Document:

<PAGE>

                                                                    Exhibit 10.4

                         CONTINUING GUARANTY AGREEMENT
                         -----------------------------

     THIS CONTINUING GUARANTY AGREEMENT (this "Guaranty") is made this 1st day
of July, 2003 by DANKA BUSINESS SYSTEMS PLC ("Danka PLC"), the undersigned
Subsidiaries of Danka PLC (together with Danka PLC, sometimes individually
referred to as "Guarantor" and sometimes collectively referred to as
"Guarantors") in favor of FLEET CAPITAL CORPORATION, a Rhode Island corporation,
as administrative and collateral agent (together with its successors in such
capacity, the "Agent") for each of the lenders (the "Lenders" and together with
the Agent, the "Guaranteed Parties") now or hereafter parties to the Loan
Agreement (as defined below).

                                    Preamble:
                                    --------

     Agent, Lenders, Danka Office Imaging Company, a Delaware corporation, Danka
Holding Company, a Delaware corporation (sometimes individually referred to as
"Borrower" and sometimes jointly referred to as "Borrowers") are parties to a
Loan and Security Agreement, dated July 1, 2003 (as at any time amended,
modified, renewed or extended, the "Loan Agreement"), pursuant to which Lenders
have agreed to make loans and other extensions of credit to or for the benefit
of Borrowers on the terms and subject to all of the conditions set forth in the
Loan Agreement. Capitalized terms used in this Guaranty, unless otherwise
defined herein, shall have the meaning ascribed to them in the Loan Agreement.

     A condition to any extension of any credit by the Guaranteed Parties to
Borrowers under the terms of the Loan Agreement is the execution and delivery of
this Guaranty by Guarantors. To induce the each of the Guaranteed Parties to
extend credit to Borrowers under the Loan Agreement in accordance with the terms
thereof, each Guarantor has agreed to execute and deliver this Guaranty.

     NOW, THEREFORE, for Ten Dollars ($10.00) in hand paid and to induce the
Guaranteed Parties to make loans or otherwise extend credit to Borrowers from
time to time as set forth in the Loan Agreement, and for other good and valuable
consideration, each Guarantor hereby jointly and severally, unconditionally and
absolutely guarantees to the Guaranteed Parties the due and punctual payment,
performance and discharge (whether upon stated maturity, demand, acceleration or
otherwise in accordance with the terms thereof) of all of the Obligations of
Borrowers or any other Obligated Party now or hereafter existing, whether for
principal, interest, fees, expenses or otherwise in accordance with the Loan
Documents (after giving effect to any applicable periods of grace), regardless
of whether recovery upon any of such Obligations becomes barred by any statute
of limitations, or is or becomes invalid or unenforceable for any other reason,
or is unrecoverable in any Insolvency Proceeding of an Obligated Party (whether
pursuant to 11 U.S.C. Section 506 or otherwise).

     EACH GUARANTOR DOES HEREBY WAIVE: notice of acceptance hereof; notice of
the extension of credit from time to time by any Guaranteed Party to Borrowers
and the creation, existence or acquisition of any Obligations; notice of the
amount of Obligations outstanding from time to time, subject, however, to
Guarantors' right to make inquiry of Agent to ascertain the amount of
Obligations at any reasonable time; notice of any adverse change in a Borrower's
financial condition or of any other fact which might increase Guarantors' risk;
notice of presentment for payment, demand, protest and notice thereof as to any
instrument; notice of any Default, Event of Default or acceleration and all
other notices and demands to which Guarantor might otherwise be entitled; any
defense that a Borrower may at any time assert based upon the invalidity or
unenforceability of any of the Loan Documents, the statute of limitations, the
statute of frauds, failure of consideration, fraud, bankruptcy, lack of legal
capacity, usury, or accord and satisfaction;

<PAGE>

and any right to contest the commercial reasonableness of the disposition of any
or all Collateral. Each Guarantor further waives any right such Guarantor may
have, by statute or otherwise, to require any of the Guaranteed Parties to
institute suit against Borrowers or any other Obligated Party after notice or
demand from a Guarantor or to seek recourse first against Borrowers or any other
Obligated Party, or to realize upon any Collateral, as a condition to enforcing
a Guarantor's liability and obligations hereunder; any defense or claim that any
Person purporting to bind a Borrower to the payment of any Obligations did not
have actual or apparent authority to do so; and any right to appraisement,
valuation, stay of execution, or notice of election to declare due the amount of
any Obligations of any Borrower with regard to Agent's enforcement of any Lien
or other interest Agent, for the benefit of the Guaranteed Parties, may hold in
any real or personal property of any Borrower. To the fullest extent permitted
by Applicable Law, each Guarantor hereby also expressly waives any and all
rights or defenses arising by reason of (i) any "one action" or
"anti-deficiency" law which would otherwise prevent any Guaranteed Party from
bringing any action, including any claim for a deficiency, or exercising any
other right or remedy (including any right of setoff) against Guarantors before
or after the Guaranteed Parties' commencement or completion of any foreclosure
action, whether by judicial action, by exercise of power of sale or otherwise or
(ii) any other law which in any other manner would otherwise require any
election of remedies by any Guaranteed Party. Except as otherwise prohibited by
Applicable Law, each Guarantor hereby waives any right that it may have to claim
or recover in any litigation respecting this Guaranty any special, exemplary,
punitive or consequential damages or any damages other than, or in addition to,
actual damages. Each Guarantor shall make all payments hereunder for the benefit
of the Guaranteed Parties, free and clear of, and without deduction for or on
account of, any setoff, counterclaim, defense, fees, restrictions or conditions
of any kind.

     If Borrowers fail to pay any Obligations on the due date thereof (whether
due on demand, at stated maturity, upon acceleration or otherwise) or any other
Event of Default under the Loan Agreement occurs or exists, then, whether or not
any of the Obligations are then due and payable or the maturity thereof has been
accelerated or demand for payment thereof from Borrowers or any other Obligated
Party has been made, all of the Obligations shall, at the election of Agent,
become immediately due and payable hereunder as to Guarantors and Agent shall be
entitled to enforce the obligations of Guarantors hereunder for the benefit of
the Guaranteed Parties. Guarantors agree to pay all expenses incurred by the
Guaranteed Parties in connection with enforcement of the Guaranteed Parties'
right under this Guaranty, including court costs, collection charges and
reasonable attorneys' fees.

     Agent shall have, for the benefit of the Guaranteed Parties, a right of
setoff to any and all credits and any and all other property of each Guarantor,
now or at any time whatsoever with or in the possession of any of the Guaranteed
Parties or anyone holding for any Guaranteed Party as security for any and all
Obligations and the indebtedness and obligations of Guarantors hereunder.

     Each Guarantor consents and agrees that, without notice to or by Guarantors
and without impairing or otherwise affecting the liability or obligations of
Guarantors hereunder, the Guaranteed Parties may: compromise or settle, extend
the period of duration or the time for the payment, discharge or performance of
any of the Obligations or increase the amount of the Obligations; refuse to
enforce, or release any Person liable for payment of, any of the Obligations;
increase, decrease or otherwise alter the rate of interest payable with respect
to the Obligations or grant other indulgences to a Borrower in respect thereof;
amend or modify in any manner, or terminate or release, any of the Loan
Documents or any other agreements evidencing, securing or otherwise relating to
the Obligations (other than this Guaranty); release, surrender, exchange, modify
or impair any and all

                                       2

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Collateral or other property at any time securing (directly or indirectly) any
of the Obligations or on which the Guaranteed Parties at any time may have a
Lien; extend the time of payment of any Collateral consisting of Accounts or
other rights to the payment of money; refuse to enforce its rights, or make any
comprise or settlement or agreement therefor, in respect of any such Collateral,
deposits and property, or with any party to the Obligations, or with any other
Person whatsoever; or release or substitute any Obligated Party.

     None of the Guaranteed Parties shall be under any obligation to marshal any
assets in favor of Guarantors or against or in payment of any of the
Obligations. If and to the extent any Guaranteed Party receives any payment on
account of any of the Obligations (whether from a Borrower or any other
Obligated Party or from the sale or other disposition of any Collateral) and
such payment or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other Person in any Insolvency Proceeding or under any
Applicable Law, then the part of the Obligations intended to be satisfied shall
be revived and continued in full force and effect as if said payment had not
been made. The foregoing provisions of this paragraph shall survive any
termination or revocation of this Guaranty.

     Any and all present and future debts and obligations of any Borrower to any
Guarantor are hereby postponed in favor of and subordinated to the full and
final payment of the Obligations.

     Each Guarantor represents and warrants to the Guaranteed Parties that, as
of the date of this Guaranty, the Guarantors with the Borrower and their other
Subsidiaries, taken as a whole, are now Solvent and, after giving effect to the
transactions described in the Loan Documents and the issuance of this Guaranty,
will be Solvent; the financial statements of such Guarantor furnished to the
Guaranteed Parties have been prepared in accordance with the terms of the Loan
Agreement; there are no facts or circumstances in existence on the date hereof
which any Guarantor has failed to disclose to Agent in writing that may
reasonably be expected to have a Material Adverse Effect; except as set forth on
Schedule 8.1.19 to the Loan Agreement there are no actions, suits, proceedings
or investigations pending or, to the knowledge of any Guarantor, threatened on
the date hereof against or affecting any Guarantor, or the business, operations,
Properties, prospects, profits or condition of any Guarantor (i) which relate to
any of the Loan Documents or any of the transactions contemplated thereby or
(ii) which could reasonably be expected to have a Material Adverse Effect; and
there are no Liens upon any of such Guarantor's Property, other than Permitted
Liens. Each Guarantor shall immediately give Agent written notice of any
material adverse change in such Guarantor's financial condition, including
litigation commenced, tax liens filed, defaults claimed under its indebtedness
for borrowed money or Insolvency Proceedings commenced by or against such
Guarantor.

     This Guaranty is a primary, immediate and original obligation of each
Guarantor and is an absolute, unconditional, continuing and irrevocable guaranty
of payment of the Obligations and not of its collectibility only, is not
contingent upon the exercise or enforcement by the Guaranteed Parties of
whatever remedies the Guaranteed Parties may have against any Borrower or
otherwise or the enforcement of any Lien or realization upon any Collateral and
shall remain in full force and effect without regard to future changes in
conditions, including change of law or any invalidity or unenforceability of any
of the Obligations or Loan Documents. This Guaranty shall be in addition to any
other present or future guaranty or other security for any of the Obligations,
shall not be prejudiced or unenforceable by the invalidity of any such other
guaranty or security and is not conditioned upon or subject to the execution by
any other Person of this Guaranty or any other guaranty or suretyship agreement.

                                       3

<PAGE>

     Agent, for and on behalf of the Guaranteed Parties, shall have the right to
seek recourse against Guarantors to the full extent provided for herein and in
any other Loan Document and against Borrowers and each other Obligated Party to
the full extent provided for in any of the Loan Documents. No election to
proceed in one form of action or proceeding, or against any party, or on any
obligation, shall constitute a waiver of the Agent's right to proceed in any
other form of action or proceeding against other parties, unless Agent has
expressly waived such right in writing. Specifically, but without limiting the
generality of the foregoing, no action or proceeding by the Guaranteed Parties
against any Borrower or any other Obligated Party under any Loan Document shall
serve to diminish the liability of Guarantor except to the extent the Guaranteed
Parties realized payment by such action or proceeding.

     Each Guarantor is fully aware of the financial condition and business of
each Borrower. Each Guarantor delivers this Guaranty based solely upon its own
independent investigation and in no part upon any representation or statement of
any of the Guaranteed Parties with respect thereto. Each Guarantor is in a
position to and hereby assumes full responsibility for obtaining any additional
information concerning Borrowers' financial condition as such Guarantor may deem
material to its obligations hereunder and no Guarantor is relying upon, nor
expecting the Guaranteed Parties to furnish a Guarantor any information in any
Guaranteed Party's possession concerning, Borrowers' financial condition,
operations or business prospects. Each Guarantor hereby knowingly accepts the
full range of risks encompassed within a contract of "Guaranty," which risks
include, without limitation, the possibility that a Borrower will contract
additional Obligations for which such Guarantor may be liable hereunder after
such Borrower's financial condition or ability to pay its lawful debts when they
fall due has deteriorated.

     The books and records of Agent, showing the amounts owed to Guaranteed
Parties by Borrowers, shall be admissible in evidence in any action or
proceeding against or involving Guarantors as prima facie proof of the items
therein set forth, and the monthly statements of Agent rendered to Borrowers, to
the extent to which no written objection is made within 30 days from the date of
sending thereof to Borrowers, shall be deemed conclusively correct and shall
constitute an account stated between the Guaranteed Parties and Borrowers and
shall be binding on Guarantors.

     Each Guarantor agrees that this Guaranty shall continue in full force and
effect until all of the Obligations have been fully paid and discharged and all
Commitments of Lenders have been terminated. If for any reason a Borrower has no
legal existence or is under no legal obligation to discharge any of the
Obligations, or if any of the Obligations have become unrecoverable from a
Borrower by reason of any Insolvency Proceeding or by other operation of law or
for any other reason, this Guaranty shall nevertheless be binding upon
Guarantors. If acceleration of the time for payment of any of the Obligations is
stayed as the result of any Insolvency Proceeding or any other reason, all such
amounts otherwise subject to acceleration under the terms of the Loan Documents
shall be immediately due and payable by Guarantors.

     To the fullest extent permitted by Applicable Law, each Guarantor hereby
waives the right to revoke or terminate this Guaranty prior to payment in full
of the Obligations and termination of the Commitments; but, if the foregoing
waiver shall be ineffective under Applicable Law, then each Guarantor agrees
that any revocation or termination of this Guaranty, to be effective, must be in
a writing signed by a Guarantor specifically referring to this Guaranty and
actually received by an officer of Agent who is familiar with this Guaranty and
Borrowers' account with the Guaranteed Parties. Any such termination or
revocation shall not affect the right and power of Agent, for the

                                        4

<PAGE>

benefit of Guaranteed Parties, to enforce the Obligations and other rights
arising, incurred or contracted for prior to Agent's receipt of such written
notice of termination or revocation and this Guaranty shall continue to be
effective with respect to all such Obligations. If Guaranteed Parties make loans
or other extensions of credit to or for the benefit of a Borrower or take other
action after the termination or revocation by a Guarantor, but prior to Agent's
receipt of notice of termination or revocation, then the rights of the
Guaranteed Parties with respect thereto shall be the same as if such termination
or revocation had not occurred.

     All rights, benefits and privileges herein and hereby conferred upon Agent
shall vest in and be enforceable by Agent and its successors and assigns. This
Guaranty shall be binding upon Guarantors and upon their respective successors
and assigns.

     To the extent any performance of this Guaranty would violate any usury
statute or other Applicable Law, the obligation to be fulfilled shall be reduced
to the limit legally permitted, so that this Guaranty shall not require any
performance in excess of the limit legally permitted, but such obligations shall
be fulfilled to the limit of the legal validity. The provisions of this
paragraph shall control every other provision of this Guaranty.

          This Guaranty and the rights and obligations of the parties hereto
shall be governed by and construed in accordance with the laws of the State of
New York (including N.Y. Gen. Obligs. Section 5-1401) ; provided, however, that,
if any of the Collateral shall be located in any jurisdiction other than New
York, the laws of such jurisdiction shall govern the method, manner and
procedure for foreclosure of Agent's Lien upon such Collateral and the
enforcement of Agent's other remedies in respect of such Collateral to the
extent that the laws of such jurisdiction are different from or inconsistent
with the laws of the State of New York. As part of the consideration for new
value given to Borrowers under the Loan Agreement, and regardless of any present
or future domicile or principal place of business of any Guarantor or any
Guaranteed Party, each Guarantor hereby consents and agrees that the state
courts of New York, sitting in the Borough of Manhattan, or, at Agent's option,
the United States District Court for the Southern District of New York, shall
have jurisdiction to hear and determine any claims or disputes among any or all
Guarantors and Guaranteed Parties pertaining to this Guaranty or to any matter
arising out of or related to this Guaranty. Each Guarantor expressly submits and
consents in advance to such jurisdiction in any action or suit commenced in any
such Court, and each Guarantor hereby waives any objection that such Guarantor
may have based upon lack of personal jurisdiction, improper venue or forum non
conveniens and hereby consents to the granting of such legal or equitable relief
as is deemed appropriate by such Court. Each Guarantor hereby waives personal
service of the summons, complaint and other process issued in any such action or
suit and agrees that service of such summons, complaint and other process may be
made by certified mail addressed to such Guarantor at the address set forth in
this Guaranty (or, with respect to Foreign Guarantors, to such agent for service
and at such other address as otherwise provided in this Guaranty) and that
service so made shall be deemed completed upon the earlier of such Guarantor's
actual receipt thereof or 3 days after deposit in the U.S. mails, proper postage
prepaid. Nothing in this Guaranty shall be deemed or operate to affect the right
of Agent to serve legal process in any other manner permitted by law, or to
preclude the enforcement by Agent of any judgment or order obtained in such
forum or the taking of any action under this Guaranty to enforce same in any
other appropriate forum or jurisdiction.

                                        5

<PAGE>

     This Guaranty expresses the entire understanding of the parties hereto with
respect to the subject matter hereof and may not be changed orally, and no
obligations of Guarantors can be released or waived by any of the Guaranteed
Parties, except by a writing signed by a duly authorized officer of Agent.

     Until all of the Obligations have been paid in full and the Commitments
have been terminated, Guarantors shall have no claim, right or remedy (whether
or not arising in equity, by contract or Applicable Law) against a Borrower or
any other Person by reason of a Guarantor's payment or other performance
hereunder. Without limiting the generality of the foregoing, each Guarantor
hereby waives and renounces any and all legal or equitable rights or claims that
such Guarantor may have to reimbursement, subrogation, indemnity and exoneration
and agrees that such Guarantor shall have no recourse to any assets or property
of any Borrower (including any Collateral) and no right of recourse against or
contribution from any other Person in any way directly or contingently liable
for any of the Obligations, whether any of such rights arise under contract, in
equity or under Applicable Law, until all of the Obligations have been paid in
full and the Commitments have been terminated.

     If any Guarantor shall be required by Applicable Law to withhold or deduct
any Taxes from or in respect of any sum payable under this Guaranty, (a) the sum
payable to Agent or any other Guaranteed Party shall be increased as may be
necessary so that, after making all required withholding or deductions, Agent or
such Guaranteed Party (as the case may be) receives an amount equal to the sum
it would have received had no such withholding or deductions been made, (b) such
Guarantor shall make such withholding or deductions, and (c) such Guarantor
shall pay the full amount withheld or deducted to the relevant taxation
authority or other authority in accordance with Applicable Law.

     If for the purpose of obtaining judgment in any court it is necessary to
convert an amount due under this Guaranty in the currency in which it is due
(the "Original Currency") into another currency (the "Second Currency"), the
rate of exchange applied shall be that at which, in accordance with normal
banking procedures, the Agent could purchase, in the New York foreign exchange
market, the Original Currency with the Second Currency on the date two (2)
Business Days preceding that on which judgment is given. Each Guarantor agrees
that its obligation in respect of any Original Currency due from it to the
Guaranteed Parties hereunder shall, notwithstanding any judgment or payment in
such other currency, be discharged only to the extent that, on the Business Day
following the date the Agent receives payment of any sum so adjudged to be due
hereunder in the Second Currency the Agent may, in accordance with normal
banking procedures, purchase, in the New York City foreign exchange market the
Original Currency with the amount of the Second Currency so paid; and if the
amount of the Original Currency so purchased or could have been so purchased is
less than the amount originally due in the Original Currency, the Guarantors and
each of them agrees as a separate obligation and notwithstanding any such
payment or judgment to indemnify the Guaranteed Parties against such loss. The
term "rate of exchange" used herein shall mean the spot rate at which the Agent,
in accordance with normal practices is able, on the relevant date, to purchase
the Original Currency with the Second Currency and includes any premium and
costs of exchange payable in connection with such purchase.

     Each Guarantor organized under the laws of a jurisdiction outside of the
United States (collectively, the "Foreign Guarantors") hereby irrevocably
appoints Danka Office Imaging Company, a Delaware corporation ("DOIC"), at its
address set forth in the Loan Agreement, as its agent to receive service of
process or other legal summons for purposes of any legal action or proceeding.
Until all of

                                        6

<PAGE>

the Obligations have been fully paid and discharged and all Commitments of the
Lenders have been terminated, each Foreign Guarantor will maintain DOIC as its
duly appointed agent for the service of process or summons in the United States
(or any state or other jurisdiction thereof), and if a Foreign Guarantor fails
to maintain DOIC as such an agent, any process or summons may be served on such
Foreign Guarantor by mailing a copy thereof by registered mail, or a form of
mail substantially equivalent thereto, addressed to it at the address for
notices to the Borrowers as provided in the Loan Agreement.

     As used herein, all references to "Guarantor" or "Guarantors" shall mean
each Guarantor and its successors and assigns (including any receiver, trustee
or custodian for a Guarantor or any of its assets or a Guarantor in its capacity
as debtor or debtor-in-possession under the United States Bankruptcy Code); all
references to "Agent" shall mean Agent and its successors and assigns; all
references to "Lenders" shall mean each of the Lenders and their respective
successors and assigns; all references to "Guaranteed Parties" shall mean each
of the Guaranteed Parties and their respective successors and assigns; all
references to "Borrower" or "Borrowers" shall mean each Borrower and its
successors and assigns (including any receiver, trustee or custodian for such
Borrower or any of its assets or such Borrower in its capacity as debtor or
debtor-in-possession under the United States Bankruptcy Code); all references to
the plural shall also mean the singular, and all references to the singular
shall also mean the plural; and all references to "including" shall mean
"including, without limitation."

     Guarantors and Agent each hereby waives the right to a jury trial in any
action, suit, proceeding or counterclaim arising out of or related to this
Guaranty.

[Signatures on following page]

                                        7

<PAGE>

IN WITNESS WHEREOF, Guarantors have caused this Guaranty to be signed, sealed
and delivered by its duly authorized officers, on the day and year first above
written.

                                        DANKA BUSINESS SYSTEMS PLC, a public
                                        limited company organized under the laws
                                        of England and Wales.
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKALUX S.A R.L., a limited liability
                                        company organized under the laws of
                                        Luxembourg
                                        ("Guarantor")

                                        By:   /s/ Paul Dumond
                                           ------------------------------------
                                           Name:  Paul Dumond
                                                -------------------------------
                                           Title: Authorized Officer
                                                 ------------------------------

                                        Address:
                                              115, avenue Gaston Diderich
                                             ----------------------------------
                                              L-1420 Luxembourg
                                             ----------------------------------

                                             ----------------------------------

                                        AMERICAN BUSINESS CREDIT CORPORATION,
                                        a Florida corporation
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        8

<PAGE>

                                        CORPORATE CONSULTING GROUP, INC.,
                                        a Florida corporation
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA IMAGING DISTRIBUTION, INC.,
                                        a Delaware corporation
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA MANAGEMENT COMPANY, INC.,
                                        a Florida corporation
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        9

<PAGE>

                                     DANKA MANAGEMENT II COMPANY INC.,
                                     a Florida corporation
                                     ("Guarantor")

                                     By:   /s/ Keith J. Nelsen
                                        ------------------------------------
                                        Name:  Keith J. Nelsen
                                             -------------------------------
                                        Title: Secretary
                                              ------------------------------

                                     Address:
                                           c/o Danka Office Imaging Company
                                          ----------------------------------
                                           11201 Danka Circle North
                                          ----------------------------------
                                           St. Petersburg, FL 33716
                                          ----------------------------------

                                     D.I. INVESTMENT MANAGEMENT, INC.,
                                     a Nevada corporation
                                     ("Guarantor")

                                     By:   /s/ Keith J. Nelsen
                                        ------------------------------------
                                        Name:  Keith J. Nelsen
                                             -------------------------------
                                        Title: Secretary
                                              ------------------------------

                                     Address:
                                           c/o Danka Office Imaging Company
                                          ----------------------------------
                                           11201 Danka Circle North
                                          ----------------------------------
                                           St. Petersburg, FL 33716
                                          ----------------------------------

                                     HERMAN ENTERPRISES, INC. OF SOUTH  FLORIDA,
                                     a Florida corporation
                                     ("Guarantor")

                                     By:   /s/ Keith J. Nelsen
                                        ------------------------------------
                                        Name:  Keith J. Nelsen
                                             -------------------------------
                                        Title: Secretary
                                              ------------------------------

                                       10

<PAGE>

                                        QUALITY BUSINESS, INC., a Florida
                                        corporation
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: Secretary
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA AUSTRALASIA PTY LIMITED,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        DANKA AUSTRALIA PTY LIMITED,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                       11

<PAGE>

                                        DANKA BUSINESS FINANCE LTD.,
                                        an Alberta company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA CANADA INC.,
                                        a Canadian company
                                        ("Guarantor")

                                        By:   /s/ Owais Durrani
                                           ------------------------------------
                                           Name:  Owais Durrani
                                                -------------------------------
                                           Title: Vice President Finance and
                                                 ------------------------------
                                                  Chief Financial Officer
                                                 ------------------------------

                                        Address:
                                              9 Van der Graaf Court
                                             ----------------------------------
                                              Brampton, Ontario
                                             ----------------------------------
                                              L6T 5E5
                                             ----------------------------------

                                        DANKA DATAKEY PTY LTD,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                       12

<PAGE>

                                        DANKA DISTRIBUTORS PTY LTD,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA SERVICES INTERNATIONAL LTD.,
                                        a limited liability company organized
                                        under the laws of England and Wales
                                        ("Guarantor")

                                        By:   /s/ Paul Dumond
                                           ------------------------------------
                                           Name:  Paul Dumond
                                                -------------------------------
                                           Title: Director
                                                 ------------------------------

                                        Address:
                                              Masters House
                                             ----------------------------------
                                              107 Hammersmith Road
                                             ----------------------------------
                                              London  W14 0QH
                                             ----------------------------------

                                        DANKA SYSTEMS PTY LIMITED,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                       13

<PAGE>

                                        DANKA TOWER PTY LTD,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                        DANKA UK PLC, a public limited company
                                        organized under the laws of England and
                                        Wales
                                        ("Guarantor")

                                        By:   /s/ Matthew Salmon
                                           ------------------------------------
                                           Name:  Matthew Salmon
                                                -------------------------------
                                           Title: Director
                                                 ------------------------------

                                        Address:
                                              1230 Arlington Business Park
                                             ----------------------------------
                                              Theale
                                             ----------------------------------
                                              Berkshire  RG7 4TX
                                             ----------------------------------

                                        DATAKEY ALCATEL PTY. LTD.,
                                        an Australian company
                                        ("Guarantor")

                                        By:   /s/ Keith J. Nelsen
                                           ------------------------------------
                                           Name:  Keith J. Nelsen
                                                -------------------------------
                                           Title: General Counsel
                                                 ------------------------------

                                        Address:
                                              c/o Danka Office Imaging Company
                                             ----------------------------------
                                              11201 Danka Circle North
                                             ----------------------------------
                                              St. Petersburg, FL 33716
                                             ----------------------------------

                                       14

<PAGE>

                                        KALMARA INC.,
                                        an Ontario company
                                        ("Guarantor")

                                        By:   /s/ Owais Durrani
                                           ------------------------------------
                                           Name:  Owais Durrani
                                                -------------------------------
                                           Title: Vice President Finance and
                                                 ------------------------------
                                                  Chief Financial Officer
                                                 ------------------------------

                                        Address:
                                              9 Van der Graaf Court
                                             ----------------------------------
                                              Brampton, Ontario
                                             ----------------------------------
                                              L6T 5E5
                                             ----------------------------------

                                        Accepted :
                                        --------

                                        FLEET CAPITAL CORPORATION, as Agent
                                        ("Agent")

                                        By:   /s/ Stephen Y. McGehee
                                           ------------------------------------
                                           Title: Senior Vice President
                                                 ------------------------------

                                       15Amended and Restated Employment Agreement dated May 22,2003

 Exhibit 10.5 
  
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, (the “Agreement”) is made and entered into by and between
Napster, LLC, formerly Duet GP, (the “Company”), and Michael J. Bebel (“Executive”) (collectively, “the Parties”) effective as of May 22, 2003. 
  
 WHEREAS, Executive is the President and Chief Operating Officer of the Company; 
  
 WHEREAS, the terms and conditions of Executive’s employment with
the Company are set forth in an employment agreement dated January 1, 2000 between Executive and Universal Music Group, Inc.; an amendatory agreement dated April 1, 2001 between Executive, Universal Music Group, Inc., and Duet GP; a second
amendatory agreement dated July 10, 2002 between Executive and Duet GP; and a third amendatory agreement dated May 17, 2003 between Executive and Duet GP (collectively, the “Bebel/Duet GP Employment Agreement”); 
  
 WHEREAS, the Parties believe it is in their mutual interest to set
forth the terms and conditions of Executive’s employment with the Company anew and in one, fully-integrated agreement; and 
  
 WHEREAS, this Agreement shall govern the employment relationship between the Parties from and after the date stated above and supersedes and
negates all previous agreements made between the Parties, whether written or oral, including, but not limited to, the Bebel/Duet GP Employment Agreement, relating to Executive’s employment with the Company. 
  
 NOW, THEREFORE, in consideration of the foregoing, and the mutual
promises and covenants contained below, the Parties agree as follows: 
  
 1. Term. The term of this Agreement will commence on January 1, 2000, and continue until March 31, 2004, unless earlier terminated pursuant to the provisions of Sections 4 or 5 (the “Initial Term”). 
  
 (a) Option. The Company will have an irrevocable option (the
“Option”), exercisable at its sole discretion, to extend the Initial Term, from April 1, 2004, through and including March 31, 2005, upon all the same terms and conditions as during such preceding Initial Term (the “Option
Year”). Such option is exercisable by written notice given not later than February 1, 2004. In the event the Company does not exercise the Option, the Agreement shall expire on March 31, 2004, and be treated for all purposes under this
Agreement as an Involuntary Termination (defined below). 
  
 (b)
Renewal. In the event the Company does exercise the Option, on April 1, 2005, and each April 1 thereafter, this Agreement shall automatically renew for successive one (1) year periods until terminated by either party pursuant to the terms of
this Agreement (each renewal period shall be referred to as a “Renewal Year”). In the event the Company elects not to renew the term of this Agreement for any Renewal Year, the Agreement shall expire on March 31st of the then-current
Option Year or Renewal Year, as applicable, and be treated for all purposes under this Agreement as an Involuntary Termination. The Company 
  

 must notify Executive in writing no later than February 1st of its election not to extend the term for any Renewal Year.

  
 2. Duties. The Company hereby employs Executive, and
Executive accepts employment, as the Company’s President and Chief Operating Officer. In that capacity, Executive shall at all times be the most senior executive officer of Company, except that the Chief Executive Officer of Roxio, Inc.
(“Roxio”) may serve as an officer of the Company in a more senior executive position than Executive. Executive at all times shall report directly to the Chief Executive Officer of Roxio, either in the aforesaid Chief Executive
Officer’s capacity of Chief Executive Officer of Roxio or an officer of the Company and will perform such services requested from time to time by the aforesaid Chief Executive Officer as are commensurate with the position, title, and stature of
a “President and Chief Operating Officer.” 
  
 3.
Compensation and Related Matters. 
  
 (a) Base
Salary. For all services rendered under this Agreement, commencing April 1, 2001, the Company will pay Executive base salary at an annual rate of Five Hundred Twenty Five Thousand and 00/100 Dollars ($525.000.00), payable in accordance with the
Company’s applicable payroll practices (“Base Salary”). The Base Salary shall be increased annually on the first day of each calendar year during Executive’s employment under this Agreement, including any Renewal Year, to reflect
the applicable cost-of-living adjustment for the New York Index for Urban Wage Earners and Clerical Workers (collectively, the “COLA” increases). If the Company exercises its Option pursuant to Section 1(a) above, the Base Salary will be
increased to $700,000 at the beginning of the Option Year and will be subject to COLA increases as provided above during each Renewal Year thereafter. Any higher Base Salary paid to Executive subsequently will be deemed the annual rate for the
purposes of this Agreement and will commence on the date determined by the Board of Directors of Roxio (the “Board”) or its duly authorized officers. 
  

The Company is not obligated to actually utilize Executive’s services, and payment as described in Sections 4(a) and 5(b) will discharge the
Company’s obligation under this Agreement. 
  
 (b) Annual
Incentive Plan. Executive will participate in the Company’s Annual Incentive Plan or any plan adopted in replacement thereof as determined by Roxio’s Board and in accordance with such plan’s terms and conditions. Executive’s
bonus under the Annual Incentive Plan (including for the last full or partial calendar year of the employment) will be paid approximately ninety (90) days (but not more than 100 days) after the end of the calendar year in which earned.
Executive’s target bonus for each full calendar year through 2001 will be $150,000, with such target (and any actual bonus paid) being proportionately decreased for any partial calendar year. For calendar years after 2001, Executive’s
target bonus shall be $200,000. Executive’s target bonus for any partial calendar years of employment will be a pro rata portion of $200,000, which also shall be earned and paid on a calendar-year basis except as provided below.
Executive’s total bonus opportunity under the Annual Incentive Plan for more than satisfactory performance may exceed 100% of Executive’s target (and, to the extent Executive’s objectives are not achieved, may be less than
Executive’s target) and shall be up to 200% of Executive’s target to the extent Executive achieves extraordinary performance. Notwithstanding 
  

 2 

 anything else contained herein, for the partial calendar year at the end of the Initial Term, the Option Year, or any
Renewal Year (January 1 to March 31 of the applicable year), which period being hereinafter referred to as the “AIP Stub Period”, Executive’s actual bonus under the Annual Incentive Plan will be an amount equal to 25% of
Executive’s then applicable target bonus and will be paid not later than 30 days after the end of the AIP Stub Period. Subject to Sections 4 and 5 of this Agreement and the immediately preceding sentence, (1) Executive’s target bonus is
not a guaranteed bonus or any other form of guaranteed compensation, and (2) Executive’s actual bonus under the Company’s Annual Incentive Plan, if any, will be based upon a measurement of performance against objectives in accordance with
the terms and conditions of the Company’s Annual Incentive Plan, as the same may be amended from time to time. The objectives against which Executive’s performance will be measured for purposes of Executive’s Annual Incentive Plan
bonus shall be set in good faith by Roxio’s Board prior to the commencement of each calendar year. The Executive acknowledges that the failure to establish such objectives for calendar year 2001 prior to the commencement of that year was not a
breach of this Agreement. 
  
 (c) Guaranteed Bonus. In the
event that the actual bonus under the Annual Incentive Plan received by Executive in respect of any calendar year occurring during the Initial Term, the Option Year (if the Option is exercised by the Company), or any Renewal Year does not exceed
$100,000 (or a pro rata portion thereof for any partial calendar year), pre tax (the “Guaranteed Bonus”), then the Company shall pay Executive the amount by which the Guaranteed Bonus (or the applicable pro rata portion thereof) exceeds
Executive’s actual bonus under the Annual Incentive Plan on the applicable payment date for Executive’s Annual Incentive Plan bonus for the applicable calendar year (or portion thereof, as applicable). 
  
 (d) Long Term Incentive Plan. Executive will participate in the
Company’s Long Term Incentive Plan (the “LTIP”) or any plan adopted in replacement thereof as determined by Roxio’s Board and in accordance with such plan’s terms and conditions. Executive’s target bonus for the LTIP
for each full calendar year during employment under this Agreement will be $100,000, with such target (and any actual bonus paid) being proportionately decreased for any partial calendar year. Executive’s total bonus opportunity under the LTIP
for more than satisfactory performance may exceed 100% of Executive’s target (and, to the extent Executive’s objectives are not achieved, may be less than Executive’s target) and shall be up to 150% of Executive’s target to the
extent Executive achieves extraordinary performance. The objectives against which Executive’s performance will be measured for purposes of Executive’s LTIP bonus shall be set in good faith by Roxio’s Board prior to the commencement of
each calendar year. The Executive acknowledges that the failure to establish such objectives for calendar year 2001 prior to the commencement of that year was not a breach of this Agreement. Notwithstanding anything else contained herein, for the
partial calendar year at the end of the Initial Term, the Option Year, or any Renewal Year (January 1 to March 31 of the applicable year) such applicable period being herein referred to as the “LTIP Stub Period”, Executive’s actual
bonus under the LTIP will be an amount equal to 25% of Executive’s then applicable target bonus and will vest on the last day of the LTIP stub period and be paid not later than 30 days after the end of the LTIP Stub Period. Subject to the
immediately preceding sentence, (1) Executive’s target bonus is not a guaranteed bonus or any other form of guaranteed compensation, and (2) Executive’s actual bonus under the Company’s LTIP, if any, will be based upon a measurement
of performance against objectives in accordance with the terms and conditions of the LTIP, as 
  

 3 

 the same may be amended from time to time. With respect to each calendar year of employment under this Agreement,
Executive’s actual LTIP bonus shall be determined at the end of such calendar year and the remaining unpaid balance thereof for such calendar year shall vest in equal 25% installments over a period of four years on the last day of each calendar
year. The Company shall pay Executive’s vested LTIP installments within 100 days after the vesting date. The unvested portion of Executive’s LTIP bonus shall be forfeited and shall not be paid if Executive’s employment with the
Company is terminated by Executive voluntarily (other than for Good Reason) or by the Company for Cause on or prior to the last day of the calendar year in which such payment vests. Notwithstanding anything to the contrary in this Agreement, if
Executive’s employment with the Company is terminated by Executive for Good Reason, by the Company without Cause, by reason of Executive’s death, by the Company because of Executive’s Disability, or by reason of the expiration of the
term of this Agreement provided that such expiration is not the result of the exercise by Executive of the Executive’s Non-renewal Election (defined below), the unvested portion of Executive’s LTIP bonus shall continue to vest and be paid
in accordance with the schedule set forth herein. (By way of example and not limitation, if Executive’s actual LTIP bonus for 2001 is $100,000, Executive will receive $25,000 of such bonus within 100 days after December 31, 2001, $25,000 of
such bonus within 100 days after December 31, 2002, $25,000 of such bonus within 100 days after December 31, 2003, and $25,000 of such bonus within 100 days after December 31, 2004 unless and until Executive’s employment with the Company is
terminated by Executive voluntarily (other than for Good Reason) or by the Company for Cause, in which case Executive shall no longer be entitled to continue receiving unvested installments of such LTIP bonus. For purposes of the immediately
preceding example, if Executive were to resign Executive’s employment without Good Reason on December 29, 2003, Executive would only receive installments equal to $50,000 of the total $100,000 LTIP bonus Executive earned for 2001.) 

 
 (e) Benefits. Executive shall be eligible to participate in all
plans now existing or adopted in the future for the general benefit of the Company employees, which benefits shall be comparable to the benefits generally provided by the Company for its other comparable executives, such as investment funds, and
group or other insurance plans and benefits (including, without limitation, medical insurance), as provided in the benefits handbook provided to all the Company employees, and subject to the provisions of such plans in effect from time to time. The
Company reserves its right to modify, suspend or discontinue any and all such benefits at any time without recourse by Executive, provided that any such modification, suspension or discontinuance shall also apply to other executives in positions
similar to Executive’s. Other than a 401(k) plan, the Company will not have a pension plan. Executive will be entitled to vacation with pay during employment under this Agreement in accordance with the Company’s vacation policy in effect
from time to time; provided, however, that Executive shall be entitled to not less than four (4) weeks of paid vacation in each calendar year.  
  
 (f) Expense Reimbursements. During Executive’s employment, the Company will reimburse Executive for
Executive’s reasonable and necessary business expenses in accordance with its then prevailing policy for similarly situated employees (which will include appropriate itemization and substantiation of expenses incurred). 
  

 4 

 (g) Withholding. The Company may withhold from any amounts payable under this Agreement such
federal, state or local taxes as will be required to be withheld pursuant to any applicable laws or regulations and any other amount authorized by Executive. 
  
 4. Compensation Upon Certain Termination Events. 
  
 (a) Compensation Payable. Should Executive’s employment with the Company terminate for Cause, voluntarily
without Good Reason, or because of Executive’s Disability or Death, Executive will be entitled to the amounts and benefits shown on the following table, subject to Sections 4(b) through 4(d). In the event of such termination, and except for
payments noted in this Section 4 and in Section 3(d), the Company will have no further obligations to Executive under this Agreement. 
  
 [Remainder of page intentionally left blank] 
  

 5 

	 Termination for
 Cause/Voluntary
 Termination Without Good
 Reason

	 	 Disability

	 	 Death

	Payment of (1) any accrued but unpaid Base Salary due Executive through termination, (2) any accrued but unpaid vacation pay at the end of the term, and (3) other unpaid amounts then
due Executive under Company benefit plans or programs.	 	Executive’s Base Salary and payment of a pro rata Guaranteed Bonus for the calendar year in which such event occurs will continue until the earliest of (1) the 180th day
following the start of Executive’s disability absence, or (2) Executive’s death, and will be reduced by other Company-provided disability benefits available to Executive. Payment of (1) any accrued but unpaid Base Salary and, without
duplication, pro rata Guaranteed Bonus due Executive for the current calendar year through termination and, if such event occurs after the last day of the prior calendar year but prior to the payment date for Executive’s Annual Incentive Plan
bonus for such prior year, Executive’s accrued unpaid Annual Incentive Plan bonus for the prior calendar year, and (2) other unpaid amounts then due Executive under Company benefit programs.	 	Payment of (1) any accrued but unpaid Base Salary and pro rata Guaranteed Bonus (for the current calendar year) due Executive through Executive’s date of death and, if such
event occurs after the last day of the prior calendar year but prior to the payment date for Executive’s Annual Incentive Plan bonus for such prior year, Executive’s accrued unpaid Annual Incentive Plan bonus for the prior calendar year,
and (2) other unpaid amounts then due Executive under Company benefit plans or programs, except that those payments will be made to Executive’s estate or legal representatives, and Executive’s death benefits payable due to Executive’s
death under Company employee benefit plans or programs will also be paid.

  
 (b) Termination for
Cause. The Company may terminate Executive’s employment for Cause at any time without advance notice. “Cause” will mean only: 
  
 (i) Executive’s willful and material failure to perform Executive’s duties or Executive’s willful and material breach of the terms of this
Agreement, which is not remedied by Executive within 30 days after receipt of written notice from the Company specifically delineating each claimed failure or breach and setting forth the Company’s intention to terminate Executive’s
employment if the failure or breach is not duly remedied; 
  

 6 

 (ii) Executive’s willful and material failure to comply with Company policies of which Executive is,
or reasonably should be, aware, which is not remedied within 30 days of Executive’s receipt of written notice from the Company specifically delineating each claimed failure and setting forth the Company’s intention to terminate
Executive’s employment if such failure is not duly remedied in the reasonable determination of the Company following a full, good faith investigation; or 
  

(iii) Executive’s conviction of a felony; 
  
 In the event that the Company terminates Executive’s employment for Cause, the payments and benefits required by Section 4(a) of the Employment
Agreement will be made. 
  
 (c) Termination for Disability.
The Company may terminate Executive’s employment on account of a Disability and the payments required by Section 4(a) will be made. Executive will be deemed to have a “Disability” if Executive is incapacitated by a physical or mental
condition, illness or injury which has prevented Executive from being able to perform the essential duties of Executive’s position under this Agreement in a satisfactory fashion for all of a consecutive 180-day period. Any dispute regarding
whether Executive has incurred a “Disability” shall be resolved by an independent medical doctor mutually agreeable to the Company and Executive. 
  
 (d) Death. If Executive dies while employed under this Agreement, the payments required by Section 4(a) will be made. 
  
 5. Involuntary Termination; Executive Non-Renewal. The Company may
terminate Executive’s employment at any time, without Cause, upon thirty (30) days’ written notice. If Executive’s employment is terminated by the Company without Cause (including, but not limited to, as otherwise provided in Sections
1(a) or (b) above), or by Executive for Good Reason, as defined herein, (each, an “Involuntary Termination”) Executive shall be entitled to the compensation set forth in this Section. 
  
 (a) Executive may terminate Executive’s employment voluntarily for Good
Reason. “Good Reason” means the occurrence of any of the events in the immediately succeeding sentence, which is not remedied within 30 days after receipt of written notice from Executive specifically delineating each such event which
Executive claims is a breach of this Agreement and setting forth Executive’s intention to terminate this Agreement if such breach is not duly remedied. “Good Reason” will mean only: 
  
 (i) Executive’s removal from the position of President and Chief
Operating Officer of the Company (other than in connection with Executive’s promotion to a more senior level); 
  
 (ii) Executive being required to report to a person other than the Chief Executive Officer of Roxio or to a person other than Roxio’s Board;

  
 (iii) a reduction in Executive’s Base Salary or
Guaranteed Bonus or a reduction in the target for Executive’s Annual Incentive Plan bonus or LTIP bonus; 
  

 7 

 (iv) a change in the location at which Executive performs Executive’s primary duties from New York,
New York; 
  
 (v) a material diminution of Executive’s
duties, responsibilities or authority (including Executive’s position as the most senior officer of the Company other than the Chief Executive Officer of Roxio to the extent such person is an officer of the Company) without Executive’s
consent; or 
  
 (vi) a willful, intentional and material breach by
the Company of the material terms of this Agreement. 
  
 (b) If
Executive’s employment is terminated by an Involuntary Termination, then: 
  
 (i) Executive shall receive within five (5) days following such termination, as a lump sum, an amount (the “Lump Sum Payment”) equal to the aggregate of (x) one (1) year of Executive’s then-current Base
Salary and Guaranteed Bonus, (y) any vacation pay that has accrued to that date and is otherwise payable under the Company’s policies, and (z) other unpaid amounts then due Executive under Company benefit plans or programs. 
  
 (c) In the event of any Involuntary Termination, this Section of the
Agreement will apply in place of any Company severance policies that might otherwise be applicable, Executive’s sole remedy shall be to receive the payments expressly prescribed in this Section and in Section 3(d) of the Agreement and the
Company will have no obligation to make any payments to Executive except those expressly prescribed in this Section and in Section 3(d) of the Agreement. 
  
 (d) Without limiting the generality of the foregoing, Executive may also terminate Executive’s employment by giving written notice prior to the end
of the Option Year or of any Renewal Year advising the Company that Executive does not intend to renew the Term of this Agreement for the next Renewal Year (“Executive’s Non-Renewal Election”). If Executive exercises Executive’s
Non-Renewal Election, Executive shall be entitled to payment through the end of the respective Option Year or Renewal Year of: (i) any accrued but unpaid Base Salary, (ii) any accrued but unpaid vacation pay, (iii) any other unpaid amounts due
Executive under Company benefit plans or programs, (iv) Executive’s accrued unpaid Annual Incentive Plan Bonus for any prior calendar years during the Term, and (v) any accrued unpaid Annual Incentive Bonus for any AIP Stub Period. 

 
 6. Covenants. 
  
 (a) Acknowledgment. Executive acknowledges that Executive currently
possess or will acquire secret, confidential, or proprietary information or trade secrets concerning the operations, future plans, or business methods of the Company or its affiliates. Executive agrees that the Company would be severely damaged if
Executive misused or disclosed this information. To prevent this harm, Executive makes the promises set forth in this Section. Executive acknowledges that the provisions of this Section are reasonable and necessary to protect the legitimate
interests of the Company and that any violation of such provisions would result in irreparable injury to the Company. In the event of a violation of the provisions of this Section, Executive further agrees that the Company will, in addition to all
other remedies 
  

 8 

 available to it, be entitled to seek equitable relief by way of injunction and any other legal or equitable remedies.

  
 (b) Promise Not to Disclose. Executive will hold in a
fiduciary capacity, for the benefit of the Company, all confidential or proprietary information, knowledge and data of the Company which Executive may acquire, learn, obtain or develop during Executive’s employment by the Company. Further,
Executive will not, during the term or at any time thereafter, directly or indirectly use, communicate or divulge for Executive’s own benefit or for the benefit of another any such information, knowledge or data other than (i) as required by
the Company or (ii) as required by law or as ordered by a court or (iii) with respect to matters that are generally known to the public. Executive makes the same commitments with respect to the secret, confidential or proprietary information,
knowledge and data of affiliates, customers, contractors and others with whom the Company has a business relationship or to whom the Company or its affiliates owe a duty of confidentiality. The information covered by this protection includes, but is
not limited to, matters of a business or strategic nature such as information about costs and profits, projections, personnel information, reengineering, records, customer lists, contact persons, customer data, software, sales data, possible new
business ventures and/or expansion plans or matters of a creative nature, including without limitation, matters regarding ideas of a literary, creative, musical or dramatic nature, or regarding any form of product produced, distributed or acquired
by the Company (“Company Information”). Company Information will be considered and kept as the private, proprietary and confidential information of the Company except within the Company as required to perform services, and may not be
divulged (A) without the express written authorization of the Company or (B) unless required by law or ordered by a court or (C) unless the Company Information is generally known to the public. Executive further agrees that Executive will neither
publicly disclose the terms of this Agreement nor publicly discuss the Company in a manner that tends to portray the Company in an unfavorable light. 
  
 (c) Promise Not to Engage in Certain Activities. Executive will not (i) at any time during Executive’s employment with the Company or (ii) in
the event Executive’s employment is terminated by Executive without Good Reason (other than as a result of the exercise by Executive of Executive’s Non-Renewal Election) or by the Company for Cause, at any time prior to the first
anniversary of the termination of Executive’s employment: be or become (1) interested or engaged in any manner, directly or indirectly, either alone or with any person, firm or corporation now existing or hereafter created, in any business
which is or may be competitive with the music subscription, recorded music, record production, music publishing or electronic transmission of music businesses of the Company or its affiliated entities, or (2) directly or indirectly a stockholder or
officer, director, agent, consultant or employee of, or in any manner associated with, or aid or abet, or give information or financial assistance to, any such business. The provisions of this Section will not be deemed to prohibit Executive’s
purchase or ownership, as a passive investment, of not more than five percent (5%) of the outstanding capital stock of any corporation whose stock is publicly traded. 
  
 (d) Promise to Return Property. All records, files, lists, drawings, documents, models, equipment, property,
computer, software or intellectual property relating to the Company’s business in whatever form (including electronic) will be returned to the Company 
  

 9 

 upon the termination of Executive’s employment, whether such termination is at Executive’s or the
Company’s request. 
  
 (e) Promise Not to Solicit.
Executive will not during (i) the period of Executive’s employment by the Company, or (ii) the period ending one (1) year after the termination of Executive’s employment with the Company induce or attempt to induce any employees,
consultants, contractors or representatives of the Company (or those of any of its affiliates) to stop working for, contracting with or representing the Company or any of its affiliates or to work for, contract with or represent any of the
Company’s (or its affiliates’) competitors. 
  
 (f)
Company Ownership. The results and proceeds of Executive’s services hereunder, including, without limitation, any works of authorship resulting from Executive’s services during Executive’s employment with the Company and/or any
of the Company’s affiliates and any works in progress, will be works-made-for hire and the Company will be deemed the sole owner throughout the universe of any and all rights of whatsoever nature therein, whether or not now or hereafter known,
existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion without any further payment to Executive whatsoever. If, for any reason, any of such results
and proceeds will not legally be a work-for-hire and/or there are any rights which do not accrue to the Company under the preceding sentence, then Executive hereby irrevocably assigns and agrees to assign any and all of Executive’s right, title
and interest thereto, including, without limitation, any and all copyrights, patents, trade secrets, trademarks and/or other rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed,
to the Company, and the Company will have the right to use the same in perpetuity throughout the universe in any manner the Company determines without any further payment to Executive whatsoever. Executive will, from time to time, as may be
requested by the Company, do any and all things which the Company may deem useful or desirable to establish or document the Company’s exclusive ownership of any and all rights in any such results and proceeds, including, without limitation, the
execution of appropriate copyright and/or patent applications or assignments. To the extent Executive has any rights in the results and proceeds of Executive’s services that cannot be assigned in the manner described above, Executive
unconditionally and irrevocably waives the enforcement of such rights. This Section is subject to and will not be deemed to limit, restrict, or constitute any waiver by the Company of any rights of ownership to which the Company may be entitled by
operation of law by virtue of the Company being Executive’s employer. 
  
 (g) Prior Restrictions. Executive represents that Executive is free to enter into this Agreement and is not restricted in any manner from performing under this Agreement by any prior agreement, commitment, or
understanding with any third party. If Executive has acquired confidential or proprietary information in the course of Executive’s prior employment or as a consultant, Executive will fully comply with any duties not to disclose such information
then applicable to Executive during his employment. 
  
 7.
Services Unique. Executive recognizes that Executive’s services hereunder are of a special, unique, unusual, extraordinary and intellectual character, giving them a peculiar value, the loss of which the Company cannot be reasonably or
adequately compensated for in damages. 
  

 10 

 In the event of a breach of this Agreement by Executive (particularly, but, without limitation, with respect to the
provisions hereof relating to the exclusivity of Executive’s services), the Company will, in addition to all other remedies available to it, be entitled to seek equitable relief by way of injunction and any other legal or equitable remedies.
This provision will not be construed as a waiver of the rights which the Company may have for damages under this Agreement or otherwise, and all of the Company’s rights and remedies will be unrestricted. 
  
 8. Notices. All notices under this Agreement shall be in writing and
shall be given by courier or other personal delivery or by registered or certified mail at the appropriate address shown below or at a substitute address designated by written notice by the party concerned. Each notice to the Company shall be
addressed for the attention of the Chief Executive Officer of Roxio, and a copy of each such notice shall be sent simultaneously to Roxio’s Board. Notices shall be deemed given when mailed or, if personally delivered, when so delivered, except
that a notice of change of address shall be effective only from the date of its receipt: 
  
 [Remainder of page intentionally left blank] 
  

 11 

 If to Executive: 
  
 Mike Bebel 
 608
Lawrence Avenue 
 Westfield, New Jersey 
 07090 
  
 With a copy to: 
  
 Grubman Indursky & Schindler, P.C. 
 152 West 57th Street 
 New York, New York
10019 
 Attn: Arthur I. Indursky, Esq. 
  
 If to the Company: 
  
 Chief Executive Officer 
 Roxio, Inc.

 28 West 44th Street, 6th Floor 
 New York, NY 10036 
  
 With a
copy to: 
  
 Board of Directors 
 Roxio, Inc. 
 28 West 44th Street, 6th Floor

 New York, NY 10036 
  
 9. Assignment/Indemnification. 
  
 (a) This Agreement shall be binding upon and shall inure to the benefit of the parties to it and their respective heirs, legal representatives, successors
and permitted assigns (including, without limitation, Executive’s estate and heirs in the case of any payments due to Executive hereunder). The Company may only assign this Agreement and its rights and obligations hereunder (a) to any entity
controlled by, controlling or under common control with the Company, or (b) to any entity which by way of a merger, consolidation or sale of substantially all of its assets becomes a successor to the Company, so long as in the case of either clause
(a) or (b) such successor assumes in writing the Company’s obligations hereunder. Executive acknowledges and agrees that all of Executive’s covenants and obligations to the Company, as well as the rights of the Company hereunder, will be
enforceable by the Company, its successors and permitted assigns. 
  
 (b) To the extent that Executive performs Executive’s duties for the Company in good faith, the Company agrees to indemnify Executive from any and all damages, liabilities, costs and expenses, including legal expenses and reasonable
counsel fees, incurred by Executive in connection with any and all claims, actions, suits or proceedings which arise from Executive’s 
  

 12 

 services and/or activities, which are performed within the scope of Executive’s employment, as an officer and/or
employee of the Company. 
  
 10. Arbitration of Disputes.

  
 (a) Arbitrable Disputes. Executive agrees to use final
and binding arbitration to resolve any dispute (an “Arbitrable Dispute”) Executive may have with the Company or any affiliate. This arbitration agreement applies to all matters relating to this Agreement, Executive’s employment with
and/or termination from the Company, including disputes about the validity, interpretation, or effect of this Agreement, or alleged violations of it, and further including all claims arising out of any alleged discrimination, harassment,
retaliation, including, but not limited to those covered by the New York Human Rights Law, N.Y. Exec. Law Section 296, the 1969 Civil Rights Act, 42 U.S.C. Section 2000e et seq., the Federal Age Discrimination in Employment Act, the Americans
With Disabilities Act and the Family and Medical Leave Act of 1993. 
  
 (b) Injunctive Relief. Notwithstanding Section 10(a), due to the irreparable harm that would result from an actual or threatened violation of Section 6 that involves disclosure or use of confidential information, trade secrets, or
competition with the Company and Sections 2 and 7 that involve exclusivity of Executive’s services with the Company, Executive agrees that the Company may seek an injunction prohibiting Executive from committing such a violation. 
  
 (c) The Arbitration. Arbitration will take place in New York, New York
before a single experienced employment arbitrator licensed to practice law in New York and selected in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. The arbitrator may not modify or change this
Agreement in any way. 
  
 (d) Fees and Expenses. Each party
will pay the fees of their respective attorneys, the expenses of their witnesses, and any other expenses connected with the arbitration, but all other costs of the arbitration, including the fees of the arbitrator, cost of any record or transcript
of the arbitration, administrative fees, and other fees and costs will be paid in equal shares by the Company and Executive. 
  
 (e) Exclusive Forum. Arbitration in this manner will be the exclusive forum for any Arbitrable Dispute. Should Executive or the Company attempt to
resolve an Arbitrable Dispute by any method other than arbitration pursuant to this Section, the responding party will be entitled to recover from the initiating party all damages, expenses, and attorneys, fees incurred as a result of that breach.

  
 11. Miscellaneous. No provisions of this Agreement may
be amended, modified, waived, or discharged except by a written document signed by Executive and a duly authorized officer of the Company. A waiver of any conditions or provisions of this Agreement in a given instance will not be deemed a waiver of
such conditions or provisions at any other time. The validity, interpretation, construction, and performance of this Agreement will be governed by the laws of the State of New York without regard to its conflicts of law principles. This Agreement
will be binding upon, and will inure to the benefit of, Executive and Executive’s estate and the 
  

 13 

 Company and any successor thereto, but neither this Agreement nor any rights arising under it may be assigned or pledged
by Executive. 
  
 12. Validity. The invalidity or
unenforceability of any provisions of this Agreement will not affect the validity or enforceability of any other provisions of this Agreement, which will remain in full force and effect. 
  
 13. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an
original, but all of which together will constitute the same instrument. 
  
 14. No Effect on Universal Continued Obligations. Nothing in this Agreement is intended to or shall be construed to modify, extinguish or otherwise alter any of the provisions set forth in paragraph 17 of the
first amendatory agreement dated as of April 1, 2001, by and between Executive, Universal Music Group, Inc. and Duet GP, all of which provisions shall continue to survive. 
  
 15. Entire Agreement. This Agreement sets forth the entire understanding between the Parties; all oral or written
agreements or representations, express or implied, with respect to the subject matter of this Agreement are set forth in this Agreement except: (a) as provided in Section 14 above, and (b) that the terms of any applicable stock option agreement
still apply. Except as provided in Section 14 above, all prior employment agreements, understandings and obligations (whether written, oral, express or implied) between the Parties, if any, are terminated as of the effective date of this Agreement
and are superseded by this Agreement. 
  
 IN WITNESS
WHEREOF, the Parties have executed this Amended and Restated Employment Agreement as of the date first written above. 
  

	 “THE COMPANY”
 Napster, LLC
  

		
	 By:
	 	 /S/    WM. CHRISTOPHER
GOROG        

	 Name:
	 	Wm. Christopher Gorog
	 Title:
	 	Chief Executive Officer, Roxio, Inc.—Managing Member
	
	“EXECUTIVE”
	
	 /S/    MICHAEL J.
BEBEL        

	 MICHAEL J. BEBEL

  
  
  

 14 

 Company is a majority owned subsidiary of Roxio, Inc. (“Roxio”). Roxio hereby irrevocably and unconditionally
guarantees to Executive the full and prompt payment of all amounts which may become due and owing to Executive from Company pursuant to paragraphs 3, 4, 5, 9(b) and 10 of this Agreement (collectively, the “Guaranteed Obligations”). The
obligations of Roxio under this guarantee are absolute and unconditional and shall not be impaired by any modification, supplement, extension or amendment of this Agreement, nor by any modification, release or other alteration of the Guaranteed
Obligations, and the liability of Roxio shall apply to the Guaranteed Obligations as so altered, modified, supplemented, extended or amended. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or any
security therefore, including, without limitation, as a result of the bankruptcy, reorganization or insolvency of Company, or pursuant to any assignment for the benefit of creditors, receivership or similar proceeding shall affect, impair or be a
defense to the obligations of Roxio under this guarantee, which is a primary obligation of Roxio, and nothing shall discharge or satisfy the liability of Roxio hereunder except the full payment of the Guaranteed Obligations. 
  

	ROXIO, INC.
		
	 By:
	 	 /S/    WM. CHRISTOPHER
GOROG        

	 Name:
	 	Wm. Christopher Gorog
	 Title:
	 	Chief Executive Officer, Roxio, Inc.

  

 15

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