EXHIBIT 10.7

FIRST AMENDMENT TO CREDIT AGREEMENT

          THIS AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into
as of June 30, 2005 by and between RIMAGE CORPORATION, a Minnesota corporation
(“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

RECITALS

          WHEREAS, Borrower is currently indebted to Bank pursuant to the terms
and conditions of that certain Credit Agreement between Borrower and Bank dated
as of March 29, 2004 as amended from time to time (“Credit Agreement”).

          WHEREAS, Bank and Borrower have agreed to certain changes in the terms
and conditions set forth in the Credit Agreement and have agreed to amend the
Credit Agreement to reflect said changes.

          NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree that the
Credit Agreement shall be amended as follows:

          1.     Section 1.1. (a) is hereby amended by deleting “June 30, 2005”
as the last day on which Bank will make advances under the Line of Credit and by
substituting for said date “July 1, 2006,” with such change to be effective upon
the execution and delivery to Bank of a promissory note dated as of June 30,
2005 (which promissory note shall replace and be deemed the Line of Credit Note
defined in and made pursuant to the Credit Agreement) and all other contracts,
instruments and documents required by Bank to evidence such change.

          2.     Section 1.2. (a) is hereby deleted in its entirety, and the
following substituted therefor:

          “(a)     Foreign Exchange Facility. Subject to the terms and
conditions of this Agreement, Bank hereby agrees to make available to Borrower a
facility (the “Foreign Exchange Facility”) under which Bank, from time to time
up to and including June 30, 2006, will enter into foreign exchange contracts
for the account of Borrower for the purchase and/or sale by Borrower of
currencies that have been agreed to in advance by Bank; provided however, that
the maximum amount of all outstanding foreign exchange contracts shall not at
any time exceed an aggregate of Five Million United States Dollars
(US$5,000,000.00). No foreign exchange contract shall be executed for a term in
excess of twelve (12) months. Borrower shall have a “Delivery Limit” under the
Foreign Exchange Facility not to exceed at any time the aggregate principal
amount of One Million United States Dollars (US$1,000,000.00), which Delivery
Limit reflects the maximum principal amount of Borrower’s foreign exchange
contracts which may mature during any two (2) day period. All foreign exchange
transactions shall be subject to the additional terms of a Foreign Exchange
Agreement dated as of March 3,

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2004 (“Foreign Exchange Agreement”), all terms of which are incorporated herein
by this reference.”

          3.     Section 1.3. (b) is hereby deleted in its entirety, and the
following substituted therefor:

          “(b)     Computation and Payment. Interest shall be computed on the
basis of a 365-day year, actual days elapsed. Interest shall be payable at the
times and place set forth in each promissory note or other instrument or
document required hereby.”

          4.     Except as specifically provided herein, all terms and
conditions of the Credit Agreement remain in full force and effect, without
waiver or modification. All terms defined in the Credit Agreement shall have the
same meaning when used in this Amendment. This Amendment and the Credit
Agreement shall be read together, as one document.

          5.     Borrower hereby remakes all representations and warranties
contained in the Credit Agreement and reaffirms all covenants set forth therein.
Borrower further certifies that as of the date of this Amendment there exists no
Event of Default as defined in the Credit Agreement, nor any condition, act or
event which with the giving of notice or the passage of time or both would
constitute any such Event of Default.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the day and year first written above.

 

 

 

 

 

 

RIMAGE CORPORATION

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 

 

 

By:

/s/ Bernard P. Aldrich

 

By:

/s/ Cindy Goplen

 

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Bernard P. Aldrich, President and
Chief Executive Officer

 

 

Cindy Goplen, Vice President

 

 

 

 

By:

/s/ Robert M. Wolf

 

 

 

 

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Robert M. Wolf, Secretary and Chief Financial Officer

 

 

 

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