Document:

EXHIBIT 10.11

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

THIS
FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of February 11,
2005, by and between RENTRAK CORPORATION, an Oregon corporation (“Borrower”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

 

RECITALS

 

WHEREAS,
Borrower is currently indebted to Bank pursuant to the terms and conditions of
that certain Credit Agreement between Borrower and Bank dated as of July 15,
2002, as amended from time to time (“Credit Agreement”).

 

WHEREAS,
Bank and Borrower have agreed to certain changes in the terms and conditions
set forth in the Credit Agreement and have agreed to amend the Credit Agreement
to reflect said changes.

 

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree that the Credit Agreement shall
be amended as follows:

 

1.                                       Section 4.9
(d) is hereby deleted in its entirety, and the following substituted
therefor:

 

“(d)                           Net
income after taxes not less than $1.00 on an annual basis, determined as of
each fiscal year end, and pre-tax profit not less than $1.00 on a quarterly
basis, determined as of each fiscal quarter end.”

 

2.                                       Except
as specifically provided herein, all terms and conditions of the Credit
Agreement remain in full force and effect, without waiver or modification.  All terms defined in the Credit Agreement
shall have the same meaning when used in this Amendment.  This Amendment and the Credit Agreement shall
be read together, as one document.

 

3.                                       Borrower
hereby remakes all representations and warranties contained in the Credit
Agreement and reaffirms all covenants set forth therein.  Borrower further certifies that as of the
date of this Amendment there exists no Event of Default as defined in the
Credit Agreement, nor any condition, act or event which with the giving of
notice or the passage of time or both would constitute any such Event of
Default.

 

UNDER
OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK CONCERNING
LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN
WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE ENFORCEABLE.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the day and year first written above.

 

	
   

  	
  WELLS FARGO
  BANK,

  
	
  RENTRAK
  CORPORATION

  	
    NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mark Thoenes

  	
   

  	
  By:

  	
  /s/ Victoria
  Vohs

  	
   

  
	
  Mark Thoenes

  	
   

  	
  Victoria Vohs

  
	
  Chief Financial
  Officer

  	
   

  	
  Vice President

  
						

 

1EXHIBIT 10.17

 

RENTRAK CORPORATION

 

INCENTIVE STOCK OPTION AGREEMENT

 

THIS AGREEMENT, effective as
of February 9, 2005, is made by and between Rentrak Corporation, an Oregon
corporation (hereinafter referred to as “Company”), and Paul Rosenbaum, an
employee of the Company or a Subsidiary of the Company (hereinafter referred to
as “Employee”):

 

WHEREAS, the Company wishes
to afford the Employee the opportunity to purchase shares of its $.001 par
value Common Stock; and

 

WHEREAS, the Company has
adopted the 1997 Equity Participation Plan of Rentrak Corporation (hereinafter
referred to as “Plan”); and

 

WHEREAS, the Committee
appointed to administer the Plan has determined that it would be to the
advantage and best interest of the Company and its shareholders to grant the
Incentive Stock Option (the “Option”) provided for herein to the Employee as an
inducement to remain in the service of the Company and as an incentive for
increased efforts during such service;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

 

ARTICLE I

 

GRANT OF OPTION

 

Section 1.1
- Grant of Option

 

In consideration of the
Employee’s agreement to remain in the employ of the Company or its Subsidiaries
and for other good and valuable consideration, effective as of the date hereof,
the Company irrevocably grants to the Employee an Option to purchase any part
or all of an aggregate of 38,092 shares of its $.001 par value Common Stock
upon the terms and conditions set forth in this Agreement.

 

Section 1.2
- Purchase Price

 

The purchase price of the
shares of Common Stock covered by the Option shall be $10.50 per share, without
commission or other charge, subject to adjustment as provided in Section 9.3(a) of
the Plan.

 

Section 1.3
- Consideration to Company

 

In consideration of the
granting of this Option by the Company, the Employee agrees to render faithful
and efficient services to the Company or a Subsidiary, with such duties and
responsibilities as the Company shall from time to time prescribe.  Nothing in this Agreement or in the Plan
shall confer upon the Employee any right to continue in the employ of the
Company or any Subsidiary, or as a director of the Company, or shall interfere
with or restrict in any way the rights of the Company and its Subsidiaries,
which are hereby expressly reserved, to discharge the Employee at any time for
any reason whatsoever, with or without cause.

 

Section 1.4
- Adjustments in Option

 

The Committee shall have
authority to make adjustments or take other actions with respect to the Option
in accordance with the provisions of Section 9.3 of the Plan; provided,
however, that each such adjustment shall be made in such manner as not to
constitute a “modification” within the meaning of Section 424(h)(3) of
the Code, unless the Optionee consents to an adjustment which would constitute
such a “modification”.

 

1

 

ARTICLE II

 

PERIOD OF EXERCISABILITY

 

Section 2.1
- Commencement of Exercisability

 

(a)                                  Subject to Sections 2.1(b) and 2.3,
the Option shall become exercisable in four cumulative installments as follows:

 

(i)                                     The first installment shall consist of
25 percent of the shares covered by the Option and shall become
exercisable on the first anniversary of the date the Option is granted.

 

(ii)                                  The second installment shall consist of 25
percent of the shares covered by the Option and shall become exercisable on the
second anniversary of the date the Option is granted.

 

(iii)                               The third installment shall consist of
25 percent of the shares covered by the Option and shall become
exercisable on the third anniversary of the date the Option is granted.

 

(iv)                              The fourth installment shall consist of 25 percent
of the shares covered by the Option and shall become exercisable on the fourth
anniversary of the date the Option is granted.

 

(b)                                 No portion of the Option which is
unexercisable at Termination of Employment shall thereafter become exercisable.

 

Section 2.2
- Duration of Exercisability

 

Once the Option becomes
exercisable pursuant to Section 2.1, it shall remain exercisable until it
becomes unexercisable under Section 2.3.

 

Section 2.3
- Expiration of Option

 

The Option may not be
exercised to any extent by anyone after the first to occur of the following
events:

 

(a)                                  The expiration of seven years from the date
the Option was granted; or

 

(b)                                 If the Employee owned (within the meaning of Section 424(d) of
the Code), at the time the Option was granted, more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any
Subsidiary or parent corporation thereof (within the meaning of Section 422
of the Code), the expiration of five (5) years from the date the Option
was granted; or

 

(c)                                  The expiration of one (1) month from the
date of the Employee’s voluntary Termination of Employment; or

 

(d)                                 The expiration of three (3) months from
the date of the Employee’s Termination of Employment by reason of his
retirement or his being discharged not for good cause (for purposes of this
Agreement, “good cause” means any act of fraud by the Employee, any act of
dishonesty by the Employee involving the Company or its business, the Employee’s
conviction of or a plea of nolo contendere to a felony, or the commission of
any act in direct or indirect competition with or materially detrimental to the
best interests of the Company that is in breach of the Employee’s fiduciary
duties to the Company), unless the Employee dies within said three-month
period; or

 

(e)                                  The expiration of one (1) year from the
date of the Employee’s Termination of Employment by reason of his permanent and
total disability (within the meaning of Section 22(e)(3) of the
Code); or

 

(f)                                    The expiration of one (1) year from the
date of the Employee’s death; or

 

(g)                                 Immediately following the Employee’s
Termination of Employment by reason of being discharged for good cause; or

 

(h)                                 The effective date of either the merger or
consolidation of the Company with or into another corporation, or the
acquisition by another corporation or person of all or substantially all of the
Company’s assets or eighty percent (80%) or more of the Company’s then
outstanding voting stock, or the liquidation or dissolution of the Company, unless

 

2

 

the Committee waives this
provision in connection with such transaction.  As soon as practicable
prior to the effective date of such merger, consolidation, acquisition,
liquidation or dissolution, the Committee shall give the Employee notice of
such event if the Option has then neither been fully exercised nor become
unexercisable under this Section 2.3.

 

Section 2.4
- Adjustments to and/or Cancellation of the Option

 

Neither (i) the issuance
of additional shares of stock of the Company in exchange for adequate consideration
(including services), nor (ii) the conversion of outstanding preferred
shares of the Company into Common Stock, shall be deemed to require an
adjustment in the shares covered by the Option or in the purchase price of
shares subject to the Option pursuant to Section 9.3(a) of the
Plan.  In the event the Committee shall
determine that an event has occurred affecting the Company such that an
adjustment to the Option under Section 9.3(a) of the Plan should be
made but that it is not practical or feasible to make such an adjustment, such
event shall be deemed a Terminating Event subject to the following paragraph.

 

Subject to Section 9.3(b)(vii) of
the Plan, in the event of (a) the dissolution or liquidation of the
Company,  (b)  a reorganization,
merger, or consolidation of the Company with one or more corporations as a
result of which the Company will not be a surviving corporation, (c)  the
sale of all or substantially all of the assets of the Company,  (d)  a sale or other transfer of more
than eighty percent (80%) of the then outstanding shares of Common Stock of the
Company, or  (e)  the occurrence of
an event in accordance with the last sentence of the previous paragraph  (any of such events is herein referred to as
a “Terminating Event”), the Committee shall determine whether a provision will
be made in connection with the Terminating Event for an appropriate assumption
of the Option by, or substitution of appropriate new options covering stock of,
a successor corporation employing the Employee or stock of an affiliate of such
successor employer corporation .  If the
Committee determines that such an appropriate assumption or substitution will be
made, the Committee shall give notice of the determination to the Employee and
the terms of such assumption or substitution, and any adjustments made  (i)  to the number and kind of shares
subject to the Option outstanding under the Plan (or to options issued in
substitution therefor),  (ii)  to
the Option purchase price and (iii)  to the terms and conditions of the
Option, shall be binding upon the Employee. 
If the Committee determines that no assumption or substitution will be
made, the Committee shall give notice of this determination to the Employee,
whereupon the Employee shall have the right for a period of thirty (30) days
following the notice to exercise in full or in part the unexercised and
unexpired portion of this Option, without regard to the limitation on
exercisability specified in Section 2.1(a) above.  Upon the expiration of this thirty (30) day
period, the Option shall expire to the extent not earlier exercised.

 

Section 2.5
- Special Tax Consequences

 

The Employee acknowledges
that, to the extent that the aggregate Fair Market Value of stock with respect
to which “incentive stock options” (within the meaning of Section 422 of
the Code, but without regard to Section 422(d) of the Code),
including the Option, are exercisable for the first time by the Employee during
any calendar year (under the Plan and all other incentive stock option plans of
the Company, any Subsidiary and any parent corporation thereof (within the
meaning of Section 422 of the Code)) exceeds $100,000, such options shall
be treated as Non-Qualified Options to the extent required by Section 422
of the Code.  The Employee further
acknowledges that the rule set forth in the preceding sentence shall be
applied by taking options into account in the order in which they were
granted.  For purposes of these rules,
the Fair Market Value of stock shall be determined as of the time the option
with respect to such stock is granted.

 

ARTICLE III

 

EXERCISE OF OPTION

 

Section 3.1 - Partial Exercise

 

Any exercisable portion of
the Option or the entire Option, if then wholly exercisable, may be exercised
in whole or in part at any time prior to the time when the Option or portion
thereof becomes unexercisable under Section 2.3; provided, however, that
each partial exercise shall be for not less than 100 shares and shall be for
whole shares only.

 

3

 

Section 3.2
- Manner of Exercise

 

The Option, or any
exercisable portion thereof, may be exercised solely by delivery to the Company’s
Secretary or his office of all of the following prior to the time when the
Option or such portion becomes unexercisable under Section 2.3:

 

(a)                                  A written notice complying with the applicable
rules established by the Committee stating that the Option, or a portion
thereof, is exercised.  The notice shall
be signed by the Employee or other person then entitled to exercise the Option
or such portion.

 

(b)                                 Full payment to the Company for the shares
with respect to which such Option or portion is exercised, which shall be:

 

(i)                                     In cash; or

 

(ii)                                  With the consent of the Committee, shares of
the Company’s Common Stock owned by the Employee, duly endorsed for transfer to
the Company, with a Fair Market Value on the date of delivery (and, if acquired
from the Company, held for at least six months) equal to the aggregate purchase
price of the shares as to which the Option is exercised; or

 

(iii)                               With the consent of the Committee, by delivery of a notice that the
Employee has placed a market sell order with a broker with respect to shares of
the Company’s Common Stock then issuable upon exercise of the Option, and that
the broker has been directed to pay a sufficient portion of the net proceeds of
the sale to the Company in satisfaction of the purchase price of the shares as
to which the Option is exercised.

 

(c)                                  A bona fide written representation and
agreement, in a form satisfactory to the Committee, signed by the Employee or
other person then entitled to exercise such Option or portion as the Committee
in its discretion, shall determine is necessary or appropriate to effect
compliance with the Securities Act of 1933 and any other federal or state
securities laws or regulations.  Without limiting the generality of the
foregoing, the Committee may require an opinion of counsel acceptable to it to
the effect that any subsequent transfer of shares acquired on exercise of the
Option does not violate the Securities Act of 1933, and may issue stop-transfer
orders covering such shares.  Share certificates evidencing stock issued
on exercise of this Option shall bear an appropriate legend referring to the
provisions of this subsection (c) and the agreements herein. 
The written representation and agreement referred to in the first sentence of
this subsection (c) shall, however, not be required if the shares to
be issued pursuant to such exercise have been registered under the Securities
Act of 1933, and such registration is then effective in respect of such shares.

 

(d)                                 Full payment to the Company (or other employer
corporation) of all amounts which, under federal, state or local tax law, it is
required to withhold upon exercise of the Option.  With the consent of the Committee, (i) shares
of the Company’s Common Stock owned by the Employee, duly endorsed for
transfer, with a Fair Market Value equal to the sums required to be withheld,
or (ii) shares of the Company’s Common Stock issuable to the Employee upon
exercise of the Option with a Fair Market Value equal to the sums required to
be withheld, may be used to make all or part of such payment.

 

(e)                                  In the event the Option or portion shall be
exercised pursuant to Section 4.1 by any person or persons other than the
Employee, appropriate proof of the right of such person or persons to exercise
the Option.

 

Section 3.3
- Rights as Shareholder

 

The holder of the Option
shall not be, and shall not have any of the rights or privileges of, a
shareholder of the Company in respect of any shares purchasable upon the
exercise of any part of the Option unless and until certificates representing
such shares shall have been issued by the Company to such holder.

 

ARTICLE IV

 

OTHER PROVISIONS

 

Section 4.1
- Option Not Transferable

 

Neither the Option nor any
interest or right therein or part thereof shall be sold, pledged, assigned, or
transferred in any manner other than by will or the laws of descent and
distribution, unless and until such Option has been exercised, or the shares
underlying such Option have been issued, and all restrictions applicable to
such shares have lapsed.  

 

4

 

Neither the Option nor any
interest or right therein or part thereof shall be liable for the debts,
contracts or engagements of the Employee or his successors in interest or shall
be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect,
except to the extent that such disposition is permitted by the preceding
sentence.

 

Section 4.2
- Shares to Be Reserved

 

The Company shall at all
times during the term of the Option reserve and keep available such number of shares
of Common Stock as will be sufficient to satisfy the requirements of this
Agreement.

 

Section 4.3
- Notices

 

Any notice to be given under
the terms of this Agreement to the Company shall be addressed to the Company in
care of its Secretary, and any notice to be given to the Employee shall be
addressed to him at the address given beneath his signature hereto.  By a
notice given pursuant to this Section 4.3, either party may hereafter
designate a different address for notices to be given.  Any notice which is required to be given to
the Employee shall, if the Employee is then deceased, be given to the Employee’s
personal representative if such representative has previously informed the
Company of his status and address by written notice under this Section 4.3. 
Any notice shall be deemed duly given when enclosed in a properly sealed
envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in
a post office or branch post office regularly maintained by the United States
Postal Service.

 

Section 4.4
- Titles

 

Titles are provided herein
for convenience only and are not to serve as a basis for interpretation or
construction of this Agreement.

 

Section 4.5
- Notification of Disposition

 

The Employee shall give
prompt notice to the Company of any disposition or other transfer of any shares
acquired under this Agreement if such disposition or transfer is made (a) within
two (2) years from the date of granting the Option with respect to such
shares or (b) within one (1) year after the transfer of such shares
to him.  Such notice shall specify the date of such disposition or other
transfer and the amount realized, in cash, other property, assumption of
indebtedness or other consideration, by the Employee in such disposition or
other transfer.

 

Section 4.6
- Construction

 

This Agreement shall be
administered, interpreted and enforced under the internal laws of the State of
Oregon without regard to conflicts of laws thereof.

 

Section 4.7-
Conformity to Securities Laws

 

The Employee acknowledges
that the Plan is intended to conform to the extent necessary with all
provisions of the Securities Act of 1933 and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange
Commission thereunder, including without limitation Rule 16b-3.  Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the Option is granted and may be
exercised, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

 

Section 4.8
- Incorporation of Terms of Plan and Definitions

 

The terms of the Plan are
incorporated by reference herein and made a part of this Agreement.  All capitalized terms used herein without
definition have the meanings ascribed to such terms in the Plan.

 

IN WITNESS WHEREOF, this
Agreement has been executed and delivered by the parties hereto.

 

5

 

	
   

  	
   

  	
  RENTRAK CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Paul
  Rosenbaum

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
  /s/ Paul Rosenbaum

  	
   

  	
   

  	
   

  
	
  (Paul Rosenbaum)

  	
   

  	
   

  
					

 

Address:

c/o
7700 NE Ambassador Place

Portland,
OR  97220

 

Employee’s
Taxpayer Identification Number: ###-##-####

 

6

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