Document:

exv10w36

Exhibit 10.36

September 3, 2008

Mr. John J. Walsh, Jr.

[address omitted]

Dear John:

It is my pleasure to present you with an offer to join Constant Contact. As the industry leader in
permission-based email marketing for small and medium businesses, the prospects for future growth
and overall success depend largely on the talent and skills of the individuals we bring into the
organization. We look forward to your joining Constant Contact and the beginning of a mutually
rewarding relationship!

The following sets forth the terms and conditions of our offer of employment to you:

	 	•	 	You will be hired as SVP, Engineering and Operations, reporting to me, Gail Goodman,
CEO.
	 
	 	•	 	Your starting base pay shall be at a semi-monthly rate of $9,583.34 (annualized this
equates to $230,000). You will be paid in accordance with the Company’s normal payroll
practices as established or modified from time to time.
	 
	 	•	 	You will participate in the 2008 Executive Incentive Plan. Under that plan, you will be
eligible for a $80,500 yearly bonus paid on a quarterly basis during a calendar year,
pro-rated for your first year of employment. The bonus will be based on Company financial
targets as set by the Compensation Committee as well as individual goals agreed upon with
me.
	 
	 	•	 	Subject to Compensation Committee approval, you will be participating in the Company’s
Stock Option Plan, through an option granted to you to acquire 100,000 shares of company
common stock. For these shares the grant shall vest twenty-five percent (25%) after one
full year of service and six and a quarter percent (6.25%) per quarter thereafter. Vesting
will begin upon your start date.
	 
	 	•	 	If there is a change of control respecting the company, 50% of all unvested option shares shall immediately vest, and all remaining unvested option shares shall immediately
vest if you are thereafter terminated within the first year after a change of control.
	 
	 	•	 	Your employment with Constant Contact will begin on October 6, 2008 (or as agreed) and
you will be expected to devote all of your working time to the performance of your duties
at Constant Contact throughout your employment with the Company. No provision of this
letter shall be construed to create an express or implied employment contract, or a promise
of employment for any specific period of time. Your employment with Constant Contact is
“at-will” and may be terminated by you or Constant Contact at any time for any reason.

Reservoir Place, 1601 Trapelo Road, Suite 329, Waltham MA 02451

Phone 781.472.8100 • www.constantcontact.com

 

 

	 	•	 	If your employment with Constant Contact is terminated, without cause or if there
is a significant change in responsibilities or location that is unacceptable to you, you
will be offered a severance package equal to six months salary and medical coverage for you
and your dependents for six months after the date of your termination.
	 
	 	•	 	This offer is in effect until September 10, 2008.

The Company offers a comprehensive benefits package. Details of these benefits are included with
this letter. The Company reserves the right to change or discontinue any of its health and welfare
benefits and/or policies and procedures, as it deems appropriate.

It is the Company’s understanding that you have made no agreements with any other party that would
restrict you from being employed by the Company in this role. It is necessary for you to sign the
Company’s Non-Competition, Non-Disclosure and Non-Solicitation Agreement, a copy of which is
enclosed with this letter.

Your employment with Constant Contact is conditioned on your eligibility to work in the United
States. On your first day of employment you must complete an I-9 Form and provide Constant Contact
with any of the accepted forms of identification specified on the I-9 Form.

Please sign a copy of this letter as your acceptance of this offer and fax back with the signed
Non-Competition, Non-Disclosure and Non-Solicitation agreement to Margaret Scott at 781-652-5280.

	 	 	 	 	 
	Sincerely,

 	 	 
	/s/ Gail Goodman
 	 	 
	Gail Goodman 	 	 
	Chief Executive Officer 	 	 
	 

	 	 	 	 	 	 	 	 
	ACCEPTED:

	 	/s/ John J. Walsh, Jr.
	 	DATE:
	 	9/5/2008
	 

	 	 
	 	 	 	 

Enclosures

Reservoir Place, 1601 Trapelo Road, Suite 329, Waltham MA 02451

Phone 781.472.8100 • www.constantcontact.com

 

 

December 9, 2008

John Walsh

[address omitted]

Dear John:

     You and Constant Contact, Inc. (the “Company) are parties to an offer letter dated September
3, 2008 (the “Letter Agreement”), which outlines the terms and conditions of your employment with
the Company. In light of recent tax legislation under Section 409A of the Internal Revenue Code
(“Section 409A”), you and the Company mutually desire to amend certain provisions of the Letter
Agreement as set forth below:

Seventh Paragraph under Terms and Conditions of Offer

The seventh paragraph under the terms and conditions of the offer shall be deleted in its entirety
and replaced with the following:

“If the Company terminates your employment without cause or if you resign for Good Reason (as
defined below), then you will receive six (6) months base salary and six (6) months continued
health insurance benefits for you and your dependents, which payments and benefits will be made in
accordance with the Company’s normal payroll practices over the six-month period following your
termination of employment. The payments and benefits due, if any, pursuant to this paragraph shall
be subject to the terms and conditions set forth in Exhibit A to this letter.

“Good Reason” shall mean, for purposes of this letter, the occurrence of any of the following
events without your prior written consent:

(i) a material diminution in your base compensation;

(ii) a material diminution in your duties, authority or responsibilities;

(iii) a material relocation; or

(iv) a material breach of this letter or the Letter Agreement;

 

 

provided, however, that no such event or condition shall constitute Good Reason unless (x) you give
the Company written notice of termination for Good Reason not more than 90 days after the initial
existence of the condition, (y) the grounds for termination (if susceptible to correction) are not
corrected by the Company within 30 days of its receipt of such notice and (z) your termination of
employment occurs within one year following the Company’s receipt of such notice.”

Except as specifically provided herein, all other terms of the Letter Agreement shall remain in
full force and effect. If the terms of this amendment are acceptable to you, please sign and
return the copy of this amendment enclosed for that purpose no later than December 4, 2008.

	 	 	 	 	 
	Sincerely,

Constant Contact, Inc.

 	 	 
	By:  	/s/ Steven R. Wasserman
 	 	 
	 	Title:  Vice President and Chief Financial Officer 	 	 
	 	 	 	 
	 

The foregoing correctly sets forth the terms of my continued employment with the Company. I am not
relying on any representations other than as set out in the Letter Agreement and the amendment
thereto set forth above. I have been given a reasonable amount of time to consider this amendment
and to consult an attorney and/or advisor of my choosing. I have carefully read this amendment,
understand the contents herein, freely and voluntarily assent to all of the terms and conditions
hereof, and sign my name of my own free act.

	 	 	 	 	 
	 	 	 
	/s/ John J. Walsh, Jr. 	 	Date:  December 4, 2008 
	John Walsh 	 	 
	 	 	 

 

 

	 	 	 	 	 

Exhibit A: Payments subject to Section 409A

Subject to the provisions in this Exhibit A, any severance payments or benefits under the Letter
Agreement, as amended, shall begin only upon the date of your “separation from service” (determined
as set forth below) which occurs on or after the date of termination of your employment. The
following rules shall apply with respect to distribution of the payments and benefits, if any, to
be provided to you under the Letter Agreement, as amended:

1. It is intended that each installment of the severance payments and benefits provided under the
Letter Agreement, as amended, shall be treated as a separate “payment” for purposes of Section 409A
of the Internal Revenue Code and the guidance issued thereunder (“Section 409A”). Neither the
Company nor you shall have the right to accelerate or defer the delivery of any such payments or
benefits except to the extent specifically permitted or required by Section 409A.

2. If, as of the date of your “separation from service” from the Company, you are not a “specified
employee” (within the meaning of Section 409A), then each installment of the severance payments and
benefits shall be made on the dates and terms set forth in the Letter Agreement, as amended.

3. If, as of the date of your “separation from service” from the Company, you are a “specified
employee” (within the meaning of Section 409A), then:

     a. Each installment of the severance payments and benefits due under the Letter Agreement, as
amended, that, in accordance with the dates and terms set forth herein, will in all circumstances,
regardless of when the separation from service occurs, be paid within the Short-Term Deferral
Period (as hereinafter defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A.
For purposes of the Letter Agreement, as amended, the “Short-Term Deferral Period” means the period
ending on the later of the fifteenth day of the third month following the end of your tax year in
which the separation from service occurs and the fifteenth day of the third month following the end
of the Company’s tax year in which the separation from service occurs; and

     b. Each installment of the severance payments and benefits due under the Letter Agreement, as
amended, that is not described in paragraph 3(a) above and that would, absent this subsection, be
paid within the six-month period following your “separation from service” from the Company shall
not be paid until the date that is six months and one day after such separation from service (or,
if earlier, your death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following your separation from service and any subsequent installments, if any, being paid
in accordance with the dates and terms set forth herein; provided, however, that
the preceding provisions of this sentence shall not apply to any installment of severance payments
and benefits if and to the maximum extent that that such installment is deemed to be paid under a
separation pay plan that does not provide for a deferral of compensation by

 

 

reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay
upon an involuntary separation from service). Any installments that qualify for the exception
under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of
your second taxable year following your taxable year in which the separation from service occurs.

4. The determination of whether and when your separation from service from the Company has occurred
shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury
Regulation Section 1.409A-1(h). Solely for purposes of this paragraph 4, “Company” shall include
all persons with whom the Company would be considered a single employer under Section 414(b) and
414(c) of the Code.

5. All reimbursements and in-kind benefits provided under the Letter Agreement, as amended, shall
be made or provided in accordance with the requirements of Section 409A to the extent that such
reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during your lifetime (or during a
shorter period of time specified in the Letter Agreement, as amended), (ii) the amount of expenses
eligible for reimbursement during a calendar year may not affect the expenses eligible for
reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be
made on or before the last day of the calendar year following the year in which the expense is
incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange
for any other benefit.

6. The Company may withhold (or cause to be withheld) from any payments made under the Letter
Agreement, as amended, all federal, state, city or other taxes as shall be required to be withheld
pursuant to any law or governmental regulation or ruling.

        .exv10w23

Exhibit 10.23

January 17, 2008

Michael Lunsford

39 Avery Drive

Atlanta, GA 30309

Dear Mike,

As you know, I am extremely pleased to offer you employment at RealNetworks, Inc. (Real) as Senior
Strategic Advisor, reporting to Rob Glaser, Chairman and CEO. Your tasks and responsibilities will
be determined by Real in accordance with your expertise and skills.

This offer is for a full-time, exempt, regular position with Real. Your responsibilities will be
as directed by Real. You will be paid a monthly salary, which is equivalent on an annualized basis
to $350,000 (subject to normal withholdings), payable semi-monthly in accordance with our normal
payroll procedures. You are eligible to earn an annual bonus of up to 45% of your base salary. As
such, you are eligible to earn $157,500 based on meeting MBO target goals, for an annual target
total compensation of $507,500 if you succeed in meeting your MBO target goals.

A sign-on bonus of $217,500 will be paid to you in two equal installments of $108,750 each
(“Sign-On Bonus”): the first installment will be paid within thirty (30) days following your start
date at Real, the second installment will be paid within thirty (30) days following the date of
your six (6) month anniversary of commencement of your employment with Real. These payments are
taxable income. In the event that your employment with Real is terminated for cause or you resign
within six (6)) months of the date of either payment, you must return to Real the pro-rated portion
of the bonus payment based on the portion of the six (6) month period that you were actually
employed by Real. The pro rated portion will be based on dividing the payment into sixths. For
example, if your employment were terminated under such circumstances three months after receiving
the first payment, you would be required to repay $54,375 (3/6ths) to Real. If terminated at six
(6) months after receiving the first payment, you would not have a required repayment for the first
installment. That payment would be considered earned at the end of month six. Also, if your role
changed during the year, your new compensation would be outlined in a new (mutually agreed upon)
agreement and this agreement, along with signing bonus installment #2, could be superceded. By
signing below, you agree that if your employment is terminated under such circumstances you must
reimburse the pro-rated portion to Real in full prior to your termination date. In the event that
you have not done so, you agree that Real may deduct the balance due from your final paycheck.

You will also earn equity in Real under the terms of Real’s 2005 Stock Incentive Plan. Subject to
and effective upon the commencement of your employment, you will receive a grant of stock options
for the purchase of 500,000 shares of Real Common Stock, which will begin vesting on the first day
of your employment, and will be subject to all other provisions contained in the Plan. Your stock
options will be granted by the Compensation Committee of Real’s Board of Directors effective upon
the first day of

 

 

your employment or as soon as practicable thereafter (the “Grant Date”). The exercise price of the
stock options granted to you shall be equal to the fair market value of Real’s Common Stock on the
Grant Date. Fair market value shall equal the last sales price for shares of Real’s Common Stock
on the Grant Date as reported by the NASDAQ National Market. Please be aware that unvested stock
is forfeited upon termination of employment.

In addition, as this position does not require your relocation to Seattle, Real will reimburse you
for direct costs incurred in the performance of your employment for Real which I approve in
advance, including necessary equipment, long distance telephone charges, and business related
travel and entertainment, according to Real Business Expense Guidelines. Real will not reimburse
you for any unapproved costs.

You agree that you will provide Real six (6) months notice prior to terminating your employment.
After receipt of such notice Real may, at its election, direct you to continue your work for Real
for any period up to six (6) months from the date of such notice, at your then-current base salary.
In consideration for fulfilling the foregoing notice provision, Real will pay you a severance
payment equal to six (6) months of your then-current base salary at the conclusion of your
employment with Real.

In the event that Real decides to terminate your employment without cause, Real may require you to
stay for up to six months to transition your responsibilities. After this transition period, in
consideration for fulfilling the foregoing transition requirement, Real will pay you a severance of
(6) months of your then-current base salary upon the termination of your employment.

It is our policy that employees are not to use or disclose confidential information or trade
secrets obtained from any source or during any prior employment. Real requires employees to abide
by all contractual and legal obligations they may have to prior employers or others, such as limits
on disclosure of information, or competition. You must inform us if you are subject to any such
obligations. Violation of this requirement may result in termination of your employment with Real.
By signing this letter you further agree that you will not bring any confidential documents of
another, nor disclose any confidential information of another, and will in all ways abide by these
requirements.

It is also our policy that employees not engage in activities or investments that may conflict with
Real’s business interests. I understand that you may be involved in other existing investments or
Board/Advisory positions or consulting activities with other companies. Real requires you to
identify those activities and companies for our records, and to update this list from time to time
as applicable. As we have discussed, your participation as a member of the Board of Directors at
Helio has been identified and approved by Real Networks. Of course you would excuse yourself from
any meeting in which a conflict of interest with your role at Real Networks would occur.

Our employment relationship will be terminable at will, which means that either you or Real may
terminate your employment at any time and for any reason or no reason without further obligation or
liability.

This offer is contingent on (i) your providing evidence of employability as required by federal law
(which includes providing Real within 3 days after your employment commences with acceptable
evidence of your identity and US employment eligibility), (ii) us receiving acceptable results from
any background check or reference check, and (iii) you signing Real’s Development, Confidentiality
and Non-competition Agreement, attached hereto. Please call us if you have questions about this
offer letter. This letter may not be modified except in a writing signed by both you and Real.

Real PROVIDES EQUAL OPPORTUNITY IN EMPLOYMENT AND WILL ADMINISTER ITS POLICIES WITH REGARD TO
RECRUITMENT, TRAINING, PROMOTION, TRANSFER,
DEMOTION, LAYOFF, TERMINATION, COMPENSATION AND BENEFITS WITHOUT REGARD

 

 

TO RACE, RELIGION, COLOR,
NATIONAL ORIGIN, CITIZENSHIP, MARITAL STATUS, SEX, SEXUAL ORIENTATION, AGE, DISABILITY OR STATUS AS
A DISABLED VETERAN OR VETERAN OF THE VIETNAM ERA OR ANY OTHER CHARACTERISTIC OR STATUS PROTECTED BY
APPLICABLE LAW.

We are excited about the prospect of you joining RealNetworks, Inc. and look forward to working
with you.

This offer is valid until Monday, January 21, 2008, and your start date will be Monday, January 28,
2008.

Sincerely,

/s/ Sid Ferrales

Sid Ferrales

SVP Human Resources

RealNetworks, Inc.

I have read and agree to the terms of employment contained in this offer letter and the attached
Development, Confidentiality and Non-competition Agreement, which represent a full, complete and
fair statement of the offer of employment made to me by RealNetworks, Inc.

/s/ Michael Lunsford

Michael Lunsford

Date: 01/21/08

 

 

REALNETWORKS, INC.

DEVELOPMENT, CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

THIS AGREEMENT is made and entered into on this, the 17th day of January, 2008, by and
between RealNetworks, Inc. (“Real”) and Michael Lunsford (“You”). “Real” means RealNetworks, Inc.
and all of its present and future subsidiaries and related entities including partnerships in which
Real is a member.

In consideration of your employment, compensation, benefits, access to Real training, Trade Secrets
and Confidential Information, and the mutual promises made herein, you and Real agree as follows:

	1.	 	Company Property.“Company Property” means all records, files, notebooks, manuals,
objects, devices, supplies, materials, recordings, drawings, models, computer programs,
prototypes, equipment, inventory and other materials, or copies thereof, in electronic or
paper form, that have been created, used or obtained by Real, as well as Trade Secrets,
Confidential Information and Employee Developments and all business revenues and fees produced
or transacted through your efforts. You agree that all Company Property is and shall remain
the property of Real. You will preserve and use the Company Property only for the benefit of
Real and the Real business, and you will return all Company Property to Real upon Real request
or upon termination of your employment (whether voluntary or involuntary).

	2.	 	Confidential Information and Employee Developments.
	 
	 	 	As used in this Agreement, the following terms shall have the meanings shown.

     “Employee Development” means all technological, financial and operating ideas, processes,
and materials, including all inventions, discoveries, concepts, ideas, enhancements to existing
technology or business processes, computer program ideas and expressions, computer circuit
designs, computer hardware concepts and implementations, formulae, algorithms, techniques,
written materials, graphics, photographs, literary works, and any other ideas or original works
of authorship relating to software or hardware development that you may develop or conceive of
while employed by Real, alone or with others and which (i) relate directly to Real’s actual or
demonstrably anticipated business or (ii) incorporate or are developed using Trade Secrets or
Confidential Information or (iii) are conceived or developed with use of any Real equipment,
supplies or facilities including Real personnel or (iv) result from work performed by you for
Real, regardless of whether it is technically eligible for protection under patent, copyright,
or trade secret law.

     “Trade Secret” means the whole or any portion of any scientific or technical information
that is valuable and not generally known to competitors of Real. Trade Secrets include without
limitation the specialized information and technology that Real may develop or acquire with
respect to program materials (including without limitation program and project ideas, source and
object code, Codecs, program listings, programming notes and documentation, flow-charts, and
system and user documentation), system designs, operating processes, know-how, equipment
designs, blue prints and product specifications.

     “Confidential Information” means any data or information, other than Trade Secrets, which
has been discovered, developed (including information conceived or developed by you) or has
otherwise become known to Real, including any parent, subsidiary, predecessor, successor or
otherwise affiliated company (“Real Company”), that is material to Real Company and not
generally known to the public. Confidential Information includes without limitation:

i. Sales records, profits and performance reports, pricing manuals and lists, sales
manuals and lists, training materials, selling and pricing procedures, and financing
methods of Real Company.

ii. Customer lists or accounts, special requirements of particular customers, and current
and anticipated requirements of customers generally for the products of Real Company;

iii. Research and development and specifications of any new products or lines of business
under development or consideration;

iv. Sources of supply of integrated components and materials used for production,
assembly, and packaging by Real Company, and the quality, price, and usage of such
components and materials;

v. Marketing plans, strategies, sales and product development data, and inventions;

vi. Business plans and internal financial statements and projections of Real Company; and

vii. Personnel related information such as employees’ compensation, performance reviews,
or other individually identifiable information.

You recognize and acknowledge that Real Company is engaged in a continuous program of research,
development and production respecting its software products, its other business opportunities
and for its

 

 

	 	 	customers. Important assets of Real Company are its Confidential Information, Trade
Secrets and Employee Developments. You recognize that Real Company has a vital and substantial
interest in maintaining confidentiality of Trade Secrets and Confidential Information to
maintain a stable work force, continuing positive business relationships and minimizing damage
to or interference with business. You also recognize and acknowledge that your employment
exposes you to programming, concepts, designs and other information proprietary to Real Company
and third parties with who Real does business, and creates a relationship of trust and
confidence between you and Real with respect to any such information.
	 
	 	 	Obligations with Respect to Employee Developments. All Employee Developments shall be
considered works made for hire by you for Real and prepared within the scope of your employment.
Under U.S. Copyright Law, all such materials shall, upon creation, be owned exclusively by
Real. To the extent that any such material, under applicable law, shall be deemed not to be
works made for hire, you hereby assign to Real all right, title and interest in and to such
materials, in the United States and foreign countries, without further consideration, and Real
shall be entitled to register and hold in its own name all copyrights, patents and trademarks in
respect to such materials. You agree to promptly and completely disclose in writing to Real
details of all original works of your authorship, discoveries, concepts, or ideas. You agree to
apply, at Real’s request and expense, for any patent or other legal protection of Employee
Developments and to sign and deliver any applications, assignments or other documents as Real
may reasonably require. Real shall have the exclusive right to all Employee Developments without
additional consideration to you, including but not limited to the right to own, make, use, sell,
have made, rent, lease, lend, copy, prepare derivative works of, perform or display publicly.
	 
	 	 	You Own Personal Inventions. You shall not be required to assign to Real any of your
rights in any personal invention you developed entirely on your own time without using Real’s
equipment, supplies, facilities, Trade Secrets or Confidential Information, except for those
inventions that either: (1) relate at the time of conception or reduction to practice of the
invention directly to Real’s actual or demonstrably anticipated business or (2) result from any
work performed by you for Real. You acknowledge notice by Real that the prior paragraph does not
apply to any personal invention as described in this paragraph. You agree that this satisfies
the requirements of Washington state law.
	 
	 	 	Restrictions on Use and Disclosure of Trade Secrets and Confidential Information.
During your employment with Real and for so long thereafter as the information remains a Trade
Secret or Confidential Information, you shall not use, reproduce, disclose, or permit any person
to obtain or use any Trade Secret or Confidential Information of Real (whether or not it is in
written or tangible form), except as specifically authorized in writing by Real. You shall use
the highest degree of care in safeguarding Trade Secrets and Confidential Information against
loss, theft, or other inadvertent disclosure. You further agree that any Trade Secrets,
Confidential Information, copyrightable works or materials or copies of them that enter into
your possession, by reason of employment, are the sole property of Real and shall not be used in
any manner adverse to Real’s best interests. You agree not to remove any Confidential
Information or Trade Secret from Real’s premises except in pursuit of Real’s business.
	 
	 	 	Upon Real’s request at any time, or upon your termination of employment (whether voluntary or
involuntary), you shall deliver to Real, and shall not retain for your own or another’s use, any
and all originals or copies of Employee Developments, Trade Secrets, Confidential Information
and Company Property. Your obligations under this Agreement supplement and do not supersede or
limit other obligations you have to Real or rights or remedies of Real including without
limitation those under the Washington Uniform Trade Secrets Act.
	 
	3.	 	Your Warranties. You agree to perform at all times faithfully, industriously and to
the best of your ability all duties and functions consistent with your position and to abide
by any general employment guidelines or policies adopted by Real. You acknowledge that your
employment is in no way conditioned upon your disclosure to Real of confidential information
or trade secrets of others, and you agree not to improperly obtain, disclose to Real, or
induce Real to use, any confidential information or trade secrets belonging to any third
party. You represent that the execution of this Agreement, your employment with Real, and the
performance of your proposed duties to Real will not violate any agreements or obligations you
may have to any former employer or third party and you are not subject to any restrictions
which would prevent or limit you from carrying out your duties for Real.
	 
	4.	 	Non-Competition. You acknowledge that Real is engaged in a highly competitive
business and that by virtue of the position in which you are employed, you will perform
services that are of competitive value to Real and which if used in competition with Real
could cause it serious harm. Therefore, you agree not to work for any Competitor during your
employment with Real (including after work hours, weekends and vacation time), even
if only organizational assistance or limited consultation is involved. During your employment
with Real, you agree not to publish, design or develop computer software that competes with Real
software products (either existing or under development). Further, you agree that for a period
of one (1) year after the termination of your employment with Real, whether voluntary or not,
you will not directly or indirectly be employed by, own, manage, consult with or join any
business or entity that is in competition with Real or with products or services produced, sold
or in

 

 

	 	 	development by Real during the term of your employment. Ownership of 1% or less of the
stock (publicly or privately held) of a competitor of Real shall not be a breach of this
paragraph. You acknowledge that Real competes in a global marketplace and that the duration and
scope of this noncompetition provision is reasonable and necessary to protect Real interests.
You authorize a court to restrict you to the maximum extent allowed.
	 
	5.	 	Nonsolicitation. You recognize that Real’s workforce is a vital part of its
business. You agree that for a period of one (1) year after your employment ends, whether
voluntarily or not, you will not induce or attempt to influence, directly or indirectly, any
employee of Real to terminate his/her employment with Real or to work for you or any other
entity. You agree that this means you will not identify to a third party Real employees as
potential candidates for employment. You further agree not to, directly or indirectly, solicit
or assist in soliciting orders from any current or known prospective customers or to encourage
them to terminate their business relationship or negotiations with Real.
	 
	6.	 	Return of Property. You represent that you will return to Real all company-owned
property in your possession or control, including but not limited to credit cards, keys,
access cards, company-owned equipment, computers and related equipment, customer lists, files,
memoranda, documents, price lists, and all other trade secrets and/or confidential Real
information, and all copies thereof, whether in electronic or other form.
	 
	7.	 	Deductions from Pay. You authorize Real to deduct from your compensation the value of
any Company Property not returned or the amount of any sums owed to Real by you, and you
release Real from any claims based upon such withholding.
	 
	8.	 	Miscellaneous. This Agreement together with the terms of your offer letter constitute
the complete and entire agreement between us, and supersedes and cancels all prior
understandings, correspondence and agreements, oral and written, express or implied, between
us relating to the subject matter hereof. This Agreement can only be amended or waived by a
written document signed by Real and you. The waiver of any breach of this Agreement or the
failure to enforce any provision shall not waive any later breach. Real and you both consent
to the other giving third parties notification of the existence and terms of this Agreement.
This Agreement shall become effective only when executed by Real and then shall be binding
upon and inure to the benefit of Real and you, and each of our successors, assigns, heirs or
legal representatives, except that you may not assign or delegate any rights or duties under
this Agreement. This Agreement will be interpreted and enforced in accordance with the laws
of the State of Washington as applied to agreements made and performed in Washington, without
regard to the State’s conflict of laws provisions. Jurisdiction and venue in any proceeding
either at law or in equity, of or relating to this Agreement shall be in King County,
Washington. You agree that Real may be irreparably harmed by a breach by you of this
Agreement, that adequate remedies may not exist in law, and that Real shall be entitled to
bring an action for a preliminary or permanent injunction or restraining order to enforce this
Agreement. You acknowledge that your experience and capabilities are such that an injunction
to enforce this Agreement will not prevent you from earning a reasonable livelihood. Your
claims against Real shall not be a defense to Real’s enforcement of this Agreement. In case
any term in this Agreement shall be held invalid, illegal or unenforceable in whole or in
part, the validity of the remaining terms of the Agreement shall not be affected.

     You acknowledge that you have read this Agreement, have had an opportunity to have it
explained to you, understand its provisions and have received an exact copy of it for your records.
You further understand that your employment relationship with Real is at will and nothing in this
Agreement suggests or signifies otherwise.

     IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written
above.

	 	 	 	 	 	 	 
	REALNETWORKS, INC.	 	EMPLOYEE
	 
	 	 	 	 	 	 
	By:

	 	/s/ Sid Ferrales
	 	Signature:
	 	/s/ Michael Lunsford
	 

	 	 
	 	 	 	 
	Name:

	 	Sid Ferrales
	 	Printed Name:
	 	Michael Lunsford
	Title:	 	SVP Human Resources	 	Social Security Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]