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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.
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(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 days
aft
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