Document:

Amendment of Contract of Employment

 Exhibit 10.3 
  

			
	 Vertragsänderung
	  	 Contract Amendment

	Dies ist eine Vertragsänderung des zwischen Franklin Electronic Publishers (Deutschland) GmbH (im Folgenden die „Gesellschaft” genannt) und Herrn Walter Schillings am 11.03.1996
geschlossenen Dienstleistungsvertrages, welcher bereits durch die Änderungsvereinbarungen vom 01.10.1999, 15.02.2000 und 05.12.2002 modifiziert wurde.	  	This agreement constitutes an amendment to the Contract of Employment concluded on March 11, 1996 between Franklin Electronic Publishers (Deutschland) GmbH (hereinafter “Company”) and
Mr. Walter Schillings, which has already been modified by way of amendments agreed on October 1, 1999, February 15, 2000 and December 5, 2002.
		
	Grund der erneuten Vertragsänderung ist unter anderem die Verlängerung des Dienstvertrages	  	The reason for renewed amendment of the contract is, among other things, to extend the Contract of Employment.
		
	 I.
 Änderungsbestimmungen
	  	 I.
 Amendment Provisions

		
	Die Parteien vereinbaren, dass der Dienstleistungsvertrag wie folgt geändert werden soll:	  	The parties hereby agree that the Contract of Employment shall be amended as follows:
		
	Der Vertrag von Herrn Schillings wird beginnend am 15.02.2006 um weitere drei Jahre verlängert und endet somit mit Ablauf des 14.02.2009.	  	As of February 15, 2006, the contract with Mr. Schillings shall be extended for a further three (3) years and shall therefore terminate upon expiry of February 14, 2009.
		
	 II.
 Konkretisierung der Verlängerung und
 der Abfindungsbestimmungen
	  	 II.
 Definition of the Extension and
 Compensation Provisions

		
	§ 1 der Änderung des Dienstvertrages vom 05.12.2002 wird hiermit vollumfänglich aufgehoben und durch folgende Bestimmung ersetzt:	  	Clause 1 of the Amendment to the Contract of Employment dated December 5, 2002 is hereby rescinded in full and shall be replaced by the following provision:
		
	 A.      Der Dienstleistungsvertrag ist zum Ende der vorstehend festgelegten Laufzeit beidseitig unter Einhaltung
einer Frist von sechs Monaten vor
	  	 A.      The Contract of Employment may be terminated by either party upon expiry of the term stipulated
hereinabove subject to a notice period of six

			
	 Ablauf der Laufzeit kündbar. Eine Kündigung muss also am 15.08.2008 (im Folgenden „Verlängerungstermin” genannt) zugehen. Eine
Kündigung kann auch früher ausgesprochen werden. Dies ändert jedoch nichts am Beendigungszeitpunkt.
	 	 (6) months to the end of such term. Notice shall therefore be received by August 15, 2008 (hereinafter “Extension Date”). Notice may also be issued
at an earlier date. This shall not however have any effect on the termination date.

		
	 Im Falle des Ausspruchs einer Kündigung durch die Gesellschaft zahlt die Gesellschaft Herrn Schillings nach Ablauf der oben genannten Laufzeit eine Abfindung
in Höhe von sechs Monatsgehältern. Diese sechs Monatsgehälter bemessen sich nach dem durchschnittlichen Monatsgehalt, das sich aus dem Jahresgehalt des Vorjahres (ohne Tantiemen) bemisst. Eine solche Abfindungszahlung ist nur dann zu
leisten, wenn während der Laufzeit gemäß dieses Vertrages Herr Schillings alle Geschäftsführungsaufgaben und die geschäftlichen Pflichten ordnungsgemäß erfüllt hat bzw. wenn er sie bis zu diesem
Zeitpunkt, zu welchem die Gesellschaft Herrn Schillings von seinen Verpflichtungen zur Erfüllung der entsprechenden Aufgaben freigestellt hat, ordnungsgemäß erfüllt hat und die Freistellung durch ein vom Präsidenten und
Vorsitzenden der Geschäftsleitung der Muttergesellschaft der Franklin Electronic Publishers, Inc. unterzeichnetes Schreiben erklärt wird. Diese Ziffer A. findet keine Anwendung für den Fall, dass der Vertrag wegen eines wichtigen
Grundes im Sinne der Ziffer 2. des Vertrages vom 05.12.2002 gekündigt wird, oder weil die Kündigung wegen eines „Wechsels in der Unternehmensstruktur” bei der
	 	 In the event that notice is issued by the Company, the Company shall pay to Mr. Schillings compensation amounting to six (6) months ́ salary upon expiry of
the aforesaid term. Such six months ́ salary shall be determined in accordance with the average monthly salary calculated on the basis of the previous year ́s annual salary (excluding bonuses). Such severance payment shall not be payable
unless Mr. Schillings duly performs all management assignments and business duties during the term pursuant to the present agreement, or unless he duly performs the same until the date on which the Company releases Mr. Schillings from his
obligations to perform the relevant assignments and notice of such release is signed by the President and Chairman of the Executive Board of the parent company Franklin Electronic Publishers, Inc. The present Clause A. shall not apply in the event
that the contract is terminated for important cause, as defined under Clause 2. of the contract of December 5, 2002, or if notice is given on the grounds of a “change in the corporate structure” of Franklin Electronic Publishers, Inc. as
defined under Clause 3 of the Amendment Agreement dated December 5, 2002. (The date on which Mr. Schillings receives such notification on the grounds of a change in the corporate structure shall hereafter be referred to as “Date of
Release”).

  

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	 Franklin Electronic Publishers, Inc. i.S.d. § 3 der Änderungsvereinbarung vom 05.12.2002 erfolgt. (Der Zeitpunkt, in welchem Herr Schillings ein solches
Schreiben wegen Änderung der Unternehmensstruktur erhält, wird im Folgenden als „Freistellungstermin” bezeichnet).
	 	
		
	 Des Weiteren entfällt eine Abfindungszahlung für den Fall, dass nach Ausspruch einer Kündigung, die grundsätzlich gemäß dieser
Ziffer A. zu einer Abfindung berechtigt, eine weitere Kündigung entweder aus wichtigem Grund oder wegen eines „Wechsels in der Unternehmensstruktur” ausgesprochen wird.
	 	 Furthermore, no severance payment shall be due in the event that following issue of notice which in principle confers a right to compensation pursuant to this
Clause A., additional notice is issued either for important cause or on the grounds of a “change in the corporate structure”.

		
	 B.      Falls die Gesellschaft Herrn Schillings vor dem Verlängerungstermin kein schriftliches Angebot zur
Verlängerung des Dienstvertrages mit diesem Änderungsvertrag zu vergleichbaren Bedingungen unterbreitet hat und unter der Voraussetzung, dass Herr Schillings bis zum Ende der neuen Laufzeit oder gegebenenfalls bis zu einem früheren
Freistellungstermin alle ihm gemäß dem Dienstvertrag obliegenden Geschäftsführungsaufgaben und Geschäftsführungspflichten ordnungsgemäß erfüllt hat, zahlt die Gesellschaft Herrn Schillings die Abfindung
am Ende der neuen Laufzeit, sofern die Parteien vor dem Ende oder zum Ende der neuen Laufzeit nicht schriftlich die Weiterbeschäftigung von Herrn Schillings bei der Gesellschaft nach dem Ende der neuen Laufzeit vereinbart haben.
	 	 B.      If prior to the Extension Date the Company has not made Mr. Schillings an offer to extend the Contract
of Employment based on conditions comparable with the present amendment agreement and provided that Mr. Schillings duly performs all management assignments and management duties incumbent upon him pursuant to the Contract of Employment until expiry
of the new term or until any earlier Date of Release if appropriate, the Company shall pay compensation to Mr. Schillings upon expiry of the new term, unless the parties agree in writing, either prior to or upon expiry of the new term, to continue
Mr. Schillings ́ employment with the Company following expiry of such new term.

  

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	 C.      Kommt zwischen den Parteien keine schriftliche Vereinbarung über die Verlängerung des
Dienstleistungsvertrages zustande, die spätestens zum Verlängerungstermin vollständig abgeschlossen und beiden Parteien zugegangen ist, gilt:
	 	 C.      Should the parties fail to reach written agreement on an extension of the Contract of Employment and no
such agreement has been concluded in its entirety and received by each party not later than the Extension Date, the following shall apply:

		
	 i)       Der Dienstleistungsvertrag endet mit Ablauf der neuen Laufzeit, also am 15.02.2009
und
	 	 i)       The Contract of Employment shall terminate upon expiry of the new term, i.e. as of February 15,
2009 and

		
	 ii)     Sofern der Dienstleistungsvertrag während der Laufzeit zwischen dem 16.08.2008 und dem Ende der neuen
Laufzeit (Übergangszeit) auf Veranlassung der Gesellschaft durch Zustellung einer schriftlichen Kündigung an Herrn Schillings zu einem Zeitpunkt gekündigt wurde, der vor dem Ende der neuen Laufzeit liegt (früherer
Kündigungszeitpunkt), so obliegt es Herrn Schillings, während der Übergangszeit bis zum früheren Kündigungszeitpunkt weiterhin alle ihm gemäß dem Dienstleistungsvertrag obliegenden
Geschäftsführeraufgaben und geschäftlichen Pflichten zu erfüllen. Die Gesellschaft ist verpflichtet, Herrn Schillings sein zu diesem Zeitpunkt bestehendes Gehalt weiterzuzahlen. Weiter zahlt die Gesellschaft Herrn Schillings
anstelle der Abfindung nach Maßgabe des obigen Abschnitts A. oder B. die Abfindung am oder nach dem früheren Kündigungszeitpunkt unter der Voraussetzung, dass Herr Schillings seine Aufgaben und Pflichten in Übereinstimmung mit
obigen Bestimmungen erfüllt.
	 	 ii)     in the event that the Contract of Employment is terminated on the part of the Company during the period
between August 16, 2008 and expiry of the new term (Interim Period) by serving written notice on Mr. Schillings effective as of a date prior to expiry of the new term (Earlier Notice Date), Mr. Schillings shall be obliged to continue to perform all
management assignments and business duties incumbent upon him pursuant to the Contract of Employment during the Interim Period until such Earlier Notice Date. The Company shall be obliged to continue to pay Mr. Schillings the salary prevailing at
such time. Furthermore, the Company shall pay the compensation to Mr. Schillings on or after the Earlier Notice Date instead of compensation pursuant to the preceding Clauses A. or B., provided that Mr. Schillings performs his assignments and duties
in accordance with the preceding provisions.

  

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	 D.      Im Falle einer berechtigten fristlosen Kündigung aus wichtigem Grund ist eine Abfindungszahlung an
Herrn Schillings ausgeschlossen.
	 	 D.      In the event of justified termination without notice for important cause, any and all severance payments
to Mr. Schillings shall be ruled out.

  

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	III.	 	III.
		
	Einschränkung der Abfindungsbestimmung: Die Parteien kommen überein, dass § 2 und § 3 der Änderung des Dienstleistungsvertrages vom 05.12.2002 hiermit jeweils wie folgt
eingeschränkt werden: Die Gesellschaft ist in keinem Fall zu einer Zahlung gemäß § 2 oder § 3 der Änderung des Dienstleistungsvertrages vom 05.12.2002 verpflichtet, wenn (i) der Dienstleistungsvertrag während
des Verlängerungstermins auf Veranlassung der Gesellschaft gekündigt wird und (ii) die Gesellschaft Herrn Schillings eine Abfindung nach Maßgabe von Abschnitt 1A, 1B oder 1C dieser Änderung zahlt, oder wenn Herr Schillings
nicht alle ihm gemäß Abschnitt 1A, 1B oder 1C dieser Änderung obliegenden Geschäftsführungsaufgaben und geschäftlichen Pflichten zufriedenstellend erfüllt.	 	Limitation on Severance Provisions: The parties agree that Section 2 and Section 3 of the 5 December 2002 Amendment to the Service Agreement each are hereby limited as follows: In no case shall
any payment be due under Section 2 or Section 3 of the 5 December 2002 Amendment from Franklin to Mr. Schillings in the case in which (i) the Service Agreement is terminated after the Extension Date on the initiation of Franklin and (ii) Franklin
pays the Severance to Mr. Schillings pursuant to paragraph 1A, 1B, or 1C of this Amendment or Mr. Schillings fails satisfactorily to perform all of the management duties and responsibilities that are required to be performed pursuant to paragraph
1A, 1B, or 1C of this Amendment
		
	IV.	 	IV.
		
	Gehalt von Herrn Schillings: Abschnitt III (1) des Dienstleistungsvertrages wird wie folgt geändert: Während der neuen Laufzeit zahlt die Gesellschaft Herrn Schillings zur
Abgeltung seiner vertraglichen Dienste ein jährliches Bruttogehalt in Höhe von EUR 148.000,00, das jeweils monatlich im Nachhinein zu entrichten ist. Während der neuen Laufzeit hat Herr Schillings die Möglichkeit,
zusätzlich zu seiner Vergütung jährliche Leistungszulagen zu erhalten, die gegebenenfalls vom Präsidenten und Vorsitzenden der Geschäftsleitung der Muttergesellschaft Franklin Electronic Publishers, Inc. nach dessen freiem
Ermessen bestimmt werden.	 	Salary of Mr. Schillings: Section III (1) of the Service Agreement is amended as follows: During the New Term, the Company shall pay Mr. Schillings by way of remuneration for his service under
this Agreement a gross salary at the rate of 148,000 euros per annum, paid monthly in arrears. During the New Term, Mr. Schillings shall be eligible to be considered to receive annual merit increases in connection with his remuneration hereunder as
may be determined by the President and Chief Executive Officer of Franklin Electronic Publishers, Inc., parent of the Company, in his full discretion.

  

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	 Ort, Datum
 Illegible, June 19, 2006
	 	Place, date

  

					
		 	 /s/ Walter Schillings
	 	
			
		 	 /s/ Barry Lipsky
	 	

  

 7Management Agreement - Centaurus Limited dated Decemeber 13, 2004

 Exhibit 10.4 
 MANAGEMENT AGREEMENT 
 This Agreement is made as of December 13, 2004 by and between Franklin Electronic Publishers,
Inc., a Pennsylvania corporation, with principal place of business at One Franklin Plaza, Burlington, New Jersey 08016-4907 (“Franklin” or “the Company”) and Centaurus Limited, a Hong Kong company, with principal place of
business at 3005 Universal Trade Centre, 3 Arbuthnot Rd. Central, Hong Kong SAR (“Centaurus”). 
 BACKGROUND 
  

	1.	Franklin develops and has manufactured for its resale hand-held electronic reference products; 

  

	2.	Centaurus is a management consulting firm with expertise in the development and manufacture of handheld electronic reference products and employs one Matthew Baile
(“Baile”); 

  

	3.	Franklin desires that Centaurus perform certain management and consulting work during the Term of this Agreement as described more fully in Exhibit A attached hereto and made a part
hereof (the “Management Work”); 

  

	4.	The Management Work and all work product produced by Centaurus in connection therewith shall be for Franklin’s exclusive use: and 

  

	5.	Centaurus desires to undertake the Management Work in consideration of the promises and 

 payments set forth herein. 
 AGREEMENT 
 The parties hereto agree as follows: 
 1. Assignment of Matthew Baile: Centaurus represents that Baile, having an address of
A2 Taoloo Villa, 848 Clear Water Bay Road, Sai Kung, Hong Kong SAR and being a citizen of the United Kingdom is an employee of Centaurus. Franklin desires that all Management Work to be performed hereunder shall be performed personally by Baile,
who, in carrying out such duties, shall carry Franklin business cards with the description “Vice President, Product Development.” Centaurus acknowledges that the designation does not indicate nor shall it be construed to mean that Baile
has been elected as a corporate officer of Franklin. Centaurus represents and warrants that all Management Work to be performed hereunder shall be personally performed by Baile and agrees to assign all such Management Work to Baile and represents
and warrants that Baile will devote not less than 80% of his weekly business hours to performance of the Management Work hereunder except as specifically approved in writing in advance by Franklin. Centaurus shall have Baile execute and deliver to
Franklin an Agreement in the form attached hereto as Exhibit B. Centaurus agrees that all responsibility with respect to payments and benefits due to Baile in all applicable jurisdictions as an employee of Centaurus in connection with this Agreement
shall be the sole responsibility of Centaurus, and not Franklin. 

 2. Payments: Franklin agrees to pay to Centaurus (i) the sum of US$15,000 per month for its acceptable performance of
Management Work during the Term of this Agreement within ten days of receipt of a proper invoice and (ii) the amount of any pre-approved expenses of Baile in the performance of the Management Work as documented in form acceptable to Franklin.
Centaurus shall be fully responsible for any taxes, duties, or other payments in connection with its receipt of payments from Franklin hereunder. 
 3.
Works: In the case in which the Management Work requires Centaurus to develop copyrightable works (“Works”), Centaurus shall develop the Works in the format acceptable to and determined by Franklin for Franklin’s exclusive use. All of
Centaurus’ work product in connection with the Management Work and the creation of any Works, including, but not limited to, printouts, diskettes, notes, programs, prototypes, reports, results and backup materials, in whatever form, shall as
conducted be the sole property of Franklin, with the exception of the tools and know how identified with particularity in Exhibit C attached hereto and made a part hereof, which Exhibit C may be augmented by adding certain tools or know how from
time to time at the reasonable request of Centaurus as approved by Franklin in its discretion; provided, that any such request must precede the implementation or use by Centaurus of any such tools or know how in connection with the performance of
Management Work hereunder. Nothing contained herein shall constitute an agreement by Franklin to provide Centaurus with any assignments or guaranteed house of work on an ongoing basis . Centaurus agrees that neither Centaurus nor Baile has authority
to bind Franklin in any way and warrants that Baile shall have no power to bind Franklin to any agreement (written or oral) unless prior written approval of the agreement is obtained and the agreement is reduced to writing acceptable to Franklin in
all ways, and subsequent ratification of Franklin is secured. Centaurus promises and warrants that the Works, as well as the performance under this Agreement, shall not violate any rights of any third party.Centaurus shall provide whatever
assistance may be necessary to Franklin in connection with Franklin’s quiet enjoyment of all rights in and use of the Works. Centaurus agrees to immediately notify Franklin of any material mistake, omission or default in any Works, assignments
or materials, providing written notice upon observance or discovery. Any other materials purchased by or expenses of Centaurs must be approved by Franklin in advance in writing n order for Centaurus to be reimbursed by Franklin. 
 4. Assignment of Rights: Centaurus agrees and warrants that all rights in the Works shall be the exclusive property of Franklin. Centaurus specifically acknowledges that
any and all copyrightable Works created by Centaurus in connection with this Agreement shall be deemed assigned to Franklin by Centaurus by this writing and, in furtherance thereof, Centaurus agrees to execute any additional documents necessary to
evidence the assignment of any copyright rights to Franklin in connection with Centaurus’ performance of this Agreement. 
 5. Confidentiality:
Centaurus acknowledges its execution of Franklin’s standard form of Non-Disclosure Agreement (the “NDA”) on or about 18 October 2004 which NDA is attached hereto as Exhibit D. 
  

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 6. Inventions: For avoidance of doubt, Centaurus shall promptly and fully disclose to Franklin any and all inventions,
discoveries, writings, programs and improvements to existing Franklin products made by Centaurus pertaining to or useful to the business of Franklin (“Inventions”) during the Consultation and during the performance of this Agreement,
whether or not specifically commissioned by Franklin, as long as such Inventions were made in connection with performance of this Agreement. Centaurus shall also disclose any improvements to such Inventions made by Centaurus for one year after the
completion of Centaurus’ affirmative obligations under this Agreement (“Improvements”); provided, however, that this disclosure obligation shall apply solely to Improvements related to the Management Work; and, further provided, that
Franklin shall be required to respond to any disclosure relating to Improvements within five (5) working days of such disclosure as to Franklin’s desire to file one or more patent applications thereon and in default of such response, Centaurus
shall be entitled to practice such Improvement without payment of any kind to Franklin. . Such Inventions and Improvements shall be those made solely or jointly with others, whether during regular business hours or otherwise, and shall become and
remain the property of Franklin whether or not patent or copyright registration applications are filed thereon. Centaurus shall from time to time, upon request and at the expense of Franklin, make application for any patent or copyright registration
in any country, or assignments in connection therewith, in connection with the Works, or in connection with any Inventions or Improvements and assign and transfer all said applications or rights in Inventions or Improvements to Franklin or its
successors or assigns, without further consideration. Centaurus shall from time to time upon request of Franklin execute all papers, do all other things that may reasonably be required in order to protect the rights of Franklin and to vest in
Franklin or its successors or assigns the entire right, title and interest in and to the Works and any and all Inventions and Improvements. 
 7. Term: The
Term of this Agreement shall run from December 13, 2004 to June 13, 2005 unless earlier terminated by either Party by providing one month’s written notice at any time. 
 8. General: This Agreement is the entire agreement between the parties hereto with respect to the subject matter hereof except for the NDA and any separate agreements between Baile and Franklin, and may not be
modified except in a writing signed by the party against whom enforcement is sought. This Agreement shall be governed by the laws of the state of New Jersey, the place of the contract, without regard to conflicts principles and any dispute hereunder
shall be litigated in a court sitting in the State of New Jersey. 
 IN WITNESS WHEREOF, INTENDING TO BE LEGALLY BOUND HEREBY, the parties hereto have
executed this Agreement as of the date set forth below. 
  

			
	 FRANKLIN ELECTRONIC PUBLISHERS, INC.

		
	 By:
	 	 /s/ Barry Lipsky

		 	 Barry J. Lipsky, President

	Date:	 	  
	
	 CENTAURUS LIMITED

		
	By:	 	 /s/ Matthew Baile

	Its:	 	 Managing Director

	Date:	 	 13th
December 2004

  

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