Document:

Exhibit 10.1 to Rimage Corporation Form 8-K dated May 16, 2006

EXHIBIT 10.1  

RIMAGE CORPORATION

AMENDED AND RESTATED 1992 STOCK OPTION PLAN 

PERFORMANCE SHARE AWARD AGREEMENT  

 

 

	RECIPIENT: 	 	______________________________	 
	 
	AWARD DATE: 	  	______________________________	 
	 
	PERFORMANCE PERIOD: 	  	______________________________	 
	 
	PERFORMANCE SHARES: 	  	______________________________	 
	 
	TARGET PAYOUT: 	  	_______ Shares of Common Stock	 

 

 

        THIS AGREEMENT is made
as of the Award Date set forth above, by and between Rimage Corporation, a Minnesota corporation (the “Company”) and the
Recipient named above (the “Recipient”) setting forth the terms and conditions of a Performance Share Award granted
pursuant to Rimage Corporation Amended and Restated 1992 Stock Option Plan (the “Plan”). Capitalized terms used herein
and not defined shall have the meaning given such terms in the Plan. 

        NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereby
agree as follows: 

        1.    Performance
Share Award.   The Company hereby grants to the Recipient the number of Performance Shares set forth above,
contingent on the achievement of the Performance Goals (described in Section 2) during the Performance Period, and subject to the
terms and conditions of this Agreement and of the Plan. A “Performance Share” is a right to receive one share of Rimage
common stock, par value $.01 per share, (the “Common Stock”) at the end of the Performance Period, subject to earlier
forfeiture as set forth in the Agreement. Recipient will receive shares of Common Stock for Performance Shares under this
Performance Share Award only if Rimage achieves the Performance Goals for the Performance Period established by the Committee and
the Committee certifies in writing that the Performance Goals have been achieved. If the Performance Goals are not achieved at the
end of the Performance Period, all of the Performance Shares will be canceled and Recipient will receive no Common Stock for
canceled Performance Shares. 

        2.    Performance
Goals.   The Performance Goals to be achieved during the Performance Period are set forth on
Exhibit A. 

        3.    Number
of Shares Delivered.   If the Performance Goals are achieved, Recipient will receive shares of Common Stock
at the Target Payout. If the Performance Goals are not achieved, Recipient will receive no shares of Common Stock and the
Performance Shares shall be canceled. Performance Shares will be paid solely in shares of Common Stock. The Committee will
determine whether the Performance Goals have been met within 60 days of the end of the Performance Period and the shares of Common
Stock shall be issued promptly after such determination is made. 

        4.    Termination
or Reduction of Awards.   At any time during the Performance Period, the Committee may, in its discretion,
reduce or cancel the Performance Shares in any Performance Share Award prior to the conclusion of the Performance Period, based on
financial information contained in the Company’s financial statements or similar internal reports, if the Committee
determines that the Performance Goals for the Performance Period cannot be achieved. 

        5.    Vesting
and Cancellation Under Special Circumstances. 

        (a)    Death
or Disability.   If Recipient dies or becomes permanently disabled and unable to work, shares of Common Stock
will be delivered with respect to this Performance Share Award only if otherwise earned and the number of shares to be delivered
will be prorated based on the number of days Recipient was employed during the Performance Period through the date of such event.
Such shares will be delivered only after the conclusion of the Performance Period. 

        (b)    Retirement.   If
after ____________ but prior to the end of the Performance Period, the Recipient ceases to be an employee by reason of retirement
at age 55 or older and with at least 10 years of service to the Company, the Committee may, in its sole discretion, cause shares
of Common Stock to be delivered with respect to this Performance Share Award, but only if otherwise earned and the number of
shares to be delivered will be prorated based on the number of days Recipient was employed during the Performance Period through
the date of retirement. If within one year after such retirement or after the shares are delivered pursuant to this Section 5(b),
Recipient violates the terms of any nondisclosure, non-competition or non-solicitation to which the Recipient is then bound, the
Company may rescind or restrict the special vesting under the Section 5(b) or withhold or have the right to the return of the
economic value of the Performance Shares that vested under this provision of this Agreement, except in the event of a Change of
Control. 

        (c)    Other
Termination.   In the event that Recipient terminates employment other than by reason of death, disability or
retirement as provided in Section 5(a) or 5(b), Performance Shares that have not yet vested shall not vest and shall be canceled.

        (d)    Change
of Control.   Notwithstanding any other provision of this Agreement, if there is a “Change in
Control” of the Company during the Performance Period, Performance Shares that have not yet vested shall vest and become
immediately payable. “Change in Control” of the Company shall mean a change in control which would be required to be
reported in response to Item 5.01 of Form 8-K promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), whether or not the Company is then subject to such reporting requirement, including without limitation,
if: 

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	(1) 	  	any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly of securities of the Company representing 20% or more of the combined voting power of the
Company’s then outstanding securities (other than an entity owned 50% or greater by the Company or an employee pension plan
for the benefit of the employees of the Company); 

	(2) 	  	there ceases to be a majority of the Board of
Directors comprised of (i) individuals who, on the date of this Agreement, constituted the Board of Directors of the Company; and
(ii) any new director who subsequently was elected or nominated for election by a majority of the directors who held such office
prior to a Change in Control; or 

	(3) 	  	the Company disposes of at least 75% of its assets,
other than (i) to an entity owned 50% or greater by the Company or any of its subsidiaries, or to an entity in which at least 50%
of the voting equity securities are owned by the shareholders of the Company immediately prior to the disposition in substantially
the same percentage or (ii) as a result of a bankruptcy proceeding, dissolution or liquidation of the Company. 

        6.    Dividends
and Voting.   Recipient will have no rights as a stockholder with respect to Performance Shares unless and
until Common Stock is issued in settlement of this award. Except as expressly provided in the Plan, no adjustments will be made
for dividends or other rights for which the record date is prior to issuance of the Common Stock. 

        7.    Non-transferability.   Neither
the Performance Shares nor this Performance Share Award nor any interest in the shares or award may be anticipated, alienated,
encumbered, sold, pledged, assigned, transferred or subjected to any charge or legal process, other than by will or the laws of
descent and distribution, so long as the Performance Shares have not vested and shares of Common Stock have not been distributed
in accordance with the Plan, and any sale, pledge, assignment or other attempted transfer shall be null and void. 

        8.    Adjustments.   In
the event of a corporate transaction involving the Company, the Common Stock or the Company’s corporate or capital structure,
including but not limited to any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation reclassification, split-up, spin-off combination or exchange of shares, or a sale of the Company or of all
or part of its assets or any distribution to stockholders other than a normal cash dividend, the Committee shall make such
proportional adjustments as are necessary to preserve the benefits or potential benefits of the Performance Share Awards. Action
by the Committee may include all or any of adjustment in (a) the maximum number and kind of securities subject to the Plan as set
forth in this paragraph; (b) the maximum number and kind of securities that may be made subject to Performance Share Awards for
any individual; (c) the number and kind of securities subject to any outstanding Award; and (d) any other adjustments that the
Committee determines to be equitable. 

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        9.    Successors
and Heirs.   This Agreement shall be binding upon and inure to the benefit of the Company and its
successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or
substantially all of the Company’s assets and business. In the event of the Recipient’s death, any shares of Common
Stock to which Recipient may become entitled will be delivered to his or her heirs or personal representative in accordance with
the terms of the Plan. 

        10.    Governing
Law.   This Performance Share Award Agreement and the Performance Shares will be construed, administered
and governed in all respects under and by the applicable laws of the State of Minnesota, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of this agreement, the Plan, the award or the
Performance Shares to the substantive law of another jurisdiction. 

        11.    Tax
Withholding.   The Company has the right to deduct from any award payment made under this Agreement or to
require Recipient to pay the amount of any federal, state or local taxes of any kind required by law to be withheld with respect
to the grant, vesting, payment or settlement of an award under this Agreement, or to take such other action as may be necessary in
the opinion of the Company to satisfy all obligations for the payment of such taxes. If Common Stock is withheld or surrendered to
satisfy tax withholding, such stock will be valued at fair market value as of the date such Common Stock is withheld or
surrendered. The Company may also deduct from any award payment any other amounts due by Recipient to the Company. 

        12.    Miscellaneous.   Notwithstanding
anything in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan. In accordance
with the Plan, all decisions of the Committee shall be final and binding upon Recipient and the Company. 

        IN WITNESS WHEREOF,
the Company has caused this Performance Share Award Agreement to be executed in its corporate name by its duly authorized officer,
and the Recipient has executed this Agreement as of the Award Date set forth above. 

	    	COMPANY:  	RIMAGE CORPORATION  
	    	    	    	  	    
	    	    	By:    	    

	    	    	    	Its    	    

	 
	    	RECIPIENT: 	    

4 

EXHIBIT A 

Performance Goalsexv10w1

 

Exhibit 10.1

AMENDMENT NO. 2

          AMENDMENT NO. 2 (this “Amendment”), dated as of May 19, 2006, to that certain Credit
Agreement, dated as of February 14, 2006 (as amended or otherwise modified to the date hereof, the
“Credit Agreement”; capitalized terms used herein and not defined shall have the meanings
set forth in the Credit Agreement), among NORTEL NETWORKS INC. (the “Borrower”), JPMORGAN
CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”), the several banks
and other financial institutions from time to time party thereto as lenders (the “Lenders”)
and the other parties named therein.

WITNESSETH:

          WHEREAS, Section 9.05 of the Credit Agreement permits the Credit Agreement to be amended from
time to time;

          NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

          SECTION ONE. Amendment. The Credit Agreement is hereby amended (effective as of
the Effective Date (as defined below)) by deleting the definition of “Applicable Margin” from
Section 1.01 of the Credit Agreement in its entirety and replacing it with the following:

          “Applicable Margin” means, with respect to any Borrowing consisting of Tranche A Loans
or Tranche B Loans, the rate per annum set forth below opposite the applicable tranche of
Loans for such type of Borrowing:

	 	 	 	 	 	 	 	 	 
	 	 	Euro-Dollar Borrowings	 	Base Rate Borrowings
	Tranche A Loans
	 	 	2.00	%	 	 	1.00	%
	Tranche B Loans
	 	 	3.25	%	 	 	2.25	%

          SECTION TWO. Conditions to Effectiveness. This Amendment shall become effective
as of the date (the “Effective Date”) when, and only when, (a) the Agent shall have
received counterparts of this Amendment executed by (i) the Borrower, (ii) the Required Lenders and
(iii) each Lender which is the registered holder of any Tranche A Loan, and (b) the Agent shall
have received an officer’s certificate of the Chief Financial Officer of NNC stating that the
representations and warranties set forth in Section Three hereof are true and correct.

 

 

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          SECTION THREE. Representations and Warranties. In order to induce the Lenders and the
Administrative Agent to enter into this Amendment, the Borrower represents and warrants to each of
the Lenders and the Administrative Agent that, after giving effect to this Amendment:

     (a) no Default or Event of Default has occurred and is continuing; and

     (b) except for matters that are disclosed in all material respects in NNC’s 2005 Form
10-K, each of the representations and warranties made by each of the Loan Parties in or
pursuant to the Loan Documents are true and correct in all material respects on and as of
the date hereof as if made on the date hereof (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such specific date).

          SECTION FOUR. Reference to and Effect on the Loan Documents. On and after the
Effective Date, each reference in any Loan Document to the Credit Agreement or words of like
import, shall mean and be a reference to the Credit Agreement as amended by this Amendment. The
Credit Agreement, as specifically amended by this Amendment, the Notes and each of the other Loan
Documents are and shall continue to be in full force and effect. The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver
of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents. This Amendment shall be deemed
to be a Loan Document for all purposes of the Credit Agreement.

          SECTION FIVE. Costs, Expenses and Taxes. The Borrower agrees to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation,
execution and delivery of this Amendment and the other instruments and documents to be delivered
hereunder (including, without limitation, the reasonable fees, charges and disbursements of Cahill
Gordon & Reindel llp, counsel to the Lenders).

          SECTION SIX. Execution in Counterparts. This Amendment may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be
effective as delivery of a manually executed counterpart of this Amendment.

          SECTION SEVEN. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE CONSTRUED AND GOVERNED BY, IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

[Signature Pages Follow]

 

 

S-1

IN WITNESS WHEREOF, THE PARTIES HAVE CAUSED THIS AMENDMENT TO BE SIGNED
AS OF THE DATE FIRST WRITTEN ABOVE.

	 	 	 	 	 
	 	NORTEL NETWORKS INC., as the Borrower

 	 
	 	By:  	/s/ Allen K. Stout
 	 
	 	 	Name:  	Allen K. Stout 	 
	 	 	Title:  	Vice-President, Finance 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 	 
	 	By:  	/s/ David M. Mallett
 	 
	 	 	Name:  	David M. Mallett 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,
as a Lender

 	 
	 	By:  	/s/ David M. Mallett
 	 
	 	 	Name:  	David M. Mallett 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CITICORP USA, INC.,
as a Lender

 	 
	 	By:  	/s/ Timothy Dilworth
 	 
	 	 	Name:  	Timothy Dilworth 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,
as a Lender

 	 
	 	By:  	/s/ Noel V. Curran
 	 
	 	 	Name:  	Noel V. Curran 	 
	 	 	Title:  	Attorney-in-Fact 	 

 

 

S-2

	 	 	 	 	 
	 	EXPORT DEVELOPMENT CANADA,
as a Lender

 	 
	 	By:  	/s/ Dan Kovacs
 	 
	 	 	Name:  	Dan Kovacs 	 
	 	 	Title:  	Loan Asset Manager 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Kevin Skilliter
 	 
	 	 	Name:  	Kevin Skilliter 	 
	 	 	Title:  	Loan Asset Manager	 
	 
	 
	 	ACKNOWLEDGED AND AGREED TO: 

	 	 	 	 	 
	 	NORTEL NETWORKS CORPORATION

 	 
	 	By:  	/s/ Peter W. Currie
 	 
	 	 	Name:  	Peter W. Currie 	 
	 	 	Title:  	Executive Vice-President and
Chief Financial Officer 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                             /s/ Katharine B. Stevenson
 	 
	 	 	Name:  	Katharine B. Stevenson 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	NORTEL NETWORKS LIMITED

 	 
	 	By:  	/s/ Peter W. Currie
 	 
	 	 	Name:  	Peter W. Currie 	 
	 	 	Title:  	Executive Vice-President and
Chief Financial Officer 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Katharine B. Stevenson
 	 
	 	 	Name:  	Katharine B. Stevenson 	 
	 	 	Title:  	Treasurer

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