Document:

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                                                                   EXHIBIT 10.26

                                 June 23, 1999

Dave Bullis
PO Box 2022
Kirkland WA. 98083

Dear Dave,

     On behalf of Encoding.com (the "Company"), I am pleased to offer you the
position of President and Chief Operating Officer 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 President and Chief Operating Officer of the
              Company, working out of the Company's headquarters office in
              Seattle, Washington. You will report to the Company's CEO.

         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%) of the outstanding equity securities
              of a corporation whose stock is listed on a national stock
              exchange.

         c.   As President and Chief Operating Officer, you will have the right
              to attend meetings of the Company's Board of Directors.
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Page 2

     2.  Start Date.  Subject to fulfillment of any conditions imposed by this
         letter agreement, you will commence this new position with the Company
         on July 12, 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 $12,500.00,
              which is equivalent to $150,000.00 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.   Annual Review.  Your base salary will be in March as part of the
              Company's normal salary review process.

         c.   Bonus.  You will be eligible to receive an incentive bonuses of
              $50,000 if the Company achieve's the business plan milestones
              established by the Board of Directors, in consultation with you.
              You will also be eligible to earn incentive bonuses in future
              years, again based on the achievement of objectives met by Company
              established by the management team and the CEO.

     5.  Stock Options.

         a.   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 450,000 shares of non-
              qualified options at a strike price of .25 cents. Within a month
              of your start date you will receive the Stock Option Plan and
              subscription agreement which will enroll you in the program.

         b.   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).
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              You may exercise these options prior to their vesting subject to
              the Company's right of repurchase which will lapse in accordance
              with the above vesting schedule. 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. If the
              merger occures within your first two years of employment, the
              vesting of your options will be accelerated such that a minimum
              50% of the total number of options will be vested upon
              consummation of the acquisition.

         c.   You will also have the opportunity to invest $200,000.00 in the
              Series C round with the same rights and the same price as the
              other Series C investors according to the term sheet of the
              current round set to close in July, 1999.

     6.  Benefits.

         a.   Insurance Benefits. The Company will provide you with standard
              medical and optional dental insurance benefits. The Company will
              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 two 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
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         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.
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     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:

Dave Bullis

/s/ Dave Bullis
------------------------------------
Signature

 June   , 1999
------------------------------------
Date

Enclosure:  Confidential Information and Invention Assignment Agreement<PAGE>

                                                                   EXHIBIT 10.27

                                August 3, 1999

Larry Culver
16018 224/th/ Ave. NE
Woodinville, WA 98072

Dear Larry,

     On behalf of Encoding.com (the "Company"), I am pleased to offer you the
                                     -------
position of Chief Financial Officer 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 Chief Financial Officer 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
<PAGE>

Page 2

          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 August 26, 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 $11,666.66,
               -----------
               which is equivalent to $140,000.00 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.   Annual Review.  Your base salary will be reviewed in March as
               -------------
               part of the Company's normal salary review process.

          c.   Bonus. You will be eligible to receive an incentive bonus of
               -----
               $35,000 if the Company achieves the business plan milestones
               established by the Board of Directors. You will also be eligible
               to earn incentive bonuses in future years, again based on the
               achievement of objectives met by Company established by the
               management team and the CEO.

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

          a. 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 400,000 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.

          a. 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
<PAGE>

Page 3

             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 above vesting schedule. 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. If the merger occurs within your first two years of
             employment, the vesting of your options will be accelerated such
             that a minimum 50% of the total number of options will be vested
             upon consummation of the acquisition.

     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 one month
          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
<PAGE>

Page 4

          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/ Martin Tobias

                                         Martin Tobias,
                                         Minister of Order and Reason

ACCEPTED AND AGREED:

Larry Culver

/s/ Larry Culver
_____________________________
Signature

August   , 1999
_____________________________
Date

Enclosure:  Confidential Information and Invention Assignment Agreement

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