Document:

EXHIBIT 10.3

AMENDMENT NO. 1

TO

THE EMPLOYMENT AGREEMENT

THIS
AMENDMENT NO. 1 (the “Amendment”) is entered into effective as of April 19,
2006, to amend that certain Employment Agreement by and between Richard Barnes
(hereinafter “Executive”) and ZOMAX INCORPORATED, a Minnesota corporation (“Zomax”)
dated August 22, 2005 (the “Agreement”).

1.             Sections 4.3 and 4.4 of the Agreement are modified to
read as follows:

4.3                               Payment
Upon Termination of Employment Without Cause, Termination or  Resignation for Good Reason, Termination or
Resignation Following Change of Control, and Failure to Extend Employment
Agreement.

a.                                       If
Executive’s employment is terminated Without Cause, Executive resigns from his
employment hereunder for Good Reason, or Company fails to extend this Agreement
at the end of the Initial Term or an Extension Year, Executive shall be
entitled to the Accrued Benefits and to receive the following:

(i)            Executive
shall receive, within thirty (30) days after such termination, resignation, or
end of the Initial Term or an Extension Year without an extension, a lump sum
payment in an amount equal to 1.5 times his Base Salary in effect on the
effective date of such termination or resignation or as of the end of the
Initial Term or Extension Year.  Zomax
shall be entitled to deduct or withhold all taxes and charges which Zomax may
be required to deduct or withhold therefrom.

(ii)           With
respect to any outstanding stock options, SARs, restricted stock awards,
performance share awards or other equity-based awards granted to Executive, all
restrictions shall lapse immediately and such awards shall fully vest, all
outstanding options and SARs will become exercisable immediately, and all
performance share objectives shall be deemed to have been met.

(iii)          Executive
and his family shall be entitled to continued participation in hospital and
medical plans and programs of Zomax at Zomax’s expense for a twelve (12) month
period following such termination, resignation or end of Term subject to early
termination of participation upon Executive becoming entitled to comparable
benefits on subsequent employment.

(iv)          Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

b.                                      If
Executive is terminated or resigns from his employment hereunder for any reason
within one (1) year after a Change of Control, Executive shall be entitled to
the Accrued Benefits and the following:

(i)            Executive
shall receive within thirty (30) days after such termination or resignation, a lump
sum payment in an amount equal to 1.5 times his Base Salary in effect on the
effective date of such termination or resignation.  Zomax or its successor shall be entitled to
deduct or withhold all taxes and charges which may be required to be deducted or
withheld therefrom.

(ii)           With
respect to any outstanding stock options, SARs, restricted stock awards,
performance share awards or other equity-based awards granted to Executive, all
restrictions shall lapse immediately and such awards shall fully vest, all
outstanding options and SARs will become exercisable immediately, and all
performance share objectives shall be deemed to have been met.

(iii)          Executive
and his family shall be entitled to continued participation in hospital and
medical plans and programs of Zomax at Zomax’s expense for a twelve (12) month
period following such termination, resignation or end of Term subject to early
termination of participation upon Executive becoming entitled to comparable
benefits on subsequent employment.

(iv)          Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

 

 

c.                                       The
date of termination of Executive’s employment Without Cause shall be ninety
(90) days after receipt by Executive of written notice of termination.  The date of termination or resignation by
Executive for any reason within one (1) year after a Change of Control or
Resignation for Good Reason shall be effective immediately upon receipt by
Zomax of written notice of resignation or the date of receipt by Executive of
the termination notice.  The date of
termination of Executive’s employment for failure to extend his employment
shall be the date on which the Initial Term or Extension Year ends.

d.                                      Anything
in the Agreement to the contrary notwithstanding, if any payment or benefit of
any type to or for the benefit of Executive by Zomax, by any of its affiliates,
by any person who acquires ownership or effective control or ownership of a
substantial portion of Zomax’s assets (within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended, and the regulations thereunder
(the “Code”)) or by any affiliate of such person, whether paid or payable or
distributed or distributable pursuant to the terms of the Agreement or otherwise
(the “Payments”), would, but for this sentence, be subject to the excise
tax imposed by Section 4999 of the Code or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest or
penalties, are collectively referred to as the “Excise Tax”), then such
Payment(s) shall be equal to the Greater Amount.  The “Greater Amount” shall be either
(1) the largest portion of the Payment(s) that would result in no portion of
the Payment(s) being subject to the Excise Tax or (2) the Payment(s) in full,
whichever amount after taking into account all applicable federal, state and
local taxes and the Excise Tax (all computed at the highest applicable marginal
rate), results in the Executive’s receipt, on an after-tax basis, of the
greatest amount of the Payment(s).  If a
reduction in payments or benefits is necessary so that the Payment(s) equals
the Greater Amount, reduction shall occur in the following order unless
Executive elects in writing a different order: 
reduction of cash payments; reduction of non-cash payments.

4.4.         Termination of Employment by Disability or Death.

a.                                       In
the event of termination of Executive’s employment pursuant to Section 4.1(b)
or 4.1(c), the Executive and/or his family (or Executive’s estate, as the case
may be), shall be entitled to receive from Zomax the following:

(i)            Executive shall receive, within
thirty (30) days after such termination, resignation, or end of the Initial
Term or Extension Year without an extension, a lump sum payment in an amount
equal to 1.5 times his Base Salary in effect on the effective date of such
termination or resignation or as of the end of the Initial Term or Extension
Year.  Zomax shall be entitled to deduct
or withhold all taxes and charges which Zomax may be required to deduct or
withhold therefrom.

(ii)           With respect to any outstanding stock
options, SARS, restricted stock awards, performance share awards or other
equity-based awards granted to Executive, all restrictions shall lapse
immediately and such awards shall fully vest, all outstanding options and SARS
will become exercisable immediately, and all performance share objectives shall
be deemed to have been met.

(iii)          Executive
and/or his family shall be entitled to continue participation in hospital and
medical plans and programs of Zomax at Zomax’s expense for an eighteen (18)
month period.  Thereafter, Zomax shall
pay to Executive and/or his family the sum of $6,000 per year to be prorated
for a partial year, during the period of disability or, if later, until
Executive reaches age 62 or would have reached age 62 if he had survived;
provided, that the first payment shall be payable on the day following the
expiration of such eighteen (18) month period and any subsequent payments shall
be payable on each anniversary of such day.

(iv)          Executive
(or, in the event of his death, Executive’s estate or his designated
beneficiary) shall be entitled to receive benefits under any other Company plan
or program (to the extent Executive is vested) in accordance with the terms of
such plan or program.  Should Executive’s
employment terminate pursuant to Section 4.1(c), he shall be entitled to
continued contributions under Zomax’s qualified profit sharing plan 401(k) to
the extent permitted in said Plan.

(v)           Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

b.                                      The
date of termination of Executive’s employment under the circumstances described
in this Section 4.4 shall be the date Executive’s employment is terminated
pursuant to Section 4.1(c) or the date of Executive’s death, as the case may
be.

 

2.             Except
as expressly set forth in this Amendment, all other terms and conditions set
forth in the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment
on the day and year set forth above.

	
  ZOMAX INCORPORATED:

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anthony
  Angelini

  	
   

  	
  /s/ Richard Barnes

  	
   

  
	
  Its:

  	
  Chief Executive
  Officer

  	
   

  	
  Richard BarnesEXHIBIT
10.4

Amendment
to the Replication Agreement

between

MICROSOFT LICENSING, GP

and

ZOMAX INCORPORATED

MS Contract #5000026380

This Amendment (“Amendment”)
amends that certain Replication Agreement between MICROSOFT LICENSING, GP (“MS”)
and ZOMAX INCORPORATED (“COMPANY”) dated July 1, 2005 (“Agreement”).

The parties agree to
amend the Agreement as follows:

1.             The first sentence of Section 12 (TERM OF AGREEMENT)
shall be deleted in its entirety and shall be replaced with the following:

“The term of this Agreement
shall begin on the Effective Date and shall end on the earlier to occur of
August 31, 2006, or when a new Replication Agreement between the parties is
signed, unless terminated earlier in accordance with this Agreement (the “Term”).”

This Amendment shall be
attached to and incorporated into the Agreement and is subject to all terms and
conditions of the Agreement.

Except as specifically
amended herein, all other provisions of the Agreement shall remain in full
force and effect, and the parties hereby ratify the terms and conditions of the
Agreement as amended hereby.

All capitalized terms
shall have the same meaning as in the Agreement.

IN WITNESS WHEREOF, the
parties have executed this Amendment which shall be effective as of this 30th
day of June, 2006.  All signed copies of
this Amendment shall be deemed originals.

	
  MICROSOFT LICENSING, GP

  	
   

  	
  ZOMAX INCORPORATED

  
	
   

  	
   

  	
   

  
	
  /s/ R. Todd Dunlap

  	
   

  	
  /s/ Richard Barnes

  	
   

  
	
  R. Todd Dunlap

  	
   

  	
  Richard Barnes

  
	
  General Manager

  	
   

  	
  EVP and CFO

  
	
   

  	
   

  	
   

  
	
  Date: 6/19/2006

  	
   

  	
  Date: 6/13/2006

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