Document:

EX-10.2

INCENTIVE COMPENSATION

AND NON-COMPETE AGREEMENT

This Incentive Compensation and Non-Compete Agreement (“Agreement”) is entered into
between Group 1 Automotive, Inc. (“Employer”), and John C. Rickel (“Employee”), as of June 2, 2006
(the “Effective Date”).

RECITALS

WHEREAS, simultaneously with the execution of this Agreement, Employer and Employee
executed an Employment Agreement governing the terms and conditions of their employment
relationship.

WHEREAS, Employer desires to grant to Employee shares of restricted stock or restricted stock
units (collectively “Restricted Stock”) as part of an incentive compensation plan to encourage
Employee’s loyalty, future performance and continued employment with Employer.

WHEREAS, in exchange for Employer granting to Employee shares of restricted stock or
restricted stock units and providing Employee with certain confidential and proprietary information
and trade secrets for the purpose of carrying out his employment responsibilities (as set forth in
Section 5.1 of the Employment Agreement), Employee agrees to the non-competition provisions of
Section 2 of this Agreement.

AGREEMENT

For and in consideration of the mutual promises, covenants, and obligations contained
herein, Employer and Employee agree as follows:

	1.	 	INCENTIVE COMPENSATION

1.1. Restricted Stock Grant. Employer hereby grants to Employee 10,000 shares of Restricted
Stock in accordance with the terms and conditions of Employer’s 1996 Stock Incentive Plan. Such
shares of Restricted Stock shall vest as follows: (i) 4,000 shares (or units) shall vest on May
24, 2008; (ii) 2,000 shares (or units) shall vest on May 24, 2009; (iii) 2,000 shares (or units)
shall vest on May 24, 2010; and (iv) 2,000 shares (or units) shall vest on May 24, 2011.

1.2. Options. If Employee is granted stock options, Employee shall enter into a separate
written stock option agreement pursuant to which Employee shall be granted the option to acquire
common stock of Employer subject to the terms and conditions of Employer’s 1996 Stock Incentive
Plan, or any successor plan, and the stock option agreement entered into thereunder. The number of
shares, exercise price per share and other terms of the options shall be as specified in such other
written agreement, unless modified specifically herein.

1.3. Condition of Grants. The rights and liabilities of Employer and Employee regarding
entitlement to, and vesting of, any incentive compensation granted pursuant to this Agreement shall
be conditioned and dependent on the Employee’s consent and agreement to the promises set forth in
Section 2 of this Agreement. In the event that any provision set forth in Section 2 is violated,
Employer shall have the right, among other remedies, to demand forfeiture of any cash or equity
award realized during the twelve (12) months prior to such violation or declaration.

	2.	 	POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS

2.1. Non-Competition Obligations. In consideration for Employer’s promises contained in
Section 5.1 of the Employment Agreement, and as part of the consideration for the compensation and
benefits to be paid and extended to Employee under the Employment Agreement, and as an additional
incentive for Employer to enter into this Agreement, Employer and Employee agree to the
non-competition provisions of this Section 2.1. Employee agrees that during the period of
Employee’s non-competition obligations hereunder, Employee will not, directly or indirectly for
Employee or for others, in any geographic area or market where Employer or any of its subsidiaries
or affiliated companies are conducting any business as of the date of termination of the employment
relationship or have during the previous twelve (12) months conducted any business:

	 	(i)	 	engage in any business competitive with any line of business conducted by
Employer or any of its subsidiaries or affiliates (including without limitation any
public or private auto retailer);

	 	(ii)	 	render advice or services to, or otherwise assist, any other person,
association, or entity who is engaged, directly or indirectly, in any business
competitive with any line of business conducted by Employer or any of its subsidiaries
or affiliates (including without limitation any public or private auto retailer);

	 	(iii)	 	solicit or accept the business of, or call upon, any customer or client of
Employer for the purpose of conducting competitive business or otherwise seeking profit
from a competitive activity;

	 	(iv)	 	encourage or induce any current or former employee of Employer or any of its
subsidiaries or affiliates to leave the employment of Employer or any of its
subsidiaries or affiliates or proselytize, offer employment, retain, hire or assist in
the hiring of any such employee by any person, association, or entity not affiliated
with Employer or any of its subsidiaries or affiliates for a period of 24 months from
date of termination; provided, however, that nothing in this subsection (iv) shall
prohibit Employee from offering employment to any prior employee of Employer or any of
its subsidiaries or affiliates who was not employed by Employer or any of its
subsidiaries or affiliates at any time in the twelve (12) months prior to the
termination of Employee’s employment; or

	 	(v)	 	divulge any of the confidential, proprietary or trade secret information that
was provided to Employee pursuant to Section 5 of this Agreement to any third party or
individual or entity other than Employer or any of its subsidiaries or affiliates.

The non-competition obligations set forth in subsections (i) through (v) of this Section 2.1 shall
apply during Employee’s employment and for a period of two (2) years after termination of
employment. If Employer or any of its subsidiaries or affiliates abandons a particular aspect of
its business, that is, ceases such aspect of its business with the intention to permanently refrain
from such aspect of its business, then this post-employment non-competition covenant shall not
apply to such former aspect of that business.

2.2. Future Employment.

2.2.1. If Employee in the future, seeks or is offered employment, or any other position or
capacity with another company or entity, Employee agrees to inform each new employer or entity,
before accepting employment, of the existence of the restrictions contained in Section 2.1.
Further, before taking any employment position with any person during the non-competition period,
Employee agrees to give prior written notice to Employer of the name of such person or entity.
Employer shall be entitled to advise such person or entity of the provisions of Section 2.1 and to
otherwise deal with such person or entity to ensure that the provisions of this Section are
enforced and duly discharged.

2.2.2. If Employee in the future seeks or is offered employment with another company or
entity, Employee may provide Employer with written notice stating the name of the prospective
employer, Employee’s prospective position, responsibilities and duties, and the industry or
industries in which the prospective employer operates. Employer shall have ten (10) business days
from receipt of such notice to notify Employee of its belief that such prospective employment would
be a violation of the provisions of Section 2.1. If Employer fails to respond to Employee in
writing within such ten (10) business day period, Employer shall be estopped from asserting its
rights, if any, arising from a violation of Section 2.1 by reason of such employment as described
in such notice.

2.3. Tolling of Restrictive Periods. If the Employee violates any of the restrictions
contained in Section 2.1, the restrictive periods shall be suspended and will not run in favor of
the Employee until such time as the Employee cures the violation to the satisfaction of Employer.

2.4. Acknowledgment. Employee understands that the foregoing restrictions may limit his
ability to engage in certain businesses in locations where the Employer conducts business during
the period provided for above, but acknowledges that Employee’s job duties during his employment
with Employer, receipt of Employer’s confidential and proprietary information and trade secrets (as
well as access to certain confidential and proprietary information and trade secrets) and
Employee’s receipt of sufficiently high remuneration and other benefits under the Employment
Agreement justifies such restriction. Employee acknowledges that money damages would not be
sufficient remedy for any breach of Section 2.1 by Employee, and Employer or any of its
subsidiaries or affiliates shall be entitled to enforce the provisions of this Section by
terminating any payments then owing to Employee under the Employment Agreement and/or to obtain
specific performance and injunctive relief as remedies for such breach or any threatened breach,
without any requirement for the securing or posting of any bond in connection with such remedies.
Such remedies shall not be deemed the exclusive remedies for a breach of Section 2.1, but shall be
in addition to all remedies available at law or in equity to Employer or any of its subsidiaries or
affiliates, including, without limitation, the recovery of damages from Employee and his agents
involved in such breach.

2.5. Materiality and Conditionality of Section. Section 2.1 is material to this Agreement.
Employee’s agreement to strictly comply with Section 2.1 is a precondition for Employee’s receipt
of payments and vesting of Restricted Stock and stock options pursuant to Section 1 of this
Agreement. Whether or not Section 2.1 or any portion thereof has been held or found invalid or
unenforceable for any reason whatsoever by a court or other constituted legal authority of
competent jurisdiction, upon any violation of this Section or any portion thereof, or upon a
finding that a violation would have occurred if such Section or any portion thereof were
enforceable, the Employee and Employer agree that (i) the Employee’s interest in the Restricted
Stock and stock options pursuant to Section 1 of this Agreement shall automatically lapse and be
forfeited; (ii) Employer shall have no obligation to make any further payments to Employee under
the terms of Section 1 of this Agreement; (iii) Employer shall be entitled to receive the full
value of any payments which were previously made to the Employee pursuant to Section 1 of this
Agreement in the previous twelve (12) months, as well as the value of any Restricted Stock or stock
options that may have vested during the past twelve (12) months from the date of the Employee’s
termination, for any reason, to the date on which a court or arbitration panel held or found the
non-compete article to have been violated; (iv) the Employee’s interest in post-termination payment
pursuant to Sections 2.3 and 3.5 of the Employment Agreement shall automatically lapse and be
forfeited; (v) Employer shall have no obligation to make any further payments to Employee under the
terms of Sections 2.3 and 3.5 of the Employment Agreement; and (vi) Employer shall be entitled to
receive the full value of any payments which were previously made to the Employee pursuant to
Sections 2.3 and 3.5 of the Employment Agreement in the previous twelve (12) months.

2.6. Survival of Section. The Employee and Employer agree that all of the covenants contained
in Section 2.1 shall survive the termination or expiration of this Agreement, and agree further
that in the event any of the covenants contained in Section 2.1 shall be held by any court to be
effective in any particular area or jurisdiction only if said covenant is modified to be limited in
its duration or scope, then, at the sole option of Employer, the provisions of Section 2.5 may be
deemed to have been triggered, and the rights, liabilities and obligations set forth therein shall
apply. In the event Employer does not elect to trigger application of Section 2.5, then the court
shall have such authority to so reform the covenants and the parties hereto shall consider such
covenants and/or other provisions of Section 2 to be amended and modified with respect to that
particular area or jurisdiction so as to comply with the order of such court and, as to all other
jurisdictions, the covenants contained herein shall remain in full force and effect as originally
written. Should any court hold that the covenants in Section 2.1 are void and otherwise
unenforceable in a particular area or jurisdiction, then notwithstanding the foregoing provisions
of this Section 2.6, the provisions of Section 2.5 shall be applicable and the rights, liabilities
and obligations of the parties set forth therein shall apply. Alternatively, at the sole option of
Employer, Employer may consider such covenants to be amended and modified so as to eliminate
therefrom the particular area or jurisdictions as to which such covenants are so held void or
otherwise unenforceable and, as to all other areas and jurisdictions covered herein, the covenants
contained herein shall remain in full force and effect as originally written.

	3.	 	MISCELLANEOUS

3.1. Definition of “Affiliates” and “Affiliated.” For purposes of this Agreement the terms
“affiliates” or “affiliated” means an entity who directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with Employer.

3.2. Prohibition of Publication of Certain Information. Except as required by law or process,
Employee shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Employer at any of
its subsidiaries’ or affiliates’ directors, officers, employees, agents or representatives that are
slanderous, libelous, or defamatory; or that disclose private or confidential information about
Employer or any of its subsidiaries’ or affiliates’ business affairs, officers, employees, agents,
or representatives; or that constitute an intrusion into the seclusion or private lives of Employer
or any of its subsidiaries’ or affiliates’ directors, officers, employees, agents, or
representatives; or that give rise to unreasonable publicity about the private lives of Employer or
any of its subsidiaries’ or affiliates’ officers, employees, agents, or representatives; or that
place Employer or its subsidiaries’ or affiliates’ officers, employees, agents, or representatives
in a false light before the public; or that constitute a misappropriation of the name or likeness
of Employer or any of its subsidiaries’ or affiliates’ or its officers, employees, agents, or
representatives. Except as required by law or process, the Employer shall refrain, and shall use
its best efforts to assure that its directors, officers, employees, agents and representatives, and
its subsidiaries and affiliates and their directors, officers, employees, agents and
representatives, shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any untrue oral or written statements about the Employee
that are slanderous, libelous, or defamatory; or that disclose private or confidential information
about the Employee; or that constitute an intrusion into the seclusion or private life of the
Employee; or that give rise to unreasonable publicity about the private life of the Employee; or
that place the Employee in a false light before the public.

3.3. Notice. For purposes of this Agreement, notices and all other communications provided
for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to Employer to:

Group 1 Automotive, Inc.

950 Echo Lane, Suite 100

Houston, TX 77024

Attn: Presiding Director of the Board

With a copy to:

Fisher & Phillips LLP

18400 Von Karman Avenue, Suite 400

Irvine, CA 92612

Attn: John M. Polson, Esq.; and

Group 1 Automotive, Inc.

950 Echo Lane, Suite 100

Houston, TX 77024

Attn: Jeff M. Cameron

If to Employee:

John C. Rickel

150 Stoney Creek

Houston, Texas 77024

Either Employer or Employee may furnish a change of address to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

3.4. Governing Law. This Agreement shall be governed in all respects by the law of the State
of Texas, excluding any conflict-of-law rule or principle that might refer the construction of the
Agreement to the laws of another State or country.

3.5. No Waiver. No failure by either party hereto at anytime to give notice of any breach by
the other party of, or to require compliance with, any condition or provision of this Agreement
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

3.6. Severability. It is a desire and intent of the parties that the terms, provisions,
covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent
permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the
application thereof to any person, association, or entity or circumstances shall, to any extent, be
construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant,
or remedy shall be construed in a manner so as to permit its enforceability under the applicable
law to the fullest extent permitted by law. In any case, the remaining provisions of this
Agreement or the application thereof to any person, association, or entity or circumstances other
than those to which they have been held invalid or unenforceable, shall remain in full force and
effect.

3.7. Arbitration. The parties agree that any claim, dispute, and/or controversy that they may
have arising from, related to, or having any relationship or connection whatsoever with this
Agreement, Employee’s employment, or other association with the Company, shall be submitted to and
determined exclusively by binding arbitration under the Federal Arbitration Act. In addition to
any other requirements imposed by law, the arbitrator selected shall be a retired Judge, or
otherwise qualified individual to whom the parties mutually agree, and shall be subject to
disqualification on the same grounds as would apply to a Judge. The arbitrator shall apply the
Federal Rules of Civil Procedure and Evidence, including all rules of pleading, discovery, evidence
and all rights to resolution of the dispute by means of motions for summary judgment and judgment
on the pleadings. Resolution of the dispute shall be based solely upon the law governing the
claims and defenses pleaded, and the arbitrator may not invoke any basis (including but not limited
to, notions of “just cause”) other than such controlling law. The arbitrator shall have the
immunity of a judicial officer from civil liability when acting in the capacity of an arbitrator,
which immunity supplements any other existing immunity. Likewise, all communications during or in
connection with the arbitration proceedings are privileged. Awards shall include the arbitrator’s
written reasoned opinion.

3.8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
Employer, its subsidiaries and affiliates and any other person, association, or entity which may
hereafter acquire or succeed to all or a portion of the business or assets of Employer by any means
whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee’s rights
and obligations under this Agreement are personal and such rights, benefits, and obligations of
Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by
operation of law or otherwise, by Employee without the prior written consent of Employer.
Notwithstanding anything to the contrary in this Section 7.8 or elsewhere in the Agreement, in the
event of the Employee’s death after becoming entitled to receipt of any payment or benefit, but
before receiving all such payments or benefits, the remaining payments shall be made to the
Employee’s survivors or estate and the remaining benefits shall be provided to his widow or other
survivors to the same extent and in the same manner as if he were still alive.

3.9. Entire Agreement. Except as provided in (1) written company policies promulgated by
Employer dealing with issues such as securities trading, business ethics, governmental affairs and
political contributions, consulting fees, commissions and other payments, compliance with law,
investments and outside business interests as officers and employees, reporting responsibilities,
administrative compliance, and the like, (2) the written benefits, plans, and programs referenced
in Section 1.4 of this Agreement or (3) any signed written agreements contemporaneously or
hereafter executed by Employer and Employee (including, but not limited to, the Employment
Agreement), this Agreement constitutes the entire agreement of the parties with regard to such
subject matters, and contains all of the covenants, promises, representations, warranties, and
agreements between the parties with respect to such subject matters and replaces and merges
previous agreements and discussions pertaining to the employment relationship between Employer and
Employee.

3.10. Headings. The headings contained in this Agreement are for reference only and shall not
affect the meaning or interpretation of any provision of this Agreement.

3.11. Amendment. No amendments or additions to this Agreement shall be binding unless in
writing and signed by both parties hereto.

3.12. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which together will constitute one and the same instrument

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the date first stated above.

	 	 	 	 	 	 	 
	DATE:	 	June 2, 2006	 	GROUP 1 AUTOMOTIVE, INC.

	 
	 	 	 	 	 	 
	
 
	 	 	 	By:
	 	/s/ Earl J. Hesterberg
	
 
	 	 	 	 	 	 
	
 
	 	 	 	Name:
	 	Earl J. Hesterberg
	
 
	 	 	 	 	 	 
	
 
	 	 	 	Title:
	 	President & CEO
	
 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	DATE:

	 	June 2, 2006
	 	 	 	/s/ John C. Rickel
	
 
	 	 	 	 
	 	 
	
 
	 	 	 	 	 	JOHN C. RICKELEX-10.1

Exhibit 10.1

June 1, 2006

Harold Zeitz

Dear Harold:

I am extremely pleased to offer you employment at RealNetworks, Inc. (Real) as Senior Vice
President, Media Software & Services, reporting to me, Rob Glaser, Chairman and CEO. Your start
date will be determined at a later date. As you know this offer is contingent upon the receipt of
approval from the Board of Directors compensation Committee. This will not become a binding
agreement until we receive Board resolution and approval.

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 $270,000.00 (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 $121,500.00 based on meeting MBO target goals, for an annual target
total compensation of $391,500.00 if you succeed in meeting your MBO target goals.

A sign on bonus of $60,000.00 will be paid to you in two equal installments of $30,000.00 each:
the first installment will be paid within thirty (30) days of the commencement of your employment
with Real, the second installment will be paid at your six (6) month day anniversary date. These
payments are taxable income. In the event that your employment with Real is terminated for cause
or you resign within twelve (12) months of the date of either payment, you must return to Real the
entire payment installment you received. For example, if your employment were terminated under
such circumstances nine months after receiving the first payment, and 3 months after receiving the
second payment, you would be required to repay $60,000.00 to Real. By signing below, you agree
that if your employment is terminated under such circumstances you must reimburse the appropriate
payment 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. Upon the
start of your employment, you will be eligible for options on 200,000 shares, which will begin
vesting on your hire date according to the vesting rules, and all other provisions contained in the
Plan. Your stock options will be granted on the date the Compensation Committee of the Company’s
Board of Directors approves the grant of the option (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.

You will be regarded as a key employee under certain federal regulations governing family and
medical leave. This status will require that you work closely with us in planning if you develop a
need for family or medical leave.

You will accrue paid vacation at a rate equivalent to 144 hours per year (18 days) and will receive
paid holidays, paid sick leave, and, upon satisfaction of any eligibility or waiting requirements,
medical/dental coverage, 401K participation, disability and life insurance coverage, employee stock
purchase plan participation and other benefits (‘Benefits’) as described in the Real Employee
Handbook, Benefit Plan descriptions, and Real policies, as they may be amended from time to time. 
All of these Benefits are subject to change upon notice from Real.

It is our policy that employees may not 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. Prior to signing this letter, you must inform us if you
are subject to any such obligations that would prevent you from working at Real in your intended
capacity or that would otherwise restrict you in the performance of your services to Real.
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 to Real any confidential documents of
another, nor disclose any confidential information of another, and that you will comply fully with
these requirements.

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, subject only to the
provisions below describing your obligation to provide Real with notice, and Real’s obligation to
make certain payments if Real terminates your employment for reasons other than cause. Your right
to receive these payments described below are subject to and conditioned upon your signing a valid
general and complete release of all claims (except those relating to Real’s payment obligations
under this letter agreement) against Real (and its related entities and persons) in a form provided
by Real.

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.

This offer is contingent on: (i) you 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) Real receiving acceptable results
from any background check or reference check, and (iii) you signing Real’s Development,
Confidentiality and Noncompetition Agreement, attached hereto.

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.

This letter and the Development and Confidentiality Agreement, the 2005 Stock Incentive Plan, and
your Stock Option Agreement, contain the entire agreement between you and Real, and supercede all
prior oral and written discussion, agreements and understandings. This letter may not be modified
except in writing signed by both you and Real. Any disputes regarding this letter or your
employment with Real shall be governed by and construed in accordance with the laws of the State of
Washington. If any provision of this letter is deemed to be invalid or unenforceable, at Real’s
option, the remaining terms shall continue in full force and effect.

1

This offer is valid until June 2, 2006. We are excited about the prospect of you joining
RealNetworks, Inc. and look forward to working with you. Please call us if you have questions
about this offer letter.

Sincerely,

/s/ Rob Glaser

Rob Glaser

Chairman and CEO

RealNetworks, Inc.

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

	 	 	 	 	 
	Harold Zeitz:

	 	 	 	/s/ Harold Zeitz
	 
	 	 	 	 
	 
	 	 
	 
	 	 	 	 
	Date:

	 	6/1/06
	 	

	
 
	 	 
	 	 
	 
	 	 	 	 

2

REALNETWORKS, INC.

DEVELOPMENT, CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

THIS AGREEMENT is made and entered into on this, the 1st of June, 2006, by and between
RealNetworks, Inc. (“Real”) and Harold Zeitz (“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/ Jim Lambert

	 	Signature: /s/ Harold Zeitz
	 

	 	 
	 
	 	 
	Name: Jim Lambert

	 	Printed Name: Harold Zeitz
	 

	 	 
	 
	 	 
	Title: Sr. Director Staffing

	 	Social Security Number:      
	 

	 	 
	 
	 	 

3

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