Document:

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                                                                   EXHIBIT 10.28

                                August 30, 1999

Doug Schulze
4208 185/th/ Place SE
Issaquah, WA 98027

Dear Doug,

     On behalf of Encoding.com (the "Company"), I am pleased to offer you the
                                     -------
position of Vice President of Marketing of the Company. Speaking for myself, as
well as the other members of the Company's management team, we are all very
impressed with your credentials and we look forward to your future success in
this position.

     The terms of your new position with the Company are as set forth below:

     1.  Position.
         --------

         a.  You will become the Vice President of Marketing of the Company,
         working out of the Company's headquarters office in Seattle,
         Washington. You will report to the Company's President, Dave Bullis.

         b.  You agree to the best of your ability and experience that you will
         at all times loyally and conscientiously perform all of the duties and
         obligations required of and from you pursuant to the express and
         implicit terms hereof, and to the reasonable satisfaction of the
         Company. During the term of your employment, you further agree that you
         will devote all of your business time and attention to the business of
         the Company, the Company will be entitled to all of the benefits and
         profits arising from or incident to all such work services and advice,
         you will not render commercial or professional services of any nature
         to any person or organization, whether or not for compensation, without
         the prior written consent of the Company's Board of Directors, and you
         will not directly or indirectly engage or participate in any business
         that is competitive in any manner with the business of the Company.
         Nothing in this letter agreement will prevent you from -accepting
         speaking or presentation engagements in exchange for honoraria or from
         serving on boards of charitable organizations, or from owning no more
         than one percent (1%)
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             of the outstanding equity securities of a corporation whose stock
             is listed on a national stock exchange.

         2.  Start Date.  Subject to fulfillment of any conditions imposed by
             ----------
             this letter agreement, you will commence this new position with the
             Company on September 30, 1999.

         3.  Proof of Right to Work. For purposes of federal immigration law,
             ----------------------
             you will be required to provide to the Company documentary evidence
             of your identity and eligibility for employment in the United
             States. Such documentation must be provided to us within three (3)
             business days of your date of hire, or our employment relationship
             with you may be terminated.

         4.  Compensation.
             ------------

             a.  Base Salary. You will be paid a monthly salary of $12,083.33,
                 -----------
                 which is equivalent to $145,000.00 on an annualized basis. Your
                 salary will be payable in two equal payments per month pursuant
                 to the Company's regular payroll policy (or in the same manner
                 as other officers of the Company).

             b.  Signing Bonus. You also be paid a $10,000 signing bonus upon
                 -------------
                 commencement of employment. Should you voluntarily leave the
                 Company or if your employment is terminated for cause within
                 your first nine months of employment, you will be required to
                 return the signing bonus to the Company.

             b.  Bonus. You will also be eligible to receive up to $50,000.00 in
                 -----
                 incentive bonuses in your first year employment according to
                 the achievement of objectives defined by the Board of
                 Directors. You will also be eligible to earn incentive bonuses
                 in future years.

         5.  Stock Options.
             -------------

             You will be eligible to participate in any stock option or other
             incentive programs available to officers or employees of the
             Company. Your initial grant amount will be 350,000 shares. Within
             two weeks of your start date you will receive the Stock Option Plan
             and subscription agreement which will enroll you in the program.
             You will be eligible to vest your grant of incentive stock options
             at a rate of 12.5% of the total number of options granted after
             nine months of employment and 6.25% of the total number of options
             every quarter thereafter until fully vested (pro-rated for any
             periods less than a full calendar quarter). You may exercise these
             options prior
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             to their vesting subject to the Company's right of repurchase which
             will lapse in accordance if the Company merges or becomes acquired.
             Upon merger or acquisition, the vesting of your options will be
             accelerated as specified in the company's current stock options
             agreement if the merger occurs with the above vesting schedule. As
             an officer, if within twelve months from the date of acquisition
             your position is terminated, the vesting of your options will be
             accelerated such that 100% of the total number of options will be
             vested.

         6.  Benefits.
             --------

             a.  Insurance Benefits.  The Company will provide you with standard
                 ------------------
             medical and optional dental insurance benefits. The Company will
             also purchase coverage for your dependents under The Company's
             medical and dental insurance program. In addition, the Company
             currently indemnifies all officers and directors to the maximum
             extent permitted by law, and you will be requested to enter into
             the Company's standard form of Indemnification Agreement giving you
             such protection. Pursuant to the Indemnification Agreement, the
             Company will agree to advance any expenses for which
             indemnification is available to the extent allowed by applicable
             law.

         7.  Confidential Information and Invention Assignment Agreement.  Your
             -----------------------------------------------------------
             acceptance of this offer and commencement of employment with the
             Company is contingent upon the execution, and delivery to an
             officer of the Company, of the Company's Confidential Information
             and Invention Assignment Agreement, a copy of which is enclosed for
             your review and execution (the "Confidentiality Agreement"), prior
                                             -------------------------
             to or on your Start Date.

         8.  Severance Agreement.  If your employment is terminated by the
             -------------------
             Company or its successor for any reason other than cause, as
             determined by the Company's Board of Directors, you will be
             entitled to receive continuation of your base salary and insurance
             benefits for six months following the date of termination of your
             employment.

         9.  Confidentiality of Terms.  You agree to follow the Company's strict
             ------------------------
             policy that employees must not disclose, either directly or
             indirectly, any information, including any of the terms of this
             agreement, regarding salary, bonuses, or stock purchase or option
             allocations to any person, including other employees of the
             Company; provided, however, that you may discuss such terms with
             members of your immediate family and any legal, tax or accounting
             specialists who provide you with individual legal, tax or
             accounting advice.
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         10.  At-Will Employment.  Notwithstanding the Company's obligation
              ------------------
              described in Section 8 above, your employment with the Company
              will be on an "at will" basis, meaning that either you or the
              Company may terminate your employment at any time for any reason
              or no reason, without further obligation or liability.

         We are all delighted to be able to extend you this offer and look
forward to working with you. To indicate your acceptance of the Company's offer,
please sign and date this letter in the space provided below and return it to
me, along with a signed and dated copy of the Confidentiality Agreement. This
letter, together with the Confidentiality Agreement, set forth the terms of your
employment with the Company and supersede any prior representations or
agreements, whether written or oral. This letter may not be modified or amended
except by a written agreement, signed by the Company and by you.

                                           Very truly yours,

                                           ENCODING.COM

                                           /s/ Martin Tobias

                                           Martin Tobias,
                                           Minister of Order and Reason

ACCEPTED AND AGREED:

Doug Schulze

/s/ Doug Schulze
________________________
Signature

August   , 1999
_______________________
Date

Enclosure:  Confidential Information and Invention Assignment Agreement<PAGE>

                                                                  EXHIBIT 10.29

                               November 5, 1999

James Van Kerkhove
3105 NW Circle A Drive
Portland, OR 97229

Dear Jim,

     On behalf of Encoding.com (the "Company"), I am pleased to offer you the
                                     -------
position of Vice President of Production of the Company.  Speaking for myself,
as well as the other members of the Company's management team, we are all very
impressed with your credentials and we look forward to your future success in
this position.

     The terms of your new position with the Company are as set forth below:

         1.  Position.
             --------

             a. You will become the Vice President of Production of the Company,
                working out of the Company's headquarters office in Seattle,
                Washington. You will report to the Company's President.

             b. You agree to the best of your ability and experience that you
                will at all times loyally and conscientiously perform all of the
                duties and obligations required of and from you pursuant to the
                express and implicit terms hereof, and to the reasonable
                satisfaction of the Company. During the term of your employment,
                you further agree that you will devote all of your business time
                and attention to the business of the Company, the Company will
                be entitled to all of the benefits and profits arising from or
                incident to all such work services and advice, you will not
                render commercial or professional services of any nature to any
                person or organization, whether or not for compensation, without
                the prior written consent of the Company's Board of Directors,
                and
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               you will not directly or indirectly engage or participate in any
               business that is competitive in any manner with the business of
               the Company. Nothing in this letter agreement will prevent you
               from accepting speaking or presentation engagements in exchange
               for honoraria or from serving on boards of charitable
               organizations, or from owning no more than one percent (1%) of
               the outstanding equity securities of a corporation whose stock is
               listed on a national stock exchange.

       2.  Start Date. Subject to fulfillment of any conditions imposed by this
           ----------
           letter agreement, you will commence this new position with the
           Company on November 29, 1999.

       3.  Proof of Right to Work. For purposes of federal immigration law, you
           ----------------------
           will be required to provide to the Company documentary evidence of
           you identity and eligibility for employment in the United States.
           Such documentation must be provided to us within three (3) business
           days of your date of hire, or our employment relationship with you
           may be terminated.

       4.  Compensation.
           ------------

           a.  Base Salary. You will be paid a monthly salary of $11,666, which
               -----------
               is equivalent to $140,000 on an annualized basis. Your salary
               will be payable in two equal payments per month pursuant to the
               Company's regular payroll policy (or in the same manner as other
               employees of the Company).

           b.  Bonus. You will also be eligible to receive up to $40,000 in
               -----
               incentive bonuses in your first year employment according to the
               achievement of objectives defined by the Board of Directors. You
               will also be eligible to earn incentive bonuses in future years.

           c.  Relocation Bonus. You will be eligible for a relocation bonus of
               ----------------
               up to $15,000.

           d.  Annual Review. Your base salary will be reviewed in March as part
               -------------
               of the Company's normal salary review process.
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       5.  Stock Options. You will be eligible to participate in any stock
           -------------
           option or other incentive programs available to officers or employees
           of the Company. Your initial grant amount will be 250,000 shares.
           Within two weeks of your start date you will receive the Stock Option
           Plan and subscription agreement, which will enroll you in the
           program. You will be eligible to vest your grant of incentive stock
           options at a rate of 18.75% of the total number of options granted
           after nine months of employment and 6.25% of the total number of
           options every quarter thereafter until fully vested (pro-rated for
           any periods less than a full calendar quarter). You may exercise
           these options prior to their vesting subject to the Company's right
           of repurchase which will lapse in accordance with the Option Plan. If
           the Company merges or becomes acquired the vesting of your options
           will be accelerated as specified in the company's current stock
           options agreement. As an officer, if within twelve months from the
           date of acquisition your position is terminated, the vesting of your
           options will be accelerated such that 100% of the total number of
           options will be vested.

       6.  Benefits.
           --------
           a.  Insurance Benefits. The Company will provide you with standard
               ------------------
               medical and optional dental insurance benefits. You will be
               eligible to purchase coverage for your dependents under the
               Company's medical and dental insurance program. The Company will
               subsidize 50% of these premiums. In addition, the Company
               currently indemnifies all officers and directors to the maximum
               extent permitted by law, and you will be requested to enter into
               the Company's standard for of Indemnification Agreement giving
               you such protection. Pursuant to the Indemnification Agreement,
               the Company will agree to advance any expenses for which
               indemnification is available to the extent allowed by applicable
               law.

       7.  Confidential Information and Invention Assignment Agreement. Your
           -----------------------------------------------------------
           acceptance of this offer and commencement of employment with the
           Company is contingent upon the execution, and delivery to an officer
           of the Company, of the Company's Confidential Information and
           Inventions Assignment Agreement, a copy of which is enclosed for your
           review and execution (the "Confidentiality Agreement"), prior to or
                                      -------------------------
           on your Start Date.

<PAGE>

Page 4

       8.  Severance Agreement. If your employment is terminated by the Company
           -------------------
           or its successor for any reason other than cause, as determined by
           the Company's Board of Directors, you will be entitled to receive
           continuation of your base salary and insurance benefits for six
           months following the date of termination of your employment and will
           be allowed to purchase your vested stock options including a prorated
           portion of the initial 18.75% of your option grant.

       9.  Confidentiality of Terms. You agree to follow the Company's strict
           ------------------------
           policy that employees must not disclose, either directly or
           indirectly, any information, including any of the terms of this
           agreement, regarding salary, bonuses, or stock purchase or option
           allocations to any person, including other employees of the Company;
           provided, however, that you may discuss such terms with members of
           your immediate family and any legal, tax or accounting specialists
           who provide you with individual legal, tax or accounting advice.

       10. At-Will Employment. Notwithstanding the Company's obligation
           ------------------
           described in Section 8 above, your employment with the Company will
           be on an "at will" basis, meaning that either you or the Company may
           terminate your employment at any time for any reason or no reason,
           without further obligation or liability.
<PAGE>

Page 5

          We are all delighted to be able to extend you this offer and look
forward to working with you. To indicate your acceptance of the Company's offer,
please sign and date this letter in the space provided below and return it to
me, along with a signed and dated copy of the Confidentiality Agreement. This
letter, together with the Confidentiality Agreement, set forth the terms of your
employment with the Company and supersede any prior representations or
agreements, whether written or oral. This letter may not be modified or amended
except by a written agreement, signed by the Company and by you.

                                                    Very truly yours,

                                                    ENCODING.COM

                                                    /s/ Dave Bullis

                                                    Dave Bullis
                                                    President

ACCEPTED AND AGREED:

James Van Kerkhove

/s/ James Van Kerkhove
_______________________________
Signature

November   , 1999
________________________________
Date

Enclosure:  Confidential Information and Invention Assignment Agreement

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