Document:

Exhibit 10.1 to Rimage Corporation Form 8-K dated December 31, 2007

Exhibit 10.1

 

December 21, 2007

 

Mr. David Suden

9955 Green valley Road

Cambria, CA 93428

 

Dear Dave:

 

This letter describes our agreement regarding your changing role with Rimage. You have made valuable and lasting contributions to Rimage during your 25 year tenure here.

 

	
             
 	
            1.
 	
            Your role as Chief Technology Officer will end as of December 31, 2007. Beginning January 1, 2008, your new title will be “Strategic Technology Consultant”. In that role, your responsibilities will be to provide Rimage with assistance and direction in developing a product and application roadmap for current and future optical related opportunities, to serve as Rimage’s technology expert in supporting global sales and marketing efforts, and to assist and support the President and CEO in a focused search for potential business and/or technology partners/acquisitions. You shall fulfill these responsibilities under the direction and control of the President and CEO.  
 

 

	
             
 	
            2.
 	
            Your compensation package in the new role will be $327,375 on an annualized basis, to be paid through biweekly payroll through December 31, 2008. You will not be entitled to participate in any bonus or other incentive plan nor will you be eligible to receive stock options or other equity-based compensation.  However, this compensation will be made without the contingencies associated with Rimage’s customary incentive plans.
 

 

	
             
 	
            3.
 	
            Your primary residence will be in California, but you will make yourself available to work in the Rimage office as needed. 
 

 

	
             
 	
            4.
 	
            You will continue to be an active employee of Rimage through December 31, 2008 with all the benefits provided in connection with full-time employment, except as provided in this Agreement. 
 

 

	
             
 	
            5.
 	
            Your status as Executive Officer will cease as of December 31, 2007.   You will continue as a member of the Board of Directors of Rimage until the 2008 Annual Meeting of Shareholders or until your earlier resignation, death or removal.  
 

 

	
             
 	
            6.
 	
            The Letter of Agreement related to severance and change in control matters dated March 19, 2007 will become null and void and will be superseded by this Agreement after December 31, 2007, provided the Non-disclosure and Noncompetition Agreement that you signed in connection with that Letter Agreement and dated November 4, 2004 (the “Non-Compete Agreement”) will remain in full force and effect. 
 

 

1

	
             
 	
            7.
 	
            After December 31, 2008, if your active employment with Rimage is not extended by written agreement between you and Rimage, you may continue health and certain other insurance coverages, according to state and federal law (COBRA), beginning January 1, 2009 for up to eighteen months or until you become covered through another group plan, in which case your COBRA eligibility will end. You will be responsible for the full cost of the COBRA continuation coverage. Once your COBRA eligibility expires, you will have the option of exercising your “Individual Conversion Right” to move on to an individual plan with Rimage’s health plan provider, or you may apply for an individual policy. Rimage will make a one-time lump sum bonus payment to you with your final payroll of $39,000, less required withholding, intended to help defray the cost of your insurance
premiums. This will be considered taxable income to you. 
 

 

	
             
 	
            8.
 	
            Your stock options will continue vesting per their original schedule through December 31, 2008. You may exercise your vested stock options at any time before the earlier of March 31, 2009 or the expiration date of such options. 
 

 

In consideration for these benefits:

 

	
             
 	
            1.
 	
            You hereby release, agree not to sue, and forever discharge Rimage, its affiliated entities, and their present or former officers, directors, agents, employees, successors and assigns (collectively the “Releasees”), from any and all manner of claims, demands, actions, causes of action, administrative claims, liability, damages, claims for punitive or liquidated damages, claims for attorneys’ fees, costs and disbursements, individual or class action claims, or demands of any kind whatsoever, you have or might have against them or any of them, whether known or unknown, in law or equity, contract or tort, arising out of or in connection with your employment with Rimage, or the separation of that employment, or otherwise, and however originating or existing, from the beginning of time through the date of your signing this Agreement.  This release
includes any claims you may have for wages, bonuses, deferred compensation, vacation pay, separation pay and/or benefits, defamation, improper discharge (based on contract, common law, or statute, including any federal, state or local statute or ordinance prohibiting discrimination or retaliation in employment), the Minnesota Human Rights Act, Title VII of the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, the Older Workers Benefit Protection Act and the Age Discrimination in Employment Act, and any claim for discrimination or retaliation based on a protected class under state or federal law.  You hereby waive any and all relief not provided for in this Agreement.  You affirm that you have not caused or permitted, and to the full extent permitted by law will not cause or permit to be filed (to the extent that you are able to control such filing), any charge, complaint, or action of any nature or type against the Releasees, including but not limited to any
action or proceeding raising claims arising in tort or contract, or any claims arising under federal, state or local laws, including discrimination law.
 

 

	
             
 	
            2.
 	
            You agree to abide by the terms and conditions of the Non-Compete Agreement and agree that Rimage may, in addition to other remedies provided under that agreement, withhold payments due to you under this Agreement for violation of the Non-Compete Agreement.  You also agree that the benefits provided under this Agreement provide further and sufficient consideration for your obligations under the Non-Compete Agreement.
 

 

2

	
             
 	
            3.
 	
            You agree that you will not disclose confidential or proprietary information of Rimage, or any subsidiaries or affiliates following your employment with Rimage.  This includes, but is not limited to, information regarding clients or customers, information about the personal or business affairs of Rimage, or its affiliated entities, directors, officers, or employees. 
 

 

	
             
 	
            4.
 	
            You agree that you will not disclose the terms of this Agreement to anyone except your immediate family members, or your legal or tax advisors unless compelled by law.  
 

 

	
             
 	
            5.
 	
            During and after your employment with Rimage, you agree not to make or induce any other person to make disparaging statements of any kind, oral or written, regarding Rimage or its affiliated entities or their respective officers, directors, agents or employees, to any person or organization whatsoever, including without limitation to representatives of local, state, or federal agencies, members of the press or media, present or former employees or customers or suppliers of Rimage or its affiliated entities, or members of the public.
 

 

	
             
 	
            6.
 	
            On your last day of employment with Rimage, for no additional consideration provided to you other than the benefits provided herein, you will execute and deliver to the Company a further release of claims in the form of Exhibit A attached hereto.  
 

 

	
             
 	
            7.
 	
            You agree that the terms of this Agreement and the Non-compete Agreement shall be governed by, and construed in accordance with, the laws of the State of Minnesota, regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof.  You agree to consent to submit to the personal jurisdiction of the District Court of Hennepin County Minnesota or any court of the United States located in the State of Minnesota in the event any dispute arises out of this Agreement or the Non-compete Agreement or to enforce any of the terms thereof and you agree not to bring any action relating to this Agreement or the Non-compete Agreement or relating to the enforcement by Rimage of any of your obligations hereunder or thereunder in any court other than the District Court of Hennepin County or, if exclusive jurisdiction over such matter is
vested in the federal courts, any court of the United States located in the State of Minnesota.   
 

 

You may review this Agreement with an attorney of your choice. You have twenty-one (21) days from the date you receive this Agreement to consider whether you wish to sign it.  You acknowledge that if you sign this agreement before the end of the 21-day period, it is your voluntary decision to do so, and you waive the remainder of the 21-day period.

 

3

You understand that you may rescind this Agreement within seven (7) calendar days after signing it to reinstate claims under the Age Discrimination in Employment Act and fifteen (15) calendar days after signing it to reinstate claims arising under the Minnesota Human Rights Act.  In order to be effective, the rescission must (a) be in writing; and (b) delivered to Pamela V. Lampert, Vice President, Planning and Organization Development, 7725 Washington Avenue South, Minneapolis, MN, 55439, by hand or by mail within the required period; and (c) if delivered by mail, the rescission must be postmarked within the required period, properly addressed to Pamela V. Lampert and sent by certified mail, return receipt requested.  This Agreement will be effective upon the expiration of the required period without rescission.  You understand that if you rescind this Agreement you will not continue to receive the benefits
described above.

 

If this letter accurately reflects our understanding and agreement, please sign the original and copy and return the original to me.  

 

Sincerely,

 

Rimage Corporation

 

	
             
 	
            /s/
 	
            Pamela V. Lampert
	
             
 
	
             
 	
            By: 
 	
            Pamela V. Lampert
 Vice President, Planning and Organization Development 
 	
             
 

 

Read and agreed to, this 31st day of December, 2007.

 

	
             
 	
            /s/
 	
            David Suden
 	
             
 
	
             
 	
            David Suden
 	
             
 

 

 

4

Exhibit A

 

To:  Rimage Corporation

 

I, the undersigned, in consideration of the benefits provided in the Agreement dated December __, 2007, hereby release, agree not to sue, and forever discharge Rimage, its affiliated entities, and their present or former officers, directors, agents, employees, successors and assigns (collectively the “Releasees”), from any and all manner of claims, demands, actions, causes of action, administrative claims, liability, damages, claims for punitive or liquidated damages, claims for attorneys’ fees, costs and disbursements, individual or class action claims, or demands of any kind whatsoever, I have or might have against them or any of them, whether known or unknown, in law or equity, contract or tort, arising out of or in connection with my employment with Rimage, or the separation of that employment, or otherwise, and however originating or existing, from December ___, 2007 through the date of
this Release.  This Release includes any claims I may have for wages, bonuses, deferred compensation, vacation pay, separation pay and/or benefits, defamation, improper discharge (based on contract, common law, or statute, including any federal, state or local statute or ordinance prohibiting discrimination or retaliation in employment), the Minnesota Human Rights Act, Title VII of the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, the Older Workers Benefit Protection Act and the Age Discrimination in Employment Act, and any claim for discrimination or retaliation based on a protected class under state or federal law.  I  hereby waive any and all relief not provided for in this Release.  I affirm that I have not caused or permitted, and to the full extent permitted by law will not cause or permit to be filed (to the extent that I am able to control such filing), any charge, complaint, or action of any nature or type against the Releasees, including but not
limited to any action or proceeding raising claims arising in tort or contract, or any claims arising under federal, state or local laws, including discrimination law.

 

I understand that I may rescind this Release within seven (7) calendar days after signing it to reinstate claims under the Age Discrimination in Employment Act and fifteen (15) calendar days after signing it to reinstate claims arising under the Minnesota Human Rights Act.  In order to be effective, the rescission must (a) be in writing; and (b) delivered to Pamela V. Lampert, Vice President, Planning and Organization Development, 7725 Washington Avenue South, Minneapolis, MN, 55439, by hand or by mail within the required period; and (c) if delivered by mail, the rescission must be postmarked within the required period, properly addressed to Pamela V. Lampert and sent by certified mail, return receipt requested.  I understand that any rescission of this Release shall not rescind or otherwise affect the release of claims contained in the Agreement and shall only reinstate claims as provided above arising from
and after the date of the Agreement to the date of this Release. This Release will be effective upon the expiration of the required period without rescission.  I understand that if I rescind this Agreement I will not continue to receive the benefits described above.

 

	
             
 	
             
 	
             
 
	
            Dave Suden
 	
             
 	
            Date
 

 

 

5NEW ULM TELECOM, INC. EXHIBIT 10.1 TO FORM 8-K DATED DECEMBER 31, 2007

Exhibit 10.1  

AMENDMENT
TO AGREEMENT AND PLAN OF MERGER

THIS AMENDMENT TO AGREEMENT AND PLAN OF MERGER (this
“Amendment”) is made as of December 31, 2007 by and among New Ulm Telecom,
Inc., a Minnesota corporation (“Parent”), Hutchinson Acquisition Corp., a
Minnesota corporation and a direct wholly owned subsidiary of Parent (“Newco”),
Hutchinson Telephone Company, a Minnesota corporation (the “Company”), and
Walter S. Clay as Shareholder Representative.

RECITALS:

A. Parent, Newco and the Company are parties to that
certain Agreement and Plan of Merger dated August 3, 2007 (the “Merger
Agreement”).

B. The parties desire to amend certain provisions of
the Merger Agreement pursuant to the provisions of this Amendment.

NOW, THEREFORE, in consideration of the premises and
mutual covenants hereinafter set forth, the parties hereto hereby agree as
follows:

	
 

	
 

	
1.

	
Capitalized Terms. The capitalized terms not defined
  in this Amendment shall have the meanings set forth in the Merger Agreement
  and are incorporated herein by reference.

	
 

	
 

	
2.

	
Effective Time. Section 1.2 of the Merger Agreement
  is hereby deleted in its entirety and replaced with the following:

          1.2
Effective Time. As soon as practicable after the satisfaction or waiver of the
conditions set forth in Article VII hereof, the appropriate parties hereto
shall execute in the manner required by the MBCA and file with the Minnesota
Secretary of State appropriate articles of merger relating to the Merger in the
form of Exhibit A, and the parties shall take such other and further actions as
may be required by Law to make the Merger effective. The articles of merger
shall provide for an effective date of January 2, 2008 or such later time as
the parties may agree, which shall hereinafter be referred to as the “Effective
Time.”

	
 

	
 

	
3.

	
Closing. Section 1.4(a) of the Merger Agreement is
  hereby deleted in its entirety and replaced with the following:

          (a)
The closing of the Merger (the “Closing”) shall take place at the Minneapolis,
Minnesota offices of Leonard, Street and Deinard Professional Association on
January 2, 2008, or such later date as the parties agree.

	
 

	
 

	
4.

	
Aggregate Merger Consideration. Section 3.2(b) is
  hereby deleted in its entirety and replaced with the following:

          (b)
“Aggregate Merger Consideration” shall be equal to (i) the sum of $64,055,045
(“Enterprise Value”), plus (a) Cash on Hand, plus (b) the Midwest Wireless
Receivable to the extent such proceeds have not been received by the Company
prior to the Closing (net of Tax at 38.015%, (or such other rate as is
determined by applicable federal and state tax law), plus (c)

the Working Capital Increase (if any), plus (d) the
December 2007 Adjustments (if any) less (ii) the sum of (a) Indebtedness of the
Company Parties outstanding at the Closing, plus (b) the Working Capital
Decrease (if any), (c) plus Transaction Expenses to the extent not paid by the
Company, plus (d) the Bonus Payments to the extent not paid by the Company,
plus (e) $2,000,000 representing a portion of the amount of the Company’s
guarantees of loan obligations of the Company Joint Ventures.

	
 

	
 

	
5.

	
December 2007 Adjustments. A new Section 3.2(m) is
  added to read as follows: “December 2007 Adjustments” are equal to the 

	
 

	
 

	
 

	
 

	
a.

	
A payment of $793,485, representing that portion of
  the Hutchinson Telephone Company Restoration Plan reported as a long term
  liability on the November 30, 2007 financial statement of Hutchinson
  Telephone Company (net of the deferred tax credit associated with the
  Restoration Plan) that was eliminated as a result of the acceleration of the
  payment of this liability upon the termination of the Restoration Plan, as
  set forth on Exhibit A.

	
 

	
 

	
 

	
 

	
b.

	
Excluding from current liabilities at December 31,
  2007, the tax liability of $69,885 associated with the December 2007 sale of
  bonds by Company at the request of Parent.

	
 

	
 

	
 

	
 

	
c.

	
Payments made by the Company to Lynne M. Clay
  pursuant to the first sentence of paragraph 2 of Mutual Termination Agreement
  dated December 31, 2007, net of the tax credit associated with these
  payments.

	
 

	
 

	
 

	
6.

	
Intent of December 2007 Adjustments. The parties
  agree that except as otherwise expressly agreed for in Item 5, the December
  2007 Adjustments and any other prepayments consented to by New Ulm in the
  Consent dated December 31, 2007 and attached as Exhibit B, are designed to
  have no effect on Aggregate Merger Consideration, and Company and Parent have
  agreed and consented to these action to facilitate the transition
  contemplated by the Merger Agreement and are taking these action on the basis
  that, except as noted in this paragraph 6, these adjustments will have no
  effect on the Aggregate Merger Consideration, and each party agrees that in
  the process of the determining the Closing Date Statement, it will give
  effect to this intent.

	
 

	
 

	
 

	
7.

	
Letter of Transmittal. Section 3.3(b) of the Merger
  Agreement is hereby deleted in its entirety and replaced with the following:

          (b)
On or before December 10, 2007, the Company mailed to each record holder who
held Outstanding Shares, a letter of transmittal (the “Letter Of Transmittal”).
The Disbursing Agent Agreement shall provide that (A) subject to the Disbursing
Agent’s receipt of a Letter of Transmittal from a Shareholder (duly completed
and validly executed in accordance with eth instructions therein), the
Disbursing Agent shall pay each Shareholder an amount equal to the product of
(i) the Estimated Per Share Merger Consideration less the Per Share Escrow
Amount times (ii) the number of Outstanding Shares of the Company held by such
Shareholder at the Effective Time and (B) such payments shall be made (1) with
respect to a Letter of Transmittal received by the Disbursing Agent prior to
the date of Closing (duly completed and validly

2

executed in accordance with the instructions therein),
on the date of the Closing, and (2) with respect to a Letter of Transmittal
received by the Disbursing Agent on or after the date of the Closing, not later
than one Business Day after the Disbursing Agent receives such Letter of
Transmittal (duly completed and validly executed in accordance with the
instructions therein).

	
 

	
 

	
8.

	
Other Representations. Section 4.9(e) of the Merger
  Agreement is hereby deleted in its entirety and replaced with the following:

          (e)
Other Representations. None of the Company Parties (or, to the Knowledge of the
Executives, any of the Company Joint Ventures) have filed any consent under
Section 34l(f) of the Code or agreed to have Section 341(f)(2) of the Code
apply to any disposition of a subsection (f) asset (as defined in Section 341
(f)(4) of the Code) owned by any of the Company Parties or the Company Joint
Ventures. Except as set forth in Schedule 4.9, there is no contract, agreement,
plan or arrangement to which any of the Company Parties (or, to the Knowledge
of the Executives, any of the Company Joint Ventures) is a party, including but
not limited to the provisions of this Agreement, covering any employee or
former employee of any such party that, individually or collectively, could
give rise to the payment of any amount that would not be deductible pursuant to
Section 280G or 162(m) of the Code or provides reimbursement or indemnification
of any officer, director or employee for any Tax liability of such person under
Code Sections 409A or 4999. Except as set forth on Schedule 4.9, during the
five-year period ending on the date hereof, none of the Company Parties (or, to
the Knowledge of the Executives, any of the Company Joint Ventures) was a
distributing or controlled corporation in a transaction intended to be governed
by Section 355 of the Code. Notwithstanding anything to the contrary in this
Section 4.9(e) or any other provision of this Agreement, the Company is not
making any representations, warranties, covenants or agreements regarding
Section 280G of the Code in connection with that certain (i) Amended and
Restated Employment Agreement between the Company and Walter S. Clay dated
October 9, 2006, as amended by the Compensation Committee of the Company by
resolution adopted and effective June 25, 2007, as furthered amended and
terminated; (ii) Amended and Restated Employment Agreement between the Company
and Lynne M. Clay dated October 9, 2006, amended by the Compensation Committee
of the Company adopted and effective June 25, 2007as as furthered amended and
terminated; (iii) Amended and Restated Change of Control Executive Severance
Agreement between the Company and Walter S. Clay dated December 2, 2006, as
further amended and terminated.

	
 

	
 

	
9.

	
Termination by Either Parent or the Company. Section
  8.2 of the Merger Agreement is hereby deleted in its entirety and replaced
  with the following:

          8.2
Termination by Either Parent or the Company. This Agreement may be terminated
and the Merger may be abandoned by Parent or the Company if (i) any court of
competent jurisdiction in the United States or some other Governmental Entity
shall have issued an order, decree or ruling or taken any other action
permanently restraining, enjoining or otherwise prohibiting the Merger and such
order, decree, ruling or other action shall have become final and
non-appealable or (ii) the Effective Time shall not have occurred on or before
January 11, 2008 (the latter of such applicable dates referred to in this
Agreement as the “Termination Date”); provided, that the right to terminate
this Agreement pursuant to this Section 8.2(ii) shall not be available to any
party whose failure to fulfill any of its obligations under this Agreement
results in such failure to close.

3

	
 

	
 

	
10.

	
Notices. Notices to the Company pursuant to Section
  11.7 of the Merger Agreement shall be provided as follows:

If to Company (before the Effective Time):

Hutchinson Telephone Company

235 Franklin Street Southwest

P.O. Box 279

Hutchinson, Minnesota 55350

Attn: Walter S. Clay

Facsimile No.: (320) 234-5251

If to Company or Shareholder Representative (after the
Effective Time):

Walter S. Clay 

435 Washington Ave. W. 

Hutchinson, Minnesota 55350

Phone No. (320) 234-5219.

With a copy to:

Leonard, Street and Deinard, P.A.

150 South Fifth Street

Suite 2300

Minneapolis, Minnesota 55402

Attn:       Steven D. DeRuyter, Esq.

Facsimile No.: (612) 335-1657

	
 

	
 

	
11.

	
Entire Agreement; Assignment. Section 11.8 of the
  Merger Agreement is hereby deleted in its entirety and replaced with the
  following:

          11.8.
This Agreement (including the documents and the instruments referred to herein)
and the Confidentiality Agreement (a) constitute the entire agreement among the
parties with respect to the subject matter hereof, and (b) shall not be
assigned by operation of law or otherwise; provided, however, that Parent and
Newco may assign any or all of their rights and interests hereunder (i) to one
or more of their respective Affiliates, (ii) for collateral security purposes
to any lender providing financing to Parent, Newco or their respective
Affiliates and any such lender (x) may exercise all of the rights and remedies
of Parent and Newco hereunder after the Closing and (y) may assign or cause the
assignment of the Parent’s and Newco’s rights and interests hereunder to any
successor, assignee or designee of the lender in connection with such lender’s
exercise of its rights and remedies under its collateral pledge hereof, and
(iii) to any subsequent purchaser of Parent or Newco or any material portion of
their assets (whether such sale is structured as a sale of stock or membership
interests, a sale of assets, a merger or otherwise) following the Closing. No
assignment by a Party of any rights or interest will relieve it from any
obligation it otherwise has.

	
 

	
 

	
12.

	
Amendment of Disclosure Schedule. Schedule 4.11 is
  hereby amended to add the disclosure attached as Schedule 4.11A. Schedule
  6.1(h) is hereby amended to add the disclosures set forth in Schedule
  6.1(h)A.

4

	
 

	
 

	
13.

	
Remaining Provisions. With the exception of the foregoing,
  all other provisions of the Merger Agreement shall remain in full force and
  effect.

	
 

	
 

	
14.

	
Counterparts. This Amendment may be executed in one
  or more counterparts, each of which will be deemed to be an original copy of
  this Amendment and all of which, when taken together, will be deemed to
  constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be executed by their respective duly authorized officers as
of the date first above written.

HUTCHINSON TELEPHONE COMPANY

	
 

	
 

	
 

	
By:

	
/s/ Walter S. Clay

	
 

	
 

	 

	
 

	
Name: Walter S. Clay

	
 

	
Title: President and Chief Executive Officer

	
 

	
 

	
 

	
 

	
SHAREHOLDER REPRESENTATIVE

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Walter S. Clay

	
 

	
 

	 

	
 

	
Name: Walter S. Clay

	
 

	
 

	
 

	
 

	
NEW ULM TELECOM, INC.

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Bill Otis

	
 

	
 

	 

	
 

	
Name: Bill Otis

	
 

	
Title: President and Chief Executive Officer

	
 

	
 

	
 

	
 

	
HUTCHINSON ACQUISITION CORP.

	
 

	
 

	
 

	
 

	
By:

	
/s/ Bill Otis
	
 

	
 

	 

	
 

	
Name: Bill Otis

	
 

	
Title: President and Chief Executive Officer

	
 

5

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