construed as conferring any rights or benefits to or upon any party not a
party to this Agreement, including, without limitation, COKeM.

IN WITNESS WHEREOF, the parties have caused their authorized signatories to
execute this Addendum as of the date set forth above.

ENCORE SOFTWARE, INC.,                      RIVERDEEP, INC., A LIMITED
a Minnesota corporation                     LIABILITY COMPANY,
                                            a Delaware limited liability company

By: __________________________________      By: ________________________________
    Stephen P. Miller                       Name:
    CFO                                     Title:

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                                    EXHIBIT A

                                       [*]

*  The material has been omitted pursuant to a request for confidential
   treatment and the material has been filed separately with the Office of the
   Secretary of the Securities and Exchange Commission.

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                                                                   EXHIBIT 10.22

                         TRANSITION EMPLOYMENT AGREEMENT

                  THIS TRANSITION EMPLOYMENT AGREEMENT (this "AGREEMENT") is
entered into on December 1st, 2003 (the "EFFECTIVE DATE") by and between
ValueVision Media, Inc., a Minnesota corporation with its principal place of
business in Eden Prairie, Minnesota (the "COMPANY"), and Gene McCaffery, a
resident of Minnesota ("EMPLOYEE").

                                    RECITALS

                  A. Employee is the Company's former President and Chief
Executive Officer and a former director of the Company, having resigned from
those positions pursuant to that certain Separation Agreement dated November 25,
2003 (the "SEPARATION AGREEMENT").

                  B. The Company desires to retain the services of Employee with
respect to certain transition, strategy, business development and special
project matters of the Company, and Employee desires to accept such continued
employment, subject to the terms and conditions set forth in this Agreement.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the foregoing premises and
the respective agreements of the Company and Employee set forth below, the
Company and Employee, intending to be legally bound, agree as follows:

         1. TERM. The term of Employee's employment under this Agreement shall
commence on the Effective Date and shall continue until the second anniversary
following the Effective Date (the "TERM"), unless earlier terminated in
accordance with Section 2.

         2. TERMINATION.

                  (a) EARLY TERMINATION. This Agreement and Employee's
employment hereunder may be terminated as follows: (i) by the Company without
notice to Employee upon Employee's failure to execute the "MCCAFFERY RELEASE"
(as such term is defined in the Separation Agreement) or upon Employee
rescinding or attempting to rescind the McCaffery Release, (ii) by the Company
for Cause (as defined in Section 2(b) below); (iii) by Employee for any reason
upon 30 days prior written notice to the Company; or (iv) upon the death of
Employee. In the event this Agreement is terminated prior to expiration of the
Term pursuant to this Section 2, the Company shall be obligated to pay Employee
only for the compensation set forth in Section 4 that has accrued prior to such
termination date and any amounts due and owing to Employee under the Separation
Agreement.

                  (b) CAUSE. "CAUSE" shall mean: (i) a material improper act or
act of fraud which results in or is intended to result in Employee's personal
enrichment at the direct expense of the Company, including without limitation,
theft or embezzlement from the Company; (ii) material violation by Employee of
any material policy, regulation or practice of the Company;

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(iii) conviction of a felony; (iv) material breach by Employee of the terms of
this Agreement or the Separation Agreement; (v) failure of Employee to sign the
McCaffery Release; or (vi) the rescission or attempted rescission by Employee of
the McCaffery Release.

         3. EMPLOYMENT.

                  (a) POSITION AND DUTIES. Employee shall be employed during the
Term as a Special Advisor to the Board, reporting to the Company's Board of
Directors (the "BOARD") and having responsibility for such transition, strategy
business development, and special project matters as determined by the Board.

                  (b) AVAILABILITY. Employee shall be available to devote up to
5 days per month to perform his duties for the Company hereunder. Employee shall
render such services to the Company upon reasonable notice and at such time or
times as may be mutually convenient to the Company and Employee. Such services
will be performed in Minnesota primarily at the offices of the Company in Eden
Prairie, Minnesota. Employee shall devote his best efforts to the performance of
services to the Company hereunder, but he may engage in other employment or
business activities during the Term so long as such employment and business
activities do not unreasonably interfere with Employee's duties and obligations
hereunder.

         4. COMPENSATION.

                  (a) SALARY. While Employee is employed by the Company
hereunder, the Company shall pay Employee a salary at the rate of $16,667 per
month, less normal payroll deductions.

                  (b) EMPLOYEE BENEFITS. While Employee is employed by the
Company hereunder, Employee shall be entitled to participate in all employee
benefit plans and programs of the Company to the extent that Employee meets the
eligibility requirements for each individual plan or program. The Company
provides no assurance as to the adoption or continuance of any particular
employee benefit plan or program, and Employee's participation in any such plan
or program shall be subject to the provisions, rules and regulations applicable
thereto. Notwithstanding the foregoing, Employee shall be entitled to certain
employee benefits in accordance with the provisions of Section 5(c) of the
Separation Agreement subject to satisfaction of the conditions precedent in
Section 6 of the Separation Agreement.

                  (c) EXPENSES. While Employee is employed by the Company
hereunder, the Company shall reimburse Employee for all reasonable and necessary
out-of-pocket business, travel and entertainment expenses incurred by Employee
in the performance of the duties and responsibilities hereunder, subject to the
Company's normal policies and procedures for expense verification and
documentation.

         5. RETURN OF RECORDS AND PROPERTY. Upon termination of Employee's
employment or at any time upon the Company's request, Employee shall promptly
deliver to the Company any and all records and property of the Company or any
entity related to the Company, which is

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in his possession or under his control, including without limitation manuals,
books, blank forms, documents, letters, memoranda, notes, notebooks, reports,
printouts, computer disks, computer tapes, video tapes, audio tapes, data,
tables or calculations and all copies thereof, documents that in whole or in
part contain any trade secrets or confidential, proprietary or other secret
information of the Company or any entity related to the Company and all copies
thereof, and keys, access cards, access codes, passwords, credit cards, personal
computers, telephones and other electronic equipment belonging to the Company or
any entity related to the Company.

         6. MISCELLANEOUS.

                  (a) GOVERNING LAW. All matters relating to the interpretation,
construction, application, validity and enforcement of this Agreement shall be
governed by the laws of the State of Minnesota without giving effect to any
choice or conflict of law provision or rule, whether of the State of Minnesota
or any other jurisdiction, that would cause the application of laws of any
jurisdiction other than the State of Minnesota.

                  (b) JURISDICTION AND VENUE. Employee and the Company consent
to jurisdiction of the courts of the State of Minnesota and/or the federal
district courts, District of Minnesota, for the purpose of resolving all issues
of law, equity, or fact arising out of or in connection with this Agreement. Any
action involving claims of a breach of this Agreement shall be brought in such
courts. Each party consents to personal jurisdiction over such party in the
state and/or federal courts of Minnesota and hereby waives any defense of lack
of personal jurisdiction. Venue, for the purpose of all such suits, shall be in
Hennepin County, State of Minnesota.

                  (c) ENTIRE AGREEMENT. This Agreement contains the entire
agreement of the parties relating to Employee's employment with the Company as
Special Advisor to the Board and supersedes all prior agreements and
understandings with respect to such subject matter.

                  (d) NO VIOLATION OF OTHER AGREEMENTS. Employee hereby
represents and agrees that neither (i) Employee's entering into this Agreement
nor (ii) Employee's carrying out the provisions of this Agreement, will violate
any other agreement (oral, written or other) to which Employee is a party or by
which Employee is bound.

                  (e) AMENDMENTS. No amendment or modification of this Agreement
shall be deemed effective unless made in writing and signed by the parties
hereto.

                  (f) NO WAIVER. No term or condition of this Agreement shall be
deemed to have been waived, except by a statement in writing signed by the party
against whom enforcement of the waiver is sought. Any written waiver shall not
be deemed a continuing waiver unless specifically stated, shall operate only as
to the specific term or condition waived and shall not constitute a waiver of
such term or condition for the future or as to any act other than that
specifically waived.

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                  (g) ASSIGNMENT. This Agreement shall not be assignable, in
whole or in part, by either party without the prior written consent of the other
party.

                  (h) COUNTERPARTS. This Agreement may be executed in any number
of counterparts, and such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

                  (i) CAPTIONS AND HEADINGS. The captions and paragraph headings
used in this Agreement are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement or any of the
provisions hereof.

         IN WITNESS WHEREOF, Employee and the Company have executed this
Agreement as of the date set forth in the first paragraph.

                                               /s/ Gene McCaffery
                                               -----------------------------
                                               Gene McCaffery

                                               VALUEVISION MEDIA, INC.

                                               By /s/ Nathan Fagre
                                                  --------------------------
                                                  Name: Nathan E. Fagre
                                                  Its: SVP & General Counsel

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