<PAGE>
EXHIBIT 10.2
MACROVISION CORPORATION
EXECUTIVE SEVERANCE AND ARBITRATION AGREEMENT
THIS EXECUTIVE SEVERANCE AND ARBITRATION AGREEMENT (the
"Agreement") is
made and entered into as of April 4, 2005
by and between Macrovision
Corporation, a Delaware corporation (the
"Company") and Loren E. Hillberg
("Executive").
WHEREAS, the Board of Directors (the "Board") of the Company
has
recommended and authorized the Company to
enter into a severance agreement in
the form hereof with Executive; and
WHEREAS, the Board has determined that, in the event of a
possible
threatened or pending sale or other change
in control of the Company, it is
imperative that the Company and the Board
be able to rely upon Executive to
continue in Executive's position, and that
the Company be able to receive and
rely upon Executive's advice, if requested,
as to the best interests of the
Company and its stockholders without
concern that Executive might be distracted
by the personal uncertainties and risks
created by any such possible
transactions; and
WHEREAS, in connection with the foregoing, Executive may, in
addition to
Executive's regular duties, be called upon
to assist in the assessment of any
such possible transactions, advise
management and the Board as to whether such
proposals would be in the best interests of
the Company and its stockholders,
and to take such other actions as the Board
might determine to be appropriate;
NOW, THEREFORE, to assure the Company that it will have the
continued
dedication of Executive and the
availability of Executive's advice and counsel
through the occurrence of any Change in
Control (as defined in Section 1(b)
below) of the Company, and to induce
Executive to remain in the employ of the
Company, and for other good and valuable
consideration, the Company and
Executive agree as follows:
1. PAYMENT OF
SEVERANCE BENEFIT.
(a)
In the event that a Change in Control (as hereinafter
defined) occurs and, within the period
beginning ninety (90) days before the
date of the Change in Control and ending
twelve (12) months thereafter, (a)
Executive's employment is terminated by the
Company or a Subsidiary (as
hereinafter defined) without Cause (as
hereinafter defined) or (b) Executive
voluntarily terminates his/her employment
with Company and its Subsidiaries with
Good Reason (as hereinafter defined), then
the Company shall pay to Executive
severance pay under this Agreement.
Transfer of Executive's employment from the
Company to a Subsidiary (or to an entity of
which the Company is a Subsidiary)
or from a Subsidiary to the Company or to
another Subsidiary (or to an entity of
which the Company is a Subsidiary), by
itself shall not be considered a
termination of Executive's employment. Such
severance pay shall be in the form
of salary continuation of Executive's
regular base pay in effect ninety (90)
days before the time of the Change in
Control or at the time of the termination
of his employment, whichever is greater.
The Company shall pay such severance
pay during the twelve (12) month period
immediately following the date on which
Executive's employment with the Company
terminates; provided, however, that, if
Executive commences new employment within
such twelve (12) month period, such
severance pay shall cease on the later of
(i) the date six (6) months after
Executive's employment with the Company
terminates or (ii) the date Executive
commences new employment.
<PAGE>
(b)
"CHANGE IN CONTROL" means any of the following events:
(i) any "person" or "group" (as defined in
or pursuant to Sections 13(d) or
14(d) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"))
other than the Company, is or becomes the
"beneficial owner" (as defined in Rule
13d-3 promulgated under the Exchange Act),
directly or indirectly (including by
holding securities which are exercisable
for or convertible into shares of
capital stock of the Company), of
securities of the Company representing 50% or
more of the voting power of the outstanding
shares of capital stock of the
Company entitled to vote generally in the
election of directors; (ii) the
Company sells or exchanges, through merger,
assignment or otherwise, in one or
more transactions, other than in the
ordinary course of business, assets which
provided at least seventy percent (70%) of
the revenues or pre-tax net income of
the Company and its Subsidiaries on a
consolidated basis during the most
recently completed fiscal year; or (iii)
Continuing Directors cease to
constitute at least a majority of the
Board. "Continuing Directors" are (A) each
director serving on the Board on January 1,
2005, and (B) any successor to any
such director whose nomination or selection
was approved by a majority of the
directors in office at the time of the
director's nomination or selection.
Notwithstanding the foregoing, the
following events shall not constitute a
Change in Control: any acquisition of
beneficial ownership pursuant to (i) a
reclassification, however effected, of the
Company's authorized common stock, or
(ii) a corporate reorganization involving
the Company or a Subsidiary which does
not result in a material change in the
ultimate ownership by the stockholders of
the Company (through their ownership of the
Company or its successor resulting
from the reorganization) of the assets of
the Company and its Subsidiaries, but
only if such reclassification or
reorganization has been approved by the Board.
(c)
"CAUSE" means the occurrence of any one or more of the
following: (i) conviction of any felony or
any act of fraud, misappropriation or
embezzlement which has an immediate and
materially adverse effect on the Company
or a Subsidiary; (ii) engaging in a
fraudulent act to the material damage or
prejudice of the Company or a Subsidiary or
engaging in conduct or activities
materially damaging to the property,
business or reputation of the Company or a
Subsidiary; (iii) failure to comply in any
material respect with the terms of
any applicable employment agreement or any
written policies or directives of the
Board which have an immediate and
materially adverse effect on the Company or a
Subsidiary and which has not been corrected
within 30 day