UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

March 20, 2007

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RENTRAK CORPORATION

(Exact name of registrant as specified in charter)

Oregon

(State or other jurisdiction of incorporation)

 

 

One Airport Center

7700 N.E. Ambassador Place

Registrant's telephone number, including area code:

(503) 284-7581

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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On March 20, 2007, Rentrak Corporation ("Rentrak") entered into an employment agreement effective January 1, 2007, with Cathy Hetzel as Senior Vice President of Rentrak's VOD Essentials ("VOD") Division.

 

General Terms

 

The agreement provides for:

 

 

Severance During Term of Agreement

 

If Ms. Hetzel dies or becomes disabled during the term of the agreement, she or her estate will be entitled to accrued base salary and other employee benefits through the date of termination of employment. If Ms. Hetzel is terminated during the term of the agreement and before a change in control of Rentrak occurs, by Rentrak without cause or by Ms. Hetzel for good reason, in addition to the benefits payable as described in the preceding sentence, Ms. Hetzel will be entitled to receive severance payments in the amount of her monthly base salary during a severance period of (a) three months for each full four years of continuous service, (b) six months, or (c) the remaining term of the agreement, whichever is longest. Medical benefits will also be continued during this period. If employment is terminated during the term of the agreement and after a change in control of Rentrak occurs, either without cause or for good reason, Ms. Hetzel will be entitled to receive a lump sum payment equal to two times her then-current annual base salary and average annual bonus amount, subject to reduction if her resulting after-tax benefit would be larger due to the effect of the excise tax on excess parachute payments. She will also be entitled to continuation of medical benefits for two years. No severance benefits are payable if employment is terminated by Rentrak for cause or voluntarily by Ms. Hetzel other than for good reason. The terms "cause," "good reason," and "change in control" are defined in the agreements.

 

Severance After Term of Agreement

 

The agreement also provides for continuation of medical benefits and for severance payments in the event employment is terminated by Rentrak without cause, or by Ms. Hetzel with good reason, after expiration of the term, provided Ms. Hetzel has been employed by Rentrak for at

 

 

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least five consecutive years. The total amount of the severance payments will equal Ms. Hetzel's monthly base salary then in effect times (a) three months for each full four years of continuous service or (b) six months, whichever is longer.

 

The above summary description of the employment agreement is qualified in its entirety by the full text of the agreement, a copy of which is filed as Exhibit 10.1 to this report and incorporated by reference.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

The following exhibit is filed with this Form 8-K:

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.