Document:

Exhibit 10.2

 

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”) is made effective as of February 22, 2018 (the “Effective Date”), by and between Nortech Systems Incorporated, a Minnesota corporation, and/or its designated affiliate(s) (the “Company”), with offices located at 7550 Meridian Cir N #150, Maple Grove, MN 5536, and Crosscourt Group, LLC (“Consultant”), having an address of 3821 S Street NW, Washington, DC 20007.

 

1.                            Duties.

 

1.01.                     Scope of Services. The Company hereby retains Consultant to perform the Services [set forth on the attached Statement of Work and Nortech Consulting Proposal [described in this Section 1.01] (“Services”) as requested by the Company. [Services shall include Executive Consulting Services.]

 

1.02.                     No. Guarantee of Work. The Company does not agree to use Consultant exclusively, nor does the Company agree to offer any minimum amount of work to Consultant. Consultant shall provide only Services specifically requested by the Company and in accordance with the terms of this Agreement.

 

2.                            Compensation, Expenses, and Method of Payment.

 

2.01.                     Compensation. The Company shall pay Consultant an amount equal to $250 per hour with a maximum daily fee of $2000 for the time the Consultant renders Services pursuant to this Agreement. [The compensation set forth in this Article 2 constitutes the entire compensation to Consultant for performance of the Services.]. This agreement does not impact the board of director compensation consultant receives as a member of the Nortech Board of Directors.

 

2.02.                     Expenses. The Company agrees, that upon receipt of adequate supporting documentation, it shall reimburse Consultant for reasonable out-of-pocket business expenses actually incurred by Consultant in the performance of Services hereunder. All Services-related business expenses must be approved in writing and in advance by the Company and in accordance with any Company expense reimbursement policy that may be in effect from time to time and which has been delivered to Consultant.

 

2.03.                     Invoicing. Consultant shall submit to the Company a monthly invoice describing with specificity the Services provided by Consultant during the applicable period. Payment will be made only for Services performed at the Company’s request. The Company shall make payment to Consultant within thirty (30) days of the Company’s receipt of Consultant’s invoice. The Company will not pay for any Services for which Consultant fails to provide an invoice within four (4) weeks after Services are rendered.

 

2.04.                     Tax Withholding. Company shall issue to Consultant a Form 1099 for all compensation paid hereunder. The parties acknowledge and agree that, unless required by law to do so, the Company shall not withhold from any compensation it pays Consultant any amount for income taxes, self-employment taxes, social security taxes, or any other taxes, fees, or levies of any nature imposed by government authority pursuant to this Agreement, all of which shall be the sole responsibility of Consultant.

 

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3.                                      Term and Termination.

 

3.01.                     Term. The term of this Agreement will be for a period of three month but in no event longer than May 10, 2018, unless terminated earlier pursuant to Paragraph 3.02.

 

3.02.                     Termination. This Agreement may be terminated at any time by either party, with or without cause, by giving the other party thirty (30) days written notice of intention to terminate; provided, however, that the Company may terminate this Agreement immediately and without notice as the result of Consultant’s breach of the provisions of this Agreement. In the event of any termination of this Agreement, Consultant shall promptly submit an invoice for rendered yet unbilled Services and expenses, and Company shall make payment as provided for in Article 2. Consultant shall be entitled to payment only for such compensation and expenses that were earned or incurred through the date of termination.

 

4.                                      Consultant’s Representations and Duties.

 

4.01.                     Qualifications and Performance. Consultant represents and warrants that Consultant: (i) has secured all necessary licenses, certificates and permits required to perform the Services; (ii) has the knowledge, skills, and experience necessary to perform the Services; (iii) will perform the Services to the best of Consultant’s ability and in accordance with the degree of skill, care, and diligence normally exercised by recognized professional persons or firms that supply services of a similar nature; and (iv) will perform the Services in accordance with all applicable federal, state, and local laws, regulations, and rules. If Consultant considers any information, documents or other particulars made available by the Company are not sufficient to enable Consultant to provide the Services in accordance with this Agreement, Consultant shall so advise the Company, and the Company shall endeavor to provide such further assistance, information or other particulars as the Company deems necessary. Consultant shall give immediate written notice to the Company of any fact, matter or thing that may affect Consultant’s ability to provide the Services.

 

4.02.                     Books and Records. Consultant shall maintain true and correct books and records in connection with the Services. Such books and records shall be: (i) adequate to document all Services that have been rendered in connection with this Agreement (including the hours worked in performing the Services, the dates on which the Services were performed, and a description of the Services performed); (ii) retained for a period of not less than twenty-four (24) months after termination of this Agreement; and (iii) made available for inspection and audit by the Company during normal working hours.

 

4.03.                     Independent Contractor.

 

(a)                                 Consultant, and any personnel retained by Consultant in the performance of his/her/its obligations hereunder, shall at all times be an independent contractor and shall not be deemed an employee or associate of the Company, and the Company shall have no control over the operations and activities of Consultant. Consultant shall not hold himself/herself/itself out as an employee, associate partner, franchisee, distributor, principal or agent of the Company, and shall have no authority to bind the Company to any contractual or legal obligation with any third party. Except as specifically provided in Article 2 of this Agreement, Consultant shall be solely

 

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responsible for all of Consultant’s own expenses incurred in the performance of Services under this Agreement.

 

(b)                                 Consultant shall determine the method, details, and means of performing the Services. The Company shall have no right to, and shall not, control the manner or determine the method of accomplishing the Services. The Company shall be entitled, however, to exercise a broad general power of control over the results of the Services performed by Consultant to assure satisfactory performance, including the right to inspect and test, the right to stop work, the right to make suggestions or recommendations as to the details of any deliverables, and the right to request modifications to the scope of the Services.

 

(c)                                  Consultant represents and warrants that he (and all employees and subcontractors who perform work for the Company on Consultant’s behalf) shall employ only persons authorized to work in the U.S. in compliance with applicable immigration laws, such as the Immigration Reform and Control Act of 1986, as amended, and the Illegal Immigrant Reform and Immigrant Responsibility Act of 1996, as amended. Consultant and his/her/its subcontractors shall be responsible for verifying the employment status of each person employed to perform Services for the Company, and for obtaining and maintaining the “I-9” and any other documentation required for any of its employees. Consultant further represents and warrants (and agrees to verify upon request) that all of its employees and contractors who perform work for the Company on Consultant’s behalf and are issued a Company badge shall have successfully passed a pre-employment substance abuse screening and criminal background check, and for any employee who will operate a motor vehicle in performance of his or her assignment for the Company, a motor vehicle record check. Consultant also represents that it has taken steps to ensure that his/her/its employees and contractors performing work for the Company understand their obligation not to disclose any confidential Company Confidential Information.

 

(d)                                 Substance Abuse and Background Screening. Consultant acknowledges that any individuals performing Services that require the issuance of a Company badge must have successfully passed a pre-engagement substance abuse screening and background verification check, and for any employee who will operate a motor vehicle in performance of Services, a motor vehicle record check. Consultant further understands that certain customers may require drug screening prior to being allowed to work on its facilities or its project. To the extent such requirements exist, Consultant agrees to undergo necessary drug screens.

 

4.04.                     No Conflicts. Consultant represents and warrants to the Company that neither Consultant nor any of Consultant’s personnel are currently subject to a non-competition, confidentiality, or other such agreement with a third party (including but not limited to another client or former employer), which conflicts with this Agreement or prohibits Consultant or Consultant’s personnel from being engaged by the Company or performing the Services.

 

4.05.                     Compliance with Company Policies. To the extent that the Company or its designated affiliates has in place a Code of Conduct, or other Company policy or policies (“Code”), that has as its goal to ensure that Company and its employees comply with all applicable federal and state laws and regulations, Consultant agrees that it will not act or conduct business in a manner that requires the Company to violate or act in a manner that contravenes such Code. While on the Company’s premises, Consultant shall comply strictly with all laws and

 

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regulations, take all safety precautions, and follow all of the Company’s safety and operating rules, including but not limited to any prohibition on weapons and the Company’s policies prohibiting harassment and discrimination. Consultant represents and warrants that Consultant shall at all times during the term of this Agreement act in the best interest of the Company and take no action that is or might be detrimental to the interests of the Company.

 

5.                                      Confidential Information.

 

5.01.                     Definition. “Confidential Information” means any information, technical data, or know-how (including, but not limited to, information relating to research, products, software, hardware, services, development, inventions, processes, engineering, marketing, techniques, customers, pricing, internal procedures, business and marketing plans or strategies, finances, employees and business opportunities) disclosed by the Company to Consultant, either directly or indirectly, in any form whatsoever (including, but not limited to, in writing, in machine readable or other tangible form, orally or visually), whether or not such information has been marked as “confidential” or “proprietary.” Confidential Information does not include information which (a) was already in Consultant’s possession prior to the time of disclosure to Consultant by the Company, provided that such information was not furnished to Consultant by a source known by Consultant to be bound by a confidentiality agreement with the Company, or otherwise prohibited from disclosing the information to Consultant, (b) was or becomes generally available to the public other than as a result of a disclosure by Consultant, (c) becomes available to Consultant on a non-confidential basis from a source other than the Company, provided that such source is not known by Consultant to be bound by a confidentiality agreement with the Company, or otherwise prohibited from disclosing the information to Consultant, or (d) which was or is independently developed by Consultant without violating Consultant’s obligations hereunder.

 

5.02.                          Confidentiality Obligations. In the performance of this Agreement, Consultant may receive Confidential Information. Consultant agrees, at all times: (i) to regard and preserve as confidential such Confidential Information; (ii) to refrain from directly or indirectly publishing or disclosing any part of such Confidential Information; (iii) to refrain from using Confidential Information except as required in connection with the Services for the Company without the prior written consent of the Company; and (iv) to refrain from any other acts or omissions that would reduce the value of such Confidential Information to the Company. Consultant agrees to require all employees or other consultants to whom Confidential Information must be disclosed in order to perform Services pursuant to this Agreement to sign a non-disclosure agreement containing limitations on disclosure and use substantially similar to the limitations in this Agreement.

 

5.03.                          Ownership of Confidential Information. All Confidential Information shall remain the exclusive property of the Company and/or any of its affiliate or subsidiary companies, and no license to any Confidential Information is granted to Consultant, The Company is free to use any information disclosed or generated under this Agreement without permission from Consultant.

 

5.04.                          Compelled Disclosure. In the event that Consultant believes, upon the advice of legal counsel, that Consultant is legally compelled to disclose any Confidential Information, Consultant will provide the Company with prompt notice, prior to the disclosure, so that the

 

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Company may assist Consultant in obtaining a protective order or other protection of such information. In the event that a protective order or other remedy is not obtained, Consultant will disclose only that portion of the Confidential Information that the Company and Consultant mutually determine is legally required to be disclosed.

 

5.05.                     Return of Confidential Information. Upon termination of this Agreement or upon request by the Company, Consultant shall promptly return to the Company all originals and all copies of all property and assets of the Company created or obtained by Consultant as a result of, in the course of, or in connection with, this Agreement that are in Consultant’s possession or control, whether confidential or not, including, but not limited to, computer files, software programs, computer equipment, correspondence, notes, memoranda, notebooks, drawings, customer lists, or other documents concerning any idea, product, apparatus, invention or process manufactured, used, developed, investigated, or marketed by the Company.

 

5.06.                     Obligations to Third Parties. Consultant understands and acknowledges that the Company has a policy prohibiting the receipt by the Company of any confidential information in breach of Consultant’s obligations to third parties and the Company does not desire to receive any confidential information under such circumstances. Accordingly, Consultant will not disclose to the Company or use in the performance of any duties for the Company any confidential information in breach of an obligation to any third party. Consultant represents that Consultant has informed the Company, in writing, of any restriction on Consultant’s use of a third party’s confidential information that conflicts with any obligations under this Agreement.

 

6.                                      Intellectual Property. Consultant hereby acknowledges and agrees that, to the fullest extent permitted by applicable law, all Inventions (as defined herein) shall be “works made for hire” as defined in 17 U.S.C. § 101, as amended (and as such concept is similarly defined under any applicable foreign laws), and as such will constitute the sole and exclusive property of the Company without any further action required on the part of either party hereto. To the extent that any Invention does not qualify as works made for hire, Consultant hereby assigns to the Company all rights to any such Inventions. If the foregoing assignment is invalid or ineffective for any reason, then Consultant hereby grants the Company a perpetual, royalty-free, non-exclusive, worldwide license to fully exploit any intellectual property or propriety rights in the Invention, and any patents, copyrights and/or trademarks (or other intellectual property or propriety registrations or applications) resulting therefrom. Furthermore, Consultant hereby forever waives and agrees never to assert any moral rights it may have in all or any part of any Invention, even after the termination of this Agreement To perfect and effectuate the covenants contained in this Section, Consultant hereby further agrees to: (i) promptly and fully inform the Company in writing of all Inventions; (ii) promptly execute and deliver assignment or conveyance documentation to the Company evidencing that all of Consultant’s rights to all Inventions are the sole and exclusive property of the Company; and (iii) promptly acknowledge and deliver to the Company, without charge to the Company but at the Company’s expense, such written instruments and do such other acts as may be necessary, in the reasonable opinion of the Company, to obtain and maintain patents and/or copyright registrations and to vest the entire rights, interest in and title thereto in the Company. “Inventions” means discoveries, improvements, inventions, ideas and works of authorship (whether or not patentable or copyrightable or able to be trademarked, including, all associated rights thereto under any copyright, trademark and/or patent applications, registrations, continuations in part, extensions,

 

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and granted applications extending patent, copyright or trademark protections) made by Consultant, either solely or jointly with others, relating to any work performed by Consultant for the Company under this agreement based upon or derived from Confidential Information. Consultant further agrees to execute and deliver to the Company all such assignments, endorsements and other documents, and to take other such actions as the Company may reasonably request, in order to effectively transfer and assign the Inventions to the Company.

 

7.                                      Indemnification and Insurance.

 

7.01.                     Indemnification. Consultant shall indemnify, defend and hold the Company (and its affiliates and their respective directors, officers, employees, successors, assigns, insurers and agents) harmless from all claims, damages, losses and expenses (including reasonable attorneys’ fees incurred on such claims and in proving the right to indemnification) arising out of or resulting from any claim, action or other proceeding that is based upon (a) Consultant’s breach of any obligations, representations or warranties under this Agreement, or (b) any gross negligence act or willful misconduct of Consultant.

 

7.02.                     Insurance. Consultant shall, at Consultant’s expense, carry and maintain adequate liability insurance to protect both Consultant and the Company from any and all claims of any nature for damage to property, or for personal injury, including death, which may arise from Consultant’s performance of this. Agreement Consultant is solely responsible for securing and maintaining workers’ compensation insurance, if legally required, for Consultant and Consultant’s employees, if any. Consultant shall provide the Company with reasonable evidence of such insurance upon request.

 

8.                                      Non-Solicitation. During this Agreement and for a period of one year following any termination of this Agreement, Consultant will not, directly or indirectly, solicit for employment or hire any employee of the Company or any of its subsidiaries with whom Consultant has had contact or who became known to Consultant in connection with the Services. In addition, during the term of this Agreement and for a period of one year following any termination of this Agreement, Consultant will not solicit or induce any customer of the Company to cease doing business with the Company.

 

9.                            Miscellaneous.

 

9.01.                     Notices. All notices required or permitted by this Agreement shall be in writing and shall be delivered to the other party: (i) in person; (ii) by certified or registered mail, return receipt requested, postage prepaid; or (iii) by a reputable national courier with tracking capabilities, postage prepaid. Such notices shall be delivered to the addresses set forth above or to such other address as either party may designate in writing pursuant to this paragraph. All notices shall be deemed effective upon receipt.

 

9.02.                     No Waiver. No failure or delay by any party hereto in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder.

 

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9.03.                     Assignment. Consultant may not assign this Agreement without the express written consent of the Company. The Company may assign this Agreement upon written notice to Consultant.

 

9.04.                     Counterparts. This Agreement may be executed in separate counterparts, and by facsimile, email, or other electronic means each of which will be deemed an original, and when executed separately or together, will constitute a single original instrument, effective in the same manner as if the parties had executed one and the same instrument.

 

9.05.                     Survival. The provisions of Articles 3, 5, 6, 7, 8 and 9 shall survive any termination or non-renewal of this Agreement.

 

9.06.                     Severability. In the event any one or more of the provisions contained in this Agreement are deemed illegal or unenforceable, such provision: (i) shall be construed in a manner to enable it to be enforced to the extent permitted by applicable law; and (ii) shall not affect the validity and enforceability of any legal and enforceable provision of this Agreement.

 

9.07.                     Remedies. Consultant acknowledges that a violation of Articles 5, 6 and 8 of this Agreement would cause irreparable harm to the Company, and that a remedy at law for any such violation would be inadequate. Thus, in addition to any other relief afforded by law, including damages sustained by a breach, threatened breach, or anticipated breach of this Agreement, and without any necessity of proof of actual damage, the Company will have the right to enforce this Agreement by specific enforcement, which will include, among other things, temporary and permanent injunctions to stop or prevent the breach, threatened breach, or anticipated breach of this Agreement, it being the understanding of the parties that both damages and injunctions will be proper modes of relief and are not to be considered as alternative remedies.

 

9.08.                     Governing Law and Jurisdiction. This Agreement shall be governed by the laws of the State of Minnesota, without regard to choice of law rules. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction and venue of the federal and state courts within the State of Minnesota, and each party hereby consents to personal jurisdiction in such forum, for any actions, suits or proceedings arising out of or relating to this Agreement (and agrees not to commence any action, suit or proceeding relating thereto except in such courts). Notwithstanding the foregoing, nothing in this Agreement will prevent Company from seeking interim or permanent injunctive relief or filing any action to recover property or amounts owed to Company by Consultant in any court having jurisdiction over Consultant.

 

9.09.                     Entire Agreement. This Agreement and any Statements of Work constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous agreements and understandings, whether oral or written, between the parties with respect to the subject matter hereof. This Agreement may only be modified in a writing signed by both of the parties hereto.

 

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IN WITNESS WHEREOF, the parties hereto have subscribed their names to this Agreement on the day and year written below.

 

	
Crosscourt Group, LLC   (Consultant)
    	
 
    	
Nortech   Systems Incorporated
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Bill Murray (Feb. 7, 2018)
    	
 
    	
By:
    	
/s/   Richard G. Wasielewski
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
William   Murray
    	
 
    	
Name:
    	
Richard   G. Wasielewski
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
President   & CEO
    	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
Feb.   22, 2018
    	
 
    	
Date:
    	
Feb.   22, 2018
    

 

8Exhibit

Exhibit 10.22

TIVO CORPORATION
EXECUTIVE SEVERANCE AND ARBITRATION AGREEMENT

        
THIS EXECUTIVE SEVERANCE AND ARBITRATION AGREEMENT (the “Agreement”) is made and entered into as of ________________, 2017 by and between TiVo Corporation, a Delaware corporation (the “Company”) and _________________ (“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 enter into and 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 or her 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.

(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, a subsidiary of the Company or other company affiliated with 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, so long as, in the case of a Company subsidiary or other affiliated company becoming such a beneficial owner (a “Top Hat”), stockholders of the Company immediately prior to such transaction own at least fifty percent (50%) of the stock of the subsidiary or other affiliated company immediately following the Top Hat; (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) in transactions other than a Top Hat, Continuing Directors cease to constitute at least a majority of the Board, and in the case of a Top Hat, Continuing Directors do not comprise a majority of the Board of Directors of 

the entity that becomes the beneficial owner of the Company’s securities immediately following the Top Hat.  “Continuing Directors” are (A) each director serving on the Board on the date of this Agreement, 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 after written notice from the Company of such failure; (iv) any material act or omission involving malfeasance or negligence in the performance of employment duties which has an immediate and materially adverse effect on the Company or a Subsidiary and which has not been corrected within 30 days after written notice from the Company; or (v) material breach of any other agreement with the Company, which has an immediate and materially adverse effect on the Company or a Subsidiary and which has not been cured within 30 days after written notice from the Company of such breach.  

(d)    “Good Reason” means the occurrence of any of the following without the Executive’s consent: (i) a material diminution in the Executive’s authority, duties or responsibilities, (ii) the assignment to the Executive of any duties or responsibilities that are materially inconsistent with the Executive’s authority, duties or responsibilities; (iii) a material diminution in the Executive’s base salary; or (iv) a relocation of the Executive’s principal place of employment to a new work site requiring an increase in one-way commute from Executive’s residence of more than thirty-five (35) miles.  Within 30 days of the initial occurrence of any of the events listed in this section, Executive must provide written notice to the Company of the occurrence of the event, and the Company shall have 30 days following receipt of such notice during which it may remedy the condition.  If such event is not remedied by the Company within such 30-day period, Executive’s termination must be effective not later than thirty (30) days thereafter.  If (i) Executive fails to give such notice within the 30-day period or (ii) the Company remedies the condition within the 30-day period or (iii) the Executive does not terminate his or her employment following an unremedied condition within thirty days after the Company’s remedy period, then the occurrence of such event shall not constitute “Good Reason.”  

(e)    “Subsidiary” means (i) any corporation, foreign or domestic, in which the Company directly or indirectly owns 50% or more of the issued and outstanding voting stock on an “as converted basis” or (ii) any partnership, foreign or domestic, in which the Company owns a direct or indirect interest equal to 50% or more of the outstanding equity interests.

(f)    Notwithstanding the foregoing, if any payment hereunder, or any portion thereof, is considered “nonqualified deferred compensation” that is to be paid to Executive at a time that he is considered to be a “specified employee,” in each case as defined and determined for purposes of Section 409A of the Internal Revenue Code of 1986 as amended ("Section 409A"), and is to be paid within six months following Executive’s termination of employment, then to the extent that such payment is not otherwise exempt from the application of the 20% excise tax under Section 409A, such payment shall be delayed and paid on the first day of the seventh calendar month following the month in which Executive’s termination of employment occurs.

		
	2.
	Welfare Benefits.

(a)    During the period that Company is obligated to pay Executive severance pay pursuant to Section 1(a) above, or, if sooner, until Executive is entitled to Welfare Benefits (as defined below) under any plan maintained by any entity employing Executive after Executive’s employment with the Company terminates, Company shall provide to Executive (and his/her spouse and other qualified dependents) all Welfare Benefits that Company provided to Executive (and his/her spouse and qualified dependents) immediately prior to the Change in Control.  For purposes of this Agreement, the term “Welfare Benefits” shall include, without limitation, all life, dental, vision, health, accident and disability benefit plans, other similar welfare plans, and any equivalent successor policy, plan, program or arrangement that may now exist or be adopted hereafter by the Company or a Subsidiary that provide reasonably equivalent Welfare Benefits in the aggregate as the predecessor policy, plan, program or arrangement (and which policies, plans, programs or arrangements may be freely modified or cancelled at any time by the Company or a Subsidiary).  Notwithstanding the foregoing, with respect to any Welfare Benefits provided through an insurance policy, the Company’s obligation to provide such Welfare Benefits following a Change in Control shall be limited by the terms of such policy; 

provided, however, that (i) the Company shall make reasonable efforts (which efforts shall not include incurring additional cost) to amend such policy to provide the continued coverage described in this Section 2(a) and (ii) if such policy is not amended to provide the continued benefits described in this Section 2(a), the Company shall pay Executive the lesser of an amount equal to what Executive’s COBRA premiums would have been or Executive’s cost of comparable replacement coverage.  

(b)    If prior to the Change in Control Executive was required to contribute towards the cost of a Welfare Benefit as a condition of receiving such Welfare Benefit, the Executive may be required to continue contributing towards the cost of such Welfare Benefit under the same terms and conditions as applied to the Executive immediately prior to the Change in Control in order to receive such Welfare Benefit.

3.Equity Compensation.  To the extent that the Company has granted Executive Stock Awards (stock options, restricted stock awards or other forms of equity compensation) (collectively, “Stock Awards”), and notwithstanding the provisions of any agreement(s) pursuant to which the Stock Awards are granted, in the event that a Change in Control 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 without Cause or (b) Executive voluntarily terminates his or her employment with Company and its Subsidiaries with Good Reason, then on the last day of Executive’s employment with the Company and its Subsidiaries, all of the Stock Awards held by Executive shall become fully vested and exercisable (for clarity, for any Stock Award whose vesting is tied to Company or individual performance metrics, the terms of such Stock Award shall control with respect to any measurement of vesting or exercisability of such Stock Award at the time of Change of Control first and then this Section 3 shall apply to any resulting non-performance shares).
 
4.     Other Employee Benefits.  The benefits provided to Executive hereunder shall not be affected by or reduced because of any other benefits (including, but not limited to, salary, bonus, pension, stock option or stock purchase plan) to which Executive may be entitled by reason of his or her employment with the Company or any Subsidiary thereof or the termination of his or her employment with the Company, and no other such benefit by reason of such employment shall be so affected or reduced because of the benefits bestowed by this Agreement.  Notwithstanding the foregoing, if Executive qualifies for severance pay under Section 1(a) of this Agreement, such severance pay will be in lieu of, and not in addition to, any severance to other termination payments to which Executive may be entitled under any employment agreement with, or other plan or arrangement of, the Company.

5.    Withholding.  All amounts payable by the Company hereunder shall be subject to all federal, state, local and other withholdings and employment taxes as required by applicable law.

6.    Subsequent Employment with Competitor.  Executive’s right to receive benefits under this Agreement, including Executive’s right to exercise any Stock Awards that have accelerated under this Agreement, shall cease immediately upon Executive’s employment by any company that the Company reasonably determines to be a competitor of the Company and its Subsidiaries.

7.    No Solicitation of Employees.  Executive hereby agrees that for a period of one year following the termination of Executive’s employment by or contractual relationship with the Company, for whatever reason, Executive will not directly or indirectly solicit, induce or influence any person who is engaged as an employee or otherwise by the Company or its Subsidiaries to seek employment with any other business, nor will Executive provide any information regarding employees of the Company or its Subsidiaries for the purpose of directly or indirectly soliciting, inducing or influencing an employee of the Company or its Subsidiaries to seek employment with any other business, including without limitation name, e-mail address, telephone or fax numbers, job titles or compensation information, to any third party without the prior written consent of the Company.  Executive acknowledges that such information is proprietary to the Company and that providing such information for any unauthorized purpose, including without limitation the direct or indirect solicitation of such employees for employment, is strictly prohibited, and Executive further acknowledges that violation of this provision would result in damage to the Company for which Executive may be held personally liable, and Executive agrees that should Executive violate this provision, the Company may obtain injunctive relief as well as actual, incidental, or punitive damages, if appropriate. 
    
8.    Arbitration of Claims.  The following arbitration provisions shall apply to any claim brought by Executive or the Company after the date of this Agreement even if the facts upon which the claim is based arose prior to the execution of this Agreement.

(a)    Claims Covered by this Agreement.  To the maximum extent permitted by law, the Company and Executive mutually consent to the resolution by arbitration of all claims or causes of action that the Company may have against Executive or that Executive may have against the Company or against its officers, directors, employees, or agents in the capacity as such or otherwise (collectively “claims”).  The claims covered by this Agreement include, but are not limited to, claims for 

breach of any contract or covenant (express or implied); tort claims; claims for discrimination (including, but not limited to, race, sex, sexual harassment, or any type of unlawful harassment, religion, national origin, age, marital status, medical condition, disability or sexual orientation); claims for wrongful termination in violation of public policy; and claims for violation of any federal, state, or other governmental law, statute, regulation or ordinance, including, but not limited to, all claims arising under Title VII of the Civil Rights Act of 1969, as amended, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the California Fair Employment & Housing Act, the California Labor Code, the Consolidated Omnibus Budget Reconciliation Act of 1985, the Fair Labor Standards Act or Employee Retirement Income Security Act.

(b)    Claims Not Covered by the Agreement.  Claims Executive may have for workers’ compensation, unemployment compensation benefits or wage and hour claims within the jurisdiction of the California Labor Commissioner are not covered by this Agreement.  Notwithstanding the fact that Executive is not required to arbitrate such claims, he/she may, if he/she so chooses, submit wage and hour claims to binding arbitration pursuant to this Agreement.  Also not covered are claims by either party for injunctive and/or other equitable relief, as to which the parties understand and agree that either party may seek and obtain relief from a court of competent jurisdiction.

(c)     Required Notice of All Claims.  The Company and Executive agree that the aggrieved party must give written notice of any claim to the other party.  Written notice to the Company, or its officers, employees or agents shall be sent to the Company’s Chief Executive Officer.  Executive will be given notice at the last address recorded in his/her personnel file or such other address as Executive may provide to the Company from time to time following the date of this Agreement by a writing specifying that it is the address for notice under this Agreement.  The written notice shall identify and describe the nature of all claims asserted and detail the facts upon which such claims are based.  The notice shall be sent to the other party by certified or registered mail, return receipt requested.

(d)    Arbitration Procedures.  The Company and Executive agree that, except as provided in this Agreement, any arbitration shall be in accordance with and under the auspices and rules of the American Arbitration Association (hereinafter the “Arbitration Service”).  The arbitration shall take place in Santa Clara County, California, unless the parties mutually agree to conduct the arbitration in a different location.  The arbitrator shall be selected by the mutual agreement of the parties.  If the parties cannot agree on a neutral arbitrator, Executive first, and then the Company, will alternately strike names from a list provided by the Arbitration Service until only one name remains.  The arbitrator shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this Agreement, including but not limited to any claim that all or any part of this Agreement is void or voidable.  The arbitrator shall apply the applicable statue of limitations to any claim, taking into account compliance with subparagraph paragraph 8(c) of this Agreement.  The arbitrator shall issue a written opinion and award, which shall be signed and dated.  The arbitrator shall be permitted to award those remedies that are available under applicable law.  The arbitrator’s decision regarding the claims shall be final and binding upon the parties.  The arbitrator’s award shall be enforceable in any court having jurisdiction thereof.

(e)    Acknowledgment of Jury Trial Waiver.  Executive understands that, by this Agreement, he/she is waiving his or her right to have a claim adjudicated by a court or jury.  Any party may be represented by an attorney or other representative selected by the party.

(f)    Arbitration Fees and Costs; Attorneys’ Fees.  Executive will be required to pay an arbitration fee to initiate the arbitration equal to what he/she would be charged as a first appearance fee in court.  The Company shall advance the remaining fees and costs of the arbitrator.  However, to the extent permissible under the law, and following the arbitrator’s ruling on the matter, the arbitrator may rule that the arbitrator’s fees and costs be distributed in an alternative manner.  The arbitrator’s award in any arbitration brought pursuant to the provisions of this Agreement shall provide for the prevailing party to recover from the other party the prevailing party’s reasonable attorneys’ fees relating to such action.

(g)    Requirements for Modification or Revocation.  This agreement to arbitrate shall survive the termination of Executive’s employment with the Company.  It can only be revoked or modified by a writing signed by the parties that specifically states an intent to revoke or modify this Agreement.

(h)    Consideration.  Executive understands that the provisions for severance pay as set forth herein and his or her continued employment with the Company are consideration for his/her acceptance of these arbitration provisions.  In addition, the promises by the Company and by Executive to arbitrate claims, rather than litigate them before courts or other bodies, provide consideration for each other.

(i)    Violation of this Agreement.  Should any party to this Agreement hereafter institute any legal action or administrative proceeding against the other with respect to any claim required to be arbitrated under this Agreement or 

pursue any arbitral dispute by any method other than arbitration, the responding party shall recover from the initiating party all damages, costs, expenses and attorneys’ fees incurred as a result of such action.

9.    Entire Agreement; Effect of Prior Agreements.  This is the complete agreement of the parties on the subjects set forth herein, including severance pay upon a Change in Control and arbitration of disputes.  This Agreement supersedes any prior or contemporaneous oral or written understanding on such subjects.  No party is relying on any representations, oral or written, on the subject of the effect, enforceability, or meaning of this Agreement, except as specifically set forth in this Agreement.  In the event of a conflict between any of the terms of this Agreement and any of the terms of (i) any of the agreements related to the Stock Awards, or (ii) that certain accepted original offer of employment between Executive and the Company, the terms of this Agreement shall prevail.  Without limiting the generality of the foregoing, the arbitration provisions of the arbitration policy accompanying the original offer of employment shall be superseded by the arbitration provisions set forth in this Agreement.

10.    Amendment.  This Agreement may not be amended without the prior written consent of both Executive and the Company.

11.    No Right to Continued Employment.  This Agreement does not constitute a contract of employment, does not change the status of the Executive’s employment and does not change the Company’s policies regarding termination of employment.  Nothing in this Agreement shall be deemed to give Executive the right to be retained in the service of the Company or to deny the Company any right it may have to discharge or demote Executive at any time; provided, however, that any termination of employment of Executive, or any removal of Executive as an executive officer of the Company primarily in contemplation of a Change in Control shall not be effective to deny Executive the benefits of this Agreement, including without limitation Sections 1, 2 and 3 hereof.  No provision of this Agreement shall in any way limit, restrict or prohibit Executive’s right to terminate employment with the Company or leave his/her position as a senior executive.

12.    Severability.  If a court or other body of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, that provision will be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, or, if it is not possible to so adjust such provision, this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.  The invalidity and unenforceability of any particular provision of this Agreement shall not affect any other provision hereof, and all other provisions of the Agreement shall be valid and enforceable to the fullest extent possible.

		
	13.
	Successors.

(a)The Company will require any successor, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.

(b)    This Agreement shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.

14.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard or reference to the rules of conflicts of law that would require the application of the laws of any other jurisdiction.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, effective as of the date set forth in the first paragraph hereof.

TIVO CORPORATION                    EXECUTIVE

By:  ________________________________            By:   ________________________________

Name:  Thomas Carson, CEO                Name:  _______________________________

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