Document:

BANTA CORPORATION 

EXECUTIVE DEFERRED COMPENSATION PLAN "B" 

Effective August 1, 2001 

WORKING COPY REFLECTING 2004 AMENDMENTS 

TABLE OF CONTENTS 

			
	 	  	 	  	 	 	 	Page
 	 
	 	
Section 1.	 	Purpose: 	 	 	 	1	 
	 	
Section 2. 	 	Definitions: 	 	 	 	1	 
	 	2	.1	"Accrued Benefit"	 	 	 	1	 
	 	2	.2	"Active Participant"	 	 	 	1	 
	 	2	.3	"Beneficiary"	 	 	 	1	 
	 	2	.4	"Board"	 	 	 	1	 
	 	2	.5	"CEO"	 	 	 	2	 
	 	2	.6	"College Education Account"	 	 	 	2	 
	 	2	.7	"Committee"	 	 	 	2	 
	 	2	.8	"Compensation"	 	 	 	2	 
	 	2	.9	"Deferred Compensation Account"	 	 	 	2	 
	 	2	.10	"Dependent Subaccount"	 	 	 	2	 
	 	2	.11	"Employee"	 	 	 	3	 
	 	2	.12	"Employer"	 	 	 	3	 
	 	2	.13	"Participant"	 	 	 	3	 
	 	2	.14	"Participating Employer"	 	 	 	3	 
	 	2	.15	"Plan"	 	 	 	3	 
	 	2	.16	"Plan Year"	 	 	 	4	 
	 	2	.17	"Qualifying Distribution Event"	 	 	 	4	 
	 	2	.18	"Salary Deferral Agreement"	 	 	 	4	 
	 	2	.19	"Salary Deferral Credits"	 	 	 	4	 
	 	2	.20	"Service"	 	 	 	4	 
	 	
Section 3. 	 	Salary Deferral Credits: 	 	 	 	4	 
	 	3	.1	Election:	 	 	 	4	 
	 	3	.2	Timing of Credit:	 	 	 	5	 
	 	3	.3	Manner of Election:	 	 	 	5	 
	 	3	.4	Changes in Election:	 	 	 	5	 
	 	3	.5	Additional Rules:	 	 	 	6	 
	 	
Section 4. 	 	Qualifying Distribution Events: 	 	 	 	6	 
	 	4	.1	Death of a Participant:	 	 	 	6	 
	 	4	.2	Termination of Service:	 	 	 	6	 
	 	
Section 5. 	 	In-Service Withdrawals: 	 	 	 	6	 
	 	5	.1	College Education Withdrawals:	 	 	 	6	 
	 	5	.2	Transfers:	 	 	 	7	 
	 	
Section 6. 	 	Qualifying Distribution Events Payment Options: 	 	 	 	8	 
	 	6	.1	Payment Options:	 	 	 	8	 
	 	6	.2	Changes in Election:	 	 	 	8	 
	 	
Section 7. 	 	Vesting: 	 	 	 	9	 
	 	
Section 8. 	 	Account; Deemed Investment; Adjustment of Accounts: 	 	 	 	9	 
	 	8	.1	Account:	 	 	 	9	 
	 	8	.2	Deemed Investments:	 	 	 	9	 
	 	8	.3	Adjustments to Deferred Compensation Accounts:	 	 	 	9	 
	 	
Section 9. 	 	Administration by Committee: 	 	 	 	10	 
	 	9	.1	Membership of Committee:	 	 	 	10	 
	 	9	.2	Committee officers; Subcommittee:	 	 	 	10	 
	 	9	.3	Committee meetings:	 	 	 	10	 
	 	9	.4	Transaction of business:	 	 	 	11	 
	 	9	.5	Committee records:	 	 	 	11	 
	 	9	.6	Establishment of rules:	 	 	 	11	 
	 	9	.7	Conflicts of interest:	 	 	 	11	 
	 	9	.8	Correction of errors:	 	 	 	11	 
	 	9	.9	Authority to interpret Plan:	 	 	 	12	 
	 	9	.10	Third party advisors:	 	 	 	12	 
	 	9	.11	Compensation of members:	 	 	 	12	 
	 	9	.12	Expense reimbursement:	 	 	 	12	 
	 	9	.13	Indemnification:	 	 	 	12	 
	 	
Section 10.	 	Contractual Liability: 	 	 	 	13	 
	 	10	.1	Contractual Liability:	 	 	 	13	 
	 	
Section 11. 	 	Allocation of Responsibilities: 	 	 	 	13	 
	 	11	.1	Board:	 	 	 	13	 
	 	11	.2	Committee:	 	 	 	14	 
	 	
Section 12. 	 	
Benefits Not Assignable; Facility of Payments: 	 	 	 	14	 
	 	12	.1	Benefits not assignable:	 	 	 	14	 
	 	12	.2	Payments to minors and others:	 	 	 	14	 
	 	
Section 13. 	 	Beneficiary: 	 	 	 	15	 
	 	
Section 14. 	 	Amendment and Termination of Plan: 	 	 	 	15	 
	 	
Section 15. 	 	Communication to Participants: 	 	 	 	16	 
	 	
Section 16. 	 	Claims Procedure: 	 	 	 	16	 
	 	16	.1	Filing of a claim for benefits:	 	 	 	16	 
	 	16	.2	Notification to claimant of decision:	 	 	 	16	 
	 	16	.3	Procedure for review:	 	 	 	17	 
	 	16	.4	Decision on review:	 	 	 	17	 
	 	16	.5	Action by authorized representative of claimant:	 	 	 	17	 
	 	
Section 17. 	 	Miscellaneous Provisions: 	 	 	 	18	 
	 	17	.1	Set off:	 	 	 	18	 
	 	17	.2	Notices:	 	 	 	18	 
	 	17	.3	Lost distributees:	 	 	 	18	 
	 	17	.4	Reliance on data:	 	 	 	19	 
	 	17	.5	Receipt and release for payments:	 	 	 	19	 
	 	17	.6	Headings:	 	 	 	19	 
	 	17	.7	Continuation of employment:	 	 	 	19	 
	 	17	.8	Merger or consolidation:	 	 	 	19	 
	 	17	.9	Construction:	 	 	 	20	 

BANTA CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN "B" 

        Section 1.      Purpose:  

        The
Employer has adopted the Plan set forth herein to provide a means by which certain
management employees may elect to defer receipt of current compensation in order to
provide retirement on behalf of such employees. The Plan is not intended to be a
tax-qualified retirement plan under Section 401(a) of the Internal Revenue Code. The
Plan is intended to be an unfunded plan maintained primarily for the purpose of providing
deferred compensation benefits for a select group of management or highly compensated
employees under Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement
Income Security Act of 1974. 

       
 Section 2.      Definitions:  

        As
used in the Plan, including this Section 2, references to one gender shall include
the other and, unless otherwise indicated by the context: 

        2.1     
“Accrued Benefit” shall mean, with respect to each Participant, the
balance credited to his Deferred Compensation Account and his College Education Account.  

        2.2     
“Active Participant” shall mean, with respect to any day or date, a
Participant who is in Service on such day or date; provided, that a Participant who is in
Service shall cease to be an Active Participant immediately upon a determination by the
Committee that the Participant has ceased to be an Employee.  

        2.3     
“Beneficiary” shall mean the person, persons, entity or entities
designated or determined pursuant to the provisions of Section 13 of the Plan.  

        2.4     
"Board"  shall mean the Compensation Committee of the Board of Directors of Banta
Corporation.  

1 

        2.5     
"CEO"  shall mean the Chief Executive Officer of Banta Corporation.  

        2.6     
“College Education Account” shall mean the separate account to be
kept for each Participant and to be divided into one or more Dependent Subaccounts, as
described in Section 5.1.  

        2.7     
"Committee"  shall mean the administrative committee provided for in Section 9.  

        2.8     
“Compensation” shall mean all of a Participant’s compensation
received as an Employee reportable in box 1, Wages, Tips and other Compensation, on Form
W-2 which is derived from base salary, any short-term incentive payments under the Banta
Corporation Short-Term Incentive Plan or any successor thereto, and effective for service
performed after December 31, 2004, any long-term cash incentive payments under the Banta
Corporation Economic Profit (EP) Long-Term Incentive Compensation Plan or any successor
thereto. Notwithstanding the foregoing, Compensation shall include Salary Deferral
Credits under this Plan and amounts contributed by the Participant pursuant to a Salary
Deferral Agreement to another employee benefit plan of the Employer which are not
includible in the gross income of the Employee under Section 125, 132(f) or 402(e)(3) of
the Internal Revenue Code.  

        2.9     
 “Deferred Compensation Account” shall mean the separate account to
be kept for each Participant, as described in Sections 3 and 8 and credited with Salary
Deferral Credits.  

        2.10     
“Dependent Subaccount” shall mean each separate subaccount, if any,
to be kept for each Participant as part of his College Education Account, as described in
Section 5.1 and credited with Salary Deferral Credits.  

2 

        2.11     
“Employee” shall mean an individual in the Service of the Employer if
the relationship between the individual and the Employer is the legal relationship of
employer and employee and if the individual is a highly compensated or management
employee of the Employer. An individual shall cease to be an Employee upon the first to
occur of the following: (i) the Employee’s termination of Service; or (ii) a
determination by the Committee that the Employee no longer meets the eligibility
requirements for participation in the Plan.  

        2.12     
“Employer” shall mean Banta Corporation and any Participating
Employer. All references herein to the Employer shall be applied separately to each such
Employer as if the Plan were solely the Plan of that Employer.  

        2.13     
“Participant” shall mean with respect to any Plan Year an Employee
who has been designated by the CEO as a Participant and who has entered the Plan or who
has an Accrued Benefit under the Plan. An Employee designated by the CEO as a Participant
who has not otherwise entered the Plan shall enter the Plan and become a Participant as
of the date determined by the CEO. A Participant who separates from Service with the
Employer and who later returns to Service will not be eligible to defer Compensation
under the Plan except upon satisfaction of such terms and conditions as the CEO shall
establish upon the Participant’s return to Service, whether or not the Participant
shall have an Accrued Benefit remaining under the Plan on the date of his return to
Service.  

        2.14     
“Participating Employer” shall mean any trade or business (whether or
not incorporated) affiliated with Banta Corporation which employs a Participant as
designated by the CEO.  

        2.15     
“Plan” shall mean the Banta Corporation Executive Deferred
Compensation Plan “B”, as herein set out or as duly amended.  

3 

        2.16     
 “Plan Year” shall mean the twelve-month period ending on the last
day of December and each anniversary thereof.  

        2.17     
"Qualifying Distribution Event"  shall mean the Participant's termination of Service
for any reason.  

        2.18     
“Salary Deferral Agreement” shall mean a written agreement entered
into between a Participant and the Employer pursuant to the provisions of Section 3.  

        2.19     
“Salary Deferral Credits” shall mean the amounts credited to the
Participant’s Deferred Compensation Account by the Employer pursuant to the
provisions of Section 3.  

        2.20     
"Service"  shall mean employment by the Employer.  

       
 Section 3.      Salary Deferral Credits:  

        3.1     
Election:   Each Active Participant may elect, by entering into a Salary
Deferral Agreement, to reduce his Compensation as specified in the Salary Deferral
Agreement. The Active Participant may elect to defer base salary and/or annual short-term
incentive bonus and/or annual long-term bonus to be earned for such year, but in no event
more than an aggregate of 35% of his Compensation for such year. Notwithstanding the
preceding sentence, in the event that an Active Participant receives an in-service
withdrawal pursuant to Section 5, the 35% annual limitation for future years shall be
increased to a maximum of 50% of his Compensation until such time as the Active
Participant makes new Salary Deferral Credits in excess of 35% of his Compensation which
equal the amount of his in-service distributions. In the event that the Participant is
also deferring pay during the Plan Year pursuant to the Banta Corporation 1988 Deferred
Compensation Plan for Key Employees, such deferrals shall reduce the applicable limit
hereunder for such Plan Year. The amount of the Participant’s Salary Deferral Credit
shall be credited by the Employer to the Deferred Compensation Account maintained for the
Participant pursuant to Section 8.  

4 

        3.2     
Timing of Credit:  On each payroll date, the Employer shall credit to the
Participant’s Deferred Compensation Account an amount equal to the total Salary
Deferral Credit for such period.  

        3.3     
Manner of Election:   An election pursuant to Section 3.1 shall be made by the
Participant by executing and delivering a Salary Deferral Agreement to the Committee. The
Salary Deferral Agreement shall become effective with respect to such Participant as of
the first full payroll period commencing on or immediately following the January 1
which occurs after the date such Salary Deferral Agreement is received by the Committee;
provided, that a Participant who first becomes a Participant in the Plan during a Plan
Year may enter into a Salary Deferral Agreement with respect to base salary to be
effective as of the first payroll period next following the date he enters the Plan. A
Participant’s election shall continue in effect, unless earlier modified by the
Participant, until the Service of the Participant is terminated, or, if earlier, until
the Participant ceases to be an Active Participant under the Plan.  

        3.4     
Changes in Election:   A Participant may unilaterally modify a Salary Deferral
Agreement (either to increase or decrease the portion of his future Compensation which is
subject to salary deferral within the percentage limits set forth in Section 3.1) by
providing a written modification of the Salary Deferral Agreement to the Employer. The
modification shall become effective as of the first full payroll period commencing on or
immediately following the January 1 which occurs after the date such written modification
is received by the Committee. The Participant may terminate the Salary Deferral Agreement
with respect to base salary as of the first full payroll period after the date written
notice of the termination is received by the Committee.  

5 

        3.5     
Additional Rules:  The Committee may from time to time establish policies or
rules governing the manner in which Salary Deferral Credits may be made.  

       
 Section 4.      Qualifying Distribution Events:  

        4.1     
Death of a Participant:   If a Participant dies while in Service, the Employer
shall pay the Accrued Benefit to the Participant’s Beneficiary. Payment of such
benefit shall be made by the Employer pursuant to Section 6. If a Participant dies
following his termination of Service for any reason and before all payments to him under
the Plan have been made, the payment of the balance of the Participant’s Accrued
Benefit shall be continued in accordance with Section 6, but to the Participant’s
Beneficiary rather than to the Participant.  

        4.2     
Termination of Service:   If the Service of a Participant with the Employer
shall be terminated for any reason other than death, his Accrued Benefit shall be paid to
him by the Employer as provided in Section 6.  

       
 Section 5.      In-Service Withdrawals:  

        5.1     
College Education Withdrawals:   A Participant may elect in the Salary Deferral
Agreement for a designated percentage or dollar amount of the Salary Deferral Credits to
be credited to a College Education Account to be used to fund the college education of
the Participant’s Eligible Dependent or Eligible Dependents. For purposes of this
section, “Eligible Dependent” shall mean any child (including any legally
adopted child) of a Participant who has not attained age 18 and whom the Participant
designates as an Eligible Dependent in his Salary Deferral Agreement; provided, however,
that the Committee in its discretion may approve the designation of an individual other
than the child of a Participant as an Eligible Dependent. The College Education Account
shall be divided into Dependent Subaccounts for each of the Participant’s Eligible
Dependents, and the Participant may designate in the Salary Deferral Agreement the
percentage or dollar amount of each Salary Deferral Credit to be credited to each
Dependent Subaccount. In the absence of a clear designation, all credits made to the
College Education Subaccount shall be equally allocated to each Dependent Subaccount. As
soon as practicable after an Eligible Dependent of the Participant attains age 18, the
Employer shall pay to the Participant the balance in the Dependent Subaccount with
respect to such Eligible Dependent in annual installments over a period of four years.
The following special provisions shall apply with respect to the Dependent Subaccounts:  

6 

	 	        5.1.1     The
Dependent Subaccounts shall be established, adjusted for payments, credited with Salary
Deferral Credits and credited or debited for deemed investment gains or losses in the
same manner and at the same time as such adjustments are made to the Deferred
Compensation Account under Section 8 and in accordance with the rules and elections in
effect under Section 8.  

	 	        5.1.2     Notwithstanding
any provision in this Section 5 to the contrary, if Participant incurs a Qualifying
Distribution Event prior to the date on which the entire balance of his College Education
Account has been distributed to him, then the balance in the College Education Account on
the date of the Qualifying Distribution Event shall be combined with the Participant’s
Deferred Compensation Account and distributed to him in the same manner and at the same
time as his Deferred Compensation Account is distributed to him under Section 6 and in
accordance with the rules and elections in effect under Section 6.  

        5.2     
Transfers:   By advance written election, part or all of the amounts in the
Participant’s Deferred Compensation Account can be transferred to one or more of the
Participant’s College Education Accounts, part or all of the amounts in one or more
of the Participant’s College Education Accounts can be transferred to the Participant’s
Deferred Compensation Account, or part or all of the amounts in one or more of the
Participant’s College Education Accounts can be transferred to one or more of the
Participant’s other College Education Accounts. The election shall be implemented
only as of the third January 1 following the date such written election is received by
the Committee.  

7 

       
 Section 6.      Qualifying Distribution Events Payment Options:  

        6.1     
Payment Options:   Any benefit payable under the Plan may be made to the
Participant or his Beneficiary (as applicable) in any of the following payment forms,
as selected by the Participant:  

	 	        (i)     A
lump sum in cash as soon as practicable following the date Participant’s
               Service terminates for any reason; or  

	 	        (ii)     Approximately
equal annual installments over a term certain as elected by the
               Participant not to exceed ten years. Payment of the benefit shall commence
as of                the first business day of the calendar quarter following the date
               Participant’s Service terminates for any reason.  

The payment of each subsequent annual
installment shall be made on the anniversary of the commencement date of the installment
payments in this subsection (ii). The amount of the annual installment shall be determined
by dividing the balance in the Deferred Compensation Account on each such date (following
adjustment on such date pursuant to Section 8.3 of the Plan) by the number of annual
installments remaining to be paid hereunder; provided that the last annual installment due
under the Plan shall be the entire amount credited to the Participant’s account on
the date of payment. 

        6.2     
Changes in Election:   Upon a Participant’s entry into the Plan, the
Participant shall elect among the payment options the method under which his Accrued
Benefit will be distributed; provided, however, that the Participant may change the
method of payment by filing a written election with the Committee at least two years
prior to the date the Participant’s Service terminates. Any election to change the
payment method which is filed less than two years prior to the date the Participant’s
Service terminates shall be invalid and the prior valid election shall apply.  

8 

       
 Section 7.      Vesting:  

        A
Participant shall be fully vested (that is, nonforfeitable) in his Deferred Compensation
Account. 

       
 Section 8.      Account; Deemed Investment; Adjustment of Accounts:  

        8.1     
Account:  The Committee shall establish a book reserve account, entitled the “Deferred
Compensation Account,” on behalf of each Participant. Such account shall be adjusted
pursuant to the provisions of Section 8.3.  

        8.2     
Deemed Investments:   The Deferred Compensation Account of a Participant shall
be credited with an investment return determined as if the account were invested in one
or more investment funds made available by the Committee. The Participant shall elect the
investment funds in which his Deferred Compensation Account shall be deemed to be
invested. Such election shall be made in the manner prescribed by the Committee and shall
take effect upon the entry of the Participant into the Plan. The investment election of
the Participant shall remain in effect until a new election is made by the Participant.
In the event the Participant fails for any reason to make an effective election of the
investment return to be credited to his account, the investment return shall be
determined by the Committee.  

        8.3     
Adjustments to Deferred Compensation Accounts:   With respect to each
Participant who has a Deferred Compensation Account under the Plan, the amount credited
to such account shall be adjusted by the following debits and credits, at the times and
in the order stated:  

	 	        8.3.1   
The Deferred Compensation Account shall be debited each business day with the total amount of
any payments made from such account to him or for his benefit and with the amounts
transferred from such account to a College Education Account since the last preceding
business day.  

9 

	 	        8.3.2   
The Deferred Compensation Account shall be credited on each payroll date with any Salary
Deferral Credits to such account for such date or on the transfer date with any transfers
from a College Education Account to such account.  

	 	        8.3.3   
The Deferred Compensation Account shall be credited or debited on each day securities are
traded on a national stock exchange with the amount of deemed investment gain or loss
resulting from the performance of the investment funds elected by the Participant in
accordance with Section 8.2. The amount of such deemed investment gain or loss shall be
determined by the Committee and such determination shall be final and conclusive upon all
concerned.  

       
 Section 9.      Administration by Committee:  

        9.1     
Membership of Committee:   The Committee shall consist of at least four
individuals who shall be appointed by the Board to serve at the pleasure of the Board.
Any member of the Committee may resign, and his successor, if any, shall be appointed by
the Board. The Committee shall be responsible for the general administration and
interpretation of the Plan and for carrying out its provisions, except to the extent all
or any of such obligations are specifically imposed on the Board.  

        9.2     
Committee officers; Subcommittee:   The members of the Committee shall elect a
Chairman and may elect an acting Chairman. They shall also elect a Secretary and may
elect an acting Secretary, either of whom may be but need not be a member of the
Committee. The Committee may appoint from its membership such subcommittees with such
powers as the Committee shall determine, and may authorize one or more of its members or
any agent to execute or deliver any instruments or to make any payment on behalf of the
Committee.  

        9.3     
Committee meetings:   The Committee shall hold such meetings upon such notice,
at such places and at such intervals as it may from time to time determine. Notice of
meetings shall not be required if notice is waived in writing by all the members of the
Committee at the time in office, or if all such members are present at the meeting.  

10 

        9.4     
Transaction of business:   A majority of the members of the Committee at the
time in office shall constitute a quorum for the transaction of business. All resolutions
or other actions taken by the Committee at any meeting shall be by vote of a majority of
those present at any such meeting and entitled to vote. Resolutions may be adopted or
other action taken without a meeting upon written consent thereto signed by all of the
members of the Committee.  

        9.5     
Committee records:   The Committee shall maintain full and complete records of
its deliberations and decisions. The minutes of its proceedings shall be conclusive proof
of the facts of the operation of the Plan.  

        9.6     
Establishment of rules:   Subject to the limitations of the Plan, the Committee
may from time to time establish rules or by-laws for the administration of the Plan and
the transaction of its business.  

        9.7     
Conflicts of interest:   No individual member of the Committee shall have any
right to vote or decide upon any matter relating solely to himself or to any of his
rights or benefits under the Plan (except that such member may sign unanimous written
consent to resolutions adopted or other action taken without a meeting), except relating
to the terms of his Salary Deferral Agreement.  

        9.8     
Correction of errors:   The Committee may correct errors and, so far as
practicable, may adjust any benefit or credit or payment accordingly. The Committee may
in its discretion waive any notice requirements in the Plan; provided, that a waiver of
notice in one or more cases shall not be deemed to constitute a waiver of notice in any
other case. With respect to any power or authority which the Committee has discretion to
exercise under the Plan, such discretion shall be exercised in a nondiscriminatory
manner.  

11 

        9.9     
Authority to interpret Plan:   Subject to the claims procedure set forth in
Section 16, the Committee shall have the duty and discretionary authority to
interpret and construe the provisions of the Plan and to decide any dispute which may
arise regarding the rights of Participants hereunder, including the discretionary
authority to construe the Plan and to make determinations as to eligibility and benefits
under the Plan. Determinations by the Committee shall apply uniformly to all persons
similarly situated and shall be binding and conclusive upon all interested persons.  

        9.10     
Third party advisors:   The Committee may engage an attorney, accountant,
actuary or any other technical advisor on matters regarding the operation of the Plan and
to perform such other duties as shall be required in connection therewith, and may employ
such clerical and related personnel as the Committee shall deem requisite or desirable in
carrying out the provisions of the Plan. The Committee shall from time to time, but no
less frequently than annually, review the financial condition of the Plan and determine
the financial and liquidity needs of the Plan. The Committee shall communicate such needs
to the Employer so that its policies may be appropriately coordinated to meet such needs.  

        9.11     
Compensation of members:   No fee or compensation shall be paid to any member of
the Committee for his Service as such.  

        9.12     
Expense reimbursement:   The Committee shall be entitled to reimbursement by the
Employer for its reasonable expenses properly and actually incurred in the performance of
its duties in the administration of the Plan.  

        9.13     
Indemnification:   No member of the Committee shall be personally liable by
reason of any contract or other instrument executed by him or on his behalf as a member
of the Committee nor for any mistake of judgment made in good faith, and the Employer
shall indemnify and hold harmless, directly from its own assets (including the proceeds
of any insurance policy the premiums for which are paid from the Employer’s own
assets), each member of the Committee and each other officer, employee, or director of
the Employer to whom any duty or power relating to the administration or interpretation
of the Plan may be delegated or allocated, against any unreimbursed or uninsured cost or
expense (including any sum paid in settlement of a claim with the prior written approval
of the Board) arising out of any act or omission to act in connection with the Plan
unless arising out of such person’s own fraud, bad faith, willful misconduct or
gross negligence.  

12 

       
 Section 10.      Contractual Liability:  

        10.1     
Contractual Liability:   The obligation of the Employer to make payments
hereunder shall constitute a contractual liability of the Employer to the Participant.
Such payments shall be made from the general funds of the Employer, and the Employer
shall not be required to establish or maintain any special or separate fund, or otherwise
to segregate assets to assure that such payments shall be made, and the Participant shall
not have any interest in any particular assets of the Employer by reason of its
obligations hereunder. To the extent that any person acquires a right to receive payment
from the Employer, such right shall be no greater than the right of an unsecured creditor
of the Employer.  

       
 Section 11.      Allocation of Responsibilities:  

        The
persons responsible for the Plan and the duties and responsibilities allocated to each
are as follows:  

        11.1     
Board:  

	 	        (i)    To
amend the Plan;  

	 	        (ii)    To
appoint and remove members of the Committee; and  

	 	        (iii)    To
terminate the Plan.  

13 

        11.2     
Committee:  

	 	        (i)                 To
designate Participants;  

	 	        (ii)                 To
interpret the provisions of the Plan and to determine the rights of the
               Participants under the Plan, except to the extent otherwise provided in
               Section 16 relating to claims procedure;  

	 	        (iii)                 To
administer the Plan in accordance with its terms, except to the extent powers
               to administer the Plan are specifically delegated to another person or
persons                as provided in the Plan;  

	 	        (iv)                 To
account for the Accrued Benefits of Participants;  

	 	        (v)                 To
direct the Employer in the payment of benefits;  

	 	        (vi)                 To
file such reports as may be required with the United States Department of
               Labor, the Internal Revenue Service and any other government agency to
which                reports may be required to be submitted from time to time; and  

	 	        (vii)                 To
administer the claims procedure to the extent provided in Section 16.  

       
 Section 12.      Benefits Not Assignable; Facility of Payments:  

        12.1     
Benefits not assignable:   No portion of any benefit credited or paid under the
Plan with respect to any Participant shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so
to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same
shall be void, nor shall any portion of such benefit be in any manner payable to any
assignee, receiver or any one trustee, or be liable for his debts, contracts,
liabilities, engagements or torts.  

        12.2     
Payments to minors and others:   If any individual entitled to receive a payment
under the Plan shall be physically, mentally or legally incapable of receiving or
acknowledging receipt of such payment, the Committee, upon the receipt of satisfactory
evidence of his incapacity and satisfactory evidence that another person or institution
is maintaining him and that no guardian or committee has been appointed for him, may
cause any payment otherwise payable to him to be made to such person or institution so
maintaining him. Payment to such person or institution shall be in full satisfaction of
all claims by or through the Participant to the extent of the amount thereof.  

14 

       
 Section 13.      Beneficiary  

        The
Participant’s beneficiary shall be the person or persons designated by the
Participant on the beneficiary designation form provided by and filed with the Committee
or its designee. If the Participant does not designate a beneficiary, the beneficiary
shall be his surviving spouse. If the Participant does not designate a beneficiary and has
no surviving spouse, the beneficiary shall be the Participant’s estate. The
designation of a beneficiary may be changed or revoked only by filing a new beneficiary
designation form with the Committee or its designee. If a beneficiary (the “primary
beneficiary”) is receiving or is entitled to receive payments under the Plan and dies
before receiving all of the payments due him, the balance to which he is entitled shall be
paid to the contingent beneficiary, if any, named in the Participant’s current
beneficiary designation form. If there is no contingent beneficiary, the balance shall be
paid to the estate of the primary beneficiary. Any beneficiary may disclaim all or any
part of any benefit to which such beneficiary shall be entitled hereunder by filing a
written disclaimer with the Committee before payment of such benefit is to be made. Such a
disclaimer shall be made in a form satisfactory to the Committee and shall be irrevocable
when filed. Any benefit disclaimed shall be payable from the Plan in the same manner as if
the beneficiary who filed the disclaimer had died prior to the Participant. 

       
 Section 14.      Amendment and Termination of Plan:  

        The
Board may amend any provision of the Plan or terminate the Plan at any time; provided,
that in no event shall such amendment or termination reduce any Participant’s Accrued
Benefit as of the date of such amendment or termination, nor shall any such amendment
affect the terms of the Plan relating to the payment of such Accrued Benefit. In the event
of termination of the Plan, any remaining Accrued Benefits shall be paid in a lump sum. 

15 

       
 Section 15.      Communication to Participants:  

        The
Employer shall make a copy of the Plan available for inspection by Participants and their
beneficiaries during reasonable hours at the principal office of the Employer. 

       
 Section 16.      Claims Procedure:  

        The
following claims procedure shall apply with respect to the Plan: 

        16.1     
Filing of a claim for benefits:   If a Participant or beneficiary
(the “claimant”) believes that he is entitled to benefits under the Plan which
are not being paid to him or which are not being accrued for his benefit, he shall file a
written claim therefor with the Committee.  

        16.2     
Notification to claimant of decision:   Within 90 days after receipt of a claim
by the Committee (or within 180 days if special circumstances require an extension of
time), the Committee shall notify the claimant of his decision with regard to the claim.
In the event of such special circumstances requiring an extension of time, there shall be
furnished to the claimant prior to expiration of the initial 90-day period written notice
of the extension, which notice shall set forth the special circumstances and the date by
which the decision shall be furnished. If such claim shall be wholly or partially denied,
notice thereof shall be in writing and worded in a manner calculated to be understood by
the claimant, and shall set forth: (i) the specific reason or reasons for the
denial; (ii) specific reference to pertinent provisions of the Plan on which the
denial is based; (iii) a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such material
or information is necessary; and (iv) an explanation of the procedure for review of the
denial. If the Committee fails to notify the claimant of the decision in timely manner,
the claim shall be deemed denied as of the close of the initial 90-day period (or the
close of the extension period, if applicable).  

16 

        16.3     
Procedure for review:   Within 60 days following receipt by the claimant of
notice denying his claim, in whole or in part, or, if such notice shall not be given,
within 60 days following the latest date on which such notice could have been timely
given, the claimant shall appeal denial of the claim by filing a written application for
review with the Committee. Following such request for review, the Committee shall fully
and fairly review the decision denying the claim. Prior to the decision of the Committee,
the claimant shall be given an opportunity to review pertinent documents and to submit
issues and comments in writing.  

        16.4     
Decision on review:   The decision on review of a claim denied in whole
or in part by the Committee shall be made in the following manner:  

	 	        16.4.1  Within
60 days following receipt by the Committee of the request for review (or within 120 days
if special circumstances require an extension of time), the Committee shall notify the
claimant in writing of its decision with regard to the claim. In the event of such
special circumstances requiring an extension of time, written notice of the extension
shall be furnished to the claimant prior to the commencement of the extension. If the
decision on review is not furnished in a timely manner, the claim shall be deemed denied
as of the close of the initial 60-day period (or the close of the extension period, if
applicable).  

	 	        16.4.2  With
respect to a claim that is denied in whole or in part, the decision on review shall set
forth specific reasons for the decision, shall be written in a manner calculated to be
understood by the claimant, and shall cite specific references to the pertinent Plan
provisions on which the decision is based.  

	 	        16.4.3  
  The decision of the Committee shall be final and conclusive. 

        16.5     
Action by authorized representative of claimant:   All actions set forth in this
Section 16 to be taken by the claimant may likewise be taken by a representative of
the claimant duly authorized by him to act in his behalf on such matters. The Committee
may require such evidence as either may reasonably deem necessary or advisable of the
authority to act of any such representative.  

17 

       
 Section 17.      Miscellaneous Provisions:  

        17.1     
Set off:   Notwithstanding any other provision of this Plan, the Employer may
reduce the amount of any payment otherwise payable to or on behalf of a Participant
hereunder by the amount of any loan, cash advance, extension of credit or other
obligation of the Participant to the Employer that is then due and payable, and the
Participant shall be deemed to have consented to such reduction.  

        17.2     
Notices:   Each Participant who is not in Service and each beneficiary shall be
responsible for furnishing the Committee or its designee with his current address for the
mailing of notices and benefit payments. Any notice required or permitted to be given to
such Participant or beneficiary shall be deemed given if directed to such address and
mailed by regular United States mail, first class, postage prepaid. If any check mailed
to such address is returned as undeliverable to the addressee, mailing of checks will be
suspended until the Participant or beneficiary furnishes the proper address. This
provision shall not be construed as requiring the mailing of any notice or notification
otherwise permitted to be given by posting or by other publication.  

        17.3     
Lost distributees:   A benefit shall be deemed forfeited if the Committee is
unable to locate the Participant or beneficiary to whom payment is due on or before the
fifth anniversary of the date payment is to be made or commence; provided, that the
deemed investment rate of return pursuant to Section 8.2 shall cease to be applied to the
Participant’s account following the first anniversary of such date; provided
further, however, that such benefit shall be reinstated, without interim interest, if a
valid claim is made by or on behalf of the Participant or beneficiary for all or part of
the forfeited benefit.  

18 

        17.4     
Reliance on data:   The Employer and the Committee shall have the right to rely
on any data provided by the Participant or by any beneficiary. Representations of such
data shall be binding upon any party seeking to claim a benefit through a Participant,
and the Employer and the Committee shall have no obligation to inquire into the accuracy
of any representation made at any time by a Participant or beneficiary.  

        17.5     
Receipt and release for payments:   Subject to the provisions of Section 17.1,
any payment made from the Plan to or with respect to any Participant or beneficiary, or
pursuant to a disclaimer by a beneficiary, shall, to the extent thereof, be in full
satisfaction of all claims hereunder against the Plan and the Employer with respect to
the Plan. The recipient of any payment from the Plan may be required by the Committee, as
a condition precedent to such payment, to execute a receipt and release with respect
thereto in such form as shall be acceptable to the Committee.  

        17.6     
Headings:   The headings and subheadings of the Plan have been inserted for
convenience of reference and are to be ignored in any construction of the provisions
hereof.  

        17.7     
Continuation of employment:   The establishment of the Plan shall not be
construed as conferring any legal or other rights upon any Employee or any persons for
continuation of employment, nor shall it interfere with the right of the Employer to
discharge any Employee or to deal with him without regard to the effect thereof under the
Plan.  

        17.8     
Merger or consolidation:   No employer-party to the Plan shall consolidate or
merge into or with another corporation or entity, or transfer all or substantially all of
its assets to another corporation, partnership, trust or other entity (a “Successor
Entity”) unless such Successor Entity shall assume the rights, obligations and
liabilities of the employer-party under the Plan and upon such assumption, the Successor
Entity shall become obligated to perform the terms and conditions of the Plan.  

19 

        17.9     
Construction:   The provisions of the Plan shall be construed and enforced
according to the laws of the State of Wisconsin, except to the extent that such laws are
superseded by the Employee Retirement Income Security Act of 1974.  

20Exhibit 10.1 to Rimage Corporation Form 10-Q dated June 30, 2004

EXHIBIT 10.1  

LEASE  

	7725 Washington Ave. Corp	 	August 1, 2004	 	$ 33,393.75/ Month 1st Yr. **
	(Owner/Landlord)	 	(Lease Date)	 	(Monthly Base Rent) See Exhibit B	 
	 
	Rimage Corporation	 	N/A	 	N/A	 
	(Tenant)	 	(Unit(s))	 	(Security Deposit)	 
	 
	7725 Washington Ave. Bldg	 	4 Years	 	N/A	 
	(Project)	 	(Term)	 	(First Month’s Rent)	 
	 
	7725 Washington Ave. S	 	8/01/04	 	N/A	 
	(Address)	 	(Beginning)	 	(Improvements)	 
	 
	Edina, MN 55439	 	7/31/2008	 	N/A	 
	(City, State, Zip)	 	(Ending)	 	(Receipt by)	 

THIS LEASE is made and entered into this 31st
day of July, 2004, between 7725 Washington Ave. Corp., with its principal place of business at 7808
Creekridge Circle, #200, Mpls. MN 55439, (herein called “Landlord”), and Rimage
Corporation, a corporation organized under the laws of the State of Minnesota with its principal
business at 7725 Washington Ave. S., Edina, MN 55439 (herein called “Tenant,” whether one
or more). 

WITNESSETH:  

	1.  	  	PREMISES.  

	  	In consideration of the obligation
of Tenant to pay rent as herein provided, and in consideration of the other terms, provisions and
covenants hereof, Landlord hereby leases to Tenant, and Tenant hereby takes from Landlord certain
Premises (herein called the “Premises”) situated in the County of Hennepin, State of
Minnesota, consisting of approximately 58,500 square feet of gross rentable area consisting of the
entire building commonly known as Washington Ave (herein called the “Building”) located at
7725 Washington Ave. S, Edina, MN 55439, which building is situated upon the real property described
on Exhibit A attached hereto and hereby made a part hereof (the Building and said real property are
herein called the “Project”), together with the exclusive right to use any parking area
located within the Project . 

	2. 	  	TERM.  

	  	
This
Lease shall be for a term of 4 years and 0 months, commencing on AUGUST 1, 2004, and
expiring on JULY 31, 2008, except as the same may be extended or earlier terminated in
accordance herewith. 

	3.  	  	RESERVED  

	4. 	  	RENT.  

	  	Tenant shall pay Landlord, without
deduction or setoff, an annual minimum rental (herein sometimes called “Base Rent) of **See
EXHIBIT B for Years 1-4 Rental Rates and /100 Dollars ($ **) payable, in advance, without demand, on
or before the  

	  	first day of each and every month
during the term hereof; provided, however, that if the term hereof shall commence upon a day other
than the first day of a calendar month or expire upon a day other than the last day of the calendar
month, Base Rent for the partial calendar month shall be prorated on a per diem basis and shall be
paid by Tenant on the commencement date of the term hereof (in the case of an initial partial month)
or on the first day of the month in which the term hereof expires (in the case of a terminal partial
month). 

	5. 	  	SECURITY DEPOSIT. 

	  	Tenant agrees to deposit with
Landlord on the date hereof the sum of N/A and /100 Dollars ($ N/A ), which sum shall be held by
Landlord, without obligation for interest, as security for the performance of Tenant’s
covenants and obligations under this Lease, it being expressly understood and agreed that such
deposit is not an advance rental deposit or a measure of Landlord’s damages in case of
Tenant’s default. Upon the occurrence of any event of default by Tenant, Landlord may, from
time to time without prejudice to any other remedy provided herein or provided by law, use such fund
to the extent necessary to make good any areas of rent and any other damage, injury, expense or
liability caused by such event of default, and Tenant shall pay to Landlord on demand the amount so
applied in order to restore the security deposit to its original amount. If Tenant is not then in
default hereunder, any remaining balance of such deposit shall be returned by Landlord to Tenant
upon termination of this Lease. 

	6. 	  	USE.  

	  	Subject to the following provisions
of this Paragraph 6, the Premises may be used for any lawful purpose. Tenant shall comply with all
governmental laws, ordinances and regulations applicable to the use of the Premises and shall
promptly comply with all governmental orders and directives for the correction, prevention and
abatement of nuisances in, upon or connected with the Premises, all at Tenant’s sole expenses.
Tenant shall not receive, store or otherwise handle any product, material or merchandise which is
explosive or highly inflammable and will not permit the Premises to be used for any purpose which
would render the insurance thereon void or the insurance risk more hazardous, or increase the
premiums therefore, and in the event of any such increase by reason of any activity conducted by
Tenant in, on or about the Premises, Tenant shall be liable for such increase and shall reimburse
Landlord therefor. Tenant shall not store any material or merchandise outside the Premises.

	7.  	  	RESERVED  

	8. 	  	LANDLORD’S REPAIRS.  

	  	Landlord shall, at its expense,
maintain only the roof, foundation and the structural soundness of the exterior walls of the
Building in good repair, reasonable wear and tear excepted. Tenant shall reimburse Landlord upon
demand, however, for any maintenance or repairs necessitated by the act or negligence of Tenant for
Tenant’s employees, agents, representatives or invitees, or caused by Tenant’s default
hereunder. The term “walls” as used herein shall not include windows, glass or plate glass
or doors. Tenant shall immediately give Landlord written notice of defect or 

	  	need for repairs, after which
Landlord shall have reasonable opportunity to repair same or cure such defect. Landlord’s
liability hereunder shall be limited to the cost of such repairs or curing such defect. 

	9. 	  	TENANT’S REPAIRS.  

	  	Tenant shall, at its own cost and
expense, maintain all other parts of the Premises in good repair, reasonable wear and tear excepted,
and shall take good care of the Premises and its fixtures and suffer no waste. Tenant will keep the
whole of the Premises in clean, sanitary and safe condition, and will at the expiration or earlier
termination of this Lease surrender the same to Landlord, broom clean, and in the same order and
condition as they were in at the commencement of this Lease, reasonable wear and tear excepted.

	10. 	  	ALTERATIONS.  

	  	Tenant shall not make structural
additions or alterations to the Building or the Premises or install any equipment which defaces the
Building interior or exterior or bolt or otherwise physically attach machinery or equipment to the
floors or walls of the Premises. Except for alterations which do not violate the provisions of the
preceding sentence and the aggregate cost of which does not exceed three (3) months Base Rent during
any twelve (12) month period, Tenant shall not make any alterations of, or additions to, the
Premises without the prior written consent of Landlord. Tenant will not permit any mechanics’ ,
laborers’ or materialmen’s liens to stand against the Premises or the Project for any
labor or material furnished to, or for the account of, Tenant or claimed to have been so furnished
in connection with any work performed or claimed to have been performed in or about the Premises.

	  	At the expiration or earlier
termination of this Lease, Tenant shall, if the Landlord so elects, remove all alterations and
additions erected by Tenant and restore the Premises to their original condition; otherwise such
improvements shall be delivered up to the Landlord with the Premises. All movable office furnishings
and trade fixtures installed by Tenant may be removed by Tenant at the termination of this Lease if
Tenant so elects, and shall be removed if required by Landlord. All such removals and restoration
shall be accomplished in a good and workmanlike manner so as not to damage the primary structure or
structural qualities of the Premises. Personal property remaining in the Premises at the expiration
or earlier termination of the term of this Lease shall be deemed abandoned, and Landlord may dispose
of the same as Landlord deems expedient. 

	11. 	  	SIGNS.  

	  	Tenant may erect any exterior signs,
advertising media or lettering without the prior written consent of Landlord. Any such items
consented to by Landlord within reason and installed by Tenant shall comply with any applicable
governmental laws, ordinances, regulations and other requirements. Tenant shall remove all such
signs at the termination of this Lease. Such installations and removals shall be made in such manner
as to avoid injury or defacement of the Premises. 

	12. 	  	INSPECTION.  

	  	Upon reasonable notice to Tenant,
Landlord and Landlord’s agents and representatives shall have the right to enter the Premises
for the purpose of 

	  	ascertaining the condition thereof
or in order to make such repairs as may be required to be made by Landlord hereunder or as Landlord
may deem necessary or for the purpose of showing the Premises and shall have the right to erect on
the Premises a suitable sign indicating that the Premises are available for sale or rent if the term
is to expire within 12 months. Any such entry by Landlord shall never be deemed an eviction or
disturbance of Tenant’s possession of the Premises, or render Landlord liable to Tenant for
damages, or relieve Tenant from performance of Tenant’s obligations under this Lease.

	13. 	  	UTILITIES.  

	  	Tenant shall pay for all heating,
air conditioning, ventilation, electricity, gas, water, sewer, telephone, waste removal and other
services and utilities used in the Premises commencing on the date Tenant has access thereto for the
purpose of installing leasehold improvements and continuing throughout the term hereof. All
utilities will be separately metered and Tenant shall contract for the same in its own name and
shall promptly and directly pay all charges for such utilities consumed in the Premises.

	  	Landlord does not warrant that any
of the utilities and services referred to in this paragraph, whether furnished by Landlord or by any
other supplier of any utility or other service, will be free from interruption. Interruption of
service shall never be deemed an eviction or disturbance of Tenants; use and possession of the
Premises or any part thereof, or render Landlord liable to Tenant from performance of Tenant’s
obligations under this Lease. 

	14. 	  	ASSIGNMENT AND SUBLETTING. 

	  	Tenant shall not have the right to
assign this Lease, by operation of law or otherwise, or to sublet the whole or any part of the
Premises without the prior written consent of Landlord which consent shall not be unreasonably
withheld. Consent by Landlord to one or more assignment or subletting shall not operate as a waiver
of Landlord’s rights under this paragraph as to any subsequent assignment or subletting.
Notwithstanding any permitted assignment or subletting, Tenant shall at all times remain fully
responsible and liable for the payment of the rent herein and for compliance with all of its other
obligations under the terms, provisions, and covenants of this Lease. If Tenant is a corporation or
partnership or other entity, any change in the control of Tenant shall be deemed to be an assignment
which shall require Landlord’s consent as set forth above. Landlord shall have the right to
assign any of its rights under this Lease, and upon any such assignment, and provided that the
assignee assumes all of the Landlord’s obligations hereunder, Landlord shall be relieved of any
and all such obligations. 

	15. 	  	FIRE OR OTHER CASUALTY DAMAGE.  

	  	A.  	  	 If
the Project or any part thereof is damaged or destroyed by fire or other casualty,
Landlord shall have the right to terminate this Lease, provided it gives written notice
thereof to Tenant within ninety (90) days after such damage or destruction. If a portion
of the Premises is damaged by fire or other casualty and this Lease is not thereby
terminated, Landlord shall, at its expense, restore the Premises, exclusive of any
improvements or other changes made to the Premises by Tenant, to as near the condition
which existed immediately prior to such damage or  

	  	destruction as reasonably possible,
and rent shall abate during such period of time as the Premises are untenantable in the proportion
that the untenantable portion of the Premises bears to the entire Premises. Landlord shall not be
responsible to Tenant for damage to, or destruction of, any furniture, equipment, improvements or
other changes made by Tenant in, or about the Premises regardless of the cause of the damage or
destruction. 

	  	B.  	  	Landlord and Tenant each hereby
release the other from any and all liability or responsibility to the other or anyone claiming
through or under them by way of subrogation or otherwise for any loss or damage to property caused
by fire or any of the extended coverage casualties covered by the insurance maintained hereunder,
even if such fire or other casualty shall have been caused by the fault or negligence of the other
party or anyone for whom such party may be responsible; provided, however, that this release shall
be applicable and in force and effect only with respect to loss or damage occurring during such
times as the releasor’s policies shall contain a clause or endorsement to the effect that any
release shall not adversely affect or impair said policies or prejudice the right of the releasor to
recover thereunder. Landlord and Tenant each agree that it will require its insurance carriers to
include in its policies such a clause or endorsement. 

	  	C.  	  	Landlord covenants and agrees to
maintain standard fire and extended coverage insurance covering the Building in an amount not less
than eighty percent (80%) of the replacement cost thereof. Tenant covenants and agrees to maintain
standard fire and extended coverage insurance covering its property located in, on or about the
Premises in an amount not less than eighty percent (80%) of the replacement cost thereof. Tenant
agrees that said property is kept in the Premises Tenant’s sole risk. 

	  	Tenant assumes full responsibility
for protection of the Premises from theft, robbery, and pilferage, which includes keeping doors
locked and other means of entry to the Premises closed and secured after normal business hours.

	16. 	  	LIABILITY.  

	  	
Tenant agrees to indemnify and save Landlord harmless against any and all claims, demands, damages,
costs and expenses, including reasonable attorney’s fees for the defense thereof, arising from
the conduct or management of the business conducted by Tenant in the Premises or from any breach or
default on the part of Tenant in the performance of any covenant or agreement on the part of Tenant
to be performed pursuant to the terms of this Lease, or from any act or negligence of Tenant, its
agents, contractors, servants employees, subleases, concessionaires, licenses or invitees, or any
other person entering upon the Premises under express or implied invitation of Tenant. In case of
any action or proceeding brought against Landlord by reason of any such claim upon notice from
Landlord, Tenant covenants to defend such action or proceeding by counsel satisfactory to Landlord.
Landlord shall not be liable and Tenant waives all claims for damage to person or property sustained
by Tenant or Tenant’s agents, contractors, servants, employees, subleases, concessionaires,
licensees or invitees resulting from the Building or the Premises or any equipment or appurtenances
thereunto appertaining becoming out of repair, or resulting from any accident in or about the
Premises, the Project or resulting directly 

	  	or indirectly from any act or
neglect of any other Tenant in the Project. This shall apply expressly, but not exclusively, to the
flooding of the Premises, and to damage caused by refrigerators, sprinkling devices,
air-conditioning apparatus, water, snow, frost, steam, excessive heat or cold, falling plaster,
broken glass, sewage, gas, odors and noise, or the bursting or leaking of pipes or plumbing
fixtures. Tenant, at its sole cost and expense, shall procure and maintain throughout the term
hereof a policy or policies of insurance. Insuring both Landlord and Tenant against all claims,
demands or actions arising out of or in connection with Tenant’s use or occupancy of the
Premises, or by the condition of the Premises, the limits of such policy or policies to be in an
amount not less than $1,000,000.00 combined single limits of liability, and to be written by
insurance companies satisfactory to Landlord and qualified to do business in the state in which the
Premises are located. Such policies or duly executed certificates of insurance shall be promptly
delivered to Landlord and renewals thereof as required shall be delivered to Landlord at least ten
(10) days prior to the expiration of the respective policy terms, shall contain an agreement by the
insurer that the same may not be canceled or materially modified without at least ten (10) days
prior written notice to Landlord. 

	17. 	  	CONDEMNATION.  

	  	A.  	  	If the entire Project is taken by
eminent domain, this Lease shall automatically terminate as of the date of taking. If a material
portion of the Project is taken by eminent domain, Landlord shall have the right to terminate this
Lease by giving written notice thereof to Tenant within ninety (90) days after the date of taking.
“If a material portion of the Premises is taken by eminent domain and this Lease is not thereby
terminated, Landlord shall, at its expense, restore the Premises, exclusive of any improvements or
other changes made to the Premises by Tenant, to as near the condition which existed immediately
prior to the date of taking as reasonably possible, and rent shall abate during such period of time
as the Premises are untenantable in the proportion that the untenantable portion of the Premises
bears to the entire Premises. 

	  	B.  	  	Any compensation or award paid or
payable on account of any such taking shall belong to, and be the sole property of, Landlord or the
then owner or owners of the Project. 

	18. 	  	SURRENDER OF POSSESSIONS, HOLDING OVER.  

	  	At the expiration or earlier
termination of the term of this Lease, Tenant shall return all keys to the Premises to Landlord and
shall surrender the Premises in good condition and repair, except for reasonable wear and tear, any
repairs specifically required herein to be performed by Landlord and loss by fire or other causes
covered by Landlord’s insurance. Should Tenant, or any of its successors in interest, holdover
the Premises or any part thereof, after the expiration of the term of this Lease, without
Landlord’s written consent, such holding over shall, at the Landlord’s option, constitute
and be construed as a tenancy from month to month only, at a rental equal to twice the rental
payable for the last month of the term of this Lease. The inclusion of the preceding sentence shall
not be construed as Landlord’s permission for Tenant to hold over. 

	19. 	  	QUIET ENJOYMENT.  

	  	Landlord represents and warrants
that it has full rights and authority to enter into this Lease and that Tenant, upon paying the
rental herein set forth and performing its other covenants and agreements herein set forth, shall
peaceably and quietly have, hold and enjoy the Premises for the term hereof without hindrance or
molestation from Landlord, subject to the terms and provisions of this Lease. 

	20. 	  	EVENTS OF DEFAULT.  

	  	Any one or more of the following
events shall constitute an event of default under this Lease: 

	  	A.  	  	If Tenant fails to pay, when due,
any installment of Base Rent or Tenant’s share of operating costs or any other payment required
to be by Tenant paid hereunder. 

	  	B.  	  	If Tenant fails to perform or comply
with any of the other terms, conditions and obligations of this Lease. 

	  	C.  	  	If a writ of execution, attachment
or other process of law shall cause levy on or against the property of Tenant or a receiver or
trustees shall be appointed for all or substantially all of the assets of Tenant; 

	  	D.  	  	If Tenant shall become insolvent, or
shall make a transfer in fraud of creditors, shall admit in writing its inability to pay its debts
as they become due, or shall commence any proceeding or file a petition under the provisions of the
Federal Bankruptcy Code for liquidation, reorganization or adjustment of debts, or under any
insolvency law or other statute or law providing for the modification or adjustment of the rights of
creditors, or shall file an answer admitting to or not contesting the material allegations of a
petition filed against it in any such proceeding, or an order for relief shall be entered by a
federal Bankruptcy Court in any such proceeding or Tenant shall not, within sixty (60) days after
the commencement of any such proceeding or the filing of any such petition without its consent, have
the same dismissed or vacated, or shall consent to the appointment of a custodian (as that term is
defined in the Federal Bankruptcy Code) for, or assignment to a custodian of, the whole or any
substantial part of its properties, or shall not, within sixty (60) days after such an appointment
or assignment without its consent or acquiescence, have such appointment or assignment vacated or
set aside; 

	  	E.  	  	If Tenant shall vacate or abandon
the Premises or the Premises shall become vacant; or 

	  	F.  	  	If Tenant shall have been notified
by Landlord of a default by Tenant under this Lease more than three (3) times in any calendar year.

	21. 	  	REMEDIES.  

	  	Upon the occurrence of any of such
events of default described in Paragraph 20 hereof, Landlord shall have the option to pursue any one
or more of the following remedies without any notice or demand whatsoever: 

	  	A.  	  	Terminate
this Lease, in which event Tenant shall immediately surrender the Premises to Landlord,
and if Tenant fails so to do, Landlord may, without prejudice to any other remedy which
it may have for possession or arrearages in rent, enter upon and take possession of the
Premises and expel or remove Tenant  

	  	and any other person who may be
occupying the Premises or any part thereof, by force if necessary, without being liable for
prosecution or any claim for damages therefore, and Tenant agrees to pay to Landlord on demand the
amount of all loss and damage which Landlord may suffer by reason of such termination. In the event
of termination of this Lease as aforesaid, Landlord may elect to recover from Tenant, as and for
liquidated damages for loss of the bargain and not as a penalty, an amount equal to the difference
between (1) the Base Rent, Tenant’s share of operating costs and other charges reserved
hereunder for the period which otherwise should have been the balance of the term hereof; and (2)
the fair rental value of the Premises for the balance of such term. 

	  	B.  	  	Enter upon and take possession of
the Premises and expel or remove Tenant and any other person who may be occupying the Premises or
any part thereof, by force if necessary, without being liable for prosecution or any claim for
damages therefore, all without terminating this Lease or any of Tenant’s obligations hereunder.
In such event, Landlord may make alterations and repairs and redecorate the Premises to the extent
deemed by Landlord necessary or desirable, and may relet the Premises, or any part thereof, for the
account of Tenant, to any person, firm or corporation, other than Tenant, for such rent, for such
time and upon such terms as Landlord in Landlord’s sole discretion, shall determine. In so
doing, Landlord shall not be required to accept any tenant offered by Tenant or to observe any
instruction given by Tenant concerning such reletting. Any rent and other amounts received by
Landlord upon such reletting shall be applied first to the costs and expenses of Landlord in
regaining possession of the Premises, storing property removed from the Premises, making alterations
or repairs, redecorating the Premises and reletting the Premises including without limitation,
brokerage and attorney’s fees and then such rent and other amounts shall be applied to the Base
Rent, operating costs and other obligations of Tenant under this Lease, and Tenant agrees to pay to
Landlord on demand any deficiency that may arise by reason of such reletting. 

	  	C.  	  	Enter upon the Premises, by force if
necessary, without being liable for prosecution or any claim for damages therefor, and do whatever
Tenant is obligated to do under the terms of this Lease, and Tenant agrees to reimburse Landlord on
demand for any expenses which landlord may incur in this effecting compliance with Tenant’s
obligations under this Lease, with interest as provided in Paragraph 26F hereof, and Tenant further
agrees that Landlord shall not be liable for any damages resulting to Tenant from such action,
whether caused by the negligence of Landlord or otherwise. 

	  	Pursuit of any of the foregoing
remedies shall not preclude pursuit of any of the other remedies herein provided or any other
remedies provided by law. Landlord may at any time elect to terminate this Lease as described in A
above despite a prior election to exercise its remedies under B or C above. Pursuit of any remedy
herein provided shall not constitute a forfeiture or waver of any rent due to Landlord hereunder or
of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and
covenants herein contained. No waiver by Landlord of any violation or breach of any of the terms,
provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any
other violation or breach of any of 

	  	the terms, provisions and covenants
herein contained. Landlord’s acceptance of the payment of rental or other payments hereunder
after the occurrence of an event of default shall not be construed as a waiver of such default
unless Landlord so notifies Tenant in writing. Forbearance by Landlord to enforce one or more of the
remedies herein provided upon an event of default shall not be deemed or construed to constitute a
waiver of such default. If, on account of default by Tenant as described in Section 20, it becomes
necessary or appropriate for Landlord to employ or consult with an attorney concerning or to enforce
or defend any of Landlord’s rights or remedies hereunder, Tenant agrees to pay any reasonable
attorneys’ fees and a management fee in the amount of Three Hundred and no/100 Dollars
($300.00). No act or thing done by Landlord or its agents during the term hereby granted shall be
deemed an acceptance of the surrender of the Premises, and no agreement to accept a surrender of the
Premises shall be valid unless in writing signed by Landlord. 

	22. 	  	LANDLORD’S RIGHT TO CURE.  

	  	If Tenant defaults in the making of
any payment or the doing of any act required to make such payment or do such act, and the costs
incurred by Landlord in doing so, with interest thereon as provided in paragraph 26F hereof, shall
be paid by Tenant to Landlord upon demand. The making of such payment or the doing of such act by
Landlord shall not operate to cure such default by Tenant or to prevent or stop Landlord from
enforcing or pursuing any rights and remedies which Landlord would otherwise have. 

	23. 	  	MORTGAGES.  

	  	Tenant accepts this Lease subject
and subordinate to any mortgage(s) and/or deed(s) of trust and/or ground lease(s) or other
underlying lease(s) now or at any time hereafter constituting a lien or charge upon the Premises,
and Tenant shall at any time hereafter on demand execute any instruments, releases or other
documents which may be required by any mortgagee, trustee or lessor for the purpose of subjecting
and subordinating this Lease to the lien of any such mortgage, deed of trust, ground leases or other
underlying lease. In the event Tenant fails to comply with any such demand within ten (10) days
following the demand, Tenant shall be deemed to have appointed Landlord as Tenant’s
attorney-in-fact to execute any such instruments, releases or other documents. With respect to any
mortgage(s) and/or deed(s) of trust and/or ground lease(s) or other underlying lease(s) now or at
any time hereafter created which constitute a lien or charge upon the Premises, Landlord at its sole
option shall have the right to waive the applicability of this paragraph so that this Lease would
not be subject and subordinate to such mortgage(s) or deed(s) of trust or ground lease(s) or other
underlying lease(s). 

	24. 	  	NOTICES.  

	  	Each provision of this instrument or
of any applicable law or regulation with reference to the sending, mailing or delivery of any notice
or the making of any payment by Landlord or by Tenant to Landlord shall be deemed to be complied
with when and if the following steps are taken: 

	  	A.  	  	All rent and other payments required
to be made by Tenant to Landlord hereunder shall be payable to Landlord at the address herein below
set forth or at such other 

	  	address as Landlord may specify from
time to time by written notice delivered in accordance herewith. 

	  	B.  	  	Any notice or document required or
permitted to be delivered hereunder shall be deemed to be delivered, whether actually received or
not when deposited in the United States mail, postage prepaid, certified or registered mail,
addressed to the parties hereto at the respective addresses set out opposite their names below, or
at such other address as they have theretofore specified by written notice delivered in accordance
herewith: 

	Landlord:	 	Tenant:	 
	 
	7725 Washington Ave. Corp.	 	Rimage Corporation	 
	 
	7808 Creekridge Circle, #200	 	7725 Washington Ave. S.	 
	 
	Edina, MN 55439	 	Edina, MN 55439	 

	  	C.  	  	Any notice or document required or
permitted to be delivered hereunder by Landlord to Tenant also shall be deemed to be delivered if
and when delivered personally to Tenant (or to an agent of Tenant if Tenant is not an individual) at
the Premises. 

	25. 	  	RIGHT OF FIRST REFUSAL. 

	  	Tenant shall have a right-of-first
refusal (ROF) in the event of a third party offer for the Premises. Once Landlord provides notice of
the party to purchase the Premises, Tenant has a period of fifteen (15) days after receipt of such
notice to notify Landlord of Tenant’s intent to purchase the Premises under the same terms and
conditions of said offer. 

	  	In the event the ROF is to be
exercised, Tenant shall timely execute a letter so stating to Landlord within the fifteen (15) day
period in which Tenant is permitted to exercise its ROF and shall deliver the letter to the Landlord
at the address set forth in Section 24 herein together with a certified check in the amount of
$10,000.00 payable to the Landlord as a deposit to be applied to the purchase price of the Premises.

	  	For the purpose of this Section, the
current individuals who are the fee owners of the Premises may freely transfer the Premises between
themselves, neither of them being a “third party.” 

	26. 	  	MISCELLANEOUS.  

	  	A.  	  	Words of any gender used in this
Lease shall be held and construed to include any other gender, and words in the singular number
shall be held to include the plural, unless the context otherwise requires. The headings of the
paragraphs of this Lease are for convenience only and do not limit or define the contents of said
paragraphs. 

	  	B.  	  	The terms, provisions, and covenants
and conditions contained in this Lease shall apply to, inure to the benefit of, and be binding upon,
the parties hereto and upon 

	  	their respective heirs, legal
representatives, successors and permitted assigns, except as otherwise herein expressly provided.

	  	C.  	  	Tenant agrees, within ten (10) days
after request of Landlord, or Landlord’s designee, including without limitation, the present or
any future holder of a mortgage(s) and/or deed(s) of trust and/or ground lease(s) and/or other
underlying lease(s) on the Premises, or any prospective purchaser of the Premises, an estoppel
certificate stating that this Lease is in full force and effect, the date to which rent and other
charges have been paid, the unexpired term of this Lease, whether or not Landlord is in default
hereunder, and the nature of any such default, and such other matters pertaining to this Lease as
may be reasonably requested by Landlord. 

	  	D.  	  	If any term, provision or covenant
of this Lease or the application thereof to any person or circumstances shall, to any extent, be
held to be invalid or unenforceable, the remainder thereof and the application of such term,
provision or covenant to other persons or circumstances shall not be affected thereby, and this
Lease and all the terms, provisions and covenants hereof shall, in all other respects, continue to
be valid and enforceable and to be complied with to the full extent permitted by law. 

	  	E.  	  	This Lease may not be altered,
changed or amended except by an instrument in writing signed by Landlord and Tenant. 

	  	F.  	  	Base Rent, Tenant’s share of
operating costs and all other payments required of Tenant pursuant to the provisions of this Lease,
shall be deemed rent due hereunder whether or not so designated. All such rent shall bear interest
from the due date thereof (or from the date of advancement of funds by Landlord if the payment by
Tenant is required by virtue of Landlord’s advancement of funds to cure Tenant’s default
hereunder) until paid at a rate equal to the lesser of (i) the highest rate permitted by law, and
(ii) two (2) percentage points in excess of the reference rate from time to time announced by First
National Bank of Minneapolis. 

	27. 	  	ACCEPTABLE BY LANDLORD.  

	  	This Lease shall not be binding upon
Landlord until approved in writing by, and signed by an officer of, Landlord. 

	  	EXECUTED the 31st day of July 2004. 

	 	 	 	 	 	 	 	 	 
	LANDLORD:		TENANT:
	 
	7725 Washington Avenue Corp. 		Rimage Corporation 
	 
	 
	By:		/s/   Richard F. McNamara	 	 	By:		/s/   Bernard P. Aldrich
	 	
	 	

	Name:  		Richard F. McNamara			Name:  		Bernard P. Aldrich
	 	
	 	

	 		Its:   Owner			 		Its:   President and CEO

And  

	 	 	 	 	 	 	 	 	 
	 
	 		 			By:		/s/   Robert M. Wolf
	 	 	 	

	 		 			Name:  		Robert M. Wolf
	 	 	 	

	 		 			 		Its:   CFO

EXHIBIT A  

LEGAL DESCRIPTION  

The North 109.21 feet of Tract F,
Registered Land Survey No. 1283 and that Part of Tract E, Registered Land Survey No. 1283
lying South of the North 16.08 feet thereof, said 109.21 feet and 16.08 feet being
measured along the West line of Registered Land Survey No. 1283, files of Registrar of
Titles, County of Hennepin, State of Minnesota.  

EXHIBIT B  

RENT SCHEDULE  

	YEAR
		BLDG SQ FOOTAGE
		NET LEASE RATE
		ANNUAL NET RENT
		MONTHLY RENT

	 
	1	 	58,500 Sq Ft	 	$6.85 PSF	 	$400,725.00/yr	 	$33,393.75	
	 
	2	 	58,500 Sq Ft	 	$6.99 PSF	 	$408,915.00/yr	 	$34,076.25	
	 
	3	 	58,500 Sq Ft	 	$7.13 PSF	 	$417,105.00/yr	 	$34,758.75	
	 
	4	 	58,500 Sq Ft	 	$7.27 PSF	 	$425,295.00/yr	 	$35,441.25	

1)     Tenant shall have an
option to renew its lease for four (4) years at market rates. 

2)     Tenant will be
responsible for all expenses related to occupying said building. 

3)     Tenant shall pay
property taxes and insurance upon receipt of property tax statement and insurance billing.

        Payments
should be sent to: 

	  	
7725 Washington Ave Corp

7808 Creekridge Circle, Suite 200

Minneapolis, MN 55439

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