Document:

<PAGE>
                                                                   Exhibit 10.23

November 30, 2005

Dan Sheeran
c/o RealNetworks, Inc.
2601 Elliott Avenue, Suite 1000
Seattle, WA  98121

Dear Dan:

In consideration for your excellent work relating to the Microsoft antitrust
case and your continued employment with RealNetworks, I am pleased to offer you
the bonus plan and payments described in Exhibit A (the "Bonus Payments").

You will be entitled to receive the Bonus Payments unless RealNetworks has
terminated your employment for Cause, as defined below, or you voluntarily
choose to end your employment with RealNetworks, in which case you will not be
entitled to any Bonus Payments after the date of your termination or voluntary
resignation. Once paid, a Bonus Payment will be considered final and
irrevocable. If RealNetworks materially changes your job responsibilities, moves
your primary workplace by more than 15 miles or is acquired by a third party,
any subsequent resignation by you will not be considered "voluntary" and you
will be entitled to receive all Bonus Payments on your last day of employment.
In the event of your death or permanent disability, you or your heirs will be
entitled to receive all Bonus Payments within 30 days. In addition, in the event
of any mutually agreed (a) change in your employment status to part-time for a
continuous period lasting greater than three months or (b) leave of absence for
a continuous period lasting greater than three months, the Bonus Payments may be
adjusted to reflect appropriately such change in status (for example, by
altering the payment schedule, pro-rating the payments, tolling the payment
schedule or such other mechanism as agreed by the parties). Notwithstanding the
previous sentence, there shall not be any adjustment to the Bonus Payments or
schedule as a result of any change in employment status relating to disability
(other than a permanent disability as described above), medical or family leave
or other FMLA-related leave.

As used in this agreement, "Cause" means conduct involving one or more of the
following: (i) your substantial and continuing failure after written notice to
render services to RealNetworks in accordance with the terms or requirements of
your employment for reasons other than illness or incapacity; or (ii) willful
misconduct, fraud, embezzlement, theft, misrepresentation or dishonesty
involving RealNetworks resulting in any case in material harm to RealNetworks.

Sincerely,

/s/ Rob Glaser

Rob Glaser
Chairman and Chief Executive Officer
RealNetworks, Inc.

I have read and agree to the terms of the incentive bonus agreement contained in
this letter.

Name: /s/ Dan Sheeran

Date: November 30, 2005
<PAGE>

                                                                       EXHIBIT A
<TABLE>
<CAPTION>
                    Schedule of Bonus Payments - Dan Sheeran
                    -----------------------------------------
<S>                                                     <C>
Amount                                                  Date Payable
------                                                  ------------

$70,000                                                 November 30, 2005

$65,000                                                 May 30, 2006

$65,000                                                 November 30, 2006
</TABLE><PAGE>

                                                                   EXHIBIT 10.24

                    AMENDED AND RESTATED SETTLEMENT AGREEMENT

     This Amended and Restated Settlement Agreement (the "Agreement") is entered
into as of this 10th day of March, 2006 (the "Signing Date"), by and between
RealNetworks, Inc., a corporation organized and existing under the laws of the
State of Washington, and its subsidiaries (collectively, "Real"), and Microsoft
Corporation, a corporation organized and existing under the laws of the State of
Washington, and its subsidiaries (collectively, "Microsoft"). Real and Microsoft
are each referred to in this Agreement as a "Party" and collectively as the
"Parties." For purposes of the Agreement, references to Real and Microsoft shall
include their respective Affiliates (as defined below).

     WHEREAS, Real filed a lawsuit in federal court in the United States
alleging violations of antitrust laws, unfair competition laws and other claims
and participated in proceedings in the European Union and with the Korean Fair
Trade Commission asserting violation of applicable antitrust laws, more
particularly described in Section 1 below and referred to collectively herein as
the "Actions,"

     WHEREAS, Microsoft denied any and all liability to Real in connection with
the matters described in the Actions and further denied that it violated any
law, ordinance or regulation of any jurisdiction or engaged in any wrongdoing of
any kind whatsoever,

     WHEREAS, Real and Microsoft, having determined it to be desirable to settle
and resolve all claims asserted in the Actions, entered into the Settlement
Agreement (the "Previous Agreement") dated as of the 11th day of October, 2005
(the "Effective Date"), and an amendment to the Previous Agreement dated as of
the 3rd day of March, 2006 (the "Amendment"), for the purpose of compromising
disputed claims and alleviating the expense, delay and inconvenience associated
with the Actions, and

     WHEREAS, the Parties desire to incorporate all of the terms of the Previous
Agreement and the Amendment into one agreement pursuant to this Agreement,

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which the Parties acknowledge, it is mutually agreed by and
between the Parties as follows:

     1.   Definitions. For purposes of this Agreement, the following terms shall
          have the meanings set forth below.

          "Actions" means:

          (1)  In the U.S.: the action captioned RealNetworks, Inc. v. Microsoft
               Corp., Civil Action No. JFM-04-968, MDL Docket No. 1332, in the
               United States District Court for the District of Maryland,
               originally filed as Case No. C03-5717 (JW) (EAI), in the United
               States District Court for the Northern District of California
               ("the U.S. Action");

          (2)  In the EU: Case COMP/C-3/37.792 that culminated in a decision of
               the European Commission on March 24, 2004 ("the EU Decision"),
               Microsoft's appeal from the EU Decision in the action captioned
               Microsoft v. Commission of the European Communities, Case
               T-201/04, the appeal in the action captioned Microsoft v.
               Commission of the European Communities, Case T-313/05 and the
               complaint filed by third party CCIA with the European Commission
               on February 11, 2003, including

<PAGE>

               any other filings concerning the appeal, implementation, or
               enforcement of the EU Decision; and

          (3)  In Korea: The proceedings identified as Case No. 2005 Kyungchok
               0375, Case Concerning Abuse of Market Dominant Position by
               Microsoft Corporation and Microsoft Korea, Inc.

"Affiliates" means any entity directly or indirectly controlling, controlled by
or under common control with a Party hereto, where "control" means beneficial
ownership of greater than fifty percent (50%) of equity interest therein.

"Change of Control" means a transaction or series of related transactions that
results in (a) a sale to a single person or entity or two or more persons or
entities acting as a "group" (as such term is used in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, and the regulations promulgated
thereunder) of all or substantially all of the assets of a Party or of a line of
business of a Party other than directly or indirectly to an Affiliate of such
Party, (b) the transfer, directly or indirectly, to a single entity or such
"group" of fifty percent (50%) or more of the outstanding voting power of a
Party (other than directly or indirectly to an Affiliate of such Party), or (c)
the acquisition by an entity or such "group", by reason of any contractual
arrangement or understanding, of (i) the right or power to appoint or cause to
be appointed a majority of the directors or persons serving similar functions of
such Party or of a line of business of a Party or (ii) the power to direct or
cause the direction of the management and policies of such entity, whether
through the ownership of voting securities, by contract, management agreement or
otherwise.

"OEM" means an original equipment manufacturer licensed by Microsoft to
pre-install Windows operating system software on its new personal computers.

"Windows" means the software code (as opposed to source code) distributed by
Microsoft to any licensee as Windows XP Home, Windows XP Professional, Windows
XP Media Center Edition, the predecessors and successors to the foregoing
operating systems distributed during the Term of this Agreement, including, as
applicable, Windows Vista and its successors, including upgrades, bug fixes,
service packs, or any other versions of Windows that support digital media for
use with personal computers, servers, or devices. The term "Windows" also means
the software code (as opposed to the source code) distributed commercially by
Microsoft for use with server computers as Windows 2000 Server, Windows Server
2003 Standard Edition, Windows Server 2003 Enterprise Edition, Windows Server
2003 Data Edition, Windows Server 2003 Web Edition and their successors,
including but not limited to upgrades, bug fixes, and service packs.

"Windows Vista" means the next major version of the Windows operating system to
be released, which, when released, will supersede Windows XP and Service Pack
updates thereto as the Microsoft flagship operating system. References in the
Agreement to "Windows Vista" shall also be deemed to include all successors or
future versions of the Windows operating system after Windows Vista that support
digital media during the Term.

"Windows XP and Updates" means the Windows XP Home and Windows XP Professional
versions of Windows, including Service Packs and other updates or modifications
to those products. Windows XP and Updates does not include Windows Vista or its
successors.

     2.   Dismissal of the Actions: Real agrees that as soon as possible and in
          any event within five (5) business days of the Effective Date and
          provided that Real has received payment of the amount set forth in
          Section 4, Real shall take all steps necessary to conclude its
          participation in the

                                        2

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          Actions with finality, with prejudice and with each Party to bear its
          own costs and attorneys' fees, including without limitation:

               a.   In the U.S.: Filing a stipulation of dismissal with
                    prejudice pursuant to Rule 41(a)(1)(ii) of the Federal Rules
                    of Civil Procedure, each Party to bear its own attorneys'
                    fees and costs. The Parties agree to execute and file a
                    stipulation in the form attached hereto as Exhibit A.

               b.   In the EU: Submitting a formal notice of withdrawal from the
                    Actions in Europe.

               c.   In Korea: Submitting to the Korean Fair Trade Commission a
                    letter withdrawing any and all complaints, reports or
                    petitions it has filed with the Korean Fair Trade Commission
                    with respect to the Actions or otherwise, and delivering to
                    Microsoft a photocopy of the original letter and an
                    affidavit confirming its submission.

     Real agrees that, as of the Effective Date, it will take no further steps
     to participate in the Actions, and will instruct its counsel, consultants,
     and representatives to take no further steps to participate on Real's
     behalf in the Actions, or in any other administrative or judicial
     proceedings anywhere in the world based upon the same facts, occurrences,
     or transactions complained of in the Actions (excluding intellectual
     property claims) unless both Real and Microsoft consent to such further
     participation. Real further warrants and represents that it has not
     submitted any other written complaints, reports, or petitions concerning
     the facts, occurrences, or transactions complained of in the Actions to any
     governmental entities or courts other than those identified in the
     definition of "Actions" in Section 1 and as required in Real's Securities
     and Exchange Commission filings. Real shall send the letter attached as
     Exhibit B to its counsel, consultants, and representatives and to the
     courts, investigators, or regulators participating in the Actions as of the
     Effective Date. Real's public statements and its communications shall be
     consistent with the terms and provisions of this Agreement. The duty to
     take no further steps in the Actions shall not, however, apply to (i) any
     communication in response to a request for information from any court,
     regulatory agency or governmental investigator of competent jurisdiction
     that has the power to compel the provision of such information, or (ii) any
     communication by Real required by the competition laws of any competent
     jurisdiction.

     Nothing in this Agreement shall preclude Real from participating in or
     being a member of any industry organization or association, even if that
     organization or association takes positions or engages in activities
     related to the Actions or the facts, occurrences or transactions complained
     of in the Actions; provided, however, that Real will not vote in favor of
     any such complaint within the organization or association and, subject to
     subsections (i) and (ii) in the preceding paragraph, Real will not file
     submissions or present testimony before the court or regulatory agency in a
     proceeding addressing the facts, occurrences or transactions complained of
     in the Actions.

     3.   Release.

          a. Real and its Affiliates hereby release and discharge Microsoft and
          its Affiliates, and their present and former directors, officers,
          employees, representatives, agents, attorneys or other legal
          representatives of and from any and all claims, actions, causes of
          action, suits, rights, damages, liabilities and demands, known or
          unknown, under the laws, rules or regulations of

                                        3

<PAGE>

          any country or jurisdiction anywhere in the world that each of them
          ever had, or now has, or may hereafter arise by virtue of new rights
          created in law or in equity that:

               (i) have been asserted or complained of in the Actions or that
          could have been asserted or complained of in the U.S. Action by Real
          (excluding intellectual property claims); or

               (ii) are based on the integration into Windows Vista of (a) (1)
          those functions and features that are integrated into Windows XP as
          part of Windows Media Player as of the Effective Date or (2) other
          media functions and features that are integrated into Windows XP as of
          the Effective Date and (b) that are integrated into Windows Vista in
          an equivalent manner as those media functions and features are
          integrated in Windows XP as of the Effective Date (excluding
          intellectual property claims). Notwithstanding the foregoing, Real is
          not releasing any claims concerning the integration into Windows after
          the Effective Date of any store or service providing digital media
          content.

          b. Microsoft and its Affiliates hereby release and discharge Real and
          its Affiliates, and their present and former directors, officers,
          employees, representatives, agents, attorneys or other legal
          representatives of and from any and all claims, actions, causes of
          action, suits, rights, damages, liabilities and demands, known or
          unknown, under the laws, rules or regulations of any country or
          jurisdiction anywhere in the world that each of them ever had, or now
          has, or may hereafter arise by virtue of new rights created in law or
          in equity that either have been asserted or complained in the Actions
          or could have been asserted or complained of in the U.S. Action by
          Microsoft or its affiliates (excluding intellectual property claims).
          This release also applies to any claim or complaint that Microsoft and
          its Affiliates may hereafter acquire or control by way of future
          acquisition or merger, provided that the claim or complaint would have
          fallen within the terms of this release if the claim or complaint had
          belonged to Microsoft and its Affiliates at the Effective Date.

          c. Waiver of Civil Code Section 1542. It is the Parties' intention in
          executing this Agreement that this Agreement shall be effective as a
          full and final accord and satisfaction and release of the Actions. In
          furtherance of this intention, the Parties acknowledge that they are
          familiar with Section 1542 of the Civil Code of the State of
          California, which provides as follows:

               A general release does not extend to claims which the creditor
               does not know or suspect to exist in his favor at the time of
               executing the release, which if known by him must have materially
               affected his settlement with the debtor.

          The Parties waive and relinquish any right or benefit that they have
          or may have under Section 1542 of the California Civil Code to the
          full extent that they may lawfully waive all rights and benefits
          pertaining to the subject matter of this Agreement.

          d. Protective Order in U.S. Action: Nothing contained in this
          Agreement modifies the Parties' obligations as set forth in the
          protective order for the treatment of confidential information entered
          in the U.S. Action.

     4.   Cash Payment: On the fifth business day following the Effective Date,
          Microsoft will pay to Real the amount of four hundred sixty million
          U.S. Dollars ($460,000,000) by wire transfer. Microsoft shall provide
          twenty-four (24) hours advance notice to Real of the wire transfer.
          Real shall provide in writing on its letterhead and attached as
          Exhibit C to this Agreement, the following wire transfer

                                        4

<PAGE>

          information: account name, account number, ABA number, bank address,
          and bank contact information.

     5.   Technology: Microsoft shall provide Real with the information,
          services, and technical assistance as set forth in Exhibit D.

     6.   Term: This Agreement shall enter into force as of the Effective Date.
          Except for the provisions of the Agreement entitled "Dismissal of the
          Actions" and "Release" (which shall be perpetual), this Agreement
          shall expire on May 1, 2011; provided, however, that the commitments
          regarding licenses contemplated in Section 5 shall expire ten (10)
          years from the Effective Date.

     7.   Senior Stakeholder Meetings and Program Management:

          a. Executive Sponsors and Senior Executives: Within fifteen (15) days
          of the Effective Date, each Party will appoint one (1) person with the
          title of Vice President or higher as the executive sponsor responsible
          for overall technical cooperation with the other Party ("Executive
          Sponsor") and will provide the contact information for that Executive
          Sponsor to the other Party. Each Party will have the right to replace
          its Executive Sponsor (provided the replacement is a person with the
          title of Vice President or higher) by providing written notice of such
          replacement to the other Party, such notice to include contact
          information for the new Executive Sponsor. Unless agreed otherwise,
          the Executive Sponsors will meet in person within thirty (30) days of
          the Effective Date and quarterly thereafter (in person or via
          telephonic conference) and as necessary pursuant to Section 8(a)
          below, to discuss and resolve any issues arising between the Parties
          and, to discuss the Parties' technical cooperation and exchange of
          relevant information pursuant to this Agreement. In addition to their
          respective Executive Sponsors, Microsoft and Real will appoint
          additional named senior executives to meet not less frequently than
          semi-annually, with the goal of maintaining and developing the working
          relationship and improved collaboration between the parties.

          b. Program Management Contacts: Within thirty (30) days of the
          Effective Date, each Executive Sponsor will appoint one person to
          manage the relationship and activities contemplated by this Agreement
          for that Party (a "Program Management Contact") and will provide the
          contact information for that Program Management Contact to the other
          Executive Sponsor. Each Party will have the right to replace its
          Program Management Contact by providing written notice of such
          replacement to the other Party's Executive Sponsor, such notice to
          include the contact information for the new Program Management
          Contact. Each Party's Program Management Contact will be responsible
          for managing that Party's operational obligations regarding
          deliverables under this Agreement and will be the day to day contact
          for the identification and resolution of issues between the Parties.
          The Program Management Contacts will meet in person or via telephonic
          conference, as needed and, no less than once each month during the
          term of this Agreement, to discuss the status of operational
          activities under this Agreement.

     8.   Dispute Resolution.

          a. Negotiation: The Parties agree that they shall attempt in good
          faith to promptly resolve within thirty (30) days in an amicable
          manner any controversy or claim arising out of or relating to this
          Agreement, or the claimed breach thereof ("Dispute"). The thirty (30)
          day negotiation period shall commence upon the receipt of written
          notice specifically setting forth the basis for any Dispute not
          resolved in the ordinary course of business. The notice shall include
          (a) a statement of that Party's position and a summary of arguments
          supporting that position, and (b) all requested relief. Unless
          otherwise agreed, within fifteen (15) days after

                                        5

<PAGE>

          receipt of the notice, the Executive Sponsors or their designees shall
          meet at a mutually acceptable time and place, and thereafter as often
          as they deem necessary, to attempt to resolve the Dispute. All
          negotiations pursuant to this Section 8(a) shall be confidential and
          the Parties will not rely on, or introduce as evidence, the conduct or
          statements of the Parties during these negotiations in any arbitral,
          judicial or other proceedings. Participation in negotiations pursuant
          to this Section 8(a) shall be a condition precedent to the initiation
          of arbitration proceedings as set forth in Section 8(b).

          b. Arbitration: Any Dispute relating to Section 5 of this Agreement
          which has not been settled within the required thirty (30) day
          negotiation period shall be settled by binding arbitration
          administered by an arbitrator(s) as described below. Unless otherwise
          specified herein, the Arbitration shall be conducted pursuant to the
          Commercial Arbitration Rules of the American Arbitration Association,
          including the Optional Rules for Emergency Measures of Protection.
          Judgment on the award rendered by the arbitrator may immediately be
          entered in any court having jurisdiction.

               i.   Appointment of Arbitrator. The first time either Party
                    serves a written notice of a Dispute, either Party may, in
                    its Dispute notice or by written notice ("Arbitrator
                    Notice") thereafter, request the appointment of an
                    arbitrator as provided in this Section 8(b). The Parties
                    will, within forty-five (45) days of the Arbitrator Notice,
                    agree on an arbitrator or arbitrators to be appointed. Each
                    arbitrator is to be a neutral party who is either a
                    practicing attorney or retired judge with experience in
                    technology cases or an individual with a strong background
                    in the technology subject to arbitration. As a condition to
                    appointment, each arbitrator must agree in writing to
                    maintain the existence, content (including all documents and
                    submissions submitted to the arbitrator), and the results of
                    any arbitration proceeding in confidence. If the Parties
                    fail to agree upon a single arbitrator within ten (10) days
                    of the Arbitrator Notice, the arbitration will be conducted
                    by a panel of three (3) arbitrators appointed as follows.
                    Each Party shall appoint one arbitrator. If either Party
                    fails to appoint an arbitrator within twenty five (25) days
                    of the Arbitrator Notice, the arbitrator chosen by the other
                    Party shall serve as the sole arbitrator. If each Party
                    appoints an arbitrator, then either (a) the Parties will
                    mutually agree on a third arbitrator, or (b) if the Parties
                    cannot agree on a third arbitrator, each Party within thirty
                    (30) days of the Arbitrator Notice shall nominate five
                    candidates to serve as a third arbitrator. Each party may,
                    within thirty-five (35) days of the Arbitrator Notice,
                    strike two of the other Party's five candidates. The two
                    arbitrators chosen by the Parties shall then, within
                    forty-five (45) days of the Arbitrator Notice, agree upon
                    the selection of a third arbitrator from the list of
                    candidates identified by the Parties but not stricken. If
                    the arbitrators selected by the Parties are unable to agree
                    upon the third arbitrator, the third arbitrator shall be
                    selected from the same list of non-stricken candidates by
                    the American Arbitration Association. Any disputes as to the
                    qualifications of an arbitrator will be submitted to the
                    American Arbitration Association for resolution. The
                    arbitrator(s) shall hear and decide all Disputes arising
                    during his/her term of service. New arbitrators shall not be
                    required for different or serial Disputes arising during the
                    arbitrator's term. The provisions of R-18(a) of the
                    Commercial Arbitration Rules ("Communication with
                    Arbitrator") shall apply during the entire period of the
                    arbitrator(s)' appointment, irrespective of whether a
                    Dispute is pending.

               ii.  Unless both Parties agree after full disclosure, the
                    following shall not be eligible to serve as an arbitrator:
                    any employee or former employee of either Party, any person
                    who has served as an expert or counsel for either Party in
                    any proceeding, or any

                                        6

<PAGE>

                    person with a financial interest in either Party; provided,
                    however, that indirect holdings of the stock of either Party
                    through a mutual fund shall not be a basis for
                    disqualification under this provision.

               iii. All arbitrators once elected shall be considered to be
                    neutral arbitrators. The arbitrators may act on any matter
                    by majority vote. In the paragraphs that follow, references
                    to the arbitrator shall be deemed to mean, in the event of
                    the Parties' failure to agree upon a single arbitrator, the
                    three-member panel.

               iv.  The arbitrator shall serve a one-year term, renewable each
                    year upon agreement by the Parties. Any Party wishing to
                    replace the arbitrator shall give notice to the other Party
                    sixty (60) days before the anniversary of the arbitrator's
                    appointment. If a Party gives such notice, or if the
                    arbitrator becomes unavailable to continue serving for any
                    other reason, the Parties shall agree on a successor within
                    thirty (30) days of the notice or of learning of the
                    arbitrator's unavailability. If the Parties fail to agree to
                    a successor, they shall follow the procedures for selecting
                    a three-member panel described above.

               v.   In the event that a three-member arbitration panel is
                    chosen, the members shall serve for a one-year term. The
                    term of the arbitrator chosen by a Party may be renewed by
                    the choice of the Party who chose that arbitrator. The term
                    of the arbitrator chosen by the Parties' arbitrators may be
                    renewed by the agreement of the Parties. If an arbitrator
                    chosen by a Party requires replacement at any time, the
                    Party who chose that arbitrator will choose the replacement.
                    If the arbitrator chosen by the other two arbitrators
                    requires replacement, then that replacement shall be chosen
                    pursuant to the procedure set forth in Section 8(b)(i).

               vi.  Notwithstanding the provisions of subparts iv. and v. above,
                    an arbitrator's term shall be extended as necessary to
                    complete an arbitration begun before his/her term expired.

               vii. Confidentiality. Except as may be required by law, neither a
                    Party nor an arbitrator may disclose the existence, content
                    or results of any arbitration hereunder without the prior
                    written consent of both Parties.

               viii. Duration of Arbitration. The award shall be made within
                    three (3) months of the appointment of the arbitrator(s),
                    and the arbitrator(s) shall agree to comply with this
                    schedule before accepting appointment. The arbitrator shall
                    set deadlines or modify deadlines set in the AAA rules so as
                    to meet this deadline. In extraordinary cases, where the
                    arbitrator determines that the issues are so complex as to
                    preclude resolution within three (3) months, the arbitrator
                    may extend the period of the arbitration, but in no event
                    shall he/she extend the period so that the award is made
                    more than six (6) months from the service of the notice of
                    intention to arbitrate. These time limits may be extended by
                    agreement of the Parties.

               ix.  Locale. Unless otherwise agreed to by both Parties, the
                    arbitration shall take place in a neutral location in
                    Seattle, Washington.

               x.   Modification of Arbitration Rules. The Parties may modify
                    the rules applicable to any proceeding by mutual agreement.

                                        7

<PAGE>

               xi.  The arbitrator shall hear and decide all Disputes arising
                    during the term of his/her service. New arbitrators shall
                    not be required for different or serial Disputes arising
                    during the arbirator's term.

               xii. Liquidated Damages. The Parties agree that, for each breach
                    of any provision of Section 5, the prevailing Party in any
                    arbitration shall be awarded * as liquidated damages. For
                    the purposes of calculating liquidated damages, although a
                    single act may breach multiple provisions of this Agreement,
                    such act shall count as a single breach for purposes of
                    calculating liquidated damages. Damages shall begin to
                    accrue as of the date of receipt of a written Notice of
                    Arbitration. The arbitrator may, in his/her discretion,
                    adjust the time period over which the liquidated damages
                    will be assessed where the breach relates to the timeliness
                    of compliance with a provision of Section 5 and/or the
                    breach is one that, by its nature, cannot be cured. By
                    agreeing to liquidated damages, the Parties acknowledge that
                    (i) such liquidated damages are an integral part of the
                    transactions contemplated by this Agreement and constitute
                    liquidated damages and not a penalty, and (ii) such
                    liquidated damages are necessary because actual damages
                    arising from the loss of opportunity would not be
                    determinable with any degree of certainty.

                    If either Party fails to pay the liquidated damages once
                    determined by the arbitrator to be owing, the Party shall
                    pay the costs and fees, including reasonable attorneys' fees
                    and expenses, in connection with any action, including the
                    filing of any lawsuit or other legal action, taken to
                    enforce the arbitrator's award, together with interest on
                    the amount of any unpaid damages at the publicly announced
                    prime rate as reported in The Wall Street Journal from the
                    date such damages were required to be paid.

               xiii. Cure by Posting to Windows Update. Each Party may cure any
                    breach of its obligations under Section 5 of this Agreement
                    through specific performance. In the case of Microsoft's
                    obligations pursuant to Section 5 to include software code
                    in Windows or to distribute software code with Windows,
                    Microsoft may cure any such breach by distributing such
                    software code through Microsoft's Windows Update service and
                    including any such software code in the next commercially
                    released version of Windows, provided, however, that
                    Microsoft shall only be required to make modifications to
                    any release of Windows if the scheduled release to
                    manufacture date is more than 120 days from the date of such
                    award. Liquidated damages shall cease to accrue as of the
                    date that Microsoft posts the required software code on
                    Windows Update; provided, however, that this Section shall
                    not preclude the arbitrator from reviewing the adequacy or
                    completeness of any attempted cure and from awarding
                    liquidated damages corresponding to the applicable period
                    until the Party successfully cures such breach. Microsoft
                    further agrees to work promptly and in good faith with Real
                    to identify a mechanism by which Real can effect
                    distribution of such Windows software code as a silent
                    download to Real's end users. For the purpose of this
                    Section, "silent download" shall mean a download and
                    subsequent installation that does not require user input or
                    confirmation and in which no messages are generated by the
                    Microsoft software during normal operation. Real shall
                    assure that its EULA and the end user consent path is
                    appropriate for the distribution mechanism.

----------
*    Confidential Treatment Requested

                                        8

<PAGE>

               xiv. Remedy. The only remedies for any Dispute arising out of
                    Section 5 of this Agreement shall be specific performance
                    and/or the award of liquidated damages pursuant to Section
                    8. Remedies imposed by the arbitrator shall be the sole and
                    exclusive remedy for a breach of Section 5. In the event
                    that the arbitrator awards specific performance that
                    requires software code to be included in or distributed with
                    Windows, that obligation shall be satisfied by posting any
                    such software code on Microsoft's Windows Update service and
                    including the software code in the next commercially
                    released version of Windows, provided, however, that
                    Microsoft shall not be required to make modifications to any
                    release of Windows if the scheduled release to manufacture
                    date is less than 120 days from the date of such award.
                    Liquidated damages shall cease to accrue as of the date that
                    Microsoft posts the required software code on Windows
                    Update. Nothing in this provision limits the ability of the
                    arbitrator to review the compliance of a Party with the
                    arbitrator's decisions.

               xv.  The arbitrator may not enjoin distribution of any Microsoft
                    or Real product or the provision of any Microsoft or Real
                    service based on the assertion of rights created by this
                    Agreement and the Parties expressly waive such relief.

               xvi. Excusable Delay. If the arbitrator finds that any failure of
                    a Party to meet the obligations set forth in Section 5 of
                    this Agreement was the result of conditions or circumstances
                    that were not attributable to the actions or inactions of
                    that Party, the arbitrator may, in his/her discretion, elect
                    not to award liquidated damages.

               xvii. Arbitration Costs. The prevailing Party, as determined by
                    the arbitrator(s), shall be awarded all reasonable costs and
                    fees of the arbitration contemplated by this Section
                    (including, without limitation, the arbitrator(s)' fees and
                    reasonable attorneys' fees).

               xviii. Opinion. The award of the arbitrator(s) shall be
                    accompanied by a written reasoned opinion.

     9.   Notices: All notices in connection with this Agreement are deemed
          given as of the day they are received either by messenger, delivery
          service, or the United States of America mails, postage prepaid,
          certified or registered, return receipt requested, and addressed as
          follows:

          If to Microsoft:
          Microsoft Corporation
          One Microsoft Way
          Redmond, WA 98052-6399
          Attention: General Counsel
          Fax: (425) 706-7409

          If to Real:
          RealNetworks, Inc.
          2601 Elliott Avenue
          Seattle, WA 98121
          Attention: General Counsel
          Fax: (206) 674-2695

          or to another address as a Party may designate under this notice
          provision. In addition, notices sent by fax (with machine generated
          confirmation of transmission) in accordance with the above are

                                        9

<PAGE>

          effective as of the date they are received so long as the Party
          delivering the notice provides a second notice in accordance with the
          other mechanisms above within five (5) days after the transmission of
          the facsimile. The parties may change the persons to be notified upon
          three (3) business days notice as provided in this Section.

     10.  Miscellaneous

          a.   This Agreement may not be changed, amended, modified, terminated,
               waived or discharged except in writing by the Parties hereto.
               Microsoft must enter into standard, reasonable and
               non-discriminatory and fully paid up programmatic agreements with
               Real as reasonably appropriate to implement the provisions of
               this Agreement, provided that such agreements shall not impair or
               otherwise diminish either of the Parties' express rights or
               obligations hereunder. The applicable provisions of this
               Agreement shall prevail in the event of any conflict with any
               provision of such standard programmatic agreements or any
               standard SDK agreements.

          b.   This Agreement may be executed in counterparts that, taken
               together, will be effective as if they were a single document.

          c.   Neither this Agreement nor a Party's performance under this
               Agreement shall be construed, interpreted, or used in any way as
               an admission of the validity of any claims, causes of action,
               lawsuits, liabilities, defenses, damages, costs, expenses,
               attorneys' fees, amounts, rights, obligations, or any other
               things of any nature whatsoever released pursuant to this
               Agreement, nor as implying or establishing the validity thereof.

          d.   This Agreement is governed by the laws of the State of
               Washington, excluding choice of law principles.

          e.   Any failure by any Party to this Agreement to insist upon the
               strict performance by another Party of any of the provisions of
               this Agreement shall not be deemed a waiver of any of the
               provisions, and such Party, notwithstanding such failure, shall
               have the right thereafter to insist upon the specific performance
               of any and all of the provisions of this Agreement. There shall
               be no estoppel against the enforcement of any provision of this
               Agreement, except by written instruments executed by the Party
               charged with the waiver of estoppel.

          f.   Each individual signing this Agreement warrants and represents
               that he has the full authority and is duly authorized and
               empowered to execute this Agreement on behalf of the Party for
               which he signs.

          g.   Section 8(b)(xii) of this Agreement sets forth the dollar amount
               that the prevailing Party in any arbitration shall be awarded per
               day as liquidated damages. Such amount is referred to in this
               Agreement as the "Liquidated Damages Amount". The Parties agree
               that the Liquidated Damages Amount is competitively sensitive
               information whose public disclosure would be harmful. The Parties
               agree to keep confidential the Liquidated Damages Amount. The
               Parties agree that Real will make a request for confidential
               treatment of the Liquidated Damages Amount in connection with any
               filing of this Agreement as an exhibit to any registration
               statement or periodic report filed with the Securities and
               Exchange Commission. The request for confidential treatment shall
               be made in a manner consistent with the SEC's Staff Legal
               Bulletin No. 1 "Confidential Treatment Requests" dated February
               28, 1997 supplemented by an addendum dated July

                                       10

<PAGE>

               11, 2001. The request will seek a confidentiality term until
               October 11, 2015. Any confidentiality request shall be submitted
               to and approved by Microsoft in advance of filing.
               Notwithstanding the foregoing, nothing in this provision shall
               prohibit disclosure of the Liquidated Damages Amount to the
               Parties' attorneys and accountants or prohibit such disclosure as
               may be required by law or regulatory inquiry, judicial process,
               or order.

          h.   Except as expressly stated in this subsection (h), this Agreement
               shall not confer any rights or remedies on any person or entity
               other than the Parties and their Affiliates. This Agreement shall
               be binding upon Microsoft and Real and their Affiliates and their
               respective successors. This Agreement shall benefit Microsoft and
               Real and their respective Affiliates and any person or entity to
               whom assignment or transfer is expressly permitted under this
               subsection (h). Except in connection with a Change of Control,
               neither Party may assign or transfer this Agreement in whole or
               in part except as provided in this subsection (h). Real or its
               assignees may not directly or indirectly assign or transfer this
               Agreement, or any rights or obligations hereunder, to Google or
               Apple, or any Affiliate of Google or Apple ("Affiliate" status
               for this purpose only being determined using a percentage of
               interest threshold of 30% or greater), whether by operation of
               contract, law or otherwise, except with the express written
               consent of Microsoft (which consent may be withheld in
               Microsoft's sole and arbitrary discretion). Any attempted
               assignment by either Party in violation of this subsection (h)
               will be void. In the event of an assignment or transfer relating
               to a line of business, either Party may assign or transfer only
               those sections of this Agreement as are directly related to the
               line of business; provided, however, that the assigning Party
               shall provide written notice of the Assignment to the other Party
               specifying those sections of the Agreement to be assigned or
               transferred. In no event shall the provisions of any subsection
               of Exhibit D to Section 5 be jointly held by a Party and its
               assignee(s). Any dispute about the scope of the assignment or
               transfer shall be resolved pursuant to Section 8. Notwithstanding
               the foregoing, in the event that Real assigns any commitment
               regarding licenses granted pursuant to Section 5, Microsoft shall
               have the right to consent to such assignment or transfer (which
               consent shall not be unreasonably withheld). In the event that
               Microsoft does not consent to such transfer, then the commitments
               regarding licenses may still be assigned or transferred, but
               following such assignment or transfer the licenses shall be
               subject to payment of royalties. In the event that Real assigns
               the right granted pursuant to Section 5 to require Microsoft to
               proxy or redirect consumers using Windows to servers hosted by
               RealNetworks, such assignment shall require Microsoft's consent
               which consent shall not be unreasonably withheld. To the extent
               the assignee of any right transferred by Real seeks to
               subsequently assign that same right to another person or entity,
               Microsoft shall have the right to consent to such assignment or
               transfer (which consent shall not be unreasonably withheld).

          i.   Except for the obligations to make payments under this Agreement,
               each Party shall be relieved of the obligations to the extent
               that performance is delayed or prevented by any cause beyond its
               reasonable control, including without limitation, acts of God,
               public enemies, war, terrorism, civil disorder, fire, flood,
               explosion, failure of communication facilities, labor disputes or
               strikes or any acts or orders of any governmental authority.

          j.   The section headings used in this Agreement are intended for
               reference purposes only and shall not affect the interpretation
               of the Agreement.

                                       11

<PAGE>

          k.   If any provision of this Agreement shall be held by a court of
               competent jurisdiction to be illegal, invalid or unenforceable,
               the remaining provisions shall remain in full force and effect.
               This Agreement has been negotiated by the Parties and their
               respective counsel and shall be interpreted fairly in accordance
               with its terms and without any strict construction in favor of or
               against either Party.

          l.   This Agreement shall amend and restate the Previous Agreement
               (including the Amendment) in its entirety as of the Signing Date.

               IN WITNESS WHEREOF, the Parties have executed this Agreement as
          of the Signing Date.

MICROSOFT CORPORATION                   REALNETWORKS, INC.

By /s/ Bradford L. Smith                By /s/ Robert Kimball
   ----------------------------------      -------------------------------------
Bradford L. Smith                       Robert Kimball
Name (print)                            Name (print)
                                        Sr. Vice President, Legal and Business
                                        Affairs, General Counsel and Corporate
General Counsel                         Secretary
Title                                   Title

March 10, 2006                          March 10, 2006
Date                                    Date

                                       12

<PAGE>

                                    EXHIBIT A

                       IN THE UNITED STATES DISTRICT COURT

                          FOR THE DISTRICT OF MARYLAND

IN RE MICROSOFT CORP.
ANTITRUST LITIGATION                     MDL Docket No. 1332

This Document Relates To:

RealNetworks, Inc. v. Microsoft Corp.,   Hon. J. Frederick Motz
Civil Action No. JFM-04-968

          STIPULATION FOR DISMISSAL WITH PREJUDICE AND [PROPOSED] ORDER

Plaintiff RealNetworks, Inc. and Defendant Microsoft Corporation, through their
respective counsel of record, hereby stipulate to the voluntary dismissal, with
prejudice, of all claims in the above-captioned matter, pursuant to Federal Rule
of Civil Procedure 41(a)(1)(ii). Each party to bear its own costs and attorneys'
fees.

IT IS SO ORDERED.

Dated:
       ---------------

                                       -----------------------------------------
                                       The Honorable J. Frederick Motz
                                       United States District Judge

<PAGE>

                                         ---------------------------------------
DATED: October _____ , 2005              MARK S. OUWELEEN
                                         SEAN W. GALLAGHER
                                         REEGHAN W. RAFFALS
                                         JOHN BYARS
                                         BARTLIT BECK HERMAN PALENCHAR & SCOTT
                                         LLP
                                         54 W. Hubbard Street
                                         Suite 300
                                         Chicago, Illinois 60610
                                         Telephone: 312-494-4400
                                         Facsimile: 312-494-4440

RALPH H. PALUMBO                         DONALD E. SCOTT
LYNN M. ENGEL                            ERIC R. OLSON
THE SUMMIT LAW GROUP                     BARTLIT BECK HERMAN PALENCHAR & SCOTT
315 Fifth Avenue South                   LLP
Suite 1000                               1899 Wynkoop Street
Seattle, Washington 98104                8th Floor
Telephone: 206-676-7000                  Denver, Colorado 80202
Facsimile: 206-676-7001                  Telephone: 303-592-3100
                                         Facsimile: 303-592-3140

Of counsel:
ROBERT KIMBALL                           JAMES P. ULWICK (Bar No. 05530)
Senior Vice President & General Counsel  KRAMON & GRAHAM, P.A.
DAVID STEWART                            One South Street, Suite 2600
Vice President & Deputy General Counsel  Baltimore, Maryland 21202-3201
RealNetworks, Inc.                       Telephone: 410-752-6030
2601 Elliott Avenue                      Facsimile: 410-539-1269
Seattle, Washington 98121
Telephone: 206-674-2700
Facsimile: 206-674-2695

                                         Attorneys for Plaintiff,
                                         REALNETWORKS, INC.

<PAGE>

                                         ---------------------------------------
                                         Ronald L. Olson
DATED:  October _____ , 2005             Gregory P. Stone
                                         Bradley S. Phillips
                                         Ted Dane
                                         Hojoon Hwang
                                         Munger Tolles & Olson LLP
                                         355 South Grand Avenue, 35th Floor
                                         Los Angeles, CA 90071-9100

David B. Tulchin                         Robert A. Rosenfeld
Steven Holley                            Heller Ehrman White & McAuliffe LLP
Richard C. Pepperman, II                 333 Bush Street
Sullivan & Cromwell                      San Francisco, CA 94104
125 Broad Street
New York, NY 10004-2498

                                         Attorneys for Defendant,
Thomas W. Burt                           MICROSOFT CORPORATION
Richard J. Wallis
Microsoft Corporation
One Microsoft Way
Redmond, WA 98052

<PAGE>

                                    EXHIBIT B

                          [ON REAL NETWORKS LETTERHEAD]

Dear Sir/Madam:

On October 11, 2005, RealNetworks, Inc. and Microsoft Corporation entered into a
Settlement Agreement. We are providing you with this letter to inform you that
this Settlement Agreement resolves all three of the following legal matters:

     (1)  In the U.S.: the action captioned RealNetworks, Inc. v. Microsoft
          Corp., Civil Action No. JFM-04-968, MDL Docket No. 1332, in the United
          States District Court for the District of Maryland, originally filed
          as Case No. C03-5717 (JW) (EAI), in the United States District Court
          for the Northern District of California ("the U.S. Action");

     (2)  In the EU: Case COMP/C-3/37.792 that culminated in a decision of the
          European Commission on March 24, 2004 ("the EU Decision"), Microsoft's
          appeal from the EU Decision in the action captioned Microsoft v.
          Commission of the European Communities, Case T-201/04, the appeal in
          the action captioned Microsoft v. Commission of the European
          Communities, Case T-313/05 and the complaint filed by third party CCIA
          with the European Commission on February 11, 2003, including any other
          filings concerning the appeal, implementation, or enforcement of the
          EU Decision.

     (3)  In Korea: The proceedings identified as Case No. 2005 Kyungchok 0375,
          Case Concerning Abuse of Market Dominant Position by Microsoft
          Corporation and Microsoft Korea, Inc.

This letter constitutes RealNetworks' formal notice that, pursuant to the
Settlement Agreement, RealNetworks is (1) dismissing the U.S. Action with
prejudice, (2) withdrawing from the Actions in Europe, and (3) withdrawing from
the Action in Korea.

In the event you have any questions, please contact Robert Kimball,
RealNetworks' Senior Vice President and General Counsel, at bkimball@real.com or
206.892.6121 or David Stewart, RealNetworks' Vice President and Deputy General
Counsel, at dstewart@real.com or 206.892.6122.

Thank you for your cooperation.

Sincerely,

-----------------------------------------
Robert Kimball
Senior Vice President and General Counsel
RealNetworks, Inc.

<PAGE>

                                    EXHIBIT C

                          [ON REAL NETWORKS LETTERHEAD]

October 10, 2005

Microsoft Corporation
One Microsoft Way
Redmond, WA 98052-6399

Attention: Brad Smith, Senior Vice President, LCA

Re: Wire instructions for payment pursuant to Section 4 of
    Settlement Agreement

Dear Brad:

I am providing you with the following wire transfer information pursuant to
Section 4 of the Settlement Agreement between RealNetworks, Inc. and Microsoft
Corporation. Real requests Microsoft split the $460 million payment pursuant to
Section 4 evenly and wire one-half to the following two accounts:

     The Bank of New York
     ABA: 021000018
     Account: 8900118377
     BNF (Beneficiary): STIT Liquid Assets Portfolio
     OBI (Other Beneficiary Information): FFC A/C 262212
     RealNetworks Digital Music of California, Inc.

     PNC Bank, Philadelphia, PA
     ABA: 0310 000 53
     Account: 85-2999-2181
     BNF: Mutual Funds Service

     OBI: Temp Fund FFC A/C 27941 RealNetworks Digital
     Music of California, Inc.

Microsoft has provided advance notice of the wire transfer, in accordance with
Section 4 of the agreement, which will take place on Tuesday, October 18, 2005.

In the event you have any questions, please contact Eric Russell, Vice
President, Finance of RealNetworks. Eric's email address is erussell@real.com
and his office telephone number is 206.892.6822.

Thank you for your cooperation.

Sincerely,

-----------------------------------------
Robert Kimball
Senior Vice President and General Counsel
RealNetworks, Inc.

<PAGE>

                                    EXHIBIT D

                       TO THE SETTLEMENT AGREEMENT BETWEEN
                  MICROSOFT CORPORATION AND REALNETWORKS, INC.

                         WINDOWS TECHNOLOGY COMMITMENTS

1.   DEFINITIONS

For the purposes of this Exhibit only, the parties agree that the following
terms shall have the meaning set forth below. All other terms shall have the
same meaning as in the Agreement of which this is an Exhibit.

     1.1  "Commercially Practicable" means that after Microsoft enters into any
          such non-exclusive agreement for the distribution, promotion, use or
          support of any media experience software in Windows or related media
          formats that it remains financially and technically feasible and
          viable for such contracting OEM, ISV, IHV or content provider to enter
          into an agreement with a third party to provide at least equal
          distribution, promotion, use or support for software that competes
          with such media experience software in Windows or related media
          formats.

     1.2  A "Bona Fide Joint Venture" means any joint development, joint
          services or other similar commercial relationship entered into between
          Microsoft and one or more parties pursuant to which a legally
          recognizable new entity is formed in which Microsoft holds a
          thirty-three percent (33%) or greater ownership and/or economic
          interest, and which prohibits Microsoft and the other joint venture
          partners from competing with the object of the joint venture for a
          reasonable amount of time.

     1.3  A "Bona Fide Joint Development or Joint Services Arrangement" means
          any commercial agreement with any OEM, ISV, IHV, or content provider
          for a brand new product, technology or service, or any material
          value-add to an existing product, technology or service, in which both
          Microsoft and the OEM, ISV, IHV, or content provider each contribute
          significant developer and financial resources, and in which Microsoft
          has roughly an equivalent financial interest in the investment in and
          return from the agreement as the OEM, ISV, IHV, or content provider,
          and that prohibits Microsoft and the other party from competing with
          the object of the agreement for a reasonable amount of time.
          Agreements that are in the nature of ordinary course of business
          agreements for Microsoft shall not be considered "Bona Fide Joint
          Development or Joint Services Arrangement."

     1.4  "OCX" means the OLE Control Extension for the Windows Media Player, an
          independent platform module for the Windows Media Player that can be
          accessed by other software in a Windows operating system environment.

     1.5  "Windows Server Technology" means Windows Server 2003 and Windows
          Vista Server.

<PAGE>

     1.6  "Windows Server 2003" means the Windows Server 2003 Standard Edition,
          Windows Server 2003 Enterprise Edition, Windows Server 2003 Data
          Edition, versions of Microsoft's server operating systems, including
          Service Packs and other updates or modifications to those products.

     1.7  "Windows Vista Server" means the next major version of the Windows
          server operating system to be released, which, when released, will
          supersede the Windows Server 2003 Technologies and Service update
          updates thereto as the Microsoft flagship server operating system,
          including successors, upgrades, bug fixes, service packs released
          during the term of this Agreement.

     1.8  "Windows Vista" means the next major version of the Windows operating
          system (including any Media Center Edition versions) to be released,
          which, when released, will supersede Windows XP and Service Pack
          updates thereto as the Microsoft flagship PC client operating system,
          including upgrades, bug fixes, service packs released during the term
          of this Agreement.

     1.9  "Windows XP" means the Windows XP Home, Windows XP Professional, and
          Windows XP Version of Media Center Edition versions of Windows
          including Service Packs and other updates or modifications to those
          products. Windows XP does not include Windows Vista or its successors.

     1.10 "Windows" means, unless otherwise specified, Windows XP and Windows
          Vista, as defined in this Exhibit, and successor versions of the same.

2.   METADATA HANDLERS

     2.1  No later than June 1, 2006, Microsoft shall provide Real with the
          appropriate technical information for Real to develop Metadata
          Handlers to be used to display metadata in the Windows shell in
          Windows XP, Windows Vista, and successors. As used in this Exhibit,
          "Metadata Handlers" means those metadata handlers that enable metadata
          stored within the file types that Real supports and that are not
          currently supported natively in Windows XP and Windows Vista and
          successor versions (i.e., where Windows Vista does not include a
          metadata handler for the relevant file type).

     2.2  Microsoft shall establish a program to distribute such Metadata
          Handlers with Windows XP, Windows Vista, and successors subject to
          reasonable and nondiscriminatory technical criteria and licensing
          requirements. The technical criteria shall be reasonably comparable to
          the types of criteria that Microsoft requires printer drivers to
          satisfy in order to be distributed with Windows XP. The licensing
          requirements shall be substantially similar to those in Microsoft's
          current, standard printer driver license except that Microsoft will
          provide to Real a license to use and distribute without restriction
          the "Microsoft Modifications" (as defined in such printer driver
          license).

     2.3  So long as Metadata Handlers developed by Real satisfy the technical
          criteria and licensing requirements and are delivered by Real in a
          timely fashion, Microsoft shall commence distribution of the Metadata
          Handlers for both Windows Vista and Windows XP on Windows Update no
          later than three (3) months after the release to manufacturing ("RTM")
          of Windows Vista. In addition, Microsoft shall use commercially
          reasonable efforts to commence distribution of such Metadata Handlers

<PAGE>

          on Windows Update on or around the same date as the commercial release
          of Windows Vista. In the event that Microsoft has not established a
          programmatic offering in time to provide Real the necessary technical
          criteria and requirements, it shall nonetheless provide Real
          sufficient information to enable Real to distribute Metadata Handlers
          to Microsoft in time for Microsoft to distribute the Metadata Handlers
          in the time frames described in this Section 2.3.

     2.4  Microsoft shall distribute updates to the Real-supplied Metadata
          Handlers in a reasonably comparable time and manner as Microsoft
          distributes updates to printer drivers, such as including such
          Metadata Handlers with Windows "in the box" and via Windows Update.

     2.5  To the extent that installations of Windows Server Technologies are
          configured to enable the Windows client shell functionality, to enable
          local machine control of changes to machine state, and to enable the
          automatic update and/or installation of software, such installations
          will provide the same behavior relative to Real Metadata Handlers and
          corresponding functionality as described in this Section 2, subject to
          Section 10.

3.   DISCOVERABILITY OF REAL CLIENT APPLICATIONS (FILE EXTENSIONS, MIME-TYPES,
     PROTOCOLS)

Microsoft will improve access to Real media files via the Windows Vista (and
successor versions) shell and Internet Explorer by including functionality in
Windows Vista (and successor versions) that provides the following general
behavior:

     3.1  When an end user actuates (such as by double-clicking, selecting and
          hitting "enter," right-click "open,") on a proprietary Real media file
          (as identified by filename extensions or MIME type or protocol, each
          as identified by Real to Microsoft), and there is nothing on the
          machine that is registered as having the capability to render the
          content, the end user will be redirected through a reasonable user
          experience designed to be simple and intuitive, directly to a mutually
          acceptable Real web page (without rendering any intermediate Microsoft
          web pages) that allows end users to download Real software to render
          the file. Microsoft and Real both acknowledge that the goal is a clear
          and seamless experience that provides the end user with the
          opportunity to obtain software to play the selected file in a
          streamlined manner, taking into account: (i) that each additional step
          in the download process decreases download rates, contrary to the goal
          of a seamless experience requiring as few clicks as possible, and (ii)
          the need for end user notice and consent as part of the process.
          Microsoft shall in good faith take into account the foregoing factors
          in designing the user experience. Microsoft agrees to review with Real
          the design of the experience during the design phase.

     3.2  If any third party demands that Microsoft redirect users attempting to
          play a proprietary Real media file to such third party's web site or
          to a site that lists all third parties that have a right to playback
          proprietary Real media formats, Microsoft will so inform Real or
          direct such third party to Real. At its option, Real may choose to
          host a webpage offering a list of certain third party applications for
          which it has licensed Real media playback rights. Real will defend and
          indemnify Microsoft against any claims brought by third parties based
          on the fact that users seeking to play proprietary Real media files
          are being redirected to Real.

<PAGE>

4.   FILE TYPE EXTENSIONS

     4.1  Microsoft will not automatically change files registered on a user's
          system that are associated with a Real application, except in
          connection with a clean and complete installation of Windows or a
          clean and complete re-installation of Windows where, in either case,
          the Windows installation process sets file type registrations.
          Microsoft will not query or prompt end users to change default
          settings for media file types that Windows Media Player can playback
          or manipulate and that it registers to handle unless and until Windows
          Media Player is launched by direct end user action, such as by
          double-clicking the Windows Media Player icon, from the start menu,
          from the quick launch bar, or from a user-initiated install. Silent
          installs of the Windows Media Player, such as what occurs during the
          installation of a Windows service pack, a complete Windows upgrade
          installation or an automatic installation from Windows Update, do not
          constitute "direct end user action" as contemplated in the previous
          sentence. Windows Media Player (starting in Windows Media Player 11)
          will require affirmative end user action to cause the Windows Media
          Player to change file type default settings. By way of example, a user
          experience wherein the Windows Media Player changes file type default
          settings merely by the end user hitting "enter" through one or more
          dialog screens without taking any other actions is not "affirmative
          end user action."

     4.2  In addition, beginning with Windows Vista (and including successor
          versions), if Windows has a control whose primary purpose is to set
          user file type defaults, it will identify the current default
          application and will offer consumers a clear and helpful dialog screen
          presenting a choice of applications that can register as the default
          player for media file types without presenting Microsoft's software in
          a qualitatively different manner than third party software, and will
          require an end user to affirmatively choose to change file type
          default settings.

     4.3  The operating system or Microsoft applications will never attempt to
          claim Real proprietary media file types unless Real has specifically
          licensed Microsoft technology or intellectually property rights to
          play back such file types. The parties acknowledge that, as of the
          Effective Date, Real has not granted such license to Microsoft.

     4.4  In Windows XP SP2 (and any future versions of Windows XP), Windows
          Vista, and successors, the Windows Autoplay feature is the mechanism
          for end users to choose which software handles device insertion and to
          select one software program as the future default handler for such
          actions. In such versions of Windows, Autoplay defaults will not be
          programmatically controllable by Windows (other than by the Autoplay
          feature itself) or any application, and may only be changed by direct
          end user action and choice. In such versions of Windows, the Autoplay
          feature will have a mechanism that allows new software that registers
          to handle device insertion to trigger the Autoplay dialog box to be
          presented again the next time a device is inserted, even if a default
          has previously been established by the user.

5.   ACTIVEX CONTROL WARNINGS IN IE

Microsoft will include functionality in the Internet Explorer browsing
experience in Windows XP, Windows Vista and successors that provides the
following general behavior for running Active X controls embedded on a web page:

<PAGE>

     5.1  Microsoft will have a program involving reasonable and
          nondiscriminatory terms that allows specific ActiveX controls code on
          an end user's machine to be placed on a "safe" list, such that no
          security warnings will be presented to the user when the ActiveX
          control is running on an Internet web page; and

     5.2  The program will provide, again on reasonable and nondiscriminatory
          terms, a mechanism to remove ActiveX controls from such "safe" list in
          the event of bona fide security issues.

     5.3  For Windows Vista and successors, such functionality will be included
          in the version of Internet Explorer included in the RTM of Windows
          Vista. For Windows XP, such functionality shall be available with the
          next release of Internet Explorer released after the RTM of Windows
          Vista, to be released no later than three (3) months after the RTM of
          Windows Vista.

To the extent that installations of Windows Server Technologies are configured
to enable the Windows client shell functionality and local machine control of
changes to machine state, such installations will provide the same behavior as
described in this Section 5 relative to the same versions of Internet Explorer,
subject to Section 10 and to the installation of the Windows Server Technology
being configured to enable the Windows client shell functionality.

6.   ACTIVEX CLASS ID HANDLER

     6.1  Microsoft will include functionality within Internet Explorer
          (starting with the versions described in Section 5 above) that
          provides the behavior described below when an end user renders a web
          page that attempts to invoke a Real ActiveX control that is on the
          "safe" list described in Section 5 but the control is not installed on
          the end user's machine. Internet Explorer will enable:

          (A)  in the case of no 'codebase' attribute on the <object> tag, a
               redirect in a similar manner as that described in Section 3.1
               above, through a reasonable user experience designed to be simple
               and intuitive, directly to a Real web site (without rendering any
               intermediate Microsoft web pages) where Real can provide an
               opportunity for the end user to download the appropriate Real
               software; or

          (B)  in the case where a 'codebase' attribute is present on the
               <object> tag and where the ActiveX control satisfies additional
               reasonable and nondiscriminatory provisions regarding the
               security of the ActiveX control and the site from which the
               ActiveX control is to be downloaded, through a reasonable user
               experience designed to be simple and intuitive, an experience
               that enables downloading the cab identified by the codebase
               attribute and install the software, without warnings,
               confirmations or user interface after the installation (other
               than warnings, confirmations or user interface that otherwise
               would occur after the installation of Microsoft software in other
               circumstances). The parties agree that the goal is to achieve an
               experience for providing access to Real's ActiveX controls that
               are on the "safe list" in a manner similar to that enabled in
               Windows XP SP1, as opposed to the manner in Windows XP SP2.

<PAGE>

     6.2  Microsoft and Real both acknowledge that the goal for the experiences
          described in Sections 6.1(a) and 6.1(b) is a clear and seamless
          experience that provides the user with the opportunity to obtain
          software to play the selected file in a streamlined manner, taking
          into account: (i) that each additional step in the download process
          decreases download rates, contrary to the goal of a seamless
          experience requiring as few clicks as possible, and (ii) the need for
          end user notice and consent as part of the process. Microsoft agrees
          to review with Real the design of the experience during the design
          phase.

     6.3  To the extent that installations of Windows Server Technologies are
          configured to enable the Windows client shell functionality and local
          machine control of changes to machine state, such installations will
          provide the same behavior as described in this Section 6 relative to
          the same versions of Internet Explorer, subject to Section 10.

7.   OTHER TECHNICAL ACCESS

     7.1  Within six (6) months after the RTM date of Windows Vista, Microsoft
          will provide an ASX parser that works on Windows XP and successor
          versions that (i) allows ISVs to create applications that can execute
          the parsed ASX files without using the Windows Media Player or the
          OCX, and (ii) that parses ASX files in a manner such that relevant
          meaningful instructions are returned to the ISV application, to enable
          the application to reproduce a presentation that is functionally
          equivalent in all material respects to the one that is produced by the
          Windows Media Player after parsing of ASX files. In addition,
          Microsoft shall supply technical information relating to the grammar
          of the parsed ASX files so as to enable Real and other ISVs to
          implement functionality described by the grammar in a manner
          equivalent to the Windows Media Player's implementation of such
          functionality.

     7.2  Microsoft shall work in good faith over time to expose more media
          functionality and control features in the Windows Media Player
          (including versions of the Windows Media Player included with Windows
          Server Technologies) via APIs through the OCX in future versions of
          the OCX. Microsoft shall expose such important features on more
          expedited timeframes than past exposures of APIs, with a goal of
          enabling ISVs to build richer media playback experiences utilizing
          Windows Media technologies made available through the OCX without
          requiring the use of the Windows Media Player user experience. In
          working to expose additional features, Microsoft shall consider in
          good faith input and requests from Real to make available particular
          features, including access to hardware controls used by the Windows
          Media Player. Real acknowledges that Microsoft's ability to make
          additional features available depends in part upon (i) the long term
          stability of the feature and enabling technology, due to developer
          community reliance upon the API once it is exposed; (ii) third party
          intellectual property rights to the extent that the feature or
          enabling technology within the Windows media experience is subject to
          third party intellectual property rights; and (iii) compliance rules
          and robustness rules for protected content or enabling technology for
          protected content.

     7.3  During the planning phase for new releases and updates of Windows, the
          parties shall meet to enable Microsoft's technical representatives to
          take input and requests from Real to make particular features
          available. As builds of the new releases and updates of Windows are
          made available to Real, Microsoft shall accept additional feedback

<PAGE>

          from Real. Periodically, the executive and sponsor meetings between
          the parties shall evaluate the progress in these matters.

8.   GENERAL SHELL EXTENSIONS

Microsoft agrees that any functionality in the Windows shell (in Windows XP,
Windows Vista, and successor versions) that launches the top level window that
is the Windows Media Player will be available for Real to register as the
default handler. The Windows features that provide views of files on the user's
PC (e.g., Explorer in the current version of Windows XP, including the default
directory views, My Music, My Videos, My Photos views, and My Games, and virtual
folders Windows Vista) will respect media file extension and mime type defaults
registered by third party applications, including Real's applications, in a
manner comparable to the way these defaults are handled in Windows XP, which
allows third party applications to register to handle user initiated shell
actions on such files.

9.   MEDIA CENTER EDITION

Beginning with Windows Vista, the software that provides the "Media Center"
experience (i.e., the successor to the software for the "10 foot experience" in
Windows XP Media Center Edition) will enable an end user to select a service
from the "Online Spotlight" feature (such as Rhapsody) and have that service be
promoted on the main menu for the "Media Center" experience. In addition,
Microsoft will explore in good faith enabling within the software that provides
the "Media Center" experience a feature that allows an end user to add a
persistent service from the "Online Spotlight" to that end user's main menu of
the "Media Center" experience software.

10.  WINDOWS SERVER TECHNOLOGIES

Notwithstanding anything to the contrary herein, (i) Microsoft may include in
Windows Server Technologies mechanisms that enable an end user or administrator
to disable certain features in order to lock down the security of the
installation and (ii) the provision or use of such mechanisms on Windows Server
Technologies is not a breach of any provision of this Exhibit.

11.  LICENSING OF WMA/WMV/WMDRM

Microsoft will license to Real WMA and WMV current codecs on Microsoft's current
standard terms available at
http://www.microsoft.com/windows/windowsmedia/licensing/licensing.aspx and
Microsoft's streaming media protocols under the Microsoft Communications
Protocol Program described at
http://members.microsoft.com/consent/Info/default.aspx. Microsoft confirms that
such licenses do not include any restrictions on transcoding into and out of
other compression formats. Such license for the protocols shall include the
right to use the protocols to deliver content using Windows Media Audio ("WMA")
or Windows Media Video ("WMV") formats or codecs, or using Windows Media Digital
Rights Management ("WMDRM") content to any client with the licensed ability to
decode it. Microsoft will allow Real to license WMDRM for Devices Agreement on
Microsoft's standard terms.

12.  ENABLING TRANSCRYPTION FROM WMDRM INTO HELIX

Microsoft will include functionality and rights (i) for third parties protecting
content in WMDRM to specify that their content can be transcrypted from WMDRM
into Helix DRM in accordance with a WMDRM-Helix DRM rights mapping document
referenced in the Compliance Rules for WMDRM, and (ii) for Real and third
parties building software applications to obtain certificates (e.g.,

<PAGE>

authentication certificates, keys, etc.) and transcrypt such content. Microsoft
and Real will cooperate to develop and agree upon a WMDRM-Helix DRM rights
mapping document that describes how content usage rights originally expressed in
a WMDRM license should be expressed in the rights expression language used by
Helix DRM in a functionally equivalent manner. Such functionality will be
included in the RTM of Windows Vista and successors, and in the version of the
Windows Media Format SDK that will ship with the beta version of Windows Media
Player 11.0 for Windows XP. In any event, Microsoft will provide Real with
earlier access to relevant information and materials prior to the releases
specified in the previous sentence. To the extent that the enabling Microsoft
technology described in this Section 12 runs on Windows Server Technology,
Microsoft agrees that the provisions of this Section 12 apply to such enabling
Microsoft technology and associated licenses.

13.  TRANSCRYPTION INTO WMDRM ON DEVICES

     13.1 No later than the earlier of July 1, 2007 or the date Microsoft makes
          available such a license to third parties, Microsoft shall offer Real
          a license on fair and reasonable terms similar to its existing Windows
          Media DRM licenses that enables Real to:

          (A)  on a non-Windows device, encrypt into Windows Media DRM content
               that has been compressed in a format supported by WMDRM where the
               content was previously protected by Real's Helix DRM and then
               generate a WMDRM for Portable Devices license that authorizes the
               content to be rendered on a WMDRM for Portable Devices-compliant
               device;

          (B)  on a non-Windows personal computer, encrypt into Windows Media
               DRM content that has been compressed in a format supported by
               WMDRM where the content was previously protected by Real's Helix
               DRM and then generate a WMDRM for Portable Devices license that
               authorizes the content to be rendered on a WMDRM for Portable
               Devices-compliant device; and

          (C)  on a non-Windows personal computer or device, encrypt into
               Windows Media DRM content that has been compressed in a format
               supported by WMDRM, where that content was previously protected
               by Real's Helix DRM to allow the content to be streamed for
               playback to a WMDRM for Network Devices-compliant device (e.g., a
               Windows Media Connect Device).

     13.2 In connection with such license, Microsoft shall supply Real with a
          source code porting kit with an implementation enabling the scenarios
          above and the appropriate WMDRM keys and certificates no later than
          the earlier of July 1, 2007 or the date Microsoft makes available such
          materials to third parties. During the development phase for the
          technology, Microsoft shall provide Real with information (including
          technical briefings) and materials such as early technology adopter
          builds and participation in beta programs. Real's Technical Account
          Manager (as defined in Section 17) shall help facilitate such interim
          cooperation.

     13.3 For clarity:

          (A)  Real may exercise such rights with respect to content protected
               by Real's Helix DRM even if compressed using codecs other than a
               compression format supported by WMDRM, provided that Real
               transcodes the content

<PAGE>

               into a compression format supported by WMDRM prior to encrypting
               into WMDRM.

          (B)  Real is required to license separately the rights controlled by
               third parties or standards groups needed to transcode and
               transcrypt the source content out of the codec and content
               protection formats in which the content is originally stored.

          (C)  The license granted by Microsoft will not cover any Microsoft
               intellectual property rights that apply to the compression format
               or content protection system in which the content is originally
               stored. Such rights may be otherwise granted by Microsoft, for
               example, under the Covered Licenses.

14.  ACCESS TO PROTECTED MEDIA PATH IN WINDOWS VISTA

In Windows Vista, Microsoft is including a new secure media processing pipeline
("PMP"). In order to function within the secure environment created by PMP, all
components must obtain a certificate from Microsoft. Microsoft agrees that,
starting with Windows Vista and in successor versions:

     14.1 Software developed by Real will have the same access to PMP APIs as
          the Windows Media Player has relative to the Windows Media Audio
          codec, Windows Media Video codec, and Windows Media DRM components
          that can operate within PMP (such components hereafter referred to as
          the "MS Format Components"). Such API access will not require use of
          the Windows Media Player or the OCX. Such API access will provide
          software developed by Real with the access to the same range of
          control and functionality provided by the MS Format Components (e.g.,
          play/pause/stop/ff/rw/seek, transfer, transcode) as the Windows Media
          Player has. All PMP APIs used by the Windows Media Player to control
          access and functionality of "MS Format Components" will also be
          equally available for use by Real with "Other Format Components" (as
          defined in Section 14.2).

     14.2 Microsoft will agree to license to Real on reasonable and
          nondiscriminatory terms the certificates (e.g., authentication
          certificates, keys, etc.) necessary for other codecs and DRM
          components (including Real's own codecs and DRM components) to
          function within the secure environment created by PMP (such components
          hereafter referred to as "Other Format Components"). Such reasonable
          and nondiscriminatory terms will require the Other Format Components
          to comply with Microsoft's Robustness Rules and Compliance Rules for
          PMP and may require third party conformance testing. Microsoft will
          not, however, require Real's Other Format Components to comply with
          any provision of the Robustness Rules, Compliance Rules, testing
          requirements, or other security requirements that the MS Format
          Components do not comply with. Subject to the Robustness Rules,
          Compliance Rules, and other security requirements that are equally
          applicable to the MS Format Components, the Other Format Components
          will have access to the same range of functionality provided by PMP as
          the MS Format Components (e.g. process protection, debugger
          protection, secure authenticated channel to audio and video cards,
          signaling analog protections, output control, and image constraints).

To the extent that the enabling Microsoft technology described in this Section
14 runs on Windows Server Technology, Microsoft agrees that the provision of
this Section 14 apply to such enabling Microsoft Technology, subject to Section
10.

<PAGE>

15.  SHOP FOR MUSIC ONLINE

     15.1 Subject to Real's web-based music service satisfying the criteria in
          Section 15.3, Microsoft will include links to a Real web-based music
          service in the list of stores in the "Shop for Music Online" web site.
          The "Shop for Music Online" website and URL shall not be branded with
          a "Windows Media" or "MSN" related trademark but may include a primary
          Microsoft trademark, such as, for example, "Microsoft" or "Windows".
          Microsoft will include a link to a Real web-based music service in the
          "Shop for Music Online" experience in versions of Windows starting
          with versions of the Windows Media Player 9 and other versions of
          Windows Media Player during the Term. A link to a Real web-based music
          service shall be included for versions of Windows XP with Windows
          Media Player 9 installed no later than February 28, 2006 or 30 days
          after satisfaction of the criteria, whichever is later and in versions
          of Windows XP with Windows Media Player 10 installed no later than
          April 1, 2006 or 30 days after satisfaction of the criteria, whichever
          is later. For clarity, the provisions of this Section apply to
          versions (if any) of the "Shop for Music Online" web site accessible
          by the foregoing versions of the Windows Media Player installed on
          Windows Server Technology, subject to Section 10 and subject to the
          installation of the Windows Server Technology being configured to
          enable the Windows client shell functionality.

     15.2 Subject to Rhapsody satisfying the applicable criteria set forth in
          the Online Digital Content Commercial Service Agreement for Windows
          Media Player Version 10 (as negotiated) ("WMP 10 Listing Agreement"),
          Microsoft will include Rhapsody in the list of online music stores in
          Windows Media Player, starting with versions 9 and 10 (including such
          versions of the Windows Media Player running on Windows Server
          Technology, subject to Section 10). Timing for inclusion in Windows
          Media Player is no later than the first on-boarding window after
          Rhapsody satisfies the uniformly applied criteria.

          (A)  For the purpose of Exhibit 2, Section 5(a) of the WMP 10 Listing
               Agreement, the Parties agree that playback of a streaming service
               via an ActiveX control hosted in a HTML page rendered within
               Windows Media Player satisfies the requirement for 'native'
               playback. The parties shall amend Exhibit 2, Section 5 of the
               above agreement to enable Real's service within Windows Media
               Player 10 to display advertisements in a separate "pop up"
               window, provided that the advertisement pop up is generated in
               response to user action on the HTML page rendered within the
               Windows Media Player, and not automatically presented to the
               user.

          (B)  Notwithstanding the requirements of the WMP 10 Listing Agreement,
               the parties agree that Real may limit the features offered in
               version of Real's service listed in the Windows Media Player to
               only the minimum required for inclusion and may provide other
               features through other stand-alone applications (e.g. RealPlayer,
               Rhapsody). In addition, Microsoft agrees that as part of the
               service listed within the Windows Media Player, Real may offer a
               trial or promotional version of its service that does not require
               users to subscribe, provide any information or create a billing
               relationship, such as Rhapsody 25 (for which Real may not provide
               customer support) so long as Real also includes a full version of
               a bona fide commercial service requiring a billing relationship
               in the overall service offering listed within the

<PAGE>

               Windows Media Player. In addition, notwithstanding anything to
               the contrary in the WMP10 Listing Agreement, for a period of four
               (4) months after the execution of this Agreement, Real's service
               made available through the Windows Media Player may launch a
               separate browser window that provides the playback controls for
               the digital media streams. At the end of the four month period,
               if Real's service listed within the Windows Media Player does not
               playback within the Windows Media Player without launching a
               separate browser window, Microsoft shall have the option to
               remove Real from the listing, upon notice to Real, until such
               time as Real is in compliance with the WMP10 Listing Agreement.

     15.3 To be eligible for listing in the "Shop for Music Online" web site, a
          web-based music service must:

          (A)  Offer a web-based experience for end users to purchase a broad
               catalog of music;

          (B)  Operate 24 hours a day, 7 days a week with a guaranteed uptime of
               99% with no single unscheduled outage exceeding 4 hours;

          (C)  Comply with all applicable laws, rules, and regulations;

          (D)  Not automatically install any software on an end user's machine,
               or change any settings on the end user's machine (including
               changing default settings or user settings) without providing
               reasonable notice and obtaining affirmative end user consent to
               the installation or change;

          (E)  Include and comply with its own reasonable privacy policy;

          (F)  Not contain or advertise content that is obscene, defamatory,
               libelous, slanderous, profane, indecent or unlawful unless
               explicitly marked and controllable via parental controls;

          (G)  Be a party to binding online content distribution agreements with
               and content supplied by at least three (3) of the five (5) major
               record labels;

          (H)  Make available at least 200,000 unique music tracks;

          (I)  Make available at least 5,000 music tracks released during the
               prior 24 months; and

          (J)  Comply with other reasonable and uniformly applied security
               criteria established by Microsoft.

          Microsoft shall provide Real with notice and a 30-day opportunity to
          cure before automatically removing Real from the list for
          noncompliance with Section 15.3, except that Microsoft may immediately
          suspend access to the link in the event of a major security issue, in
          which case Microsoft shall immediately notify Real.

16.  PLAYS4SURE LOGO PROGRAM

<PAGE>

No later than June 1, 2006, Microsoft will enhance its "Plays4Sure" logo program
to ensure that Real services will qualify for using the logo in connection with
their content so long as: (i) the Real service whose content will be marked with
the logo supports Windows Media codecs and Windows Media DRM and the content
from the service plays on Plays4Sure devices; (ii) the service develops and
distributes a "license refresh module" and enables cached credentials to ensure
that the WMDRM licenses for the content remain up to date such that the content
can play and flow throughout the Plays4Sure Windows media experiences (including
Plays4Sure devices); and (iii) the service meets other reasonable technical
criteria established by Microsoft in connection with the launch of the program
(as reasonably updated from time to time), provided that such technical criteria
shall not require that the service render through the Windows Media Player or
plug-in to the Windows Media Player (or other competitive media experience). In
addition, Microsoft's "Plays4Sure" logo program for devices will not require
that services supplying content to the device render through the Windows Media
Player or plug-in to the Windows Media Player (or other competitive media
experience). If Microsoft develops a logo program with goals comparable to
"Plays4Sure", the provisions of this Section 16 shall apply to such logo
program.

17.  TECHNICAL SUPPORT FOR REAL'S DEVELOPMENT EFFORTS

Microsoft shall provide engineering support to Real for its software development
and compatibility efforts by making available to Real, at Microsoft's expense, a
Microsoft Technical Account Manager (an engineer skilled in Windows Media
technologies) ("TAM") on a full-time basis. If the TAM is not reasonably
acceptable to Real (based on the TAM's experience with Windows Media
technologies, ability to escalate and address issues, and general fit with
Real's engineering team) at Real's request Microsoft shall offer a substitute
individual to act as the TAM. This dedicated TAM shall have (or be provided, as
necessary) access to source code as needed (including source code for Windows
Media functionality contained in Windows Server Technologies), and shall provide
Real technical guidance on how, where possible, to use existing and exposed
Windows Media functionality to implement features desired by Real. The TAM shall
provide highest priority to responding to Real's requests for technical
guidance. The TAM will be an incremental resource - separate from and in
addition to any engineers made available to Real pursuant to Real's existing
Product Support Services ("PSS") contract, but will have backup support within
the PSS organization as well as direct access to the Windows development team.
The TAM shall work to provide Real with information and facilitate access to
relevant Programmatic Resources (as defined in Section 22), programmatic
offerings, and other opportunities described in Sections 19-25 and other
applicable Sections of this Exhibit relative to technologies in Windows Server
Technology.

18.  FULLY PRE-PAID LICENSES TO WM TECHNOLOGIES

     18.1 The "Covered Licenses" (as defined below) shall be fully paid up as
          part of the consideration for the Releases granted in the Agreement,
          and Real will not be obligated to make any additional payments. The
          parties acknowledge that the payments in Section 4 of the Agreement
          have been already adjusted to reflect the costs of such licenses.
          Notwithstanding anything to the contrary in the Covered Licenses, the
          term of each of the Covered Licenses shall be coterminous with the
          Term of this Agreement or, in the event that it is not coterminous,
          Microsoft shall allow Real to renew the license, or acquire a license
          for future versions of the applicable technology, subject to the terms
          of this Section 18, until at least the end of the Term of this
          Agreement. The Covered Licenses are (i) WMDRM 10 for Devices
          Development and Interim Product Distribution Agreement; (ii) WMDRM 10
          for Devices Final Product Distribution Agreement; (iii) Windows Media
          Format Components Final Product Agreement; (iv) Windows Media Format
          Components

<PAGE>

          Interim Product Agreement; (v) WMDRM Transfer Certificate License for
          Microsoft Windows Media 9.5; (vi) Microsoft Windows Media 10 Rights
          Manager SDK; (vii) the future WMDRM Transcryption licenses described
          in Sections 12 and 13 above; (viii) the Microsoft Windows Media
          Technology Agreement Windows Media Player 10; (ix) Windows Media
          Player Distribution Agreement; (x) any licenses contemplated by
          Sections 2, 5, 7, 14, 16, and 19-25 of this Exhibit; and (xi) any
          successor or replacement versions of the above license agreements
          corresponding to future releases of Windows, Windows Media
          technologies, or components thereof during the Term (e.g., WMDRM 11
          for Devices Development and Interim Product Distribution Agreement).

     18.2 Microsoft represents that the version of the Covered Licenses existing
          as of the Effective Date do not contain any of the following
          provisions or, to the extent that any version does include such a
          provision, such provision shall not be binding upon Real:

          (a) A restriction prohibiting transcoding out of the Windows Media
          audio or video compression formats into other compression formats;

          (b) A requirement that using Windows Media technologies requires the
          licensee to refrain from including competitive technologies in its
          products;

          (c) A requirement that using Windows Media technologies requires the
          licensee to license to Microsoft or other users any of the licensee's
          patent rights on a royalty-free basis; or

          (d) A requirement that a licensee under the Covered Licenses must
          include a promotional Microsoft logo or branding on its licensed
          products. For clarity, the foregoing does not apply to reasonable
          intellectual property notices of the type described in the versions of
          the Covered Licenses existing as of the Effective Date, and Microsoft
          may include similar reasonable intellectual property notice
          requirements in the Covered Licenses and future versions of the same.

     18.3 If during the Term of this Agreement, future versions of the Covered
          Licenses (or other licenses covering future versions of the technology
          covered by the Covered Licenses) contain provisions enumerated in
          Section 18.2, then at Real's request, Microsoft shall, at Microsoft's
          option, either (i) modify the future version of the Covered License to
          remove the applicable provision during the Term of this Agreement, or
          (ii) extend the terms of the version of the Covered License current as
          of the Effective Date of this Agreement to the applicable version of
          the technology covered by the Covered License until the expiration of
          this Agreement.

     18.4 Current and future licenses for the technology covered by the Covered
          Licenses may have provisions relating to "Excluded Licenses" (as
          defined below). At Real's request, Microsoft shall modify such
          licenses to clarify that such provisions apply only to the Microsoft
          software or "Developed Technology" (as defined in the Covered
          Licenses) licensed or developed under the applicable license and do
          not apply to other software distributed in connection with such
          software (provided that such distribution does not cause the Excluded
          License to apply to the implementation of such software). "Excluded
          License" is any license that requires, as a condition of use,
          modification and/or distribution of software subject to the Excluded
          License that

<PAGE>

          such software or other software combined and/or distributed with such
          software be (x) disclosed or distributed in source code form; (y)
          licensed for the purpose of making derivative works; or (z)
          redistributable at no charge.

     18.5 At Real's request, Microsoft shall amend the Windows Media Format
          Components Final Product Agreement and Windows Media Format Components
          Interim Product Agreement to provide Real with a perpetual,
          irrevocable (other than for breach) and fully paid-up right and
          license to continue to develop, reproduce, and distribute
          implementations of the Windows Media decoders licensed under such
          agreements after the expiration of their terms, with the understanding
          that any such amendment will not include indemnity coverage for
          distribution of such implementations or other exercise of such license
          rights after the expiration of the original term.

     18.6 For clarity, the provisions of this Section 18 apply to all of the
          Covered Licenses, regardless of whether the licensed Microsoft
          technology runs on Windows XP, Windows Vista or successor versions, or
          Windows Server Technology.

19.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO MICROSOFT WINDOWS APIS

Microsoft shall review relevant programs and work with Real to confirm full
parity access to Microsoft Windows APIs (including interfaces and other
necessary technical information) compared with other ISVs. In addition,
Microsoft shall provide Real with sufficient documentation to the DirectShow A/V
renderers.

20.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO WINDOWS VISTA DISCLOSURES

No later than when Microsoft makes a declared "IDW" build available to any ISV
outside of Microsoft, Microsoft shall make available to Real (via web download,
FTP, physical media delivery, or comparable means of Microsoft's choice) each
such declared IDW build out of the main Windows build lab. Such builds will be
made available on a periodic basis separately from the customary public beta
program for Windows Vista (or successors).

21.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO POST-WINDOWS VISTA DISCLOSURES

For versions of Windows released after the first RTM release of Windows Vista,
subject to Real's execution of then standard license agreements for the
applicable pre-beta and beta disclosure program(s), Real (i) shall be invited to
the first ISV design preview, and (b) shall be provided access to IDW or
comparable builds at a time on MFN terms compared to other ISVs on timing and
programmatic terms and conditions. As used in this Exhibit, "MFN terms compared
to other ISVs" means the programmatic terms generally available to ISVs, with
assurance that no other ISV building software or services similar to Real is
receiving more favorable terms than Real.

22.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO PARTICIPATION IN RELEVANT ISV
     PROGRAMS

Microsoft will make available to Real any related tool kits, software releases,
technical documentation, or training programs ("Programmatic Resources")
generally made available to other ISVs who create applications or services for
streaming or playback of audio and video files, or develop and deliver casual
gaming that is intended to interact with Windows. Microsoft will put in

<PAGE>

place mechanisms so that Real receives access to those resources on MFN terms
compared to such other ISVs.

23.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO VISIBILITY TO RELATED RESOURCES

In the event that Microsoft creates programmatic offerings to ISVs who build
media or gaming applications intended to interact with Windows, Microsoft will
make available to Real access to those programs and associated Programmatic
Resources. Microsoft will put in place mechanisms so that Real receives access
to those resources on MFN terms compared to other ISVs.

24.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO ADDITIONAL PROGRAMMATIC OFFERINGS

In response to inquiries from Real concerning existence of other programmatic
offerings to ISVs in categories that Real reasonably believes would be relevant
to a current or planned business of Real, Microsoft shall determine whether such
programs exist, and shall provide reasonable access to such program and
associated Programmatic Resources. Real participation in those additional
Programmatic Resources will be on MFN terms compared to other ISVs. Microsoft
and Real will regularly discuss the availability of such programs that are
relevant for Real during the senior stakeholder meetings described in this
Agreement. Nothing in this provision will require Microsoft to create new or
additional Programmatic Resources.

25.  CONTRACTUAL ASSURANCE OF EQUAL ACCESS TO WINDOWS PLANNING AND ROADMAP

Microsoft will provide a named contact to assist Real in submitting suggestions
for changes to existing, or additions of new, APIs for Windows XP, Windows
Vista, and successors and to coordinate discussions between Microsoft and Real
product managers and developers concerning the API and feature roadmap for
Windows XP, Windows Vista, and successors. Such discussions will be on at least
MFN terms compared to other ISVs engaged in similar discussions.

26.  OEM CONFIRMATION OF OEM CUSTOMIZATION FLEXIBILITY

     26.1 Microsoft shall make available to Real the OEM Preinstallation Kit
          ("OPK") documentation for Windows that describes OEM customization
          rights in addition to updated documentation (as provided to OEMs)
          sufficient to provide Real with detailed information regarding an
          OEM's customization opportunities for Real's software and services.
          The OPK describes all of the rights of OEMs to customize Windows. In
          the event that the OEM Windows Desktop Operating System License
          Agreement is amended to supplement, conflict with, or override any
          such customization opportunities, Microsoft shall provide appropriate,
          timely clarification to Real. The initial delivery vehicle for the OPK
          documentation to Real shall be a single copy of the English language
          OEM System Builder kit and will include a single copy of the Windows
          XP product media that can be used for testing purposes. In addition,
          Microsoft shall grant Real access to relevant password protected
          portions of OEM.MICROSOFT.COM for up to five (5) contacts. This site
          includes links to updated Windows XP product code and OPK
          documentation.

     26.2 Microsoft shall also provide Real a letter that Real may share with
          OEMs that confirms the OEM's right to configure the
          out-of-box-experience, and that confirms

<PAGE>

          that Real may enter into an agreement with an OEM to set media
          defaults and settings to Real technology or services.

     26.3 Microsoft will disclose to Real in a timely fashion any provisions in
          PC OEM MDF programs that relate to customization options in the areas
          of promoting in first boot Windows Media Player, music or video
          services or playback, or casual gaming.

27.  NO EXCLUSIVE DEALS

During the Term, Microsoft shall not enter into any agreement with an OEM, ISV,
IHV, website, service provider or content provider that grants consideration on
the condition that such OEM, ISV, IHV, website, service provider or content
provider distributes, promotes, uses, or supports, exclusively any media
experience software in Windows or related media formats. Microsoft may enter
into agreements in which such an entity agrees to distribute, promote, use or
support media experience software in Windows or related media formats in a fixed
percentage whenever Microsoft in good faith obtains a representation that it is
Commercially Practicable for the entity to provide equal or greater
distribution, promotion, use or support for software that competes with such
media experience software in Windows or related media formats. The provisions of
this Section 27, however, shall not apply to (a) any Bona Fide Joint Venture, or
(b) any Bona Fide Joint Development or Joint Services Arrangement, where the
Bona Fide Joint Venture, Bona Fide Joint Development or Joint Services
Arrangement prohibits such entity from competing with the object of the Bona
Fide Joint Venture or Bona Fide Joint Development or Joint Services Arrangement
for a reasonable period of time.

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