Document:

EXHIBIT
10.1

 

STOCK
PURCHASE AGREEMENT

 

STOCK
PURCHASE AGREEMENT
(this “Agreement”), dated as of December 17, 2004, by and among
Rentrak Corporation, an Oregon corporation (the “Company”), the selling
shareholders set forth in Exhibit A attached hereto (collectively, “Sellers”),
and Mark Cuban, an individual resident of Dallas County, Texas (the “Purchaser”).

 

WHEREAS, the Company has authorized the issuance and
sale of 308,200 shares (the “Primary Shares”) of common stock, par value
$0.001 per share (the “Common Stock”), of the Company, upon the terms
and conditions set forth herein.

 

WHEREAS, the Sellers will own at the Closing (as
defined below) an aggregate of 191,800 issued and outstanding shares of Common
Stock (the “Additional Shares”) and desire to sell such shares to
Purchaser upon the terms and conditions set forth herein.

 

WHEREAS, Purchaser wishes to purchase the Primary
Shares and the Additional Shares (collectively, the “Shares”) upon the
terms and conditions stated in this Agreement.

 

NOW
THEREFORE, the
Company, Sellers and Purchaser hereby agree as follows:

 

1.             PURCHASE
AND SALE OF COMMON STOCK.

 

(a)           Purchase
of Common Stock.  The Company shall
issue and sell to Purchaser, and Purchaser shall purchase from the Company, the
Primary Shares for the aggregate purchase price (the “Primary Shares
Purchase Price”) of Two Million Seven Hundred Seventy-Three Thousand Eight
Hundred Dollars ($2,773,800.00).  Each
Seller shall sell to Purchaser, and Purchaser shall purchase from each Seller,
the number of Additional Shares set forth opposite such Seller’s name in Exhibit A
attached hereto for the aggregate purchase price (the “Additional Shares
Purchase Price”) of One Million Seven Hundred Twenty-Six Thousand Two
Hundred Dollars ($1,726,200.00), with a purchase price per Additional Share
(the “Price Per Share”) equal to Nine Dollars ($9.00).

 

(b)           Form
of Payment.  On the Closing Date (as
defined below) (i) Purchaser shall pay the Primary Shares Purchase Price by
wire transfer of immediately available funds to the Company, in accordance with
the Company’s written wiring instructions, against delivery of duly executed
certificates representing the Primary Shares, (ii) the Company shall deliver
such certificates duly executed on behalf of the Company to Purchaser or, if so
designated by Purchaser, in the name of a nominee designated by Purchaser,
against delivery of the Primary Shares Purchase Price, (iii) Purchaser shall
pay the Additional Shares Purchase Price by wire transfer of immediately
available funds to Sellers, with each Seller to receive that portion of the
Additional Shares Purchase Price allocable to the Additional Shares being sold
by such Seller based on the Price Per Share, in accordance with such Seller’s
written wiring instructions, against delivery of certificates representing the
number of Additional Shares that Purchaser is purchasing from such Seller
registered in Purchaser’s name or duly endorsed for transfer, or accompanied by
duly executed stock powers, and (iv) each Seller shall deliver such
certificates registered in Purchaser’s name or duly endorsed for transfer, or
accompanied by duly executed stock powers, to Purchaser or, if so designated by
Purchaser, in the name of a nominee designated by Purchaser, against delivery
of such Seller’s allocable portion of the Additional Shares Purchase Price.

 

(c)           Closing
and Closing Date.  The completion of
the purchase and sale of the Shares (the “Closing”) shall occur as soon
as practicable after the satisfaction or waiver of all conditions or obligations
of Purchaser, Sellers and the Company and the conditions set forth in
Sections 6 and 7 hereof on a date (the “Closing Date”) determined
by Purchaser upon prior notice to the Company and Sellers, provided that in any
event, without prior notice, the Closing Date shall be the third business day
following the date of this Agreement. 
The Closing shall take place at the offices of Jenkens & Gilchrist,
P.C., 1445 Ross Avenue, Suite 3200, Dallas, Texas 75202 at 4:00 p.m., local
time, on the Closing Date, or at such other place and time as the parties shall
mutually agree.  At the Closing, the
parties shall effect the deliveries required by Section 1(b) above.  To accommodate the Closing,

 

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Jenkens &
Gilchrist shall act as agent for the parties hereto solely to receive
deliveries of the certificates representing the Shares.  At the Closing, Jenkens & Gilchrist shall
deliver the certificates to Purchaser only upon telephonic, facsimile, or
electronic mail confirmation of the receipt of the wire transfers contemplated
by, and in accordance with the wiring instructions delivered pursuant to, Section 1(b)
above; provided, however, that the Company and Sellers shall have delivered
such wiring instructions to Purchaser not later than the close of business two
days prior to the Closing Date.

 

2.             PURCHASER’S
REPRESENTATIONS AND WARRANTIES. 
Purchaser represents and warrants to the Company and Sellers that:

 

(a)           Investment
Purpose.  As of the date hereof,
Purchaser is purchasing the Shares set forth herein for its own account for
investment only and not with a present view towards the public sale or
distribution thereof, except pursuant to sales registered or exempted from
registration under the Securities Act of 1933, as amended (the “Securities
Act”).

 

(b)           Accredited
Purchaser Status.  Purchaser is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D (“Regulation D”)
as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act.

 

(c)           Reliance
on Exemptions.  Purchaser understands
that the Shares are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and
state securities laws and that the Company and Sellers are relying upon the
truth and accuracy of, and Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of Purchaser set
forth herein in order to determine the availability of such exemptions and the
eligibility of Purchaser to acquire the Shares.

 

(d)           Information.  Purchaser and its advisors, if any, have been
furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Shares which
have been requested by Purchaser or its advisors.  Purchaser and its advisors, if any, have been
afforded the opportunity to ask questions of the Company.  Neither such inquiries nor any other due
diligence investigation conducted by Purchaser or any of its advisors or
representatives shall modify, amend or affect Purchaser’s right to rely on the
Company’s and Sellers’ representations and warranties contained in
Sections 3 and 4.  Purchaser
understands that its investment in the Shares involves a significant degree of
risk.

 

(e)           Governmental
Review.  Purchaser understands that
no United States federal or state agency or any other government or
governmental agency has passed upon or made any recommendation or endorsement
of the Shares.

 

(f)            Transfer
or Resale.  Purchaser understands
that (i) except as provided in Section 5(d) hereof, the Shares have not
been and are not being registered under the Securities Act or any applicable
state securities laws, and may not be transferred unless (a) subsequently
included in an effective registration statement thereunder, (b) Purchaser
shall have delivered to the Company an opinion of counsel (which opinion shall
be reasonably acceptable to the Company) to the effect that the Shares to be
sold or transferred may be sold or transferred pursuant to an exemption from
such registration, (c) sold or transferred to an “affiliate” (as defined
in Rule 144 promulgated under the Securities Act (or a successor rule) (“Rule 144”))
or (d) sold pursuant to Rule 144; (ii) any sale of such Shares made
in reliance on Rule 144 may be made only in accordance with the terms of
said Rule and further, if said Rule is not applicable, any resale of such
Shares under circumstances in which the seller (or the person through whom the
sale is made) may be deemed to be an underwriter (as that term is defined in
the Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company nor any other person is under any obligation to register
the Shares under the Securities Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder (in each case, other
than pursuant to Section 5(d) hereof). Notwithstanding the foregoing or
anything else contained herein to the contrary, the Shares may be pledged as
collateral in connection with a bona  fide margin account or other
lending arrangement.

 

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(g)           Legends.  Purchaser understands that until such time as
the Shares have been registered under the Securities Act, the Shares shall bear
a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Shares):

 

“The securities
represented by this certificate have not been registered under the Securities
Act of 1933, as amended. The securities have been acquired for investment and
may not be sold, transferred or assigned in the absence of an effective
registration statement for the securities under said Act, or an opinion of
counsel, in form, substance and scope reasonably acceptable to the Company,
that registration is not required under said Act or unless sold pursuant to
Rule 144 under said Act. 
Notwithstanding the foregoing, this security may be pledged in
connection with a bona fide margin account.”

 

The
legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of any Shares upon which it is
stamped, if, unless otherwise required by applicable state securities laws (a)
such Shares are registered for sale under an effective registration statement
filed under the Securities Act and disposed of in a bona  fide
sale, or (b) such holder provides the Company with an opinion of counsel, in
form, substance and scope reasonably acceptable to the Company, to the effect
that a public sale or transfer of such Shares may be made without registration
under the Securities Act and such sale or transfer is effected or (c) such
holder provides the Company with reasonable assurances that such Shares can be
sold pursuant to Rule 144 under the Securities Act (or a successor rule
thereto) without any restriction as to the number of Shares that can then be
immediately sold.

 

(h)           Authorization;
Enforcement.  This Agreement has been
duly and validly authorized, executed and delivered on behalf of Purchaser and
is a valid and binding agreement of Purchaser enforceable against Purchaser in
accordance with its terms, subject to bankruptcy, insolvency and other laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles.

 

3.             REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.  The
Company hereby represents and warrants to and covenants with Purchaser, as
follows:

 

(a)           Organization
and Qualification.  The Company and
each of its Subsidiaries (as defined below), if any, is an entity duly
organized, validly existing and in good standing under the laws of the
jurisdiction in which it is formed, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its
business as described in the Company’s Schedule 14A, current reports on
Form 8-K and regular reports on Form 10-Q and 10-K, as filed
(including any amendment(s) to any of the foregoing) by the Company with the
SEC on or after July 14, 2004 (the “SEC Documents”), as and
where now owned, leased, used, operated and conducted, except where the failure
to be in good standing or to have such power and authority would not have a
material adverse effect on the Company and its Subsidiaries taken as a
whole.  “Subsidiaries” means any
corporation or other organization, whether incorporated or unincorporated, in
which the Company owns, directly or indirectly, any equity or other ownership
interest.

 

(b)           Authorization;
Enforcement.  (i) The Company has all
requisite corporate power to enter into and perform this Agreement and to
consummate the transactions contemplated hereby and to issue the Primary
Shares, in accordance with the terms hereof, (ii) the execution and
delivery of this Agreement by the Company and the consummation by it of the
transactions contemplated hereby have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its
Board of Directors, or its stockholders is required, (iii) this Agreement
has been duly executed and delivered on behalf of the Company, and
(iv) this Agreement constitutes a legal, valid and binding obligation of
the Company enforceable against the Company in accordance with its terms,
subject to bankruptcy, insolvency and other laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

 

(c)           Capitalization.  As of the date hereof, the authorized capital
stock of the Company consists of (a) Thirty Million (30,000,000) shares of
Common Stock, of which 9,882,132 shares were outstanding,

 

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all of which are
duly authorized, validly issued, fully paid and nonassessable; and (b) Ten
Million (10,000,000) shares of Preferred Stock, $0.001 par value (the “Preferred
Stock”), of which none are outstanding.

 

(d)           Issuance
of Shares.  Subject to the delivery
of the Primary Shares Purchase Price, on the Closing Date the Primary Shares
will be duly authorized, validly issued, fully paid and non-assessable, free
and clear of all liens and encumbrances, and will not subject the holder
thereof to personal liability by reason of being such holder.  There are no preemptive or similar rights of
any stockholder of the Company or any other person to acquire any of the
Primary Shares.  The Common Stock is
listed for trading on the Nasdaq National Market System (“Nasdaq”) and
(1) the Company and the Common Stock meet the criteria for continued
listing and trading on Nasdaq; (2) no suspension of trading in the Common
Stock is in effect, and (3) the Company does not reasonably anticipate
that the Common Stock will be delisted by Nasdaq in the foreseeable future.

 

(e)           No
Conflicts.  The execution, delivery
and performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby will not (i) conflict with or
result in a violation of any provision of its articles of incorporation or
by-laws or (ii) violate or conflict with, or result in a breach of any
provision of, or constitute a default (or an event which with notice or lapse
of time or both could become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any material
agreement, indenture or instrument to which the Company or any Subsidiary is a
party, or result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations)
applicable to the Company or any Subsidiary or by which any property or asset
of the Company or any Subsidiary is bound or affected.  Neither the Company nor any Subsidiary is in
violation of its articles of incorporation, by-laws or other organizational
documents, and neither the Company nor any Subsidiary is in default, and,
except as may result from the litigation matter described in Item 3 of the 2004
Form 10-K (as defined below), no event has occurred which with notice or lapse
of time or both could put the Company or any Subsidiary in default, under, and
neither the Company nor any Subsidiary has taken any action or failed to take
an action that would give to others any rights of termination, amendment,
acceleration or cancellation of, any material agreement, indenture or
instrument to which the Company or any Subsidiary is a party or by which any
property or assets of the Company or any Subsidiary is bound or affected.

 

(f)            SEC Documents;
Financial Statements.

 

(i)            The
Company has timely filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and any other material reports or documents required to be filed by
it with the SEC since March 31, 2004; provided that its Annual Report on
Form 10-K for the fiscal year ended March 31, 2004 (the “2004
Form 10-K”), is deemed to have been timely filed pursuant to
Rule 12b-25 under the Exchange Act. 
As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the Exchange Act and the rules and
regulations of the SEC promulgated thereunder applicable to the
SEC Documents, and none of the SEC Documents, at the time they were
filed with the SEC, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein, or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that, with respect to the
Company’s 2004 Form 10-K and its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004 (the “June 2004 Form 10-Q”), the foregoing
representations shall be deemed to apply only to such reports as amended by
amendments filed with the SEC prior to the date of this Agreement.

 

(ii)           As
of their respective dates, the financial statements of the Company included in
the SEC Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto; provided that, with respect to the 2004 Form 10-K
and the June 2004 Form 10-Q, the foregoing representation shall be deemed
to apply only to the financial statements contained in amendments to such
reports filed with the SEC prior to the date of this Agreement.  The financial statements described in the
preceding sentence have been prepared in accordance with United States
generally accepted accounting principles (“GAAP”), consistently applied,
during the periods involved (except (1) as may be otherwise indicated in such
financial statements or the notes thereto, or (2) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects
the consolidated financial position of the Company and its consolidated
Subsidiaries

 

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as of the dates
thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

 

4.             REPRESENTATIONS
AND WARRANTIES OF SELLERS.  Each Seller
hereby represents and warrants to and covenants with Purchaser, individually as
to such Seller, as follows:

 

(a)           Authorization;
Enforcement.  (i) Each Seller has the
requisite power to enter into and perform this Agreement and to consummate the
transactions contemplated hereby and to sell the Additional Shares owned by
him, in accordance with the terms hereof, (ii) this Agreement has been
duly and validly authorized, executed and delivered, and (iii) this
Agreement constitutes a legal, valid and binding obligation of such Seller
enforceable against such Seller in accordance with its terms, subject to
bankruptcy, insolvency and other laws of general applicability relating to or
affecting creditors’ rights and to general equity principles.

 

(b)           Transfer
of Shares.  Each Seller, as of the
Closing, will be the sole beneficial owner of the Additional Shares owned or to
be owned by him and will own such Additional Shares free and clear of all
liens, claims, encumbrances, options, pledges, proxies and restrictions, except
restrictions on transfer imposed by applicable securities laws.  Subject to the delivery of the Additional
Shares Purchase Price, at the Closing, the delivery of the Additional Shares
will vest good and marketable title to such Additional Shares in Purchaser free
and clear of all liens, claims, encumbrances, options, pledges, proxies and
restrictions, except restrictions on transfer imposed by applicable securities
laws.  There are no options, warrants or
similar rights of any person to acquire any of the Additional Shares and there
are no actions, suits or proceedings, pending or threatened, involving the
ownership by such Seller of Additional Shares.

 

5.             COVENANTS.

 

(a)           Commercially
Reasonable Efforts.  The parties
shall use their commercially reasonable efforts to satisfy timely each of the
conditions described in Section 6 and 7 of this Agreement.

 

(b)           Reporting
Status.  The Common Stock is
registered under Section 12(g) of the Exchange Act.  Until such time as Purchaser may sell the
Shares under Rule 144(k) without regard to any other requirements of
Rule 144, so long as Purchaser beneficially owns any of the Shares, the
Company shall timely file all reports required to be filed with the SEC pursuant
to the Exchange Act, and the Company shall not voluntarily terminate its status
as an issuer required to file reports under the Exchange Act even if the
Exchange Act or the rules and regulations thereunder would permit such
termination; provided that this covenant shall be of no further effect in the
event that more than 50 percent of the then outstanding shares of Common
Stock are acquired by a single person or by a group as described in
Rule 13d-5(b)(1) under the Exchange Act.

 

(c)           Listing.  If applicable, the Company shall promptly
secure the listing of the Primary Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are
then listed (subject to official notice of issuance) and shall maintain, so
long as any other shares of Common Stock shall be so listed, such listing of
all Shares.  For so long as the covenant
in Section 5(b) continues in effect, the Company will take all
commercially reasonable steps to obtain and maintain the listing and trading of
its Common Stock on the Nasdaq, including compliance with the Company’s
reporting, filing and other obligations under the bylaws or rules of such
exchange.  The Company shall promptly
provide to Purchaser copies of any notices it receives from the Nasdaq and any
other exchanges or quotation systems on which the Common Stock is then listed
or quoted regarding the continued eligibility of the Common Stock for listing
or quotation on such exchanges and quotation systems.

 

(d)           Registration
Rights.  In the event that at any
time on or after the first anniversary of the Closing Date, the covenant in Section 5(b)
is not in effect or Purchaser is otherwise unable to utilize Rule 144 for
the resale of any of the Shares (other than by reason of the application of
Rule 144(e) and/or Rule 144(f)), within thirty (30) days after
written demand by Purchaser, the Company shall file with the SEC and thereafter
use commercially reasonable efforts to cause to become effective, a
registration statement under Rule 415 of the Securities Act of 1933, as
amended, or any similar rule that may be adopted by the SEC, covering the
resale of the

 

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Shares (the “Registration
Statement”).  The Company may include in
such Registration Statement other securities of the Company to be resold by
holders other than Purchaser.  The
Company will use commercially reasonable efforts to maintain the effectiveness
of the Registration Statement for a period of at least one year from and after
the initial effective date of the Registration Statement.  The Company shall bear all costs of the
Company relating to preparation and filing of the Registration Statement, shall
provide copies of the Registration Statement to Purchaser for review and comment
prior to filing, and shall provide Purchaser with such number of copies of any
final prospectus as Purchaser may reasonably request.

 

6.             CONDITIONS
TO THE COMPANY’S AND THE SELLERS’ OBLIGATION TO SELL.  The obligation of the Company hereunder to issue
and sell the Primary Shares, and of Sellers to sell the Additional Shares, to
Purchaser at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions, provided that these
conditions are for the Company’s and each Seller’s sole benefit and may be
waived by the Company or a Seller as to the Shares to be sold by it or him at
any time in its or his sole discretion:

 

(a)           Delivery
of Agreements.  Purchaser shall have
executed this Agreement and delivered the same to the Company and each Seller.

 

(b)           Payment
of Purchase Price.  Purchaser shall
have delivered the Primary Shares Purchase Price or the Additional Shares
Purchase Price, as applicable, in accordance with Section 1(a) above.

 

(c)           No
Litigation.  No litigation, statute,
rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or endorsed by or in any court or governmental
authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of
the transactions contemplated by this Agreement.

 

7.             CONDITIONS
TO PURCHASER’S OBLIGATION TO PURCHASE. 
The obligation of Purchaser to purchase the Shares at the Closing is
subject to the satisfaction, at or before the Closing Date, of each of the
following conditions, provided that these conditions are for Purchaser’s sole
benefit and may be waived by Purchaser at any time in his sole discretion:

 

(a)           Delivery
of Agreements.  The Company and each
Seller shall have executed this Agreement and delivered the same to Purchaser.

 

(b)           Delivery
of Common Stock Certificates.  The
Company shall have delivered to Purchaser duly executed certificate(s) (in such
denominations as Purchaser shall request) representing the Primary Shares, and
each Seller shall have delivered to Purchaser certificate(s) representing the
Additional Shares, registered in Purchaser’s name or duly endorsed for transfer
or accompanied by duly executed stock powers, in each case, in accordance with Section 1(a)
above.

 

(c)           No
Litigation.  No litigation, statute,
rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or endorsed by or in any court or governmental
authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation
of any of the transactions contemplated by this Agreement.

 

(d)           Common
Stock Trading.  Trading in the Common
Stock on Nasdaq shall not have been suspended by the SEC or Nasdaq.

 

(e)           Other
Documents.  Purchaser shall have
received such other documents and certificates, in form and substance
reasonably satisfactory to Purchaser and his counsel, relating to matters
incident to the transactions contemplated hereby as Purchaser may reasonably
request.

 

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8.             INDEMNIFICATION.

 

(a)           Indemnification.  The Company and each Seller, severally and
not jointly, on the one hand, and Purchaser, on the other hand, each agrees to
indemnify and hold the other harmless from and against any loss, damage,
liability, penalty or expense (including amounts paid in settlement and
reasonable attorneys’ fees and expenses) resulting either directly or
indirectly from any breach of the representations, warranties, covenants or
agreements of such party contained in this Agreement or any other document or
certificate delivered pursuant hereto or thereto or in connection herewith or
therewith; provided that in no event shall the amount for which any Seller
shall be liable to the Purchaser as indemnification exceed such Seller’s
proportionate share of the Additional Shares Purchase Price together with such
Seller’s proportionate share of costs incurred by Purchaser to enforce this
indemnification; and provided further that the Company shall have no obligation
to indemnify Purchaser with respect to breach of Section 3(f) unless
Purchaser gives notice of his claim for such breach prior to the expiration of
two years from the date of this Agreement.

 

(b)           Claims
for Indemnification; Defense of Indemnified Claims.

 

(i)            For
purposes of this Section, the party entitled to indemnification shall be known
as the “Indemnified Party” and the party required to indemnify shall be known
as the “Indemnifying Party.”  In the
event that the Indemnifying Party shall be obligated to the Indemnified Party
pursuant to this Section 8 or in the event that a suit, action,
investigation, claim or proceeding is begun, made or instituted as a result of
which the Indemnifying Party may become obligated to the Indemnified Party
hereunder, the Indemnified Party shall give prompt written notice to the
Indemnifying Party of the occurrence of such event, specifying the basis for
such claim or demand, and the amount or estimated amount thereof to the extent
then determinable (which estimate shall not be conclusive of the final amount
of such claim or demand); provided, however, that the failure to
give such notice shall not constitute a waiver of the right to indemnification
hereunder unless the Indemnifying Party is actually prejudiced in a material
respect thereby.  The Indemnifying Party
agrees to defend, contest or otherwise protect against any such suit, action,
investigation, claim or proceeding at the Indemnifying Party’s own cost and
expense with counsel of its own choice, who shall be, however, reasonably
acceptable to the Indemnified Party.  The
Indemnifying Party may not make any compromise or settlement without the prior
written consent of the Indemnified Party (which will not be unreasonably
withheld or delayed) and the Indemnified Party shall receive a full and
unconditional release reasonably satisfactory to it pursuant to such compromise
or settlement.  The Indemnified Party
shall have the right but not the obligation to participate at its own expense
in the defense thereof by counsel of its own choice.  If requested by the Indemnifying Party, the
Indemnified Party shall (at the Indemnifying Party’s expense) (i) cooperate
with the Indemnifying Party and its counsel in contesting any claim or demand
which the Indemnifying Party defends, (ii) provide the Indemnifying Party with
reasonable access during normal business hours to its books and records to the
extent they relate to the condition or operation of the business and are
requested by the Indemnifying Party to perform its indemnification obligations
hereunder, and to make copies of such books and records, and (iii) make
personnel available to assist in locating any books and records relating to the
business or whose assistance, participation or testimony is reasonably required
in anticipation of, preparation for or the prosecution and defense of, any
claim subject to this Section 8.  In
the event that the Indemnifying Party fails timely to defend, contest or
otherwise protect the Indemnified Party against any such suit, action,
investigation, claim or proceeding, the Indemnified Party shall have the right
to defend, contest or otherwise protect the Indemnified Party against the same
and may make any reasonable compromise or settlement thereof and recover the
entire cost thereof from the Indemnifying Party including without limitation,
reasonable attorneys’ fees, disbursements and all amounts paid as a result of such
suit, action, investigation, claim or proceeding or compromise or settlement
thereof.

 

9.             GOVERNING
LAW; MISCELLANEOUS.

 

(a)           Governing
Law.  This Agreement shall be
governed by and interpreted in accordance with the laws of the State of Texas
without regard to the principles of conflict of laws.  The parties hereto hereby submit to the
exclusive jurisdiction of the United States federal courts located in Dallas,
Texas, with respect to any dispute arising under this Agreement, the agreements
entered into in connection herewith or the transactions contemplated hereby or
thereby.

 

(b)           Counterparts;
Signatures by Facsimile.  This
Agreement may be executed in two or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when

 

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counterparts have
been signed by each party and delivered to the other party.  This Agreement, once executed by a party, may
be delivered to the other party hereto by facsimile transmission of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

 

(c)           Headings.  The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

 

(d)           Severability.  If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

 

(e)           Specific
Performance.  The parties agree that
irreparable damage will result in the event that this Agreement is not
specifically enforced, and the parties agree that any damages available at law
for a breach of this Agreement would not be an adequate remedy.  Therefore, the provisions hereof and the
obligations of the parties hereunder shall be enforceable in a court of equity,
or other tribunal with jurisdiction, by a decree of specific performance, and
appropriate injunctive relief may be applied for and granted in connection
therewith.  Such remedies and all other
remedies provided for in this Agreement shall, however, be cumulative and not
exclusive and shall be in addition to any other remedies which a party may have
under this Agreement or otherwise.

 

(f)            Entire
Agreement; Amendments.  This
Agreement contains the entire understanding of the parties with respect to the
matters covered herein and, except as specifically set forth herein, neither
the Company, Sellers nor Purchaser makes any representation, warranty, covenant
or undertaking with respect to such matters. 
No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the party to be charged with enforcement.

 

(g)           Notices.  Any notices required or permitted to be given
under the terms of this Agreement shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile and shall be effective
five (5) days after being placed in the mail, if mailed by regular United
States mail, or upon receipt, if delivered personally or by courier (including
a recognized overnight delivery service) or by facsimile, in each case
addressed to a party.  The addresses for
such communications shall be:

 

If to the Company:

 

Rentrak Corporation

7700 NE Ambassador Place

Portland, Oregon 97220

Attention:  Chief Executive Officer

Facsimile:  (503) 288-1563

 

If to Sellers:

 

The address specified by
each Seller in Exhibit A attached hereto

 

If to Purchaser:

 

Mark Cuban

Attn: Robert S. Hart

 

Each
party shall provide notice to the other party of any change in address.

 

8

 

(h)           Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
assigns.  Neither the Company, any Seller
nor Purchaser shall assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other.  Notwithstanding the foregoing, subject to Section 2(f),
Purchaser may assign its rights hereunder to any person that purchases Common
Stock in a private transaction from Purchaser or to any of its “affiliates,” as
that term is defined under the Exchange Act, without the consent of the
Company.

 

(i)            Third
Party Beneficiaries.  This Agreement
is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any
provision hereof be enforced by, any other person.

 

(j)            Further
Assurances.  Each party shall do and
perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

 

(k)           Waiver.  Any term or condition of this Agreement may
be waived at any time by the party that is entitled to the benefit thereof, but
no such waiver shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party waiving such term or condition.  No waiver by any party of any term or
condition of this Agreement, in any one or more instances, shall be deemed to
be or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion.  All
remedies, either under this Agreement or by law or otherwise afforded, will be
cumulative and not alternative.

 

(l)            No
Strict Construction.  The language
used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be
applied against any party.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

9

 

IN
WITNESS WHEREOF, the Company, Sellers and Purchaser have
caused this Agreement to be duly executed as of the date first above written.

 

	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  RENTRAK CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Paul Rosenbaum

  	
   

  
	
   

  	
  Name: 

  	
  Paul Rosenbaum

  	
   

  
	
   

  	
  Title: 

  	
  Chairman of the Board
  and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLERS LISTED ON
  EXHIBIT A:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/Kim Cox

  	
   

  
	
   

  	
  Kim Cox

  
	
   

  	
   

  
	
   

  	
  /s/Susan Cox

  	
   

  
	
   

  	
  Susan Cox

  
	
   

  	
   

  
	
   

  	
  /s/Tim Erwin

  	
   

  
	
   

  	
  Tim Erwin

  
	
   

  	
   

  
	
   

  	
  /s/Marty Graham

  	
   

  
	
   

  	
  Marty Graham

  
	
   

  	
   

  
	
   

  	
  /s/Ken Papagan

  	
   

  
	
   

  	
  Ken Papagan

  
	
   

  	
   

  
	
   

  	
  /s/Chris Roberts

  	
   

  
	
   

  	
  Chris Roberts

  
	
   

  	
   

  
	
   

  	
  /s/Paul Rosenbaum

  	
   

  
	
   

  	
  Paul Rosenbaum

  
	
   

  	
   

  
	
   

  	
  /s/Ron Giambra

  	
   

  
	
   

  	
  Ron Giambra

  
	
   

  	
   

  
	
   

  	
  /s/Amir Yazdani

  	
   

  
	
   

  	
  Amir Yazdani

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  /s/Mark Cuban

  	
   

  
	
   

  	
  Mark Cuban

  
					

 

10

 

EXHIBIT A

 

Selling
Shareholders

 

	
  Name
  and Address* of Seller

  	
   

  	
  Number of Additional Shares

  	
   

  
	
  Kim
  Cox and Susan Cox as joint tenants

  	
   

  	
  25,000

  	
   

  
	
  Tim
  Erwin

  	
   

  	
  1,800

  	
   

  
	
  Marty
  Graham

  	
   

  	
  30,000

  	
   

  
	
  Ken
  Papagan

  	
   

  	
  15,000

  	
   

  
	
  Chris
  Roberts

  	
   

  	
  5,000

  	
   

  
	
  Paul
  Rosenbaum

  	
   

  	
  80,000

  	
   

  
	
  Ron
  Giambra

  	
   

  	
  5,000

  	
   

  
	
  Amir
  Yazdani

  	
   

  	
  30,000

  	
   

  
	
  TOTAL

  	
   

  	
  191,800

  	
   

  

 

*The address of each
Seller is 7700 N.E. Ambassador Place, Portland, Oregon 97220.

 

11EXHIBIT
10.1

 

AMENDMENT NUMBER TWO

TO XPONENTIAL, INC.

CAPITAL INCENTIVE PROGRAM

 

This Amendment
Number Two (“Amendment”) to the Xponential, Inc. Capital Incentive Program
dated January 1, 2003, as amended February 28, 2003 (the “Program”), is dated
as of October 1, 2004.

 

WHEREAS,
Section 2(l) of the Program defines the terms and conditions of the Elective
Deferral Agreement under which a Participant for a Program Year may defer a
percent of his Salary that would otherwise be paid to the Participant during
the Program Year absent his deferral election; and

 

WHEREAS,
Section 2(l) limits the amount of deferral of a participant’s Salary (as
defined in the Program) to an amount up to fifty percent (50%) of such
participant’s Salary; and

 

WHEREAS, the
Administrator of the Program desires to increase the Salary deferral limit from
fifty percent (50%) to one hundred percent (100%) of each participant’s Salary;

 

Now,
therefore, Section 2(l) is hereby amended by deleting it in its entirety and
substituting in lieu thereof the following:

 

Elective
Deferral Agreement means a written agreement entered into by and between the
Adopting Employer and a Participant for a Program Year, which agreement
describes the terms and conditions of such Participants arrangement to defer
(i) up to one hundred percent (100%) of his Bonus that may be awarded with
respect to such Program Year and/or (ii) up to one hundred percent (100%) of
his Salary that would otherwise be paid to the Participant during the Program
Year absent his deferral election.  The
Elective Deferral Agreement shall be executed and dated by the Participant and
shall specify the amount of Bonus and/or Salary, by percentage or dollar
amount, to be deferred under the Program for the Program Year.

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