Document:

EXHIBIT 10.35

 

Rentrak Corporation

 

Summary of Compensation Arrangements
for Non-Employee Directors

 

Each
non-employee director of Rentrak Corporation (“Rentrak”) receives an annual
retainer of $20,000; non-employee directors who serve on the Audit Committee receive
an additional retainer of $2,500.  Non-employee
directors are also paid $500 for each board meeting they attend in person or by
telephone conference call.  Each director
who serves on a board committee is paid $500 for attending each in-person or
telephone conference committee meeting.  Rentrak
also reimburses directors for their travel expenses for each meeting attended
in person.

 

Under
Rentrak’s 1997 Equity Participation Plan, each non-employee director receives
an automatic grant, at the beginning of each fiscal year, of a stock option exercisable
for 10 years, subject to earlier termination if the director ceases to be a
director.  The option entitles the
director to purchase 10,000 shares of Rentrak common stock at a purchase price
equal to the fair market value of Rentrak’s stock on the date of grant and becomes
exercisable in full one year after the date of grant.  Each chair of a board committee
simultaneously receives an option to purchase an additional 2,500 shares on the
same terms.

 

1EXHIBIT
4.1

 

PPT
VISION, INC.

2005 EMPLOYEE STOCK PURCHASE PLAN

 

Section 1

Purpose

 

The purpose of this Employee Stock Purchase Plan is to provide a
greater community of interest between PPT VISION, Inc. shareholders and its
employees, and to facilitate purchase by employees of shares of stock in the
Company.  The Company believes the Plan
will encourage employees to remain in the employ of the Company and will permit
the Company to compete with other corporations offering similar plans in
obtaining and retaining the services of competent employees.  The Company intends that options issued under
this Plan will be options issued pursuant to an “Employee Stock Purchase Plan”
within the meaning of Section 423 of the Internal Revenue Code of 1986, as
amended.

 

Section 2

Definitions

 

A.                                   “Plan” means
the 2005 PPT VISION, Inc. Employee Stock Purchase Plan.

 

B.                                     “Code” means
the Internal Revenue Code of 1986, as amended.

 

C.            “Company” means PPT
VISION, Inc. and any of its subsidiaries (as that term is defined by Section
424(f) of the Code) to which PPT VISION, Inc. and the respective subsidiaries
by action of their Boards of Directors make this Plan applicable.

 

D.            “Employee” means any
person, including an officer, who is customarily employed twenty hours or more
per week and more than five months in a calendar year by the Company.

 

E.             “Eligible Employee”
means an Employee of the Company who is eligible for participation in the Plan
in accordance with Section 4.

 

F.             “Participant” means
an Eligible Employee who has elected to participate in the Plan in accordance
with Section 5.

 

G.                                     “Committee”
means the committee provided for in Section 11.

 

H.            The “Commencement
Date” of the Plan means June 1, 2005 or such other date established by the
Committee.

 

I.              “Base Pay” means
regular straight time earnings annualized as of the date of commencement of a
Phase excluding payments, if any, for overtime, incentive compensation,
incentive payments, premiums, bonuses, and any other special remuneration.

 

J.             “Termination Date”
means the earlier of (i) the day immediately preceding the one-year anniversary
of the commencement of a particular phase of the Plan, or (ii) the effective
date of any merger or consolidation in which the Company is not the surviving
corporation.

 

 

 

K.            “Shares” means
common stock of the Company, subject to adjustments that may be made in
accordance with Sections 16 and 17.

 

Section 3

Term and Phases of the Plan

 

A.            The Plan will
commence on the Commencement Date and will terminate ten years thereafter.  The Plan will be considered of no force or
effect and any options granted will be null and void, however, unless the
shareholders of the Company approve the Plan within twelve months before or
after the date of its adoption by the Board of Directors.

 

B.            The Plan will be
carried out in phases, each phase being for a period of one year, or such other
length of time as made be determined by the Committee.  No phases may run concurrently.  A phase may commence immediately after the
termination of the preceding phase.  The
commencement of each phase will be determined by the Committee.  The commencement of the first phase must be
within twelve months before or after the date of approval of the Plan by the
shareholders of the Company.  In the
event all of the stock reserved for grant of options hereunder is issued
pursuant to the terms hereof prior to the commencement of one or more phases
scheduled by the Committee or the number of shares remaining is so small, in
the opinion of the Committee, as to render administration of any succeeding
phase impracticable, such phase or phases must be cancelled.  Phases may be numbered successively as Phase
1, Phase 2, Phase 3, Phase 4 and Phase 5. 
This Plan is a successor plan to the PPT VISION, Inc. 2000 Employee
Stock Purchase Plan and shares authorized under this Plan may be issued under
the final phase of that Plan.

 

Section 4

Eligibility

 

A.            Any Employee of the
Company who has completed at least two weeks of continuous service on or prior
to the commence­ment of a phase of the Plan will be eligible to participate in
the Plan, subject to the limitations imposed by Section 423 of the Code.

 

B.            Any Employee who is
a member of the Board of Directors of the Company will be eligible to
participate in the Plan.

 

 

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C.            No Employee may be
granted an option:

 

1.             If such Employee,
immediately after the option is granted, owns shares possessing five percent
(5%) or more of the total combined voting power or value of all classes of
shares of the Company or a parent or a subsidiary of the Company.  For purposes of determining share ownership,
the rules of Section 424(d) of the Code will apply, and shares that the
Employee may purchase under outstanding options will be treated as shares owned
by the Employee; or

 

2.             That permits the
Employee to purchase shares under such plans of the Company or a parent or a
subsidiary of the Company to accrue at a rate that exceeds $25,000 of the fair
market value of such shares (determined at the time such option is granted) for
each calendar year in which such option is outstanding at any time.

 

Section 5

Participation

 

A.            An Eligible Employee
may elect to enroll as and become a Participant in any phase of the Plan by
completing a payroll deduction authorization on the form provided by the
Company and filing it with the personnel office at least seven days prior the
date the phase commences.

 

B.            Payroll deductions
for a Participant will commence on the date when his or her payroll deduction
authorization becomes effective and will end on the last payday immediately
prior to or coinciding with the Termination Date of the particular phase unless
sooner terminated by the Participant as provided in Section 9 or as otherwise
provided herein.

 

C.            A participant who
ceases to be an Eligible Employee, although still employed by the Company,
thereupon will be deemed to discontinue his or her participation in the Plan
and will have the rights provided in Section 9.

 

D.            Participation in the
Plan will be voluntary.

 

Section 6

Payroll Deductions

 

A.            Upon enrollment in
any particular phase of the Plan, a Participant may elect to make contributions
to the Plan by payroll deductions (in full dollar amounts calculated to be as
uniform as practicable throughout the period of the phase), in the aggregate
amount not in excess of the sum of 10% of the Participant’s Base Pay for the
term of the phase, as determined on the basis of his or her annual or
annualized Base Pay at the commencement of the phase.  The minimum authorized payroll deduction is
$10 per month.

 

B.            All payroll
deductions made for a Participant will be credited to the Participant’s account
under the Plan.  The Participant may not
make any separate cash payments into such account.

 

C.            A Participant may
discontinue his or her participation in the phase and terminate his or her
payroll deduction authorized at any time as provided in Section 9.

 

 

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D.            A Participant may
reduce the amount of his or her payroll deduction by completing an amended
payroll deduction authorization on the form provided and filing it with the
personnel office, but no change can be made during a phase of the Plan that
would increase the rate of his or her payroll deductions.

 

Section 7

Terms and Conditions of Options

 

A.            Stock options
granted pursuant to the Plan may be evidenced by agreements in such form as the
Committee may recommend and the Board of Directors may approve.  All options must comply with and be subject
to the terms and conditions in this Section 7.

 

B.            As of the
commencement of a phase when a Participant’s payroll deduction authorization
becomes effective, the Participant will be granted an option for as many full
shares as he or she will be able to purchase with the payroll deduction
credited to the Participant’s account during his or her participation in the
phase, subject to the limitations of Section 10.  The maximum number of shares subject to
purchase by a Participant will equal the total amount to be credited to the
Participant’s account under Section 6 hereof divided by the option price set
forth in Section 7, paragraph C.1. hereof.

 

C.            The option price of
shares to be purchased with payroll deductions for an Employee who becomes a
Participant as of the commencement of a phase will be the lower of:

 

1.             85% of the fair
market value of the shares on the date the phase commences, or

 

2.             85% of the fair
market value of the shares on the Termination Date of the phase.

 

D.            The Committee has
the power to increase the option price, prior to commencement of a phase, up to
100% of fair market value rather than 85% if it determines that issuance of the
shares at less than 100% of fair market value is not in the best interest of
the Company for accounting or other reasons.

 

E.             The fair market
value of the shares will be determined by the Committee for each valuation date
in a manner consistent with Section 423 of the Code.

 

Section 8

Exercise of Option

 

A.            Unless a Participant
gives written notice to the Company as provided in Section 9, an option for the
purchase of shares will be exercised automatically as of the Termination Date
of the phase for the purchase of the number of full shares that the accumulated
payroll deductions in the Participant’s account at that time will purchase at
the applicable option price, but in no event may the number of full shares be
greater than the number of full shares that the Participant is eligible to
purchase under Section 7, paragraph B.

 

 

4

 

B.            By written notice to
the Company within one week prior to the Termination Date of the phase a
Participant may elect, effective at the Termination Date, to:

 

1.             withdraw all the
accumulated payroll deductions in the Participant’s account at the time,
without interest;

 

2.             exercise his or her
option for a specified number of full shares less than the number of full
shares which the accumulated payroll deductions in his or her account will
purchase at the applicable option price, and withdraw the balance in the
Participant’s account without interest, but in no event will the number of full
shares be greater than the number of full shares to which a Participant is
eligible to purchase under Section 7, paragraph B.

 

Section 9

Death, Withdrawal or Termination

 

A.            In the event of the
death of a Participant during any phase of the Plan, the person or persons
specified in Section 18 may give notice to the Company within sixty (60) days
of the death of the Participant, but in no event later than the end of the
period specified in Section 8, paragraph B., electing to purchase the number of
full shares which the accumulated payroll deductions in the account of such
deceased Participant will purchase at the option price specified in Section C
of Section 7 and have the balance in the account distributed in cash without
interest.  If no such notice is received
by the Company within the period described in the preceding sentence, the
accumulated payroll deductions will be distributed in cash.

 

B.            Upon termination of
the Participant’s employment during any phase of the Plan for any reason other
than the death of the Participant, the payroll deductions credited to his or
her account without interest will be returned to such Participant promptly.

 

C.            A Participant may
withdraw all or any part of the payroll deductions credited to his or her
account under the Plan at any time by giving written notice to the
Company.  The Participant’s payroll
deductions credited to his or her account will be paid to him or her promptly
after receipt of the notice of withdrawal and no further payroll deductions
will be made from his or her compensation. Any amounts not withdrawn will
remain in the Participant’s account.

 

Section 10

Shares Under Option

 

A.            The shares to be
sold to a Participant under the Plan may, at the election of the Company, be
either authorized but unissued shares or shares acquired in the open market by
the Company.  A total of 100,000(1) shares
are authorized for issuance under the Plan, subject to 

(1)           The Plan as originally adopted by the
Board of Directors in February 2005 and approved by the shareholders on March
10, 2005 authorized 400,000 shares.  The
Company effected a one-for-four reverse stock split effective March 31, 2005,
which reduced the shares to 100,000. 

 

 

5

 

adjustment upon changes in capitalization of the Company as provided in
Sections 16 and 17.  If the total number
of shares for which options are to be granted on any date in accordance with
Section 7 exceeds the number of shares then available under the Plan (after
deduction  of all shares for which
options have been exercised or are then outstanding), the Committee will make a
pro rata allocation of the shares remaining available in as nearly a uniform
manner as practicable and as it determines to be equitable.  In such event, payroll deductions to be made
will be reduced accordingly and the Committee will give written notice of the
reduction to each Participant affected thereby.

 

B.            As promptly as
practicable after the Termination Date of a phase, the Company will deliver to
each Participant the full shares purchased under exercise of his or her option,
together with a cash payment equal to the balance (without interest) of any
payroll deductions credited to his or her account that were not used for the
purchase of shares.

 

C.            The Participant will
have no interest in shares covered by an option until the option has been
exercised.

 

Section 11

Administration

 

The Plan will be administered by the Board of Directors of the Company,
or in its discretion, by a Committee consisting of not less than two members
who will be appointed by the Board of Directors of the Company.  Each member of such Committee must be either
a director, an officer or an employee of the Company.  Unless the Board of Directors limits the
authority delegated to the Committee in its appointment, the Committee will be
vested with full authority to make, administer, and interpret such rules and
regulations as it deems necessary to administer the Plan, and any such determina­tion,
decision or action of such Committee with respect to any action in connection
with the construction, interpretation adminis­tration or application of the
Plan will be final, conclusive and binding on all Participants and any and all
other persons claiming under or through any Participant.  The provisions of the Plan must be construed,
however, so as to extend and limit participation in the Plan only in a manner
consistent with the requirements of Section 423 of the Code.  For all purposes of this Plan other than this
Section 11, references to the Committee also refer to the Board of Directors.

 

Section 12

Amendment of the Plan

 

The Board of Directors of the Company may at any time amend the Plan,
except that no amendment may make any change in any option theretofore granted
which would adversely affect the rights of any Participant, and no amendment
may be made without prior approval of the shareholders of the Company if the
amendment would require sale of more shares than are authorized under Section 10
of the Plan or change the qualifications of Eligible Employees under the Plan.

 

 

6

 

Section 13

Nontransferability

 

Neither payroll deductions credited to a Participant’s account nor any
rights with regard to the exercise of an option or to receive shares under the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way
by the Participant and any such attempted assignment, transfer, pledge or other
disposition will be null and void and without effect, but the Company may treat
such act as an election to withdraw funds in accordance with Section 9.

 

Section 14

Use of Funds

 

All payroll deductions received or held by the Company under this Plan
may be used by the Company for any corporate purposes and the Company will not
be obligated to segregate payroll deductions.

 

Section 15

Interest

 

No interest will be paid on any amounts in any Participant’s account.

 

Section 16

Changes in Capitalization, Merger, etc.

 

A.            Subject to any
required action by the shareholders, the number of shares covered by each
outstanding option, and the price per share thereof in each such option, will
be proportionately adjusted for any increase or decrease in the number of
issued shares of the Company resulting from a subdivision or consolidation of
shares or the payment of a share dividend (but only on the shares) or any other
increase or decrease in the number of such shares effected without receipt of
consideration by the Company.

 

B.            Subject to any
required action by the shareholders, if the Company is involved in any merger
or consolidation in which it is the surviving corporation, each outstanding
option will pertain to and apply to the securities to which a holder of the
number of shares subject to the option would have been entitled.  A dissolution or liquidation of the Company
will cause each outstanding option to terminate.  In such event, immediately prior to such
dissolution or liquidation, each Participant must be repaid the payroll
deductions credited to his or her account without interest.

 

C.            In the event of a
change in the shares of the Company as presently constituted, which is limited
to a change of all its authorized shares with par value into the same number of
shares with a different par value or without par value, the shares resulting
from any such change will be deemed to be the shares within the meaning of this
Plan.

 

 

7

 

Section 17

Adjustments to Shares

 

A.            To the extent that
the foregoing adjustments relate to shares or securities of the Company, such
adjustments will be made by the Committee, and its determination in that
respect will be final, binding and conclusive. 
No option granted pursuant to this Plan may not be adjusted in a manner
that causes the option to fail to continue to qualify as an option issued
pursuant to an “employee stock purchase plan” within the meaning of Section 423
of the Code.

 

B.            Except as
hereinbefore expressly provided in Sections 16 and 17, an Participant has no
right by reason of any subdivision or consolidation of shares of any class or
the payment of any stock dividend or any other increase or decrease in the
number of shares of any class or by reason of any dissolution, liquidation,
merger, or consolidation or spin-off of assets or stock of another corporation,
and any issue by the Company of shares of any class, or securities convertible
into shares of any class, will not affect, and no adjustment by reason thereof
will be made with respect to, the number or price of shares subject to the
option.

 

C.            The grant of an
option pursuant to this Plan will not affect in any way the right or power of
the Company to make adjustments, reclassifications, reorganizations or changes
of its capital or business structure or to merge or to consolidate or to
dissolve, liquidate or sell, or transfer all or any part of its business or
assets.

 

Section 18

Beneficiary Designation

 

A Participant may file a written designation of a beneficiary who may
elect to purchase shares or receive cash to the Participant’s credit under the
Plan in the event of such Participant’s death prior to delivery to him or her
of such shares and cash.  The designation
of beneficiary may be changed by the Participant at any time by written notice
delivered to the Company.  Upon the death
of a Participant and upon receipt by the Company of proof deemed adequate by it
of the identity and existence at the Participant’s death of a beneficiary
validly designated by him or her under the Plan, the Company will deliver such
shares and cash to such beneficiary in accordance with paragraph A of Section
9.  If upon the death of a Participant
there is no surviving beneficiary duly designated as above provided, the
Company will deliver accumulated payroll deductions to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company) within sixty
(60) days following the Participant’s death, the Company will deliver such
accumulated payroll deductions to the surviving spouse, if any, as though named
as the designated beneficiary hereunder, or if there is no such surviving
spouse or child, then to such relatives of the Participant as would be entitled
to such amounts, under the laws of intestacy in the deceased Participant’s
domicile as though named as the designated beneficiary hereunder.  The Company will not be liable for any
distribution made of shares or cash pursuant to any will or other testamentary
disposition made by such Participant, or because of the provisions of law
concerning intestacy, or otherwise.  No
designated beneficiary may, prior to the death of the Participant by whom he
has been designated, acquire any interest in the shares or cash credited to the
Participant under the Plan.

 

 

8

 

Section 19

Registration and Qualification of Shares

 

The offering of the shares hereunder will be subject to the effecting
by the Company of any registration or qualification of the shares under any
federal or state law or the obtaining of the consent or approval of any
governmental regulatory body which the Company may determine, in its sole
discretion, is necessary or desirable as a condition to or in connection with,
the offering or the issue or purchase of the shares covered thereby.  The Company will make every reasonable effort
to effect such registration or qualification or to obtain such consent or
approval.

 

Section 20

Plan Preconditions

 

The Plan is expressly made subject to (i) the approval by shareholders
of the Company, and (ii) at its election, the receipt by the Company from the
Internal Revenue Service of a determination letter or ruling, in scope and
content satisfactory to counsel, respecting the qualification of the Plan
within the meaning of Section 423 of the Code. 
If the Plan is not so approved by the shareholders and if, at the
election of the Company, the aforesaid determina­tion letter or ruling from the
Internal Revenue Service is not received on or before one year after this Plan’s
adoption by the Board of Directors, this Plan will not come into effect.  In such case, the accumulated payroll
deductions credited to the account of each Participant will forthwith be repaid
to him or her without interest.

 

 

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