Document:

Exhibit

Exhibit 10.3

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
This Amended and Restated Employment Agreement (this “Agreement”) is made and entered into effective as of October 16, 2015 (the “Effective Date”), by and between William J. Ruckelshaus (the “Executive”) and Blucora, Inc. (the “Company”). 
RECITALS 
WHEREAS, the Company and the Executive entered into an employment agreement effective as of June 15, 2011, which was amended and restated effective as of December 31, 2012 and which by its terms will expire on December 31, 2015 (the “Prior Agreement”); 
WHEREAS, the Board of Directors of the Company desires to continue to employ the Executive as the President and Chief Executive Officer of the Company; 
WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement in its entirety, effective as of the Effective Date, to extend the term of this Agreement through March 31, 2016; 
NOW THEREFORE, in consideration of the foregoing, the mutual covenants contained herein, the employment of the Executive by the Company, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

	
			
	 
	1.
	Certain Definitions 

(a) “Base Salary” has the meaning set forth in Section 5(a). 
(b) “Board” means the Board of Directors of the Company. 
(c) “Cause” means, as determined by the Board in its reasonable discretion: (i) the Executive’s conviction of, or plea of guilty or nolo contendere to, a misdemeanor involving dishonesty, wrongful taking of property, immoral conduct, bribery or extortion or any felony; (ii) willful material misconduct by the Executive in connection with the business of the Company; (iii) the Executive’s continued and willful failure to perform substantially his responsibilities to the Company under this Agreement, after written demand for substantial performance has been given by the Board that specifically identifies how the Executive has not substantially performed his responsibilities; (iv) the Executive’s improper disclosure of confidential information or other material breach of this Agreement, including the Supplementary Terms of Employment (Exhibit B hereto); (v) the Executive’s material fraud or dishonesty against the Company; (vi) the Executive’s willful and material breach of the Company’s written code of conduct and business ethics or other material written policy, procedure or guideline in effect from time to time (provided that the Executive was given access to a copy of such policy, procedure or guideline prior to the alleged breach) relating to personal conduct; or (vii) the Executive’s willful attempt to obstruct or willful failure to cooperate with any investigation authorized by the Board or any governmental or self-regulatory entity. Any determination of Cause by the Company shall be made by a resolution approved by a majority of the members of the Board, provided that, with respect to Section 1(c)(iii), the Board must give the Executive notice and 60 days to cure the substantial nonperformance. 
(d) “Change of Control” means the occurrence of any of the following after the Effective Date: 
(i) any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act), excluding for this purpose, (A) the Company or any subsidiary of the Company or (B) any employee benefit plan of the Company or any subsidiary of the Company, or any person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan that acquires beneficial ownership of voting securities of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities; 
(ii) consummation of a reorganization, merger or consolidation of the Company, in each case, unless, following such transaction, all or substantially all the individuals and entities who were the beneficial owners of outstanding voting securities of the Company immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the company resulting from such transaction (including, without limitation, a company that, as a result of such transaction, owns the Company or all or substantially all the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such transaction of the outstanding voting securities of the Company; 
(iii) any sale or disposition by the Company, in one transaction or a series of related transactions, of all or substantially all the Company’s assets; 
(iv) a “Board Change” which, for purposes of this Agreement, shall have occurred if a majority of the seats on the Board are occupied by individuals who were neither (A) nominated by a majority of the Incumbent Directors nor (B) appointed by directors so nominated (“Incumbent Director” means a member of the Board who has been either (1) nominated by a majority of the directors of the Company then in office or (2) appointed by directors so nominated, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board); or 
(v) an approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
(e) “Code” means the Internal Revenue Code of 1986, as amended. 
(f) “Company Transaction” means a Change of Control or a Significant Corporate Transaction. 
(g) “Constructive Termination” means the occurrence, on a date that is prior to the two-month period prior to the consummation of a Company Transaction or after the 12-month period following the consummation of a Company Transaction, of any of the following without the Executive’s express prior written consent: (i) a material reduction of or to the Executive’s duties, responsibilities or title (a change in reporting relationship alone does not constitute such a material reduction); (ii) a material reduction by the Company of the Executive’s Base Salary, unless similarly situated executives also experience a reduction; or (iii) a requirement that the Executive relocate his primary work location more than 25 miles from Bellevue, Washington or from any work location to which the Company transfers the Executive during the course of his employment and to which such transfer the Executive has consented. Notwithstanding the foregoing, a Constructive Termination shall not exist unless (x) the Executive delivers written notice to the Company (the “Constructive Termination Notice”) of the existence of the condition which the Executive believes constitutes a Constructive Termination within 30 days of the initial existence of such condition (which Constructive Termination Notice specifically identifies such condition), (y) the Company fails to remedy such condition within 30 days after the date on which it receives such notice (the “Constructive Termination Cure Period”), and (z) the Executive actually terminates employment within 30 days after the expiration of the Constructive Termination Cure Period. 
(h) “Disability” means the Executive’s inability to perform his employment duties to the Company hereunder, with or without reasonable accommodation, for 180 days (in the aggregate) in any one-year period as determined by an independent physician selected by the Company. 
(i) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
(j) “Good Reason” means the occurrence of any of the following without the Executive’s express prior written consent: (i) a material reduction of or to the Executive’s duties, title, responsibilities or reporting relationship; (ii) a material reduction of the Executive’s Base Salary; (iii) a material reduction of the Executive’s Target Bonus; (iv) a material reduction in the kind or level of employee benefits to which the Executive is entitled that occurs within 12 months following a Company Transaction, unless similarly situated employees also experience a reduction; (v) a requirement that the Executive relocate his primary work location more than 25 miles from Bellevue, Washington or from any work location to which the Company transfers the Executive during the course of his employment and to which such transfer the Executive has consented; (vi) in connection with a Company Transaction, the failure of the Company to assign this Agreement to a successor to the Company or the failure of a successor to the Company to explicitly assume and agree to be bound by this Agreement in a writing delivered to the Executive; or (vii) a material breach of this Agreement by the Company. 
Notwithstanding the foregoing, termination of employment by the Executive will not be for Good Reason unless (x) the Executive delivers written notice to the Company (the “Good Reason Notice”) of the existence of the condition which the Executive believes constitutes Good Reason within 30 days of the initial existence of such condition (which Good Reason Notice specifically identifies such condition), (y) the Company fails to remedy such condition within 30 days after the date on which it receives such notice (the “Good Reason Cure Period”), and (z) the Executive actually terminates employment within 30 days after the expiration of the Good Reason Cure Period. 
(k) “Release” means a full release of claims against the Company substantially in the form attached hereto as Exhibit A; provided, however, that notwithstanding the foregoing, such Release is not intended to and will not waive the Executive’s rights: (i) to indemnification pursuant to any applicable provision of the Company’s Bylaws or Certificate of Incorporation, as amended, pursuant to any written indemnification agreement between the Executive and the Company, or pursuant to applicable law; (ii) to vested benefits or payments specifically to be provided to the Executive under this Agreement or any Company employee benefit plans or policies; or (iii) respecting any claims the Executive may have solely by virtue of the Executive’s status as a stockholder of the Company. The Release also shall not include claims that an employee cannot lawfully release through execution of a general release of claims. 
(l) “Section 409A” means Section 409A of the Code and the Treasury Regulations and official guidance issued in respect of Section 409A of the Code. 
(m) “Significant Corporate Transaction” means an acquisition, purchase of assets or equity interests, merger, consolidation, joint venture, partnership, business combination, tender or exchange offer, recapitalization or similar transaction after the Effective Date (a “Transaction”), other than a Transaction with a subsidiary or another corporation or other entity that is controlled by the Company, with a Transaction Value equal to or greater than $100 million in the aggregate. 
(n) “Target Bonus” has the meaning set forth in Section 5(b). 
(o) “Target’s Fully Diluted Shares Outstanding” means the total number of shares of common stock of the Target outstanding plus the total net number of shares calculated on a “treasury stock” basis of common stock issuable upon exercise, conversion or exchange of any outstanding securities exercisable, convertible or exchangeable into or for shares of common stock of the Target, including, without limitation, all outstanding stock options of the Target. 
(p) “Transaction Value” means the sum of (i) (A) in the case of a Transaction involving the capital stock or equity of another corporation or other entity (a “Target”), the total fair market value (at the time of closing) of all consideration paid or payable, or otherwise to be distributed, directly or indirectly, in respect of a share of Target capital stock in connection with the Transaction multiplied by the Target’s Fully Diluted Shares Outstanding and (B) in the case of a Transaction involving assets of the Target, the total fair market value (at the time of closing) of all consideration paid or payable, directly or indirectly, to the Target in connection with the Transaction, plus (without duplication) (ii) the amount of all indebtedness for borrowed money, preferred stock, capital leases and any other liabilities and obligations for borrowed money on the Target business’s financial statements immediately following the closing or directly or indirectly assumed, retired, repaid, redeemed or defeased in connection with a Transaction, plus (iii) the aggregate fair market value (at the time of any closing) of any other consideration (tangible or intangible) paid by the Company. For purposes of this definition, consideration includes cash, securities, property, rights (contractual or otherwise), any dividends payable to stockholders of the Target after the date hereof (other than normal, ordinary course, recurring dividends) and any other form of consideration. 

	
			
	 
	2.
	Duties and Scope of Employment 

The Company shall continue to employ the Executive in the position of President and Chief Executive Officer. In addition, the Board shall use its best efforts to secure the Executive’s continued election to the Board. The Executive shall report directly to the Board. The Executive will render such business and professional services in the performance of the Executive’s duties, consistent with the Executive’s position(s) within the Company, as shall be reasonably assigned to the Executive at any time and from time to time by the Board. Executive will also continue to serve on the Board without any compensation other than the compensation Executive is entitled to receive under this Agreement. Executive acknowledges that during the Agreement Term he is not eligible to receive compensation for serving on the Board in his capacity as a director. 
	
			
	 
	3.
	Obligations 

While employed hereunder, the Executive will perform his duties ethically, faithfully and to the best of the Executive’s ability and in accordance with law and Company policy. The Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the express prior written approval of the Board; provided, however, that notwithstanding anything to the contrary in the Company’s Supplementary Terms of Employment attached hereto as Exhibit B, the Executive may engage in charitable activities so long as such activities do not materially interfere with the Executive’s responsibilities to the Company. 
	
			
	 
	4.
	Agreement Term 

Unless earlier terminated as provided herein, the term of this Agreement (the “Agreement Term”) shall expire on March 31, 2016, and may be extended thereafter upon the written mutual agreement of the Executive and the Company. 
	
			
	 
	5.
	Compensation and Benefits 

(a) Base Salary. The Company agrees to pay the Executive a base salary (the “Base Salary”) at an annual rate of not less than $450,000, payable in accordance with the regular payroll practices of the Company, but not less frequently than monthly. The Executive’s Base Salary shall be subject to annual review by the Board (or a committee thereof). 
(b) Annual Bonus. During the Agreement Term, the Executive shall be eligible to participate in the Company’s bonus and other incentive compensation plans and programs for the Company’s senior executives at a level commensurate with his position. The Executive shall have the opportunity to earn an annual target bonus (the “Target Bonus”) measured against criteria to be determined by the Board (or a committee thereof) of at least 100% of Base Salary. 
(c) Equity Awards. The Executive will participate in all Company long-term incentive programs extended to senior executives of the Company generally at levels commensurate with the Executive’s position, as determined by the Board (or a committee thereof). 
(d) Benefits. The Executive and his eligible dependents shall be eligible to participate in the employee benefit plans that are available or that become available to other employees of the Company, with the adoption or maintenance of such plans to be in the discretion of the Company, subject in each case to the generally applicable terms and conditions of the plan or program in question and to the determination of any committee administering such plan or program. Such benefits shall include participation in the Company’s group medical, life, disability, and retirement plans, and any supplemental plans available to senior executives of the Company from time to time. The Company reserves the right to change or terminate its employee benefit plans and programs at any time. 
(e) Expenses. The Company shall reimburse the Executive for reasonable business expenses incurred by the Executive in the furtherance of or in connection with the performance of the Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. 

	
			
	 
	6.
	Termination of Employment 

(a) General Provisions. This Agreement and the Executive’s employment with the Company may be terminated by either the Executive or the Company at will at any time with or without Cause; provided, however, that the parties’ rights and obligations upon such termination during the Agreement Term shall be as set forth in applicable provisions of this Agreement; and provided, further, that Section 6(d) provides for payments in the event of certain terminations of employment after the expiration of the Agreement Term. If the Executive’s employment terminates during the term of this Agreement for any reason, the Executive shall promptly offer to resign from the Board. The Nominating and Governance Committee shall consider the appropriateness of continued Board service and will recommend to the Board whether the resignation should be accepted. In addition, upon termination of the Executive’s employment during the term of this Agreement for any reason, unless otherwise requested by the Board, the Executive will be deemed to have resigned as an officer of and from all other positions held at the Company and its affiliates and subsidiaries, without any further action by the Executive, as of the end of the Executive’s employment, and the Executive, at the Board’s request, will execute any documents necessary to reflect his resignation. 
(b) Any Termination by Company or Executive. In the event of any termination of Executive’s employment with the Company, whether by the Company or by the Executive, (i) the Company shall pay the Executive any unpaid Base Salary due for periods prior to the date of termination of employment (“Termination Date”); (ii) the Company shall pay the Executive any unpaid bonus compensation pursuant to Section 5(b), to the extent earned through the Termination Date; (iii) the Company shall pay the Executive all of the Executive’s accrued and unused “paid time off” (PTO), if any, through the Termination Date; and (iv) following submission of proper expense reports by the Executive, the Company shall reimburse the Executive for all expenses reasonably and necessarily incurred by the Executive in connection with the business of the Company through the Termination Date (collectively, the “Accrued Obligations”). The Accrued Obligations shall be paid promptly upon termination and within the period of time mandated by applicable law (but, in any event, within 30 days after the Termination Date). The Accrued Obligations paid or provided pursuant to this Section 6(b) shall be in addition to the payments and benefits, if any, to be provided to the Executive upon his termination of employment pursuant to Section 6(c), 6(d), 6(e), or 6(f). Except as expressly stated above or as required by law or this Agreement, the Executive shall receive no further compensation in any form other than as set forth in this Section 6(b). 
(c) Termination by Company Without Cause or Constructive Termination. If, other than in connection with a Company Transaction as described in Section 6(d), the Executive’s employment with the Company is terminated by the Company without Cause or the Executive terminates employment with the Company under circumstances constituting a Constructive Termination, then subject to Section 6(g), the Executive shall receive the following payments and benefits: 
(i) a severance payment in an amount equal to the sum of (A) one times the Executive’s Base Salary in effect as of the Termination Date and (B) one times his then current annual Target Bonus amount (in each case less applicable withholding taxes), which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii); and 
(ii) a lump-sum payment in an amount equal to (A) the monthly COBRA premium in effect under the Company’s group health plan as of the Termination Date for the coverage in effect under such plan for the Executive (and the Executive’s spouse and dependent children) on such date multiplied by (B) 12, which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii). 
Notwithstanding any provision to the contrary in any Company equity compensation plan or any outstanding equity award agreement, if, during the Agreement Term, the Executive terminates employment with the Company under circumstances described in this Section 6(c), there shall be no acceleration of vesting or exercisability of any outstanding equity awards or extension of any option post-termination exercise period. 
For the avoidance of doubt, under no circumstances will the Executive be entitled to payments and benefits under both this Section 6(c) and Section 6(d). 
(d) Termination of Employment in Connection With a Company Transaction. If the Company terminates the Executive’s employment without Cause or the Executive terminates employment with the Company for Good Reason (1) on the day of or during the 12-month period immediately following the consummation of a Company Transaction or (2) during the 2-month period prior to the consummation of a Company Transaction but at the request of any third party participating in or causing the Company Transaction or otherwise in connection with the Company Transaction, then subject to Section 6(g), the Executive shall receive the following payments and benefits: 
(i) a severance payment in an amount equal to the sum of (A) one and one half times the Executive’s Base Salary in effect as of the Termination Date and (B) one and one half times his then current annual Target Bonus amount (in each case less applicable withholding taxes), which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii); 
(ii) a lump-sum payment in an amount equal to (A) the monthly COBRA premium in effect under the Company’s group health plan as of the Termination Date for the coverage in effect under such plan for the Executive (and the Executive’s spouse and dependent children) on such date multiplied by (B) 18, which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii); and 
(iii) notwithstanding any provision to the contrary in any applicable equity compensation plan or any outstanding equity award agreement, the treatment of the Executive’s outstanding equity awards shall be governed solely by the following provisions: (A) all of the Executive’s then-outstanding equity awards shall fully vest and all restrictions thereon shall lapse and (B) to the extent vested (including as a result of the acceleration provided under this Section 6(d)(iii)), all of the Executive’s outstanding stock options shall remain exercisable until the first to occur of 24 months following the Termination Date and each such stock option’s original expiration date; provided, however, that all of the Executive’s outstanding equity awards granted prior to the effective date of this Agreement (other than outstanding stock options granted prior to the effective date of this Agreement) shall also be governed by Section 16 of the Company’s 2015 Incentive Plan or Restated 1996 Flexible Stock Incentive Plan, as applicable, and the award agreements for those equity awards. 
If a Company Transaction is consummated prior to the expiration of the Agreement Term, this Section 6(d) shall apply to a termination of the Executive’s employment by the Company without Cause or by the Executive for Good Reason during the 12-month period immediately following the consummation of the Company Transaction even if such 12-month period extends past the expiration of the Agreement Term. Moreover, notwithstanding the expiration of the Agreement Term, if a Company Transaction is consummated within two months after the expiration of the Agreement Term, then this Section 6(d) shall apply to a termination of the Executive’s employment by the Company without Cause or by the Executive for Good Reason (i) on the day of or during the 12-month period immediately following the consummation of the Company Transaction or (ii) during the 2-month period prior to the consummation of the Company Transaction but at the request of any third party participating in or causing the Company Transaction or otherwise in connection with the Company Transaction. 
For the avoidance of doubt, the payments and benefits described under this Section 6(d) and the Accrued Obligations shall be the only payments and benefits to which the Executive is entitled in the event that the Executive’s employment terminates under this Section 6(d). 
(e) Death. In the event of the Executive’s death while employed hereunder, and subject to Section 6(g), the Executive’s beneficiary (or such other person(s) specified by will or the laws of descent and distribution) shall be entitled to receive a lump-sum payment in an amount equal to three months’ Base Salary in effect as of the Termination Date (less applicable withholding taxes), which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii). 
(f) Disability. In the event of the Executive’s termination of employment with the Company due to Disability, and subject to Section 6(g), the Executive shall be entitled to receive a lump-sum payment in an amount equal to six months Base Salary in effect as of the Termination Date (less applicable withholding taxes), which amount shall be payable in a single lump sum on the first payroll date that is at least 60 days following the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date), in accordance with Section 13(b)(ii). 
(g) Release and Other Conditions. The payments and benefits described in Sections 6(c) through 6(f) are expressly conditioned on (i) the Executive (or, in the case of the Executive’s death, the Executive’s representative) signing and delivering (and not revoking thereafter) a Release to the Company (which, in the case of the Executive’s death, also releases any claims by the Executive’s estate or survivors), which Release is executed, delivered and effective no later than 60 days following the Termination Date and (ii) the Executive continuing to satisfy any obligations to the Company under this Agreement, the Release and the Supplementary Terms of Employment that are attached hereto as Exhibit B and incorporated herein by reference, and any other agreement(s) between the Executive and the Company. In the event the Release described in Section 6(g)(i) is not executed, delivered and effective by the 60th day after the Termination Date, none of such payments or benefits shall be provided to the Executive. 
	
			
	 
	7.
	Section 280G 

(a) Amount of Payments and Benefits. Notwithstanding anything to the contrary herein, in the event that the Executive becomes entitled to receive or receives any payments, options, awards or benefits (including, without limitation, the monetary value of any noncash benefits and the accelerated vesting of equity-based awards) under this Agreement or under any other plan, agreement or arrangement with the Company or any person affiliated with the Company (collectively, the “Payments”), that may separately or in the aggregate constitute “parachute payments” within the meaning of Section 280G of the Code and the Treasury Regulations promulgated thereunder (or any similar or successor provision) (collectively, “Section 280G”) and it is determined that, but for this Section 7(a), any of the Payments will be subject to any excise tax pursuant to Section 4999 of the Code or any similar or successor provision (the “Excise Tax”), the Company shall pay to the Executive either (i) the full amount of the Payments or (ii) an amount equal to the Payments, reduced by the minimum amount necessary to prevent any portion of the Payments from being an “excess parachute payment” (within the meaning of Section 280G) (the “Capped Payments”), whichever of the foregoing amounts results in the receipt by the Executive, on an after-tax basis, of the greatest amount of Payments notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. For purposes of determining whether the Executive would receive a greater after-tax benefit from the Capped Payments than from receipt of the full amount of the Payments, (i) there shall be taken into account any Excise Tax and all applicable federal, state and local taxes required to be paid by the Executive in respect of the receipt of such payments and (ii) such payments shall be deemed to be subject to federal income taxes at the highest rate of federal income taxation applicable to individuals that is in effect for the calendar year in which the payments and benefits are to be paid, and state and local income taxes at the highest rate of taxation applicable to individuals in the state and locality of the Executive’s residence on the effective date of the relevant transaction described under Section 280G(b)(2)(A)(i) of the Code, net of the maximum reduction in federal income taxes that could be obtained from deduction of such state and local taxes (as determined by assuming that such deduction is subject to the maximum limitation applicable to itemized deductions under Section 68 of the Code and any other limitations applicable to the deduction of state and local income taxes under the Code). 
(b) Computations and Determinations. All computations and determinations called for by this Section 7 shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the “Tax Counsel”), and all such computations and determinations shall be conclusive and binding on the Company and the Executive. For purposes of such calculations and determinations, the Tax Counsel may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Tax Counsel shall submit its determination and detailed supporting calculations to both the Executive and the Company within 15 days after receipt of a notice from either the Company or the Executive that the Executive may receive payments which may be considered “parachute payments.” The Company and the Executive shall furnish to the Tax Counsel such information and documents as the Tax Counsel may reasonably request in order to make the computations and determinations called for by this Section 7. The Company shall bear all costs that the Tax Counsel may reasonably incur in connection with the computations and determinations called for by this Section 7. 
(c) Reduction Methodology. In the event that Section 7(a) applies and a reduction is required to be applied to the Payments thereunder, the Payments shall be reduced by the Company in its reasonable discretion in the following order: (i) reduction of any Payments that are subject to Section 409A on a pro-rata basis or such other manner that complies with Section 409A, as determined by the Company, and (ii) reduction of any Payments that are exempt from Section 409A. 
	
			
	 
	8.
	No Impediment to Agreement 

The Executive hereby represents to the Company that the Executive is not, as of the date hereof, and will not be, during the Executive’s employment with the Company, employed under contract, oral or written, by any other person, firm or entity, and is not and will not be bound by the provisions of any restrictive covenant or confidentiality agreement that would constitute an impediment to, or restriction upon, the Executive’s ability to enter this Agreement and to perform the duties of the Executive’s employment. 

	
			
	 
	9.
	Supplementary Terms of Employment 

The Supplementary Terms of Employment attached hereto as Exhibit B are incorporated herein by reference. The Supplementary Terms of Employment shall survive the termination of this Agreement and/or the Executive’s employment with the Company. 
	
			
	 
	10.
	Arbitration 

The parties agree that any employment-related disputes between the Executive and the Company are subject to binding arbitration in accordance with the Supplementary Terms of Employment that are attached hereto as Exhibit B and incorporated herein by reference. 
	
			
	 
	11.
	Successors; Personal Services 

The services and duties to be performed by the Executive hereunder are personal and may not be assigned or delegated. This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and the Executive and the Executive’s heirs and representatives. 
	
			
	 
	12.
	Notices 

Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Executive, mailed notices shall be addressed to the Executive at the home address the Executive most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its General Counsel. 
	
			
	 
	13.
	Section 409A 

(a) The parties intend that this Agreement and the payments and benefits provided hereunder be exempt from the requirements of Section 409A, to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise. To the extent Section 409A is applicable to this Agreement, the parties intend that this Agreement and any payments and benefits thereunder comply with the deferral, payout and other limitations and restrictions imposed under Section 409A. Notwithstanding anything herein to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistent with such intentions. 
(b) Without limiting the generality of the foregoing, and notwithstanding any other provision of this Agreement to the contrary: 
(i) if the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A, then with regard to any payment that is considered a “deferral of compensation” under Section 409A payable on account of a “separation from service,” such payment shall be made on the date which is the earlier of (A) the date that is six months and one day after the date of such “separation from service” of the Executive and (B) the date of the Executive’s death (the “Delay Period”), to the extent required under Section 409A. Within ten business days following the expiration of the Delay Period, all payments delayed pursuant to this Section 13(b)(i) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid to the Executive in a lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for those payments in this Agreement; 
(ii) to the extent that any payments or benefits under this Agreement are conditioned on a Release, if the Release is executed and delivered by the Executive to the Company and becomes irrevocable and effective within the specified 60-day post-termination period, then, subject to Section 13(b)(i) and to the extent not exempt under Section 409A, such payments or benefits shall be made or commence on the first payroll date after the date that is 60 days after the Termination Date (but, in any event, by no later than March 15 of the calendar year immediately following the calendar year that includes the Termination Date). If a payment or benefit under this Agreement is conditioned on a Release and such Release is not executed, delivered and effective by the 60th day after the Termination Date, such payment or benefit shall not be paid or provided to the Executive; 
(iii) all expenses or other reimbursements under this Agreement shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive (provided that if any such reimbursements constitute taxable income to the Executive, such reimbursements shall be paid no later than March 15 of the calendar year following the calendar year in which the expenses to be reimbursed were incurred). No such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year, and the Executive’s right to reimbursement shall not be subject to liquidation in exchange for any other benefit; 
(iv) for purposes of Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within 30 days”), the actual date of payment within the specified period shall be within the sole discretion of the Company; 
(v) in no event shall any payment under this Agreement that constitutes a “deferral of compensation” for purposes of Section 409A be offset by any other payment pursuant to this Agreement or otherwise; and 
(vi) to the extent required for purposes of compliance with Section 409A, termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” 
(c) The Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions that may be necessary, appropriate, or desirable to avoid imposition of additional tax or income recognition on the Executive under Section 409A, in each case to the maximum extent permitted. Notwithstanding any provision of this Agreement to the contrary, (i) in no event will the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A and (ii) the Executive acknowledges and agrees that the Executive will not have any claim or right of action against the Company or any of its employees, officers, directors or agents in the event it is determined that any payment or benefit provided hereunder does not comply with Section 409A. 

	
			
	 
	14.
	Miscellaneous Provisions 

(a) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
(b) Entire Agreement. This Agreement (including exhibits) shall supersede and replace all prior agreements or understandings relating to the subject matter hereof, and no agreements, representations or understandings (whether oral or written or whether express or implied) that are not expressly set forth in this Agreement have been made or entered into by either party with respect to the relevant matters hereof. This Agreement may not be modified except expressly in a writing signed by both parties. 
(c) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws of the State of Washington without reference to any choice of law rules. 
(d) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
(e) No Assignment of Benefits. The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, in respect of bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Section 14(e) shall be void. 
(f) No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Executive may receive from any other source. 
(g) Employment Taxes. All payments made pursuant to this Agreement will be subject to withholding of all applicable income, employment and other taxes. 
(h) Assignment by Company. The Company may assign its rights under this Agreement to an affiliate (as defined under the Exchange Act), and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company. In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean the corporation that actually employs the Executive. 
(i) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
(j) Effect on Prior Agreement. This Agreement amends and restates the Prior Agreement, which is superseded in all respects hereby. 
IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written. 
	
				
	 
	 
	 

	COMPANY:

	 

	BLUCORA, INC.

	 
	 

	By:
	 
	/s/ Mark A. Finkelstein

	Name:
	 
	Mark A. Finkelstein

	Title:
	 
	Chief Legal & Administrative Officer

	 

	EXECUTIVE:

	 

	/s/ William Ruckelshaus

	William Ruckelshaus

EXHIBIT A 
GENERAL RELEASE OF ALL CLAIMS 
This General Release and Waiver of Claims (this “Release”) is executed by William J. Ruckelshaus (“Executive”) as of the date set forth below, and will become effective as of the “Effective Date” as defined below. This Release is in consideration of severance benefits to be paid to Executive by Blucora, Inc., a Delaware corporation (the “Company”) pursuant to Amended and Restated Employment Agreement between Executive and the Company dated as of October 16, 2015 (the “Employment Agreement”). Execution of this Release without revocation by Executive will satisfy the requirement, set forth in Section 6(g) of the Employment Agreement, that Executive execute a general release and waiver of claims in order to receive severance benefits pursuant to the Employment Agreement. 

	
			
	 
	1.
	Termination of Employment 

Executive acknowledges that his employment with the Company and any of its subsidiaries (collectively, the “Company Group”) and any and all appointments he held with any member of the Company Group, whether as officer, director, employee, consultant, agent or otherwise, terminated as of (the “Termination Date”). Effective as of the Termination Date, Executive has not had or exercised or purported to have or exercise any authority to act on behalf of the Company or any other member of the Company Group, nor will Executive have or exercise or purport to have or exercise such authority in the future. 

	
			
	 
	2.
	Waiver and Release 

	
			
	 
	(a)
	Executive, for and on behalf of himself and his heirs and assigns, hereby waives and releases any common law, statutory or other complaints, claims, charges or causes of action arising out of or relating to Executive’s employment or termination of employment with, or Executive’s serving in any capacity in respect of any member of the Company Group (collectively, “Claims”). The Claims waived and released by this Release include any and all Claims, whether known or unknown, whether in law or in equity, which Executive may now have or ever had against any member of the Company Group or any shareholder, employee, officer, director, agent, attorney, representative, trustee, administrator or fiduciary of any member of the Company Group (collectively, the “Company Releasees”) up to and including the date of Executive’s execution of this Agreement. The Claims waived and released by this Release include, without limitation, any and all Claims arising out of Executive’s employment with the Company Group under, by way of example and not limitation, the Age Discrimination in Employment Act of 1967 (“ADEA”, a law which prohibits discrimination on the basis of age against persons age 40 and older), the National Labor Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974, the Family Medical Leave Act, the Securities Act of 1933, the Securities Exchange Act of 1934, and the Washington Law Against Discrimination, all as amended, and all other federal, state and local statutes, ordinances, regulations and the common law, and any and all Claims arising out of any express or implied contract, except as described in Paragraphs 2(b) and 2(c) below.

	 
	 

	 
	(b)
	The waiver and release set forth in this Section 2 is intended to be construed as broadly and comprehensively as applicable law permits. The waiver and release shall not be construed as waiving or releasing any claim or right that as a matter of law cannot be waived or released, including Executive’s right to file a charge with the Equal Employment Opportunity Commission or other government agency; however, Executive waives any right to recover monetary remedies and agrees that he will not accept any monetary remedy as a result of any such charge or as a result of any legal action taken against the Company by any such agency.

	
			
	 
	(c)
	Notwithstanding anything else in this Release, Executive does not waive or release claims with respect to:

	
			
	 
	(i)
	Executive’s entitlement, if any, to severance benefits pursuant to the Employment Agreement;

	
			
	 
	(ii)
	vested benefits or payments specifically to be provided to the Executive pursuant to the Employment Agreement or any Company employee benefit plans or policies;

	
			
	 
	(iii)
	indemnification pursuant to any applicable provision of the Company’s Bylaws or Certificate of Incorporation, as amended, pursuant to any written indemnification agreement between the Executive and the Company, or pursuant to applicable law;

	
			
	 
	(iv)
	any claims which the Executive may have solely by virtue of the Executive’s status as a shareholder of the Company

	
			
	 
	(v)
	unemployment compensation to which Executive may be entitled under applicable law.

	
			
	 
	(d)
	Executive represents and warrants that he is the sole owner of the actual or alleged Claims that are released hereby, that the same have not been assigned, transferred, or disposed of in fact, by operation of law, or in any manner, and that he has the full right and power to grant, execute and deliver the releases, undertakings, and agreements contained herein.

	
			
	 
	(e)
	Executive represents that he has not filed any complaints, charges or lawsuits against the Company with any governmental agency or any court based on Claims that are released and waived by this Release.

	
			
	 
	3.
	No Admission of Wrongdoing 

This Release shall not be construed as an admission by either party of any wrongful or unlawful act or breach of contract. 

	
			
	 
	4.
	Binding Agreement; Successors and Assigns 

This Release binds Executive’s heirs, administrators, representatives, executors, successors, and assigns, and will inure to the benefit of the respective heirs, administrators, representatives, executors, successors, and assigns of any person or entity as to whom the waiver and release set forth in Section 2 applies. 

	
			
	 
	5.
	Other Agreements 

This Release does not supersede or modify in any way Executive’s continuing obligations pursuant to the Employment Agreement (including Exhibit B thereto) or the dispute resolution provisions of the Employment Agreement (including Exhibit B thereto). 

	
			
	 
	6.
	Knowing and Voluntary Agreement; Consideration and Revocation Periods 

	
			
	 
	(a)
	Executive acknowledges that he has been given twenty-one (21) calendar days from the date of receipt of this Release to consider all of the provisions of this Release and that if he signs this Release before the 21-day period has ended he knowingly and voluntarily waives some or all of such 21-day period.

	
			
	 
	(b)
	Executive represents that (i) he has read this Release carefully, (ii) he has hereby been advised by the Company to consult an attorney of his choice and has either done so or voluntarily chosen not to do so, (iii) he fully understands that by signing below he is giving up certain rights which he might otherwise have to sue or assert a claim against any of the Company Releasees, and (iv) he has not been forced or pressured in any manner whatsoever to sign this Release, and agrees to all of its terms voluntarily.

	
			
	 
	(c)
	Executive shall have seven (7) calendar days from the date of his execution of this Release (the “Revocation Period”) in which he may revoke this Release. Such revocation must be in writing and delivered, prior to the expiration of the Revocation Period, to the attention of the Company’s Chief Executive Officer at the Company’s then-current headquarters address. If Executive revokes this Release during the Revocation Period, then the Release shall be null and void and without effect. 

	
			
	 
	7.
	Effective Date 

IN WITNESS WHEREOF, Executive has executed this Release as of the date indicated below. 
	
							
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Dated:
	 
	 

-4- 

Exhibit B 
Supplementary Terms of Employment – President 
In consideration of my employment by Blucora, Inc., a Delaware corporation, its subsidiaries, affiliates, successors or assigns (collectively herein “Blucora” or the “Company”), and in consideration of the compensation now and hereafter paid to me, I agree to the following terms and conditions of my employment relationship with Blucora (the “Agreement”) which supplement the terms of my employment agreement with the Company, dated as of [______________], 2015 (the “Employment Agreement”): 
Section I – General Terms 
1. At-Will Employment: I acknowledge that my employment will be of indefinite duration and that either Blucora or I will be free to terminate this employment relationship at will at any time with or without cause. I also acknowledge that any representations to the contrary are unauthorized and void, unless contained in a separate written employment contract approved by the Board of Directors of Blucora or a Committee thereof. I further acknowledge that the terms and conditions of this Agreement shall survive termination of my employment. 
2. Outside Activities and Investments: I will devote my best efforts to furthering the best interests of Blucora. During my employment, I will not engage in any activity or investment (other than an investment of less than one percent (1%) of the shares of a company traded on a registered stock exchange), that (a) conflicts with Blucora’s business interest, including without limitation, any business activity contemplated by this Agreement, (b) occupies my attention so as to interfere with the proper and efficient performance of my duties at Blucora, or (c) interferes with the independent exercise of my judgment in Blucora’s best interests. 
Also, during my employment by Blucora, I will not actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Company’s Board of Directors or a duly authorized Committee thereof. I have listed on the Company’s Outside Activity Disclosure form, attached hereto as Exhibit A, any business activities or ventures with which I am currently involved. 
As used herein, “Blucora’s business” means all content, technology, services or products that, during my employment, Blucora (i) produces, provides, markets, licenses, distributes or supports or (ii) actively and demonstrably is researching and developing or preparing to produce, provide, market, license, distribute or support. 
3. Return of Company Property: At the time I leave the employ of Blucora or at Blucora’s request, I will return to Blucora all papers, drawings, notes, memoranda, manuals, specifications, designs, devices, documents, diskettes and tapes, and any other material on any media containing or disclosing any confidential or proprietary technical or business information of Blucora or any third party to whom Blucora owes a duty of confidentiality. I will also return any keys, pass cards, identification cards or any other property belonging to Blucora. Anything to the contrary notwithstanding, I shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing my compensation or relating to reimbursement of expenses, and (iii) copies of compensatory plans, programs and agreements with Blucora. 

4. Obligation to Disclose This Agreement: For a period of one (1) year after termination of my employment for any reason (the “Post-Employment Year”), I agree to inform any new employer, prior to accepting any such new employment, of the existence and terms of this Agreement and to provide such new employer with a copy of this Agreement. 
Section II – Non-Disclosure 
5. Non-Disclosure of Blucora Information: During my employment with Blucora and at any time thereafter, I will not disclose to anyone outside Blucora nor use for any purpose other than my work for Blucora any confidential or proprietary technical, financial, marketing, distribution or business information or trade secrets of Blucora, including without limitation, concepts, techniques, processes, methods, systems, designs, cost data, computer programs, formulas, development or experimental work, work in progress, or information or details regarding Blucora’s relationships with customers, vendors, partners and suppliers (collectively “Blucora Confidential Information”). I will also not disclose any Blucora Confidential Information inside Blucora except on a “need to know” basis. If I have any questions as to what comprises such Blucora Confidential Information, or to whom, if anyone, inside Blucora, it may be disclosed, I will consult Blucora’s General Counsel. Anything herein to the contrary notwithstanding, Blucora Confidential Information does not include information which (i) is disclosed as required by law, provided that I give the Company prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting the information from public disclosure and (ii) as to information that becomes generally known to the public other than due to my violation of any legal contractual or fiduciary confidentiality obligation. 
6. Non-Disclosure of Third-Party Information Obtained through Blucora: Blucora has received and will receive confidential and proprietary information from third parties subject to a duty on Blucora’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During my employment with Blucora and thereafter, I will not disclose such confidential or proprietary information to anyone except as necessary in carrying out my work for Blucora and consistent with Blucora’s agreement with such third party. I will not use such information for the benefit of anyone other than Blucora or such third party, or in any manner inconsistent with any agreement between Blucora and such third party of which I am made aware. 
7. Non-Disclosure of Third-Party Information Obtained Elsewhere: During my employment at Blucora I will not improperly use or disclose any confidential or proprietary information or trade secrets of my former or current employers, principals, partners, co-ventures, clients, customers, or suppliers, or the vendors or customers of such persons or entities, unless such persons or entities have given consent to my use or disclosure. I will not violate any non-disclosure or proprietary rights agreement I might have signed in connection with any such person or entity. 
Section III – Invention Assignment, Release and Cooperation 
8. Invention Assignment and Release: I will make prompt and full disclosure to Blucora, will hold in trust for the sole benefit of Blucora, and will assign and hereby do assign exclusively to Blucora all my right, title and interest in and to any and all inventions, discoveries, designs, developments, improvements, copyrightable material, and trade secrets (collectively herein “Inventions”) that I, solely or jointly, may conceive, develop, or reduce to practice during the period of time I am in the employ of Blucora. I hereby waive and quitclaim to Blucora any and all claims of any nature whatsoever that I now or hereafter may have for infringement of any patent resulting from any patent applications for any Inventions so assigned to Blucora. I will assign to Blucora or its designee all right, title and interest in and to any and all Inventions full title to which may be required to be in the United States by any contract between Blucora and the United States or any of its agencies. 

My obligation to assign shall not apply to any Invention about which I can prove that it was developed entirely on my own time; and 
	
			
	 
	a)
	No equipment, supplies, facility, or trade secret information of Blucora was used in its development; and

	
			
	 
	b)
	It does not relate (1) directly to the business of Blucora or (2) to the actual or demonstrably anticipated research or development of Blucora; and

	
			
	 
	c)
	It does not result from any work performed by me for Blucora.

10. Cooperation: I will execute any proper oath or verify any proper document in connection with carrying out the terms of this Agreement. If, because of my mental or physical incapacity or for any other reason whatsoever, Blucora is unable to secure my signature to apply for or to pursue any application for any United States or foreign patent or copyright covering Inventions assigned to Blucora as stated above, I hereby irrevocably designate and appoint Blucora and its duly authorized officers and agents as my agent and attorney in fact, to act for me and in my behalf and stead to execute and file any such applications and to all other lawfully permitted acts to further the prosecution and issuance of U.S. and foreign patents and copyrights thereon with the same legal force and effect as if executed by me. I will testify at Blucora’s request and expense in any interference, litigation, or other legal proceeding that may arise during or after my employment. Notwithstanding anything to the contrary contained herein, (i) in requesting your cooperation under this Section 10 following the termination of your employment, Blucora shall take into account your personal and business commitments and (iii) in any event, in complying with your obligations under this Section 10, you shall not be required to act against your own legal interests. 
Section IV – Non-Competition and Non-Solicitation 
11. Non-Competition: During the Post-Employment Year, I will not accept employment with any entity whose business is, or engage in any activities that are, competitive with or substantially similar to Blucora’s business (as defined in Paragraph 2). 
12. Non-Solicitation: While employed at Blucora and during the Post-Employment Year, on my own behalf or on behalf of any other person or entity, I will not solicit, induce or attempt to influence directly or indirectly any employee of Blucora to work for me or any other person or entity for whom I work or intend to work, nor will I solicit, induce or attempt to influence directly or indirectly any customer, business partner, supplier or vendor of Blucora to terminate his/her/its business relationship with Blucora. 
Section V – Arbitration 
13. Mutual Agreement to Arbitrate: I understand that Blucora is committed to resolving any employment related disputes and claims efficiently and effectively, while preserving due process safeguards, through the use of binding arbitration. I agree that any dispute and/or claim between Blucora (including without limitation its officers, directors, employees agents or shareholders) and me that underlies, relates to and/or results from my employment relationship with Blucora or any of the terms of this Agreement, including the confidentiality, non-compete and non-solicitation requirements, that cannot be resolved by mutual agreement of Blucora and me will be submitted to final, binding arbitration to the maximum extent permitted by law in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association that are then in effect. 
I understand that this Agreement governs any claim I have that underlies, relates to and/or results from my employment relationship with Blucora or the termination of that relationship, including, but not limited to, claims of wrongful discharge, infliction of emotional distress, breach of contract (including breach of this Agreement), breach of any covenant of good faith and fair dealing, and claims of retaliation and/or discrimination in violation of any local, state or federal law. Examples of such laws include Title VII of the Civil Rights Act of 1964; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; RCW Chapter 49.60, and all amendments to each such Act as well as the regulations issued thereunder. 
14. Excluded from Arbitration: This Agreement does not affect my right to pursue worker’s compensation or unemployment compensation benefits for which I may be eligible in accordance with state law, nor does it affect my right to file and/or to cooperate in the investigation of an administrative charge of discrimination. 
15. Arbitration Remedies and Awards: I understand that I may seek in arbitration any remedy or award that would be available to me through civil litigation and the arbitrator has authority to grant any such remedy or award. I agree that such remedies include monetary damages but do not include reinstatement unless authorized by statute. 
16. Arbitration Fees: I understand that Blucora, as further consideration for my agreement to arbitrate covered disputes, agrees to pay for the arbitrator’s fees and other costs directly associated with the arbitration that would not otherwise be charged if the parties pursued civil litigation in court. 
17. Injunctive or Other Relief: I understand that, pursuant to this Agreement, I and Blucora forego and waive the right to take any covered dispute or claim to civil litigation in court. However, I understand that either I or Blucora may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this Agreement and without abridgement of the powers of the arbitrator. 
Section VI – Miscellaneous Terms 
18. Choice of Law and Venue: I agree that this Agreement shall be governed for all purposes by the laws of the state of Washington as such laws apply to contracts to be performed within Washington by residents of Washington and that venue for any action arising out of this Agreement shall be exclusively laid in King County, Washington or in the Federal District Court of the Western District of Washington. In any matter that is presented to an arbitrator under this Agreement, I agree that the location of the arbitration hearing(s) will be in King County, Washington, unless another location is mutually agreed upon. 
19. Conflicting Provisions: If any provision of this Agreement shall be declared excessively broad, it shall be construed or modified so as to afford Blucora the maximum protection permissible by law. If any provision of this Agreement is void or so declared, such provision shall be severed from this Agreement, which shall otherwise remain in full force and effect. 
20. Entire Agreement: This Agreement sets forth the entire Agreement of the parties as to the subject matter hereof and any representations, promises, or conditions in connection therewith not in writing and signed by both parties shall not be binding upon either party. 
21. Acknowledgment: I acknowledge that I have had a full opportunity to read this Agreement before signing it. I confirm that I understand its terms and believe them to be reasonable, and I agree that Blucora’s offer of employment or continued employment is sufficient consideration for this Agreement. 
HAVING READ AND FULLY UNDERSTOOD THIS AGREEMENT, I have signed my name this date. 
Signature of Employee: _________________
Name of Employee: ____________________ 
Date: __________, 2015Exhibit

Exhibit 10.4

Microsoft Advertising – Publisher Business Framework Agreement
This Microsoft Advertising - Publisher Business Framework Agreement (“Agreement”) is entered into by and between Microsoft and Company, and when executed by both parties, is effective on the Effective Date.
	
		
	Table 1 – the parties

	“Company”: InfoSpace LLC
	“Microsoft”:  Microsoft Online, Inc.

	Jurisdiction of Formation:  Delaware
	Jurisdiction of Formation:  Nevada

	Address for Notices: 
Address:  1900 NE 8th St., Ste. 800 Bellevue, WA 98004
Fax:  +1 (425) 201-6167
Phone:  +1 (425) 201-6100
Email:  legalnotices@blucora.com
Attention:  General Counsel
	Address for Notices: 
Address:  6100 Neil Road, Reno, Nevada  89511
Fax:  +1 (775) 826-0531
Phone:  +1 (775) 823-5600
Email:  moisig@microsoft.com
Attention:  MOI Contracts

	Copy of notice must also be sent to:
Address:  10900 NE 8th St., Suite 800
                 Bellevue, WA 98004
Fax:  (425) 201-6150
Phone: 
Email: 
Attention:  Legal Department
	Copy of notice must also be sent to:
Address:  Microsoft Corporation, One Microsoft Way, Redmond, WA 98052  USA

Fax:  (425) 936-7329
Phone:
Email:  
Attention:  Legal and Corporate Affairs (re MOI Contracts)

	
			
	Table 2

	“Effective Date”:
	August 1, 2014
	The Effective Date, if unstated, is the later of the two signature dates

	“Initial Term”:
	24 months

	Effective Date of NDA (if any)
	July 16, 2009

By signing below, the Parties agree to be bound by the terms of this Agreement:
	
		
	Company: InfoSpace LLC

By (sign): /s/ Michael Glover                         
Printed Name:  Michael Glover                
Title:  President                        
Date:  7/24/14                        
	Microsoft:  Microsoft Online, Inc.

By (sign): /s/ Renee Bakker                       
Printed Name:  Renee Bakker               
Title:  Contract Execution                        
Date:  7/25/14                        

Background

	
		
	[*]
	Information redacted pursuant to a confidential treatment request by Blucora, Inc. under 5 U.S.C. §552(b)(4) and 
17 C.F.R. §§ 200.80(b)(4) and 240.24b-2, and submitted separately with the Securities and Exchange Commission.

Microsoft provides various advertising and search services and offerings to website publishers.  Company is a website publisher, syndicates advertising and search services to a network of website publishers, and wishes to receive or participate in one or more of Microsoft’s services or offerings under the terms of this Agreement.  The parties therefore agree as follows:
Terms
		
	1.
	DEFINITIONS.  Other terms are defined elsewhere in this Agreement (including Table 1 and Table 2).

		
	1.1
	“Advertiser” means any third party who purchases Ad Inventory for the display of Advertisements in connection with this Agreement and a Schedule.

		
	1.2
	“Advertisement” or “Ad” means any and all advertising materials, associated URL links and other technologies that are served into Ad Inventory.

		
	1.3
	“Ad Inventory” means the advertising inventory made available and sold by Company under this Agreement and its Schedules.

		
	1.4
	“Affiliate” means, for any legal entity, any other entity directly or indirectly Controlling, Controlled by, or under common Control with that entity.  An entity is an Affiliate of another entity only as long as it satisfies the foregoing definition. 

		
	1.5
	“Company Materials” means all products, services, technologies, data, information, content, images, text, sounds, and IPR provided by Company to Microsoft under this Agreement or any Schedule.  Company Materials do not include any Microsoft IPR.

		
	1.6
	“Control” means the possession, directly or indirectly, of the power to direct or cause direction of the management and policies of a legal entity, through the ownership of voting shares or other voting interests, by contract, or otherwise.  Where the entity is a limited liability company, partnership, corporation, or similar entity, and has partners, members, or shareholders with equal ownership or control interests, by contract or otherwise, then each partner, member, or shareholder is deemed to possess, directly or indirectly, the power to direct or cause direction of the management and policies of the entity.

		
	1.7
	“Insolvent” means, with respect to a party, admitting in writing the inability to pay debts as they mature; making a general assignment for the benefit of creditors; suffering or permitting the appointment of a trustee or receiver for all or any of its assets, unless such appointment is vacated or dismissed within 60 days from the date of appointment; filing (or having filed) any petition as a debtor under any provision of the federal Bankruptcy Code or any state law relating to insolvency, unless such petition and all related proceedings are dismissed within 60 days of such filing; being adjudicated insolvent or bankrupt; having wound up or liquidated; or ceasing to carry on business.

		
	1.8
	“IPR” means any patents, copyrights, trademarks, trade secrets, moral rights, and any other intellectual property or proprietary rights arising at any time under the Law of applicable jurisdiction.

		
	1.9
	“Law” means all laws, rules, statutes, decrees, decisions, orders, regulations, judgments, requirements, codes, and directives of any governmental authority (federal, state, local, or international) having jurisdiction.

		
	1.10
	“Microsoft Materials” means all products, services, technologies, data, information, content, images, text, sounds, and IPR provided by Microsoft to Company under this Agreement or any Schedule.  Microsoft Materials do not include any Company IPR.

		
	1.11
	“Services” means, collectively and as applicable, any services or offerings that Microsoft makes available to Company under this Agreement and an applicable Schedule, including any updates and changes to such services or offerings.

		
	1.12
	“Schedule” means a schedule to this Agreement that addresses particular Services and includes additional terms applicable to those Services.

Page 11 of 11

		
	1.13
	“Schedule Effective Date” means the date a Schedule becomes effective (or if no date is designated in the Schedule, then first date as of which both parties have validly signed the Schedule.

		
	1.14
	“Schedule Term” means the term of a Schedule.

		
	1.15
	“Term” is defined in Section 8.1.

		
	2.
	SERVICES.  

		
	2.1
	General.  The parties (or their Affiliates) may, from time to time, enter into one or more Schedules.  If a party’s Affiliate (instead of such party) enters into a Schedule, for the purposes of that Schedule, all references to that party in this Agreement will be deemed to be references to the Affiliate.  Schedules must be set forth in writing and signed by each party to the Schedule and are not valid, binding obligations of the parties unless and until so executed.  Each party will perform its obligations as stated in a Schedule.  Each Schedule is subject to, and incorporates, the terms and conditions of this Agreement. 

		
	2.2
	Restrictions.  Company will not directly or indirectly:

		
	(a)
	modify, reverse engineer or decompile the Services (except to the extent authorized by applicable Law notwithstanding this limitation);

		
	(b)
	use the Services to violate any Law or for any unauthorized purpose; or

		
	(c)
	take any action that intentionally or in a grossly negligent fashion imposes an unreasonably or disproportionately large burden on Microsoft's infrastructure used to provide the Services.

		
	2.3
	Protection.  Microsoft may use technology or other measures to protect the Services, protect Microsoft’s customers, or stop Company or one of its Affiliates from breaching this Agreement or any Schedule.  These protective measures may include, for example, filtering to stop spam or to increase security.  If implemented, these protective measures may hinder or suspend Company’s use of the Services, and Company will not work around or attempt to thwart or disable any of these protective measures.

		
	2.4
	General Cooperation. Each party acknowledges that the other party's ability to perform certain of its obligations under this Agreement or any Schedule may be dependent upon the reasonable cooperation of the other party.  Therefore, neither party will have any liability for any failure or delay to perform any obligations under this Agreement or any Schedule to the extent caused by any delay or failure on the part of the other party in providing this reasonable cooperation.

		
	2.5
	Technical Implementation.  Company will operate in good faith to implement any reasonable technical requirements requested by Microsoft that do not impose an undue burden upon Company.  

		
	3.
	TRADEMARK LICENSE.  Subject to the terms of this Agreement and any applicable Schedule, each party (“Licensor”) grants the other party (“Licensee”) a worldwide, nonexclusive, royalty-free, fully paid-up license to use Licensor Marks, solely for the purposes expressly specified in the applicable Schedule and solely during the Schedule Term for such applicable Schedule.   Licensee will use the Licensor Marks solely as provided in the applicable Schedule and will comply with Licensor’s then-current trademark usage guidelines as made available to Licensee from time to time.  Licensee will promptly correct its misuse of any Licensor Marks on notice from Licensor, and Licensee will cease all use of the Licensor Marks if Licensee fails to promptly correct any such misuse or on notice from Licensor.  All goodwill, rights, and benefits in the Licensor Marks that arise from their use under this Agreement or any Schedule will inure solely to Licensor.  “Licensor Marks” means solely the trademarks of Licensor specified by Licensor for Licensee to use under the applicable Schedule.  Microsoft’s trademark usage guidelines are currently located at http://www.microsoft.com/about/legal/intellectualproperty/trademarks/usage/default.mspx.

		
	4.
	INTELLECTUAL PROPERTY.  Except as expressly set forth in a Schedule, no licenses to the IPR of either party are granted under this Agreement or any Schedule.  As between the parties and subject to any 

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licenses in this Agreement or any applicable Schedule, Company owns all rights in any Company Materials and Microsoft owns all rights in any Microsoft Materials.  The applicable rights holder reserves all rights not expressly granted to the other party in this Agreement or in a Schedule.
		
	5.
	INVOICING AND PAYMENTS.  

		
	5.1
	Payments by Microsoft.  With respect to any amounts payable by Microsoft to Company under any Schedule, Company will invoice Microsoft electronically using the tool provided at https://invoice.microsoft.com for the amounts due, and Microsoft will pay all undisputed invoices within [*] days after the invoice has been submitted (unless otherwise provided in a Schedule).  Microsoft will make payments according to Microsoft's then-current payment delivery practices, which may include payment via ACH electronic payment to Company's financial institution in accordance with instructions supplied to Microsoft by Company in Microsoft's ACH Electronic Payment Forms.  Before the Company submits its first invoice to Microsoft, Company will complete and return to Microsoft a Microsoft new vendor application and all required payment setup forms. 

		
	5.2
	Disputes.  Microsoft will have the rights to dispute Company’s invoices under the terms and conditions of the new vendor application and accompanying PO terms and other documents or under the Master Vendor Agreement, if one has been entered into between Microsoft (or an Affiliate of Microsoft) and Company.  The priority of terms in those documents will be as provided in those documents.    Paying or partially paying an invoice without asserting a dispute does not waive any claim or right. 

		
	6.
	RECORDS; AUDIT. During the Term or any Schedule Term and for 12 months thereafter, each party (“Audited Party”) will keep all usual and proper records and books of account (with all usual and proper entries) relating to its payments to the other Party (“Auditing Party”) under this Agreement and any applicable Schedule.  Auditing Party may, from time to time (but no more than once per calendar year, unless an audit reveals a material underpayment as set forth below), and upon no less than 20 business days’ prior written notice to Audited Party, audit these records to verify the amount of the payments made to it.  Any audit will be conducted by an independent nationally recognized public accounting firm (“Auditor”) reasonably acceptable to both parties, not working on a contingent fee basis, and which has signed Audited Party’s reasonable non-disclosure agreement.  Auditor may only disclose (a) Audited Party’s compliance or non-compliance with the payment provisions of this Agreement and any applicable Schedule and (b) the amount of any underpayment or overpayment, if any. Any audit will be conducted in accordance with generally accepted auditing standards.  Auditing Party will bear the cost of any audit, unless the audit shows that Audited Party underpaid Auditing Party by 10 percent or more of the amounts actually due for the audited period, in which case Audited Party will reimburse Auditing Party for all reasonable and documented costs and expenses incurred in conducting the audit, and Auditing Party may conduct a second audit during the applicable calendar year.  In addition, if an audit shows that Audited Party underpaid Auditing Party for any audited period, Audited Party will re-compute the amount due to Auditing Party for that period and pay (pursuant to the payment terms in this Agreement) to Auditing Party the difference between the amount owed and the amount actually paid.  If an audit shows that Audited Party overpaid Auditing Party for any audited period, Audited Party will re-compute the amount due to Auditing Party for that period, and Auditing Party will refund (pursuant to the payments terms in this Agreement) the overpayment to Audited Party.

		
	7.
	TAXES.  Each party is responsible for all taxes, duties, imposts and similar liabilities imposed upon it in the first instance by any governmental authority and arising out of or in connection with this Agreement or any Schedule.  If taxes are legally required to be withheld on payments made under this Agreement or any Schedule, the party making the payment may deduct such taxes from the amount owed and pay them to the appropriate taxing authority.  Such party will in turn promptly secure and deliver an official receipt for any taxes withheld, if applicable.

		
	8.
	TERM; TERMINATION.

		
	8.1
	Term.  The term of this Agreement (“Term”) begins on the Effective Date and, unless earlier terminated under the terms of this Agreement:  (a) continues for the Initial Term; and (b) after the 

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Initial Term, continues until either party terminates this Agreement by providing at least sixty (60) days advance written notice to the other party.  
		
	8.2
	Termination of Agreement or Schedule.  Either party may suspend performance of or terminate this Agreement or any Schedule immediately upon written notice at any time:

		
	(a)
	if the other party breaches any material provision of the Agreement or any Schedule and fails to cure that breach within 30 days after receiving written notice of the breach from the other party;

		
	(b)
	if the other party breaches Section 9 (Confidentiality) of this Agreement or assigns this Agreement or the Schedule in violation of Section 17.9;

		
	(c)
	if the other party is or becomes Insolvent; or

		
	(d)
	as otherwise may be provided in a Schedule.

		
	8.3
	Change of Control.  Microsoft has the right to suspend performance of or terminate this Agreement or any Schedule at any time immediately upon written notice to Company following a change of Control of Company, either by a sale of Control of Company or by a sale of a material portion of the Company’s assets. 

		
	8.4
	Effect of Termination of this Agreement.  On termination or expiration of this Agreement, each party will, on the other party’s request, return or destroy all copies of Confidential Information received from the other party under this Agreement and in receiving party’s possession or control, within 30 days of the request.  Neither party will be liable to the other for any damages resulting solely from terminating this Agreement according to its terms.  The following will survive any termination or expiration of this Agreement:  Sections 1, 4, 5 (but only with respect to amounts owed prior to expiration or termination of this Agreement), and 6-17.  For the avoidance of doubt, no additional Schedule may be entered into under this Agreement after the expiration or termination of this Agreement, but if any then-existing Schedule has not expired or terminated after the expiration or termination of this Agreement, the terms of this Agreement will continue to apply to that Schedule.

		
	9.
	CONFIDENTIALITY.  All disclosures between the parties related to this Agreement and any Schedule are governed by the standard Microsoft Corporation Non-Disclosure Agreement entered into between Company and Microsoft Corporation on the date indicated on Table 2 (“NDA”), which is incorporated in this Agreement by this reference (except that for purposes of this Agreement, any durational limitation on the protection of confidential information in the NDA, is extended to five years from the end of the Term), regardless of any earlier or subsequent termination or expiration of the NDA.  If Table 2 does not indicate that the parties have entered into an NDA (or if the parties have entered into an NDA, but it is invalid or unenforceable for any reason), then Sections 9.1-9.5 will govern use of Confidential Information disclosed in relation to this Agreement or any Schedule.  Section 9.4 will apply if the parties have entered into an NDA that does not address “Input” or “Feedback.”

		
	9.1
	Protecting Confidential Information.  Each party will: (1) protect the other party’s Confidential Information from unauthorized dissemination with the same degree of care that it uses to protect its own like information, but not less than reasonable care; (1) use the other party’s Confidential Information solely as required to perform under this Agreement or any applicable Schedule; and (1) not reveal the other party’s Confidential Information to any third party without advance written permission, other than as permitted below.  “Confidential Information” means nonpublic information that is disclosed in connection with this Agreement or any Schedule and that the disclosing party designates as confidential, or that, under the circumstances surrounding the disclosure, ought to be treated as confidential.  Confidential Information includes all terms of this Agreement and any Schedule but does not, unless procured by breach of an obligation owed to the owner of the information, include any information that (a) was independently developed by the receiving party, (b) is (or subsequently becomes) publicly available, (c) is received from another source, or (d) is Input. 

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	9.2
	Sharing with Affiliates & Personnel.  The receiving party may share the other party’s Confidential Information with the employees, contractors, agents, advisors, consultants (“Representatives”) of it or its Affiliates, but only (i) to the extent its Affiliates or Representatives have a need to know the Confidential Information for the purposes of performing this Agreement or any Schedule, and (ii) if those Affiliates and Representatives are required to protect the Confidential Information on terms consistent with this Agreement.  The party sharing the Confidential Information of the other party is responsible for the use of that Confidential Information by its Affiliates and Representatives.  

		
	9.3
	Required Disclosure.  A party may disclose the other party’s Confidential Information as required by judicial or government order, if that party gives the other party reasonable notice of the disclosure (to allow that party a reasonable opportunity to seek a protective order or equivalent).  

		
	9.4
	Input.  Any Input is given entirely voluntarily, and the providing party grants to the recipient, without charge, a non-exclusive license under the providing party’s owned or controlled IPR to make, use, modify, distribute, and otherwise commercialize such Input as part of any of the recipient’s products, technologies, services, or any of their components.  Subject only to the foregoing, the providing party retains all right, title, and interest in any Input and limits the rights granted under this Section 9.4 to licenses under the providing party’s owned or controlled IPR in the Input (which do not extend to any technologies that may also be necessary to make or use any product, technology, service, or portion of the foregoing, that incorporates the Input, but are not themselves expressly part of the Input, such as enabling technologies).  “Input” means ideas, suggestions, comments, feedback, or know-how, in any form, that one party provides to the other party in relation to the other party’s business, technologies, products or services.  Input does not, however, include sales forecasts, future release schedules, and marketing plans for products; financial results; or high level product plans and feature lists for anticipated products.

		
	9.5
	Residuals.  Each party is also free to use for any purpose the Residuals resulting from access to Confidential Information.  The receiving party is not obligated to limit or restrict the assignment of persons or to pay royalties for any work resulting from use of Residuals.  This Section may not, however, be construed as granting a license under disclosing party’s copyrights or patents or as modifying the receiving party’s duty to safeguard disclosing party’s Confidential Information.  “Residuals” means information in intangible form that is retained in unaided memory by persons who have had access to the Confidential Information, including ideas, concepts, know-how, or techniques contained in Confidential Information.

		
	10.
	PUBLICITY.  Except as may be permitted in a Schedule, neither party will communicate with the press or public concerning this Agreement or any Schedule without the other party’s advance written permission.  Microsoft may, however, include Company in lists of Microsoft’s customers, subject to Company’s advance written permission.

		
	11.
	WARRANTIES.  In addition to any representations/warranties included in this Agreement and any Schedule, each party represents to the other (as of the Effective Date and again as of all Schedule Effective Dates) that: (a) it has the full corporate right, power and authority to enter into, and perform its obligations under, this Agreement and any Schedule; (b) its entry into and performance of this Agreement and any Schedule, and the other party's exercise of its rights thereunder, will not (i) conflict with or result in a breach or violation of any of the terms or provisions of (or constitute a default under) any agreement by which it is bound, or (ii) otherwise breach any other obligation or duty that it owes to a third party; (c) when executed and delivered, this Agreement and any Schedule will constitute its legal, valid and binding obligation enforceable against it in accordance with its terms.  Each party further represents to the other, at all times from the Effective Date until this Agreement and all Schedules have terminated, that it will comply with all applicable Law in its performance of this Agreement and any Schedule. 

		
	12.
	DISCLAIMERS.  EXCEPT AS STATED IN SECTION 11 (OR AS OTHERWISE WARRANTED IN THIS AGREEMENT OR ANY SCHEDULE), NEITHER PARTY MAKES ANY WARRANTIES OF ANY KIND (EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-

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INFRINGEMENT, OR IMPLIED WARRANTIES ARISING OUT OF COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE) WITH RESPECT TO ITS PERFORMANCE OR ANY MATERIALS OR SERVICES PROVIDED TO THE OTHER PARTY UNDER THIS AGREEMENT OR ANY SCHEDULE, AND THE ENTIRE RISK AS TO EACH PARTY’S PERFORMANCE AND ANY SUCH MATERIALS AND SERVICES PROVIDED TO THE OTHER PARTY (OTHER THAN FOR BREACH OF THE EXPRESS TERMS OF THIS AGREEMENT OR ANY SCHEDULE) IS ASSUMED BY THE OTHER PARTY.  WITHOUT LIMITING THE FOREGOING, (I) MICROSOFT MAKES NO, AND EXPRESSLY DISCLAIMS ALL, REPRESENTATIONS AND WARRANTIES: (A) THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; (B) REGARDING ITS PERFORMANCE; AND (C) RELATED TO ANY REVENUES OR PROFITS THAT COMPANY MAY, OR MAY NOT, EARN UNDER THIS AGREEMENT OR ANY SCHEDULE; AND (II) EXCEPT AS MAY BE EXPRESSLY SET FORTH IN A SCHEDULE, COMPANY MAKES NO, AND EXPRESSLY DISCLAIMS ALL, REPRESENTATIONS AND WARRANTIES: (A) REGARDING ITS PERFORMANCE; AND (B) RELATED TO ANY REVENUES OR PROFITS THAT MICROSOFT MAY, OR MAY NOT, EARN UNDER THIS AGREEMENT OR ANY SCHEDULE.
		
	13.
	DEFENSE OF CLAIMS.

		
	13.1
	Obligation.  If a Claim is brought against a party, or its Affiliates, agents, licensees, or successors, or any agents, directors, officers, or employees of any of them (all, collectively, “Defendant”), the other party (“Respondent”) will defend the Claim (including by paying litigation costs and reasonable attorneys’ fees) and pay any adverse final judgment (or settlement that Respondent consents to).

		
	13.2
	Procedure.  Defendant will promptly notify Respondent of any Claim and permit Respondent to answer and defend; and at Respondent’s reasonable request and expense, provide non-confidential information and assistance necessary to the defense.  Defendant may, at its expense, participate in the defense with separate counsel.  Respondent is not responsible for any settlement it does not consent to; and will not settle any Claim under this Section 13 without Defendant’s consent.  Respondent will not publicize any settlement without Defendant’s prior, written permission.

		
	13.3
	Claim.  “Claim” means an unaffiliated third party’s demand, suit, or other assertion of rights that:

		
	(a)
	Mutual.  as alleged, reflects a breach of this Agreement or the applicable Schedule by Respondent or arises from Respondent’s gross negligence or willful misconduct.

		
	(b)
	Microsoft as Respondent.  (i) is based on Microsoft’s provision of the Services; or (ii) alleges that any Service or any of Microsoft’s products or technologies infringe or violate third-party IPR within the geographical boundaries of those countries in which Microsoft distributes or markets that Service.  Microsoft has no obligation under Section 13.1 with respect to such Claim, however, to the extent that the Claim arises from: (1) Company’s use of the Services after Microsoft notifies Company to discontinue use because of such Claim; (2) Company’s combining the Services with a non-Microsoft product, service, data, or business process (if the Claim would not have arisen but for such combination); (3) damages attributable to the value of the use of a non-Microsoft product, service, data, or business process; (4) Company’s altering the Service (if the Claim would not have arisen but for such alteration); (5) Microsoft’s implementation of any specifications provided by Company; or (6) any content introduced or made available in or through the Service by a third party.

		
	(c)
	Company as Respondent.  (i) is based on any of Company’s websites and properties (excluding any Microsoft Materials, if such Claim would not have arisen but for the Microsoft Materials); (ii) alleges that any of Company’s websites and properties (excluding any Microsoft Materials, if such Claim would not have arisen but for the Microsoft Materials) infringes or violates third-party IPR; (iii) arises from combining (with materials not provided by Microsoft) or modifying any Service (if the Claim would not have arisen 

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but for the combination or modification); (iv) arises from using any Service or other Microsoft IPR in a way that does not comply with this Agreement, the applicable Schedule, or applicable documentation; or (v) arises from using any Service after Microsoft has notified Company to cease use due to infringement or violation of third-party IPR or after Microsoft has replaced or modified the Service under Section 13.4.  
		
	13.4
	Correction.  If any Services allegedly infringe or violate third-party IPR, Microsoft may procure the right for Company to continue using the Services, or modify or replace (with functional equivalents) the Services to cure the infringement or violation (in which case Company will promptly stop using the unmodified or original Services).  If a court of competent jurisdiction holds that a Service infringes or violates third-party IPR and enjoins Company’s use under this Agreement or the applicable Schedule, Microsoft will, at its option: (1) procure the right to continue its use; (1) replace it with a functional equivalent; (1) modify it to make it non-infringing; or (1) terminate the license for its use.

		
	13.5
	Exclusive Remedy.  This Section 13 states Respondent’s entire liability, and Defendant’s exclusive remedy, for any Claim that Respondent is obligated to defend against pursuant to this Section 13.

		
	14.
	EXCLUDED DAMAGES.  NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL, OR PUNITIVE DAMAGES (INCLUDING DAMAGES FOR LOSS OF PROFIT, REVENUE, BUSINESS OR DATA) RELATED TO THIS AGREEMENT OR ANY SCHEDULE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE AND EVEN IF ANY REMEDY FAILS OF ITS ESSENTIAL PURPOSE.  THIS SECTION 14 DOES NOT APPLY TO EITHER PARTY’S OBLIGATIONS UNDER SECTION 13.1, TO DAMAGES FOR BREACH BY EITHER PARTY OF SECTION 9, TO DAMAGES FOR BREACH BY COMPANY OF ANY EXCLUSIVITY OBLIGATIONS (IF ANY) UNDER ANY SCHEDULE, OR TO DAMAGES ARISING FROM INTELLECTUAL PROPERTY INFRINGEMENT, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT.

		
	15.
	LIMITATION OF LIABILITY.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT OR ANY APPLICABLE SCHEDULE, THE AGGREGATE LIABILITY OF EACH PARTY TO THE OTHER PARTY, AND TO ANY THIRD PARTIES, FOR ALL CLAIMS RELATED TO THIS AGREEMENT OR ANY APPLICABLE SCHEDULE, IS LIMITED TO THE AGGREGATE AMOUNTS PAYABLE UNDER THIS AGREEMENT OR SUCH APPLICABLE SCHEDULE, AS APPLICABLE, IN THE TWELVE (12) MONTHS BEFORE THE EVENT GIVING RISE TO THE APPLICABLE CLAIM AROSE.  THIS SECTION 15 DOES NOT APPLY TO EITHER PARTY’S OBLIGATIONS UNDER (OR FOR BREACH OF) ANY PAYMENT OBLIGATIONS, TO EITHER PARTY’S OBLIGATIONS UNDER SECTION 13.1, TO DAMAGES FOR BREACH BY EITHER PARTY OF SECTION 9, TO DAMAGES FOR BREACH BY COMPANY OF ANY EXCLUSIVITY OBLIGATIONS (IF ANY) UNDER ANY SCHEDULE, OR TO DAMAGES ARISING FROM INTELLECTUAL PROPERTY INFRINGEMENT, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT.

		
	16.
	NONEXCLUSIVE.  Except as may be otherwise expressly stated in this Agreement or any Schedule, this Agreement or any Schedule is nonexclusive.  Without limiting the foregoing, this Agreement or any Schedule does not restrict: (1) Microsoft from entering into other or similar agreements with any third parties; or (1) Microsoft from directly or indirectly, acquiring, licensing, developing, manufacturing, or distributing any product, service, technology, information, or content.

		
	17.
	GENERAL.

		
	17.1
	Order of Precedence.  To the extent any terms and conditions of any Schedule conflict with the terms and conditions of this Agreement, the terms and conditions of the Schedule will govern and control, but only as applied to that Schedule.

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	17.2
	Construction.  Captions are intended solely for the parties’ convenience and will not affect the meaning of any term.  Unless stated, or context requires otherwise: (a) “written” or “in writing” refers to a non-electronic document only, manually signed by an authorized representative of the party sending the notice or to be bound by the writing; (b) “days” means “calendar days”; (c) “may” means that the applicable party has a right, but not a concomitant duty; (d) “partner”, if used in this Agreement, any Schedule, or any related documentation, is not used as a legal term of art and may not be construed to imply a partnership; (e) a party’s choices related to this Agreement or any Schedule are in its sole discretion, subject to any implied duty of good faith; and (f) all monetary amounts are expressed and payable in U.S. dollars.  Lists of examples following “include”, “including”, “for example”, or “e.g.” are not exhaustive (i.e., are interpreted to include “without limitation”), unless qualified by words such as “only” or “solely.”  This Agreement or any Schedule will be interpreted according to the plain meaning of its terms without any presumption that it should be construed to favor either party.  

		
	17.3
	Notices.  All notices under this Agreement or any Schedule will be: (1) in writing; (1) deemed given when received; (1) sent by delivery service, messenger, or registered or certified mail (postage prepaid, return receipt requested); and (1) addressed and copied by fax as provided on Table 1 (as amended).  Communications in the ordinary course of business, however (which do not include any notices related to payment or disputes under, alleged breach of, efforts to enforce the terms of, or notices regarding termination of, this Agreement or any Schedule) may be sent by email and need not be copied by fax.

		
	17.4
	Governing Law; Jurisdiction; Venue.  This Agreement and any Schedules are governed by the laws of the State of Washington (disregarding conflicts principles that would require applying the law of any other jurisdiction), and the parties consent to exclusive jurisdiction and venue in the state and federal courts in King County, Washington.  Each party waives all defenses of lack of personal jurisdiction and forum non conveniens.  This Section will not preclude either party from seeking injunctive or equitable relief in any court of competent jurisdiction as permitted in this Agreement.

		
	17.5
	Injunctive Relief.  Each party acknowledges that monetary damages may not be a sufficient remedy for infringement of IPR, breach of Section 9 (Confidentiality), or breach of any exclusivity obligations (if any), and that each party may seek, without waiving any other rights or remedies, injunctive or equitable relief through a court of competent jurisdiction.

		
	17.6
	Attorneys’ Fees.  In any action or suit to enforce or to interpret this Agreement or any Schedule, the prevailing party is entitled to recover its costs, including reasonable attorneys’ fees.  

		
	17.7
	Compliance with Export Laws.  The Services are subject to United States export laws and regulations, and Company will comply with all applicable domestic and international export laws and regulations, which include restrictions on destinations, end users, and end use.  More information is provided at http://www.microsoft.com/exporting.

		
	17.8
	Force Majeure.  Neither party will be deemed to be in default of or to have breached any provision of this Agreement or any Schedule as a result of any delay, failure in performance, or interruption of service, resulting directly or indirectly from any cause beyond that party’s reasonable control (including acts of God, acts of civil or military authorities, civil disturbances, wars, acts of terrorism, unauthorized network or computer intrusion, or Internet or computer-related viruses, hacker attacks or other agents introduced by any unaffiliated third party, acts or omissions of any third party, or failure of the Internet) (each such cause a “Force Majeure Event”) as long as that party makes reasonable efforts promptly to remedy the delay or failure when such Force Majeure Event is eliminated.  If a Force Majeure Event occurs, the party affected will use reasonable efforts to notify the other party of the occurrence of the Force Majeure Event within a reasonable period of time.  In addition, neither party will be deemed to be in default of or to have breached any provision of this Agreement or any Schedule as a result of any delay, failure in performance, or interruption of service resulting from: (1) requirements for which the other party is responsible; or (1) the other party’s intentional acts or omissions.

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	17.9
	Assignment.  Neither party may assign this Agreement or any Schedule, directly or indirectly (e.g., by merger, consolidation, reorganization, or transfer of controlling interest), by operation of contract, law, or otherwise, without the other party’s advance written consent.  A party may assign this Agreement and any Schedules to any of its Affiliates.  Attempted assignment without permission is a material breach and is void.  Subject to the foregoing, this Agreement and any Schedule will bind and benefit the parties’ successors and lawful assigns.  Notwithstanding the foregoing, Company acknowledges that Microsoft may use Affiliates to perform its obligations under this Agreement or a Schedule.  In those circumstances, Microsoft will be responsible for the actions of its Affiliates.

		
	17.10
	Waiver.  No waiver of any breach of this Agreement or any Schedule will waive any other breach, and only written waivers signed by the party making the waiver are effective.  

		
	17.11
	Severability.  If a court of competent jurisdiction finds any term of this Agreement or any Schedule unenforceable, that term will be fully enforced to effect the parties’ intent, and all other terms will continue in force.

		
	17.12
	Entire Agreement.  This Agreement or any Schedule does not constitute an offer by either party, and neither is effective until validly signed by both parties.  This Agreement and any Schedules constitute the entire agreement between the parties with respect to the subject matter thereof.  Neither this Agreement nor any Schedule may be modified, except by a subsequent, written agreement validly signed by both parties.

		
	17.13
	Counterparts; Facsimile.  This Agreement and any Schedule may be executed: (a) in counterparts, each of which will be deemed an original and all of which together will constitute one instrument; and (b) by fax (or other means of accurately transmitting an image).  Neither party will contest the validity of this Agreement or any Schedule solely because a signature was faxed or otherwise transmitted electronically.  Each party will deliver to the other an original executed copy of this Agreement and any Schedule promptly after execution.

		
	17.14
	Miscellaneous.  Each party is an independent contractor to the other and has no authority to act on behalf of or bind the other, and neither this Agreement nor any Schedule creates any other relationship (e.g., employment, agency, partnership, or franchise).  Microsoft may delegate the performance of any of its duties under this Agreement or any Schedule to any contractor or any of Microsoft’s Affiliates, although Microsoft will remain responsible for the performance.  Each party will comply with all applicable Laws in connection with this Agreement or any Schedule.  Each party will pay its own costs to perform (unless otherwise stated in this Agreement or a Schedule).  All rights and remedies under this Agreement or any Schedule are cumulative.  This Agreement or any Schedule is for the benefits of Microsoft and Company only and is not for the benefit of any third parties.  Company represents that it has (i) independently reviewed this Agreement and any Schedules, and (ii) not relied on any warranty or guarantee not expressly stated in this Agreement or any Schedule.  

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