Document:

Employment Offer Letter

 Exhibit 10.7 
 

 
 PERSONAL AND CONFIDENTIAL 
 May 22nd, 2009 
 Jim
Ryan 
 Dear Jim, 
 We are pleased to extend to you this revised offer (“the Employment Agreement”) with Motricity (the “Company”) at our offices located at 601 108th Avenue N.E., Suite 900, Bellevue, WA 98004. 
 This letter explains the details and terms of the employment opportunity offered. 
  

					
	Position:	  	Your position will be Chief Strategy and Marketing Officer with the duties and responsibilities generally associated with such position, and such other reasonable
additional responsibilities as may be added from time to time by the Company. It is understood that the duties and responsibilities of this position will require that you travel extensively.
		
	Base Compensation:	  	Your position is exempt from overtime payment under the Fair Labor Standards Act, with a semi-monthly compensation rate of eleven-thousand four-hundred fifty-eight
U.S. dollars and thirty-three cents (USD $ 11,458.33). This is an annual compensation of two-hundred seventy five thousand U.S. dollars and no cents (USD $275,000.00) payable in twenty-four (24) equal installments at the 15th and the last day of each month.
		
	Bonus:	  	You are eligible to participate in the Company’s Corporate Incentive Plan. Currently, under the plan, your target annual discretionary incentive is fifty percent
(50%) of your base compensation. Any bonus granted shall be prorated for time worked in the position during the bonus period and you must be an active employee on the date the bonus is paid. Full terms of the plan will be provided to you in the
company’s Incentive Plan document, which is subject to change at any time in the Company’s sole and absolute discretion.

  

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	Restricted Stock:	  	On the Effective Date, provided that you continue to be employed in good standing at such time, you will be eligible for an award of three million and five-hundred
thousand (3,500,000) shares of restricted stock, with a vesting schedule stated in the restricted stock award agreement. All of these shares are granted according to the Company’s 2004 Stock Option Plan as amended, including the vesting
provisions thereto and are subject to approval by the Company’s Board of Directors.
		
	Carve Out:	  	During the term of your employment with the Company and upon the sale of the Company, you will be entitled to a completion sale bonus as follows:
			
		  	Company Sale Price	  	Bonus
		  	Less than $100M	  	zero
		  	$100M to $300M	  	$500,000
		  	$300M+	  	0.25% of the sales price*
		
		  	*Note: To the extent the value of your common stock ownership resulting from the sale of the Company is greater than the completion sale bonus described above, you
will not be entitled to the completion sale bonus.
		
	Performance Reviews /	  	
	Annual Merit Increases:	  	The Company may require managers to conduct formal employee performance reviews annually. The performance period runs from January 1st through December 31st. The Company may award discretionary annual merit increases, based on the employee’s review score
and current position in the assigned salary range. Merit increases, if granted, generally are effective on March 1st
 following the performance period and are prorated for your time of employment if you were hired after the beginning of the performance period. Merit increase awards are at the sole
discretion of the Company.

  

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	Benefits:	  	As a full-time regular employee, you will be eligible for participation in the Company’s Welfare Benefits Plans as in effect (and subject to amendment) from time
to time. The cost of participating in the plans (if any) will depend upon the type of benefit and level of coverage you elect. At this time, the Company’s benefits offered include:
				
		  		  	¡	  	Group health insurance;
				
		  		  	¡	  	Employee Assistant Program;
				
		  		  	¡	  	FSA: Medical Savings Account;
				
		  		  	¡	  	FSA: Dependent Care Reimbursement;
				
		  		  	¡	  	HSA: Health Savings Account;
				
		  		  	¡	  	Group dental insurance;
				
		  		  	¡	  	Group vision insurance;
				
		  		  	  
 ¡
	  	Life Insurance and Accidental Death and Dismemberment; 3X your annual base salary not to exceed $800,000;
				
		  		  	¡	  	Voluntary Life & AD&D for Employee and Dependents;
				
		  		  	¡	  	Long term disability-Employer paid;
				
		  		  	¡	  	Short term disability-Employer paid;
				
		  		  	¡	  	401(k) plan;
				
		  		  	¡	  	Eight (8) paid holidays plus two (2) floating holidays;
				
		  		  	¡	  	Twenty (20) accrued Paid Time Off (“PTO”) days;
				
		  		  	¡	  	Five (5) sick days prorated your first year of hire.
		
	Effective Start Date:	  	Should you accept our offer; the effective date of your new position will begin on June 1st, 2009 (the date on which you actually commence your employment duties, the “Effective Date”). Your
employment is contingent upon the satisfactory results of a required employment background check and the execution of the documents requested in this letter.
		
	Employment at Will:	  	Employment with the Company is “At Will”. This means that you may resign, or the Company may terminate your employment with or without cause, and with or
without notice at any time.
		
	Company Policies:	  	You agree to comply with all the policies of the Company, including, without limitation, such policies with respect to confidentiality, legal compliance, conflicts of
interest, business ethics, travel, vacation, and sexual harassment, as are from time to time in effect. You shall also be subject to

  

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		  	the terms and conditions of the Company’s Employee Handbook and general Management Policies as in effect from time to time, copies of which will be provided to you upon your
commencement of employment.
		
	Severance Pay:	  	In the event your employment is terminated without Cause (as defined below) or you resign for Good Reason (as defined below), you will be entitled to receive severance pay equal
to nine (9) months of your annual base salary in effect at the time of your termination (the “Severance Amount”). The Severance Amount shall be paid over nine (9) months (the “Severance Period”) (in accordance with the
Company’s normal payroll practices) commencing fifteen (15) days following your signing the Release and Waiver of Claims Agreement (as defined below). The Severance Amount shall be contingent upon the execution of a general release of claims in
a form provided by the Company (the “Release and Waiver of Claims Agreement”) which must be executed and delivered to the Company within thirty (30) days of your termination. If you fail to execute and deliver the Release and Waiver of
Claims Agreement on or before the thirtieth day following your termination you shall forfeit any and all rights to the Severance Amount. If your employment is terminated for Cause or you resign without Good Reason, you will only be entitled to your
earned and accrued compensation through the date that your employment is terminated and such bonus or incentive compensation or benefits as may be earned and/or accrued through the termination date and consistent with the terms of the relevant
plans.
		
		  	For purposes of this Employment Agreement, “Cause” is defined as your: (i) failure to perform substantially all of the duties of the Chief Strategy and Marketing
Officer of the Company; (ii) commission of, or indictment for a felony or any crime involving fraud or embezzlement or dishonesty or conviction of, or plea of nolo contendere to a misdemeanor (other than a traffic violation) punishable by
imprisonment under federal, state or local law; (iii) engagement in an act of fraud or of willful dishonesty towards the Company; (iv) willful misconduct or negligence resulting in a material economic harm to the Company; (v) violation of a federal
or

  

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		  	state securities law or regulation; (vi) dishonesty detrimental to the best interests of the Company or any of its affiliates; (vii) conduct involving any immoral acts which is
reasonably likely to impair the reputation of the Company or any of its affiliates; (viii) willful disloyalty to the Company; (ix) violation, as determined by the Company’s Board of Directors based on opinion of its counsel, by you of any
securities or employment laws or regulations; (x) use of a controlled substance without a prescription or the use of alcohol which impairs your ability to carry out your duties and responsibilities; or (xi) material violation by you of the
Company’s policies and procedures or any breach of any agreement between the Company and you.
		
		  	For purposes of this Employment Agreement, “Good Reason” shall mean: (i) a material diminution in your authority, duties, annual base salary or responsibilities; (ii)
any action or inaction that constitutes a material breach by the Company of this Employment Agreement; or (iii) a material change in the geographic location at which you perform your services; provided, however, Good Reason shall not exist unless
and until you satisfy the notice and cure period provisions set forth below. You must provide a notice of termination, to the Company within ninety (90) days of the initial existence of the condition, event or circumstance that constitutes Good
Reason. Upon receipt of such notice, the Company shall have thirty (30) days during which it may remedy the condition, event or circumstance that constitutes Good Reason. If the Company remedies such condition, event or circumstance, then you shall
not be entitled to terminate employment with the Company for Good Reason.
		
	Covenant Not	  	
	to Compete:	  	For a period of nine (9) months following the last day of employment with the Company, you shall not, either directly or indirectly, as principal, agent, owner, employee,
partner, investor, shareholder (other than solely as a holder of not more than one percent (1%) of the issued and outstanding shares of any public corporation), consultant, advisor or otherwise howsoever own, operate, carry on or engage in the
operation of or have any financial interest in or provide, directly or indirectly, financial assistance to or lend money to

  

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		 	or guarantee the debts or obligations of any Person carrying on or engaged in any business that is a competitor with the business conducted by the Company or any of its
subsidiaries, whether with respect to customers, sources of supply or otherwise.
		
		 	You covenant and agree with the Company that during your employment with the Company and for two (2) years thereafter you shall not directly, or indirectly, for yourself or
for any other Person: (i) solicit, interfere with or endeavor to entice away from the Company or any of its subsidiaries or affiliates, any customer or client; (ii) attempt to direct or solicit any customer or client away from the Company
or any of its subsidiaries or affiliates; or (iii) interfere with, entice away or otherwise attempt to induce any employee of the Company or any of its affiliates to terminate his/her employment with the Company or any of its
affiliates.
		
		 	You represent to and agree with the Company that the enforcement of the restrictions contained in this Employment Agreement and in the Company’s Non-Disclosure,
Noncompetition, and Intellectual Property Protection Agreement (the “Non-Disclosure Agreement”) are necessary to protect the proprietary rights of the Company and the confidential information described in the Non-Disclosure Agreement
Notwithstanding the foregoing, you further agree that the aforementioned representations would not be unduly burdensome to you and that such restrictions are reasonably necessary to protect the legitimate Interests of the Company.
		
		 	You also agree that the remedy of damages for any breach by you of the provisions of either the Employment Agreement or the Non-Disclosure Agreement shall be inadequate and that
the Company shall be entitled to injunctive relief, without posting any bond, and you agree not to oppose granting of such relief on the grounds that the damages would adequately compensate the Company. These Agreements constitute an independent and
separable covenant which shall be enforceable notwithstanding any right or remedy that the Company may have under any other provision of this agreement or otherwise.

  

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	 Confidentiality and
 Non-Disclosure
	  	
	Agreement:	  	You shall be subject to the Company’s Nondisclosure Agreement that is enclosed with this letter and must be signed and returned unaltered before employment can
begin.
		
	Exclusive Full-Time	  	
	Engagement:	  	You acknowledge, agree and understand that the implementation and performance of the Company’s business plan is a critical and time sensitive process and that full and
complete implementation of the business plan is essential to the long-term survival, continuation and preservation of the business of the Company and that any termination by you of your performance of your duties hereunder will result in substantial
costs and damages to the Company. During the term of your employment, you shall devote your time, attention and efforts, on a Full-Time basis at the Company’s Bellevue headquarters, RTP office, Atlanta office or on Company approved business
travel for the business and affairs of the Company and shall use your best efforts to achieve the full and complete implementation of the Company’s business plan. During your employment with the Company, you shall not serve as a member of a
board, advisory group or similar governing body without the prior approval of the Chairman & Chief Executive Officer and provided that such activities in connection with such service (i) do not conflict or interfere with the performance of your
duties and responsibilities hereunder; (ii) do not violate or potentially violate any law; and (iii) take place only during PTO days. Notwithstanding the foregoing, you agree that, in the event that the Company determines, in its sole and exclusive
judgement, but acting reasonably under the circumstances, that you are, or will likely be, engaged in, or about to engage in, any activity or activities that could violate the aforementioned provisions, the Company may require that you resign,
discontinue, and/or recuse yourself from such activities. Accordingly, you will resign and discontinue your activities as President & CEO of CMWare. Subject to the aforementioned terms, you may continue as: (i) Chairman of the Board of Mobile
Campus/hookupfeed.com; (ii) Board Member of Vringo; (iii) Board Member of CMWare; and (iv) advisor to Mvenue.

  

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	Employee Covenants:	  	You covenant and represent that (i) you are not a party to any contract, commitment or agreement, nor are you subject to, or bound by, any order, judgment, decree, law, statute,
ordinance, rule, regulation or other restriction of any kind or character, which would prevent or restrict you from entering into and performing your obligations under this Employment Agreement; (ii) you are free to enter into the arrangements
contemplated herein; (iii) you are not subject to any agreement or obligation that would limit your ability to act on behalf of the Company; and (iv) your termination of your existing engagements, your entry into the engagement contemplated herein
and your performance of your duties in respect thereof, will not violate or conflict with any agreement or obligation to which you are subject. You have delivered to the Company true, complete and unaltered copies of any currently effective
Non-Disclosure Agreement, to which you are subject.
		
	Complete Agreement:	  	This Employment Agreement and Non-Disclosure Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous
written, and all previous or contemporaneous oral negotiations, understandings, arrangements, and agreements, and may be amended, modified or changed only by a written instrument executed by you and the Company.

 For the avoidance of doubt, service for eligibility and vesting purposes under all of the
Company’s plans and programs (including those outlined in this offer letter) will be counted from your Effective Date. 
 Please acknowledge your acceptance of this Employment Agreement by signing below and returning it to Richard Leigh, Esq. by May 25th, 2009. If you do not sign and return an unaltered Employment Agreement by May 25th, 2009, this offer will be rescinded and will no longer be offered.

  

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	Sincerely,	 		 		 	
				
	Ryan Wuerch	 		 		 	
	CEO/Chairman	 		 		 	
				
	Accepted:	 		 		 	
				
	 /s/ Jim Ryan
	 		 	Date:	 	 5/23/09

	Jim Ryan	 		 		 	

  

 9Employment Offer Letter

 Exhibit 10.8 
 

 
 PERSONAL AND CONFIDENTIAL 
 January 7th, 2009 
 James R. Smith, Jr. 
 Dear Jim, 
 We are pleased to extend to you this amended and restated confidential offer (“the Employment Agreement”) of a new position with Motricity (the “Company”) at our office located at 601
108th Avenue N.E., Suite 900, Bellevue, WA 98004.

 This letter explains the details and terms of the employment opportunity offered. 
  

			
	Position:	 	Your position will be Chief Operating Officer & President reporting to the Chairman & Chief Executive Officer, with the duties and responsibilities generally associated with
such position, and such other reasonable additional responsibilities as may be added from time to time by the Company.
		
	Base Compensation:	 	Your position is exempt from overtime payment under the Fair Labor Standards Act, with a semi-monthly compensation rate of thirteen-thousand eight-hundred thirty-three U.S. dollars
and thirty-three cents (USD $13,833.33). This is an annual compensation of three-hundred thirty-two- thousand U.S. dollars and no cents (USD $332,000.00) payable in twenty-four (24) equal installments at the 15th and the last day of each month.
		
	Bonus:	 	You are eligible to participate in the Company’s Corporate Incentive Plan. Currently, under the plan, your target annual discretionary incentive is fifty-five percent (55%) of
your base compensation. Any bonus granted shall be prorated for time worked in the position during the bonus period and you must be an active employee on the date the bonus is paid. Full terms of the plan will be provided to you in the
Company’s Incentive Plan document, which is subject to change at any time in the Company’s sole and absolute discretion.

  

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	Restricted Stock:	 	Upon completing your permanent relocation to Bellevue, Washington, and satisfying the Relocation Commitments set forth in the “Relocation” section below (the
“Satisfaction Date”), you will be eligible for an award of five million (5,000,000) shares of restricted stock, with a vesting schedule stated in the restricted stock award agreement, provided that you continue to be employed in good
standing at such time. For vesting schedule purposes, the commencement of any vesting shall be retroactive to the Effective Date of your employment with the Company. In addition, on the date which is twelve (12) months following the Effective Date,
provided that you continue to be employed in good standing at such time, you will be eligible for an award of one million (1,000,000) shares of restricted stock over a different vesting schedule, as more fully described in the restricted stock award
agreement. All af these shares are granted according to the Company’s 2004 Stock Option Plan as amended, including the vesting provisions thereto and are subject to approval by the Company’s Board of Directors.
		
	Carve Out:	 	During the term of your employment with the Company and upon the sale of the Company, you will be entitled to a completion sale bonus as follows:

  

			
	Company Sale Price	  	Bonus
	Less than $100M	  	zero
	$100M to $300M	  	$750,000
	$300M+	  	0.65% of the sales price*

					
		 	  
 *Note: To the extent the value of your common stock
ownership resulting from the sale of the Company is greater than the completion sale bonus described above, you will not be entitled to the completion sale bonus.

  

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	Performance Reviews /	 	
	Annual Merit Increases:	 	The Company may require managers to conduct formal employee performance reviews annually. The performance period runs from January 1 through December 31. The Company may award
discretionary annual merit increases, based on the employee’s review score and current position in the assigned salary range. Merit increases are effective on March 1st following the performance period and are prorated for your time of employment if you were hired after the beginning of
the performance period. Merit increase awards are at the sole discretion of the Company.
		
	Benefits:	 	As a full-time regular employee, you will be eligible for participation in the Company’s Welfare Benefits Plans as in effect (and subject to amendment) from time to time. The
cost of participating in the plans (if any) will depend upon the type of benefit and level of coverage you elect. At this time, the Company’s benefits offered include:
		
		 	 ¡      Group health
insurance;

		
		 	 ¡      Health Insurance Premium Conversion
Privileges;

		
		 	 ¡      Employee Assistant
Program;

		
		 	 ¡      FSA: Medical Savings
Account;

		
		 	 ¡      FSA: Dependent Care
Reimbursement;

		
		 	 ¡      HSA: Health Savings
Account;

		
		 	 ¡      Group dental
insurance;

		
		 	 ¡      Group vision
insurance;

		
		 	 ¡      Life Insurance and Accidental Death and
Dismemberment; 3X your annual base salary not to exceed $800,000;

		
		 	 ¡      Voluntary Life & AD&D for
Employee and Dependents;

		
		 	 ¡      Long term disability-Employer
paid;

		
		 	 ¡      Short term disability-Employer
paid;

		
		 	 ¡      401(k) plan;

		
		 	 ¡      Eight (8) paid holidays plus two (2)
floating holidays;

		
		 	 ¡      Twenty (20) accrued Paid Time Off
(“PTO”) days;

		
		 	 ¡      Five (5) sick days prorated your first
year of hire.

  

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	Relocation:	 	You will be eligible for participation in the Company’s relocation program to relocate from your current residence to the Bellevue, Washington area. As a condition to your
being able to participate in this relocation program, you agree to be bound by the terms of the Company’s Relocation Policy dated May 28th, 2008 (the “Relocation Policy”) as well as the following relocation commitments collectively the Relocation
Policy and the relocation commitments, (the “Relocation Commitments”):
		
		 	 ¡      You agree to relocate to Bellevue,
Washington, by no later than August 31st,
2009;

		
		 	 ¡      You agree to list your home as per the
Relocation Policy by no later than May 30th, 2009.

		
		 	Appendix A: “Agreement to Repay Relocation Costs” (the “Relocation Agreement”) must be signed and returned before employment can begin. (SEE PAGE 17 & 18 of
Rev Agreement for Edit)
		 	

		
		 	You further agree that if you (i) fail to adhere to the Relocation Commitments; (ii) you are terminated by the Company for Cause; (iii) you otherwise resign without Good Reason
prior to August 31, 2009; or (iv) you otherwise resign without Good Reason within eighteen (12) months after you relocate to Bellevue, Washington, then, you shall pay back to the Company any relocation costs incurred or paid to you by the
Company (the “Refund Amount”). The Refund Amount shall be payable by you to the Company as set forth in the Relocation Agreement.
		 	

		
		 	The Company agrees that the temporary lodging expenses set forth in the Relocation Policy shall be extended until either (i) August 31st, 2009; or (ii) the date you actually relocate to Bellevue,
Washington, whichever ((i) or (ii)) is earlier in time. Your weekly travel and living expenses during this time (e.g. airfare to and from Seattle) consistent with the Company’s corporate travel policy will be reimbursed by the Company. For the
avoidance of doubt, these temporary lodging expenses shall not be considered as part of any obligation you may otherwise have to repay relocation costs herein.

  

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	Effective Start Date:	 	Should you accept our offer; the effective date of your new position will begin on January 5th, 2009 (the “Effective Date”). Your employment is contingent upon the satisfactory results of a required
employment background check and the execution of the documents requested in this letter.
		 	

		
	Employment at Will:	 	Employment with the Company is “At Will”. This means that you may resign, or the Company may terminate your employment with or without cause, and with or without notice at
any time.
		
	Company Policies:	 	You agree to comply with all the policies of the Company, including, without limitation, such policies with respect to confidentiality, legal compliance, conflicts of interest,
business ethics, travel, vacation, and sexual harassment, as are from time to time in effect. You will also be subject to the terms and conditions of the Company’s Employee Handbook and general Management Policies, copies of which will be
provided to you upon your commencement of employment.
		
	Severance Pay:	 	In the event your employment is terminated without Cause (as defined below) or you resign for Good Reason (as defined below), you will be entitled to receive severance pay equal to
nine (9) months of your annual base salary in effect at the time of your termination (the “Severance Amount”). The Severance Amount shall be paid over nine (9) months (the “Severance Period”) (in accordance with the
Company’s normal payroll practices) commencing thirty (30) days following your termination. The Severance Amount shall be contingent upon the execution of a general release of claims in a form provided by the Company (the “Release and
Waiver of Claims Agreement”) which must be executed and delivered to the Company within thirty (30) days of your termination. If you fail to execute and deliver the Release and Waiver of Claims Agreement on or before the thirtieth day following
your termination you shall forfeit any and all rights to the Severance Amount. As part of your severance benefits associated with a without Cause termination or resignation for Good Reason and should you elect continued health insurance coverage
under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), you will also be entitled to continued group health insurance coverage upon

  

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		 	the same terms as were in existence at the time of your termination for the duration of the Severance Period or until you become covered under another employer’s group health
insurance plan, whichever occurs first. If your employment is terminated for Cause or you resign without Good Reason, you may only be entitled to your earned and accrued compensation through the date that your employment is terminated and such bonus
or incentive compensation or benefits as may be earned and/or accrued through the termination date and consistent with the terms of the relevant plans. For the avoidance of doubt, failure to adhere to the Relocation Commitments as set forth above
shall hereby be deemed to constitute your resignation without Good Reason and you shall thereby forfeit any and all rights to the Severance Amount. For the avoidance of further doubt, if, however, your employment is terminated without Cause or you
resign for Good Reason, in either case, prior to August 31, 2009, you will be entitled to receive the Severance Amount.
		
		 	For purposes of this Employment Agreement, “Cause” is defined as your: (i) failure to perform substantially all of the duties of the Chief Operating
Officer & President of the Company; (ii) commission of, or indictment for a felony or any crime involving fraud or embezzlement or dishonesty or conviction of, or plea of nolo contendere to a misdemeanor (other than a traffic
violation) punishable by imprisonment under federal, state or local law; (iii) engagement in an act of fraud or of willful dishonesty towards the Company; (iv) willful misconduct or negligence resulting in a material economic harm to the
Company; (v) violation of a federal or state securities law or regulation; (vi) dishonesty detrimental to the best interests of the Company or any of its affiliates; (vii) conduct involving any immoral acts which is reasonably likely
to impair the reputation of the Company or any of its affiliates; (viii) willful disloyalty to the Company; (ix) violation, as determined by the Company’s Board of Directors based on opinion of its counsel, by you of any securities or
employment laws or regulations; (x) use of a controlled substance without a prescription or the use of alcohol which impairs your ability to carry out your duties and responsibilities; (xi) material violation by you of the Company’s
policies and procedures or any breach of any agreement between the Company and you; or
		 	

  

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		 	For purposes of this Employment Agreement, “Good Reason” shall mean: (i) a material diminution in your authority, duties, annual base salary or responsibilities; (ii) any
action or inaction that constitutes a material breach by the Company of this Employment Agreement; or (iii) a material change in the geographic location at which you perform your services; provided, however, Good Reason shall not exist unless and
until you satisfy the notice and cure period provisions set forth below. You must provide a notice of termination, to the Company within ninety (90) days of the initial existence of the condition, event or circumstance that constitutes Good Reason.
Upon receipt of such notice, the Company shall have thirty (30) days during which it may remedy the condition, event or circumstance that constitutes Good Reason. If the Company remedies such condition, event or circumstance, then you shall not be
entitled to terminate employment with the Company for Good Reason.
		
	Covenant Not	 	
	to Compete:	 	 For a period of nine (9) months following the last day of employment with the Company, you will not, either directly or indirectly, as
principal, agent, owner, employee, partner, investor, shareholder (other than solely as a holder of not more than one percent (1%) of the issued and outstanding shares of any public corporation), consultant, advisor or otherwise howsoever own,
operate, carry on or engage in the operation of or have any financial interest in or provide, directly or indirectly, financial assistance to or lend money to or guarantee the debts or obligations of any Person carrying on or engaged in any business
that is a competitor with the business conducted by the Company or any of its subsidiaries, whether with respect to customers, sources of supply or otherwise.
  
 You covenant and agree with the Company that during your employment with the Company and for nine (9) months thereafter you shall not directly, or
indirectly, for yourself or for any other Person: (i) solicit, interfere with or endeavor to

  

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		 	 entice away from the Company or any of its subsidiaries or affiliates, any customer or client; (ii) attempt to direct or solicit any
customer or client away from the Company or any of its subsidiaries or affiliates; or (iii) interfere with, entice away or otherwise attempt to induce any employee of the Company or any of its affiliates to terminate his/her employment with the
Company or any of its affiliates.
  
 You represent to and agree with the
Company that the enforcement of the restrictions contained in this Employment Agreement, Relocation Agreement and in the Company’s Non-Disclosure, Noncompetition, and Intellectual Property Protection Agreement (the “Non-Disclosure
Agreement”) are necessary to protect the proprietary rights of the Company and the confidential information described in the Non-Disclosure Agreement. Notwithstanding the Foregoing, you further agree that the aforementioned representations
would not be unduly burdensome to you and that such restrictions are reasonably necessary to protect the legitimate interests of the Company.
  
 You also agree that the remedy of damages for any breach by you of the provisions of either the Employment Agreement, the Relocation Agreement or the
Non-Disclosure Agreement may be inadequate and that the Company shall be entitled to seek injunctive relief, without posting any bond, and you agree not to oppose granting of such relief on the grounds that the damages would adequately compensate
the Company. These Agreements constitute an independent and separable covenant which shall be enforceable notwithstanding any right or remedy that the Company may have under any other provision of this agreement or otherwise.

		
	 Confidentiality and
 Non-Disclosure
	 	
	Agreement:	 	You will be subject to the Company’s Nondisclosure Agreement that is enclosed with this letter and must be signed and returned before employment can begin. (SEE EDIT PAGE 4 of
NON DISCLOSURE)
		 	

  

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	Exclusive Full-Time	 	
	Engagement:	 	You acknowledge, agree and understand that the implementation and performance of the Company’s business plan is a critical and time sensitive process and that full and complete
implementation of the business plan is essential to the long-term survival, continuation and preservation of the business of the Company, During the term of your employment, you shall devote your time, attention and efforts, on a Full-Time basis at
the Company’s Bellevue headquarters or on Company approved business travel, to the business and affairs of the Company and shall use your best efforts to achieve the full and complete implementation of the Company’s business plan. During
your employment with the Company, you shall not serve as a member of a board or similar governing body without the prior approval of the Chairman & Chief Executive Officer; provided, however, that you may continue to serve in your capacity as a
director of Agile Software Corporation and as an advisor of Nuance Communications, Inc. provided that such activities do not conflict or interfere with the performance of your duties and responsibilities hereunder and that participation in such
activities takes place only during PTO days.
		 	

		
		 	

		
	Employee Covenants:	 	You covenant and represent that (i) you are not a party to any contract, commitment or agreement, nor are you subject to, or bound by, any order, judgment, decree, law, statute,
ordinance, rule, regulation or other restriction of any kind or character, which would prevent or restrict you from entering into and performing your obligations under this Employment Agreement; (ii) you are free to enter into the arrangements
contemplated herein; (iii) you are not subject to any agreement or obligation that would limit your ability to act on behalf of the Company; and (iv) your termination of your existing engagements, your entry into the engagement contemplated herein
and your performance of your duties in respect thereof, will not violate or conflict with any agreement or obligation to which you are subject. You have delivered to the Company true, complete and unaltered copies of any currently effective (i)
Relocation Agreement; and (ii) Non-Disclosure Agreement, to which you are subject.

  

 9 

 

 
  

			
	Complete Agreement:	 	This Employment Agreement, Relocation Agreement and Non-Disclosure Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and
supersedes all previous written, and all previous or contemporaneous oral negotiations, understandings, arrangements, and agreements, and may be amended, modified or changed only by a written instrument executed by you and the
Company.

 Please acknowledge your acceptance of this Employment Agreement by signing below
and returning it to Richard Leigh, Esq. by January 9th, 2009. If you do not sign and return an unaltered Employment Agreement by January 9th 2009, this offer will be rescinded and will no longer be offered. 
  

	
	Sincerely yours
	
	/s/ Ryan Wuerch
	Ryan Wuerch
	CEO/ Chairman

 Accepted: 
  

									
	 /s/ James R. Smith Jr.
	 		 	Date:	 	 1/8/09
	 	
	James R. Smith Jr.	 		 		 		 	

  

 10

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