Document:

Employment Agreement by and between the registrant and Tom Romary

 Exhibit 10.5 
 October 14, 2005 
 Tom Romary 
 Dear Tom, 
 On behalf of HouseValues, I am extremely pleased to offer you the position of Chief Marketing Officer. This letter sets
forth the terms of your employment with HouseValues. If you wish to accept employment with HouseValues on these terms, please so indicate by signing two copies of this letter and two copies of the enclosed Confidential Information, Inventions,
Nonsolicitation and Noncompetition Agreement. Please retain one set for your files and mail me one set of original documents with your signature. This offer is contingent on completing reference checks. All terms of employment stated in this letter
will expire if you have not returned a signed copy of both agreements to me on or before October 19, 2005. 
 Term of Employment and Compensation

 Unless we mutually agree otherwise, you will commence employment with HouseValues on or around November 26. The work you perform will be the usual
and customary work of a Chief Marketing Officer, as well as any additional duties that your manager or the Board of Directors may instruct you to perform. It is understood and agreed that it is the intent of the parties that you will provide
services to HouseValues on a full-time basis and that, specifically, you will not undertake any part-time or “moonlighting” employment or consultancy without the prior written consent of HouseValues. 
 Your starting salary will be $235,000 per year, paid twice monthly. Salary, bonus and equity compensation will be subject to all legally required withholding
taxes. 
 Signing bonus: You are eligible to receive a one time signing bonus in the amount of $100,000. You will be entitled to receive this
signing bonus provided that you; (1) Accept the terms of this offer letter and (2) Commence employment with HouseValues by November 26, 2005. 
 Management Bonus Plan: You are eligible to participate in the annual management bonus program. Your target incentive opportunity “at plan” is 45% with significant upside should the company and your performance meet
“stretch plan” or the “home run plan” levels. The exact bonus payment will be determined by the Board. This plan is an annual plan. 
 Benefits 
 You will be entitled, during the term of your employment, to 4 weeks of annual vacation, holidays, health, life, disability and
other employee benefits (subject to applicable eligibility requirements) to the extent such benefits are offered by HouseValues to its other employees. 
 Option Compensation 
 HouseValues wishes to ensure that your energies are wholly devoted to the long-term interests of HouseValues and its
shareholders. Accordingly, subject to approval by the Board of Directors and the execution by you of a stock option letter Agreement, you will receive an option to purchase 125,000 shares of HouseValues, Inc. common stock, pursuant to the
terms of the HouseValues, Inc. 2004 Equity Incentive Plan. The exercise price per share of the option will be set at the fair market value per share of the Company’s common stock on the date of grant, as determined by the Board of Directors.

 Confidential 

 Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement 
 As a condition of your employment pursuant to this offer letter, we require that you sign the enclosed Confidential Information, Inventions, Nonsolicitation and
Noncompetition Agreement and complete Exhibit A, Exhibit B and Exhibit C thereto. Please note that the Company’s willingness to enter into an employment relationship with you and to facilitate the equity compensation described above is based in
significant part on your commitment to fulfill the obligations specified in that agreement. 
 Employment at Will 
 Your employment with HouseValues will be “at will,” which means that either you or HouseValues may terminate your employment with HouseValues at any time, with
or without cause. Any statements to the contrary that may have been made to you, or that may be made to you, by the Company, its agents, or representatives are superseded by this offer letter. If you wish to terminate your employment, HouseValues
requests that you provide written notice at least two weeks prior to the effective date of your resignation. 
 Termination Payment 
 In the event of the termination of your employment, all compensation and benefits set forth above, terminate except as follows; 
 If the Company terminates your employment without Cause or if you terminate your employment for Good Reason, you shall be entitled to receive termination payments equal
to (1) six months of your annual base salary, and (2) six months of COBRA premiums otherwise due from you, provided you execute a Separation Agreement releasing any claims against the Company. If you are terminated for Cause, or if you
terminate your employment without Good Reason, you shall not be entitled to any of the foregoing benefits and termination payments. All payments in this section shall be made on a pay period by pay period basis for the duration of the six months.

 In the event of a corporate transaction, 50% of the unvested portion of the Option will automatically become vested and exercisable and the remaining
unvested portion of the Option will vest in equal quarterly increments over the shorter of (i) two years immediately following such Corporate Transaction, or (ii) the amount of time remaining under the Option’s original vesting
schedule. This provision is in addition to and not in lieu of any other rights provided in the Plan concerning the acceleration on or after a Corporate Transaction on outstanding options. 
 Additional Provisions 
 Your employment pursuant to this letter is
also contingent upon your submitting the legally required proof of your identity and authorization to work in the United States. On your first day of employment you must provide the required identification. The terms of this offer letter, including
the equity compensation, are subject to the approval of HouseValues’s board of directors. Upon your acceptance of this offer, HouseValues promptly will have prepared the documents necessary to effect all the terms of this agreement, and you
agree to assist HouseValues in causing the same to be prepared and executed. 
 You represent that your employment as of November 26, 2005, is not in
violation of any obligation to a previous employer or any entity with whom you have had a relationship as an independent contractor or consultant, including any obligation contained in a noncompetition agreement or similar agreement.If you accept
this offer, the terms described in this letter will be the terms of your employment, and this letter supersedes any previous discussions or offers. Any additions or modifications of these terms must be in writing and signed by you and an authorized
officer of HouseValues to be enforceable. 
 Confidential 
  

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 We are delighted about the possibility of your joining us. I hope you will accept this offer and I look forward to a
productive and mutually beneficial working relationship. Please let me know if I can answer any questions for you about any of the matters outlined in this letter. 
  

	
	Sincerely,
	
	 /s/ Jill Maguire-Ward

	Jill Maguire-Ward
	Vice President Human Resources

 ACCEPTANCE: 
 I accept employment with HouseValues, Inc. under the terms set forth in this letter: 
 I acknowledge that my
employment is at will and may be terminated by me or 
 HouseValues at any time, with or without cause. 
  

			
	 /s/ Tom Romary

	Name	 	
		
	DATE:	 	 October 19, 2005

 Confidential 
  

 -3-Separation Agreement

 Exhibit 10.6 
 SEPARATION AGREEMENT AND RELEASE 
 THIS SEPARATION AGREEMENT AND RELEASE (the “Agreement”)
is entered into by Tom Romary, Chief Marketing Officer (hereinafter referred to as “Employee”) and HouseValues Inc., its parent, affiliates, subsidiaries, officers, directors, and managers (hereinafter referred to as “HouseValues
Inc.” or “Employer”). 
 RECITALS 
 A. Employee has been employed by HouseValues Inc., and Employee’s position was eliminated, effective August 11, 2006 (the “Termination Date”). 
 B. HouseValues Inc. wishes to offer Employee a separation package in exchange for the Employee’s agreement clarifying and resolving any disputes
that may exist between the Employee and HouseValues Inc. arising out of the employment relationship and the ending of that relationship, and any continuing obligations of the parties to one another following the end of the employment relationship.

 C. Each of the undersigned parties to this Agreement has had ample opportunity to review the facts and law relevant to this issue, has
consulted fully and freely with competent counsel of its choice if desired, and has entered this Agreement knowingly and intelligently without duress or coercion from any source. Employee has had a reasonable time in which to consider whether he
wished to sign this Agreement. 
 AGREEMENTS 
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises contained below, it is agreed as follows: 
  

	 	1.	EMPLOYMENT ENDING DATE AND RESPONSIBILITIES, FINAL PAYCHECK 

 Employee’s employment with HouseValues Inc. ended on August 11, 2006. Employee is not expected to have further employment duties beyond minor transition work to HouseValues Inc. after date of notification of
position elimination (July 7, 2006) 
 Employee will be paid his final paycheck through August 11, 2006 on August 21, 2006.
Employee will also receive a lump sum for any accrued vacation hours through Termination Date, less applicable withholdings on August 21, 2006. 

 Employee acknowledges that HouseValues Inc. does not owe him any other compensation in the way of bonus
compensation or otherwise, with the exception of any vested distribution for the 401K plan (if applicable). 
  

	 	2.	PAYMENTS BY EMPLOYER 

 In exchange for the promises
contained in paragraph seven below, HouseValues Inc. will provide Employee six months of base salary, minus applicable withholdings. This will be paid in pay period installments coinciding with HouseValues, Inc. standard payroll schedule. The first
installment will be made on the first scheduled payroll after the Effective Date on which the Separation Agreement is executed, and, 
 Should Employee elect COBRA by completing the enrollment forms and returning them timely to the healthcare carrier, HouseValues Inc. will pay the first six months of COBRA premiums on a monthly basis, directly to the healthcare carrier on
Employee’s behalf. Thereafter, Employee will be eligible for continuation of his coverage under the terms and conditions of COBRA, at his own expense. Employee’s COBRA effective date is September 1, 2006. HouseValues Inc. will pay
premiums from September 1, 2006 through February 28, 2007 after Employee executes this Se[aration Agreement and enrolls in COBRA by completing the application and returning it directly to the healthcare carrier within COBRA specified
deadlines. 
 HouseValues Inc. agrees that it will not protest any unemployment benefits allowed to Employee, if Employee applies for such
benefits. 
  

	 	3.	VALID CONSIDERATION 

 Employee and HouseValues Inc.
agree that the offer of severance pay and benefits by HouseValues Inc. to Employee described in the preceding paragraph is not required by HouseValues Inc.’s policies or procedures or by any pre-existing contractual obligation of HouseValues
Inc. or by any statute, regulation or ordinance, and is offered by HouseValues Inc. solely as consideration for this Agreement. In the event Employee fails to abide by the terms of this Agreement, HouseValues Inc. may elect, at its option and
without waiver of other rights or remedies it may have, not to pay or provide any unpaid severance payments, and to seek to recover previously paid severance pay. 
  

	 	4.	STOCK OPTION 

 Employee will be entitled to exercise
any portion of the stock option granted to him that is vested as of the Termination Date, subject to the terms of the Company’s 

  

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1999 Stock Incentive Compensation Plan and letter agreement between the Company and Employee. Employee acknowledges and agrees that under the terms of the
stock option granted to Employee, all of the vested portion of the stock option granted to Employee will terminate if not exercised within 90 days of the Termination Date, and will be thereafter unexerciseable. It is Employee’s responsibility
to be aware of the date that any vested, unexercised portion of the stock option granted to him terminates and become unexerciseable. Employee further acknowledges and agrees that under the terms of the stock option granted to Employee, no shares
will vest after the Termination Date and all unvested shares will terminate as of the Termination Date. 
  

	 	5.	REAFFIRMATION OF CONFIDENTIAL INFORMATION, INVENTIONS, NONSOLICITATION AND NONCOMPETITION AGREEMENT 

 Employee expressly reaffirms and incorporates herein as part of this Agreement the Confidential Information, Inventions, Nonsolicitation And
Noncompetition Agreement, which Employee signed as part of his employment with HouseValues Inc., a copy of which was given to Employee, and which shall remain in full effect. 
  

	 	6.	CONFIDENTIALITY OF SEPARATION AGREEMENT 

 Employee
agrees that he will keep the terms of this Agreement (including, but not limited to, the severance payment) completely confidential, and that Employee will not disclose any information concerning this Agreement or its terms to anyone other than his
spouse or domestic partner, legal counsel, tax advisors, and/or financial advisors, who will be informed of and bound by this confidentiality clause, and except as required by court order. In the event Employee is requested, by court order or any
other legal process, to provide information covered by this confidentiality obligation, Employee agrees to immediately notify HouseValues Inc. of any such request. 
  

	 	7.	GENERAL RELEASE OF CLAIMS 

 Employee expressly
waives any claims against HouseValues Inc. (including, for purposes of this paragraph 7, all parents, affiliates, subsidiaries, officers, directors, stockholders, managers, employees, agents, investors, and representatives) and releases HouseValues
Inc. (including its parents, affiliates, subsidiaries, officers, directors, stockholders, managers, employees, agents, investors, and representatives) from any claims, whether known or unknown, which existed or may have existed at any time up to the
date of this Agreement, including claims related in any way to Employee’s employment with HouseValues Inc. or the ending of that relationship. This release includes, but is not limited to, any claims for wages, bonuses, employment benefits,
stock options, or damages of any kind whatsoever, arising out of 

  

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any common law torts, arising out of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, any theory of
wrongful discharge, any theory of negligence, any theory of retaliation, any theory of discrimination or harassment in any form, any legal restriction on HouseValues Inc.’s right to terminate employees, or any federal, state, or other
governmental statute, executive order, or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964 as amended, the Civil Rights Act of 1991, the Civil Rights Act of 1866, 42 U.S.C. § 1981, the Americans with
Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Washington Law Against Discrimination, or any other legal
limitation on or regulation of the employment relationship. Employee agrees to indemnify and hold HouseValues Inc. harmless from and against any and all loss, costs, damages, or expenses, including, without limitation, reasonable attorneys’
fees incurred by HouseValues Inc. or arising out of any breach of this Agreement by Employee or resulting from any representation made herein by Employee was false when made. This waiver and release shall not preclude either party from filing a
lawsuit for the exclusive purpose of enforcing its rights under this Agreement. 
 Employee represents that Employee has not filed any
complaints, charges or lawsuits against HouseValues Inc. with any governmental agency or any court, and agrees that Employee will not initiate, assist or encourage any such actions, except as required by law. Employee further agrees that if a
commission, agency, or court assumes jurisdiction of such claim, complaint or charge against HouseValues Inc. on behalf of Employee, Employee will request the commission, agency or court to withdraw from the matter. 
 Employee represents and warrants that he is the sole owner of the actual or alleged claims, rights, causes of action, and other matters which are
released herein, 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. 
  

	 	8.	NO ADMISSION OF WRONGDOING 

 This Agreement shall
not be construed as an admission by Employer of any wrongful act, unlawful discrimination, or breach of contract, and Employer specifically disclaims any liability to or discrimination against Employee or any other person. 
  

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	 	9.	NONDISPARAGEMENT 

 Employee agrees to refrain from
making any derogatory or disparaging comments to the press or any individual or entity regarding HouseValues Inc., its business or related activities, or the relationship between the parties. 
 From and after the date hereof, HouseValues, Inc. agrees to refrain from making any derogatory or disparaging comments to the press or any individual or
entity regarding Employee. In addition, HouseValues agrees that any communication between its executive officers and /or its HR department to Employee’s potential employers, or to any other individual or entity inquiring about Employee’s
separation from HouseValues will be told that Employee resigned from HouseValues in July 2006 and transitioned his responsibilities over the course of the next month and left the Company in August 2006. 
  

	 	10.	RETURN OF PROPERTY 

 Employee confirms that Employee
has or will immediately, upon the Termination Date, return to Employer all files, memoranda, records, credit cards, pagers, computers, computer files, passwords and pass keys, card keys, or related physical or electronic access devices, and any and
all other property received from Employer or any of its current or former employees or generated by Employee in the course of employment. 
  

	 	11.	BREACH OR DEFAULT 

 In the event of any breach or
default under this Agreement by Employee, HouseValues Inc. may suffer irreparable damages and have no adequate remedy at law. In the event of any threatened or actual breach or default, HouseValues Inc. shall be entitled to injunctive relief,
specific performance and other equitable relief. The rights and remedies of HouseValues Inc. under this paragraph are in addition to, and not in lieu of, any other right or remedy afforded to HouseValues Inc. under any other provision of this
Agreement, by law, or otherwise. Any party’s failure to enforce this Agreement in the event of one or more events that violate this Agreement shall not constitute a waiver of any right to enforce this Agreement against subsequent violations.

  

	 	12.	SEVERABILITY 

 The provisions of this Agreement are
severable, and if any part of it is found to be unlawful or unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law. 
  

	 	13.	ENTIRE AGREEMENT 

 This Agreement, and the
Confidential Information, Inventions, Nonsolicitation And Noncompetition Agreement employee signed that is incorporated herein by reference, set forth the entire understanding between Employee and HouseValues Inc. and supersedes any prior agreements
or understandings, express or implied, pertaining to the terms of Employee’s employment with HouseValues Inc. and the employment relationship. Employee acknowledges that in executing this Agreement, Employee 

  

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does not rely upon any representation or statement by any representative of HouseValues Inc. concerning the subject matter of this Agreement, except as
expressly set forth in the text of the Agreement. No modification or waiver of this Agreement will be effective unless evidenced in a writing signed by both parties. 
  

	 	14.	GOVERNING LAW 

 This Agreement will be governed by
and construed exclusively in accordance with the laws of the State of Washington without reference to its choice of law principles. Any disputes arising under this Agreement shall be brought in a court of competent jurisdiction in the State of
Washington. 
  

	 	15.	KNOWING AND VOLUNTARY AGREEMENT 

 Employee agrees
that Employee has carefully read and fully understands all aspects of this Agreement including the fact that this Agreement releases any claims that Employee might have against Employer. Employee agrees that Employee has not relied upon any
representations or statements not set forth herein or made by Employer’s agents or representatives. Finally, Employee agrees that Employee has been advised to consult with an attorney prior to executing the Agreement, and that Employee has
either done so or knowingly waived the right to do so, and now enters into this Agreement without duress or coercion from any source. 
  

	 	16.	PERIODS FOR SIGNING AND REVOCATION 

 Employee
acknowledges that he has been provided the opportunity to consider for twenty-one (21) days whether to enter this Agreement, and has voluntarily chosen to enter the Agreement on this date. Employee may revoke this Agreement for a period of
seven (7) days following the execution of this Agreement; this Agreement shall become effective following expiration of this seven (7) day period (the “Effective Date”). 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates indicated below. 

 

					
	HouseValues Inc.	  	
			
	By:	 	 /s/ Jill Maguire-Ward
	  	 /s/ Tom Romary

		 	Jill Maguire-Ward	  	Tom Romary
		 	Vice President Human Resources	  	
			
		 		  	Dated: August 9, 2006
		
	Dated: August 10, 2006	  	

  

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