Document:

EX-10.1

Exhibit 10.1

RealNetworks, Inc.

2005 Stock Incentive Plan

1. PURPOSE OF THE PLAN

Purpose. The purpose of the RealNetworks, Inc 2005 Stock Incentive Plan (the “Plan”) is to
assist RealNetworks, Inc., a Washington corporation (the “Company”), and its subsidiaries in
attracting and retaining selected individuals to serve as employees, directors, consultants and/or
advisors of the Company who are expected to contribute to the Company’s success and to achieve
long-term objectives which will inure to the benefit of all shareholders of the Company through the
additional incentives inherent in the Awards hereunder.

2. DEFINITIONS

2.1. “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock Award,
Performance Award, Other Stock Unit Award or any other right, interest or option relating to Shares
or other property (including cash) granted pursuant to the provisions of the Plan.

2.2. “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted by the Committee hereunder.

2.3. “Board” shall mean the board of directors of the Company.

2.4. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

2.5. “Committee” shall mean the Compensation Committee of the Board, consisting of no fewer
than two Directors, each of whom is (i) a “Non-Employee Director” within the meaning of Rule 16b-3
of the Exchange Act, (ii) an “outside director” within the meaning of Section 162(m) of the Code,
and (iii) an “independent director” for purpose of the rules and regulations of the NASDAQ Stock
Market.

2.6. “Covered Employee” shall mean a “covered employee” within the meaning of Section 162(m)
of the Code.

2.7. “Director” shall mean a non-employee member of the Board.

2.8. “Employee” shall mean any employee of the Company or any Subsidiary and any prospective
employee conditioned upon, and effective not earlier than, such person’s becoming an employee of
the Company or any Subsidiary. Solely for purposes of the Plan, an Employee shall also mean any
consultant or advisor who provides services to the Company or any Subsidiary, so long as such
person (i) renders bona fide services that are not in connection with the offer and sale of the
Company’s securities in a capital-raising transaction and (ii) does not directly or indirectly
promote or maintain a market for the Company’s securities.

2.9. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

2.10. “Fair Market Value” shall mean, with respect to any property other than Shares, the
market value of such property determined by such methods or procedures as shall be established from
time to time by the Committee. The Fair Market Value of Shares as of any date shall be the per
Share closing price of the Shares as reported on the NASDAQ Stock Market on that date (or if there
was no reported price on such date, on the last preceding date on which the price was reported); if
the Company is not then listed on the NASDAQ Stock Market but is listed on the New York Stock
Exchange, the Fair Market Value of the Shares shall be the per Share closing price of the Shares as
reported on the New York Stock Exchange on that date (or if there was no reported price on such
date, on the last preceding date on which the price was reported); or, if the Company is not then
listed on the NASDAQ Stock Market or the New York Stock Exchange, the Fair Market Value of Shares
shall be determined by the Committee in its sole discretion using appropriate criteria.

2.11. “Freestanding Stock Appreciation Right” shall have the meaning set forth in Section 6.1.

2.12. “Limitations” shall have the meaning set forth in Section 10.5.

2.13. “Option” shall mean any right granted to a Participant under the Plan allowing such
Participant to purchase Shares at such price or prices and during such period or periods as the
Committee shall determine.

2.14. “Other Stock Unit Award” shall have the meaning set forth in Section 8.1.

2.15. “Participant” shall mean an Employee or Director who is selected by the Committee to
receive an Award under the Plan.

2.16. “Payee” shall have the meaning set forth in Section 13.1.

2.17. “Performance Award” shall mean any Award of Performance Shares or Performance Units
granted pursuant to Article 9.

2.18. “Performance Period” shall mean that period established by the Committee at the time any
Performance Award is granted or at any time thereafter during which any performance goals specified
by the Committee with respect to such Award are to be measured.

2.19. “Performance Share” shall mean any grant pursuant to Article 9 of a unit valued by
reference to a designated number of Shares, which value may be paid to the Participant by delivery
of such property as the Committee shall determine, including cash, Shares, other property, or any
combination thereof, upon achievement of such performance goals during the Performance Period as
the Committee shall establish at the time of such grant or thereafter.

2.20. “Performance Unit” shall mean any grant pursuant to Section 9 of a unit valued by
reference to a designated amount of property (including cash) other than Shares, which value may be
paid to the Participant by delivery of such property as the Committee shall determine, including
cash, Shares, other property, or any combination thereof, upon achievement of such performance
goals during the Performance Period as the Committee shall establish at the time of such grant or
thereafter.

2.21. “Permitted Assignee” shall have the meaning set forth in Section 12.3.

2.22. “Prior Plans” shall mean, collectively, the Company’s 1996 Stock Option Plan, the
Company’s 2000 Stock Option Plan and the Company’s 2002 Director Stock Option Plan.

2.23. “Restricted Stock” shall mean any Share issued with the restriction that the holder may
not sell, transfer, pledge or assign such Share and with such other restrictions as the Committee,
in its sole discretion, may impose (including any restriction on the right to vote such Share and
the right to receive any dividends), which restrictions may lapse separately or in combination at
such time or times, in installments or otherwise, as the Committee may deem appropriate.

2.24. “Restriction Period” shall have the meaning set forth in Section 7.1.

2.25. “Restricted Stock Award” shall have the meaning set forth in Section 7.1.

2.26. “Shares” shall mean the shares of common stock of the Company, par value $0.001 per
share.

2.27. “Stock Appreciation Right” shall mean the right granted to a Participant pursuant to
Section 6.

2.28. “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the time of the granting of the Award, each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the other corporations in
the chain.

2.29. Substitute Awards” shall mean Awards granted or Shares issued by the Company in
assumption of, or in substitution or exchange for, awards previously granted, or the right or
obligation to make future awards, by a company acquired by the Company or any Subsidiary or with
which the Company or any Subsidiary combines.

2.30. “Tandem Stock Appreciation Right” shall have the meaning set forth in Section 6.1.

3. SHARES SUBJECT TO THE PLAN

3.1 Number of Shares. (a) Subject to adjustment as provided in Section 12.2, a total of
9,500,000 Shares shall be authorized for grant under the Plan, plus up to 9,000,000 Shares
remaining available for grant under the Prior Plans on the effective date of the Plan, for an
aggregate maximum of 18,500,000 Shares authorized for grant under the Plan. Any Shares that are
subject to Awards of Options, Stock Appreciation Rights or Tandem Stock Appreciation Rights shall
be counted against this limit as one (1) Share for every one (1) Share granted. Any Shares that
are subject to Awards other than Options, Stock Appreciation Rights or Tandem Stock Appreciation
Rights shall be counted against this limit as one and six-tenths (1.6) Shares for every one (1)
Share granted.

(b) If any Shares subject to an Award or to an award under the Prior Plans are forfeited,
expire or otherwise terminate without issuance of such Shares, or any Award or award under the
Prior Plans is settled for cash or otherwise does not result in the issuance of all or a portion of
the Shares subject to such Award, the Shares shall, to the extent of such forfeiture, expiration,
termination, cash settlement or non-issuance, again be available for Awards under the Plan, subject
to Section 3.1(c) below.

(c) Substitute Awards may be issued under the Plan and such Substitute Awards shall not reduce
the Shares authorized for grant under the Plan or authorized for grant to a Participant in any
calendar year. Additionally, in the event that a company acquired by the Company or any Subsidiary
or with which the Company or any Subsidiary combines has shares available under a pre-existing plan
approved by shareholders and not adopted in contemplation of such acquisition or combination, the
shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the
extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used
in such acquisition or combination to determine the consideration payable to the holders of common
stock of the entities party to such acquisition or combination) may be used for Awards under the
Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards
using such available shares shall not be made after the date awards or grants could have been made
under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be
made to individuals who were not Employees or Directors prior to such acquisition or combination.

(d) Any Shares that again become available for grant pursuant to this Article shall be added
back as one (1) Share if such Shares were subject to Options, Stock Appreciation Rights or Tandem
Stock Appreciation Rights granted under the Plan or options or stock appreciation rights granted
under the Prior Plans, and as one and six-tenths (1.6) Shares if such Shares were subject to Awards
other than Options, Stock Appreciation Rights or Tandem Stock Appreciation Rights granted under the
Plan.

3.2. Character of Shares. Any Shares issued hereunder may consist, in whole or in part, of
authorized and unissued shares or shares purchased in the open market or otherwise.

4. ELIGIBILITY AND ADMINISTRATION

4.1. Eligibility. Any Employee or Director shall be eligible to be selected as a Participant.

4.2. Administration. (a) The Plan shall be administered by the Committee. The Committee
shall have full power and authority, subject to the provisions of the Plan and subject to such
orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be
adopted by the Board, to: (i) select the Employees and Directors to whom Awards may from time to
time be granted hereunder; (ii) determine the type or types of Awards, not inconsistent with the
provisions of the Plan, to be granted to each Participant hereunder; (iii) determine the number of
Shares to be covered by each Award granted hereunder; (iv) determine the terms and conditions, not
inconsistent with the provisions of the Plan, of any Award granted hereunder; (v) determine
whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other
property, subject to Section 8.1; (vi) determine whether, to what extent, and under what
circumstances cash, Shares, other property and other amounts payable with respect to an Award made
under the Plan shall be deferred either automatically or at the election of the Participant; (vii)
determine whether, to what extent and under what circumstances any Award shall be canceled or
suspended; (viii) interpret and administer the Plan and any instrument or agreement entered into
under or in connection with the Plan, including any Award Agreement; (ix) correct any defect,
supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to
the extent that the Committee shall deem desirable to carry it into effect; (x) establish such
rules and regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (xi) make any other determination and take any other action that
the Committee deems necessary or desirable for administration of the Plan.

(b) Decisions of the Committee shall be final, conclusive and binding on all persons or
entities, including the Company, any Participant, and any Subsidiary. A majority of the members of
the Committee may determine its actions and fix the time and place of its meetings.
Notwithstanding the foregoing or anything else to the contrary in the Plan, any action or
determination by the Committee specifically affecting or relating to an Award to a Director shall
require the prior approval of the Board.

(c) To the extent not inconsistent with applicable law, including Section 162(m) of the Code,
or the rules and regulations of the NASDAQ Stock Market, the Committee may delegate to a committee
of one or more directors of the Company or, to the extent permitted by law, to one or more officers
or a committee of officers the right to grant Awards to Employees who are not Directors or
executive officers of the Company and the authority to take action on behalf of the Committee
pursuant to the Plan to cancel or suspend Awards to Employees who are not Directors or executive
officers of the Company.

5. OPTIONS

5.1. Grant of Options. Options may be granted hereunder to Participants either alone or in
addition to other Awards granted under the Plan. Any Option shall be subject to the terms and
conditions of this Article and to such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall deem desirable.

5.2. Award Agreements. All Options granted pursuant to this Article shall be evidenced by a
written Award Agreement in such form and containing such terms and conditions as the Committee
shall determine which are not inconsistent with the provisions of the Plan. The terms of Options
need not be the same with respect to each Participant. Granting of an Option pursuant to the Plan
shall impose no obligation on the recipient to exercise such Option. Any individual who is granted
an Option pursuant to this Article may hold more than one Option granted pursuant to the Plan at
the same time.

5.3. Option Price. Other than in connection with Substitute Awards, the option price per each
Share purchasable under any Option granted pursuant to this Article shall not be less than 100% of
the Fair Market Value of such Share on the date of grant of such Option. Other than pursuant to
Section 12.2, the Committee shall not without the approval of the Company’s shareholders (a) lower
the option price per Share of an Option after it is granted, (b) cancel an Option when the option
price per Share exceeds the Fair Market Value of the underlying Shares in exchange for another
Award (other than in connection with Substitute Awards), and (c) take any other action with respect
to an Option that may be treated as a repricing under the rules and regulations of the NASDAQ Stock
Market.

5.4. Option Term. The term of each Option shall be fixed by the Committee in its sole
discretion; provided that no Option shall be exercisable after the expiration of seven (7) years
from the date the Option is granted, except in the event of death or disability.

5.5. Exercise of Options. Vested Options granted under the Plan shall be exercised by the
Participant or by a Permitted Assignee thereof (or by the Participant’s executors, administrators,
guardian or legal representative, as may be provided in an Award Agreement) as to all or part of
the Shares covered thereby, by the giving of written notice of exercise to the Company or its
designated agent, specifying the number of Shares to be purchased, accompanied by payment of the
full purchase price for the Shares being purchased. Unless otherwise provided in an Award
Agreement, full payment of such purchase price shall be made at the time of exercise and shall be
made (a) in cash or cash equivalents (including certified check or bank check or wire transfer of
immediately available funds), (b) by tendering previously acquired Shares (either actually or by
attestation, valued at their then Fair Market Value) that have been owned for a period of at least
six months (or such other period to avoid accounting charges against the Company’s earnings), (c)
with the consent of the Committee, by delivery of other consideration (including, where permitted
by law and the Committee, other Awards) having a Fair Market Value on the exercise date equal to
the total purchase price, (d) with the consent of the Committee, by withholding Shares otherwise
issuable in connection with the exercise of the Option, (e) through any other method specified in
an Award Agreement, or (f) any combination of any of the foregoing. The notice of exercise,
accompanied by such payment, shall be delivered to the Company at its principal business office or
such other office as the Committee may from time to time direct, and shall be in such form,
containing such further provisions consistent with the provisions of the Plan, as the Committee may
from time to time prescribe. In no event may any Option granted hereunder be exercised for a
fraction of a Share. No adjustment shall be made for cash dividends or other rights for which the
record date is prior to the date of such issuance.

5.6. Form of Settlement. In its sole discretion, the Committee may provide, at the time of
grant, that the Shares to be issued upon an Option’s exercise shall be in the form of Restricted
Stock or other similar securities, or may reserve the right so to provide after the time of grant.

5.7. Incentive Stock Options. The Committee may grant Options intended to qualify as
“incentive stock options” as defined in Section 422 of the Code, to any employee of the Company or
any Subsidiary, subject to the requirements of Section 422 of the Code. Notwithstanding anything
in Section 3.1 to the contrary and solely for the purposes of determining whether Shares are
available for the grant of “incentive stock options” under the Plan, the maximum aggregate number
of Shares with respect to which “incentive stock options” may be granted under the Plan shall be
7,500,000 Shares.

6. STOCK APPRECIATION RIGHTS

6.1. Grant and Exercise. The Committee may provide Stock Appreciation Rights (a) in
conjunction with all or part of any Option granted under the Plan or at any subsequent time during
the term of such Option (“Tandem Stock Appreciation Right”), (b) in conjunction with all or part of
any Award (other than an Option) granted under the Plan or at any subsequent time during the term
of such Award, or (c) without regard to any Option or other Award (a “Freestanding Stock
Appreciation Right”), in each case upon such terms and conditions as the Committee may establish in
its sole discretion.

6.2. Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and
conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to
time by the Committee, including the following:

(a) Upon the exercise of a Stock Appreciation Right, the holder shall have the right
to receive the excess of (i) the Fair Market Value of one Share on the date of exercise or such
other amount as the Committee shall so determine at any time during a specified period before the
date of exercise over (ii) the grant price of the right on the date of grant, or in the case of a
Tandem Stock Appreciation Right granted on the date of grant of the related Option, as specified by
the Committee in its sole discretion, which, except in the case of Substitute Awards or in
connection with an adjustment provided in Section 12.2, shall not be less than the Fair Market
Value of one Share on such date of grant of the right or the related Option, as the case may be.

(b) Upon the exercise of a Stock Appreciation Right, the Committee shall determine
in its sole discretion whether payment shall be made in cash, in whole Shares or other property, or
any combination thereof.

(c) Any Tandem Stock Appreciation Right may be granted at the same time as the
related Option is granted or at any time thereafter before exercise or expiration of such Option.

(d) Any Tandem Stock Appreciation Right related to an Option may be exercised only
when the related Option would be exercisable and the Fair Market Value of the Shares subject to the
related Option exceeds the option price at which Shares can be acquired pursuant to the Option. In
addition, (i) if a Tandem Stock Appreciation Right exists with respect to less than the full number
of Shares covered by a related Option, then an exercise or termination of such Option shall not
reduce the number of Shares to which the Tandem Stock Appreciation Right applies until the number
of Shares then exercisable under such Option equals the number of Shares to which the Tandem Stock
Appreciation Right applies, and (ii) no Tandem Stock Appreciation Right granted under the Plan to a
person then subject to Section 16 of the Exchange Act shall be exercised during the first six
months of its term for cash, except as provided in Article 11.

(e) Any Option related to a Tandem Stock Appreciation Right shall no longer be
exercisable to the extent the Tandem Stock Appreciation Right has been exercised.

(f) The provisions of Stock Appreciation Rights need not be the same with respect to
each recipient.

(g) The Committee may impose such other conditions or restrictions on the terms of
exercise and the exercise price of any Stock Appreciation Right, as it shall deem appropriate,
including providing that the exercise price of a Tandem Stock Appreciation Right may be less than
the Fair Market Value on the date of grant if the Tandem Stock Appreciation Right is added to an
Option following the date of the grant of the Option. Notwithstanding the foregoing provisions of
this Section 6.2(g), but subject to Section 12.2, a Freestanding Stock Appreciation Right shall
generally have the same terms and conditions as Options, including (i) an exercise price not less
than Fair Market Value on the date of grant, and (ii) a term not greater than seven years. In
addition to the foregoing, but subject to Section 12.2, the base amount of any Stock Appreciation
Right shall not be reduced after the date of grant.

(h) The Committee may impose such terms and conditions on Stock Appreciation Rights
granted in conjunction with any Award (other than an Option) as the Committee shall determine in
its sole discretion.

7. RESTRICTED STOCK AWARDS

7.1. Grants. Awards of Restricted Stock may be issued hereunder to Participants either alone
or in addition to other Awards granted under the Plan (a “Restricted Stock Award”), and such
Restricted Stock Awards shall also be available as a form of payment of Performance Awards and
other earned cash-based incentive compensation. A Restricted Stock Award shall be subject to
restrictions imposed by the Committee covering a period of time specified by the Committee (the
“Restriction Period”). The Committee has absolute discretion to determine whether any
consideration (other than services) is to be received by the Company or any Subsidiary as a
condition precedent to the issuance of Restricted Stock.

7.2. Award Agreements. The terms of any Restricted Stock Award granted under the Plan shall
be set forth in a written Award Agreement which shall contain provisions determined by the
Committee and not inconsistent with the Plan. The terms of Restricted Stock Awards need not be the
same with respect to each Participant. The Committee may, in its sole discretion and subject to
the limitations imposed under Section 162(m) of the Code and the regulations thereunder in the case
of a Restricted Stock Award intended to comply with the performance-based exception under Code
Section 162(m), waive the forfeiture period and any other conditions set forth in any Award
Agreement subject to such terms and conditions as the Committee shall deem appropriate.

7.3. Rights of Holders of Restricted Stock. Beginning on the date of grant of the Restricted
Stock Award and subject to execution of the Award Agreement, the Participant shall become a
shareholder of the Company with respect to all Shares subject to the Award Agreement and shall have
all of the rights of a shareholder, including the right to vote such Shares and the right to
receive distributions made with respect to such Shares; provided, however, that any Shares or any
other property (other than cash) distributed as a dividend or otherwise with respect to any
Restricted Stock as to which the restrictions have not yet lapsed shall be subject to the same
restrictions as such Restricted Stock.

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8. OTHER STOCK UNIT AWARDS

8.1. Grants. Other Awards of units having a value equal to an identical number of Shares
(“Other Stock Unit Awards”) may be granted hereunder to Participants, in addition to other Awards
granted under the Plan. Other Stock Unit Awards shall also be available as a form of payment of
other Awards granted under the Plan and other earned cash-based incentive compensation.

8.2. Award Agreements. The terms of Other Stock Unit Award granted under the Plan shall be
set forth in a written Award Agreement which shall contain provisions determined by the Committee
and not inconsistent with the Plan. The terms of such Awards need not be the same with respect to
each Participant.

8.3. Payment. Except as provided in Article 10 or as maybe provided in an Award Agreement,
Other Stock Unit Awards may be paid in cash, Shares, other property, or any combination thereof, in
the sole discretion of the Committee at the time of payment. Other Stock Unit Awards may be paid
in a lump sum or in installments or, in accordance with procedures established by the Committee, on
a deferred basis subject to the requirements of Section 409A of the Code.

9. PERFORMANCE AWARDS

9.1. Grants. Performance Awards in the form of Performance Shares or Performance Units, as
determined by the Committee in its sole discretion, may be granted hereunder to Participants, for
no consideration or for such minimum consideration as may be required by applicable law, either
alone or in addition to other Awards granted under the Plan. The performance goals to be achieved
for each Performance Period shall be conclusively determined by the Committee and may be based upon
the criteria set forth in Section 10.1.

9.2. Award Agreements. The terms of any Performance Award granted under the Plan shall be set
forth in a written Award Agreement which shall contain provisions determined by the Committee and
not inconsistent with the Plan. The terms of Performance Awards need not be the same with respect
to each Participant.

9.3. Terms and Conditions. The performance criteria to be achieved during any Performance
Period and the length of the Performance Period shall be determined by the Committee upon the grant
of each Performance Award; provided, however, that a Performance Period shall not be shorter than
12 months nor longer than five years. The amount of the Award to be distributed shall be
conclusively determined by the Committee.

9.4. Payment. Except as provided in Article 11 or as may be provided in an Award Agreement,
Performance Awards will be distributed only after the end of the relevant Performance Period.
Performance Awards may be paid in cash, Shares, other property, or any combination thereof, in the
sole discretion of the Committee at the time of payment. Performance Awards may be paid in a lump
sum or in installments following the close of the Performance Period or, in accordance with
procedures established by the Committee, on a deferred basis.

10. CODE SECTION 162(m) PROVISIONS

10.1. Covered Employees. Notwithstanding any other provision of the Plan, if the Committee
determines at the time a Restricted Stock Award, a Performance Award or an Other Stock Unit Award
is granted to a Participant who is, or is likely to be, as of the end of the tax year in which the
Company would claim a tax deduction in connection with such Award, a Covered Employee, then the
Committee may provide that this Article 10 is applicable to such Award.

10.2. Performance Criteria. If the Committee determines that a Restricted Stock Award, a
Performance Award or an Other Stock Unit Award is subject to this Article 10, the lapsing of
restrictions thereon and the distribution of cash, Shares or other property pursuant thereto, as
applicable, shall be subject to the achievement of one or more objective performance goals
established by the Committee, which shall be based on the attainment of specified levels of one or
any combination of the following: net revenue; revenue growth; pre-tax income before allocation of
corporate overhead and bonus; earnings per share; net income; division, group or corporate
financial goals; return on shareholders’ equity; total shareholder return; return on assets;
attainment of strategic and operational initiatives; appreciation in and/or maintenance of the
price of the Shares or any other publicly-traded securities of the Company; market share; gross
profits; earnings before taxes; earnings before interest and taxes; earnings before interest,
taxes, depreciation and amortization; economic value-added models; comparisons with various stock
market indices; reductions in costs; cash flow, cash flow per share; return on invested capital,
cash flow return on investment; and improvement in or attainment of expense levels on working
capital levels of the Company or any Subsidiary, division, business segment or business unit of the
Company for or within which the Participant is primarily employed. Such performance goals also may
be based solely by reference to the Company’s performance or the performance of a Subsidiary,
division, business segment or business unit of the Company, or based upon the relative performance
of other companies or upon comparisons of any of the indicators of performance relative to other
companies. The Committee may also exclude the impact of an event or occurrence which the Committee
determines should appropriately be excluded, including (a) restructurings, discontinued operations,
extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly
related to the operations of the Company or not within the reasonable control of the Company’s
management, or (c) the cumulative effects of tax or accounting changes in accordance with generally
accepted accounting principles. Such performance goals shall be set by the Committee within the
time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of
the Code, and the regulations thereunder.

10.3. Adjustments. Notwithstanding any provision of the Plan (other than Article 11), with
respect to any Restricted Stock, Performance Award or Other Stock Unit Award that is subject to
this Section 10, the Committee may adjust downwards, but not upwards, the amount payable pursuant
to such Award, and the Committee may not waive the achievement of the applicable performance goals,
except in the case of the death or disability of the Participant or as otherwise determined by the
Committee in special circumstances.

10.4. Restrictions. The Committee shall have the power to impose such other restrictions on
Awards subject to this Article as it may deem necessary or appropriate to ensure that such Awards
satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)
of the Code.

10.5. Limitations on Grants to Individual Participant. Subject to adjustment as provided in
Section 12.2, no Participant may be granted (i) Options or Stock Appreciation Rights during any
12-month period with respect to more than 2,000,000 Shares or (ii) Restricted Stock, Performance
Awards and/or Other Stock Unit Awards that are denominated in Shares in any 12-month period with
respect to more than 900,000 Shares (the “Limitations”). In addition to the foregoing, the maximum
dollar value payable to any Participant in any 12-month period with respect to Performance Awards
is $3,000,000. If an Award is cancelled, the cancelled Award shall continue to be counted toward
the applicable Limitations.

11. CHANGE OF CONTROL PROVISIONS

11.1. Impact of Change of Control. The terms of any Award may provide in the Award Agreement
evidencing the Award that, upon a “Change of Control” of the Company (as that term may be defined
therein), (a) Options and Stock Appreciation Rights outstanding as of the date of the Change of
Control immediately vest and become fully exercisable, (b) that Options and Stock Appreciation
Rights outstanding as of the date of the Change of Control may be cancelled and terminated without
payment therefor if the Fair Market Value of one Share as of the date of the Change of Control is
less than the per Share Option exercise price or Stock Appreciation Right grant price, (c)
restrictions and deferral limitations on Restricted Stock lapse and the Restricted Stock becomes
free of all restrictions and limitations and becomes fully vested, (d) all Performance Awards shall
be considered to be earned and payable (either in full or pro rata based on the portion of
Performance Period completed as of the date of the Change of Control), and any deferral or other
restriction shall lapse and such Performance Awards shall be immediately settled or distributed,
(e) the restrictions and deferral limitations and other conditions applicable to any Other Stock
Unit Awards or any other Awards shall lapse, and such Other Stock Unit Awards or such other Awards
shall become free of all restrictions, limitations or conditions and become fully vested and
transferable to the full extent of the original grant, and (f) such other additional benefits as
the Committee deems appropriate shall apply, subject in each case to any terms and conditions
contained in the Award Agreement evidencing such Award. For purposes of the Plan, a “Change of
Control” shall mean an event described in an Award Agreement evidencing the Award or such other
event as determined in the sole discretion of the Board. Notwithstanding any other provision of
the Plan, the Committee, in its discretion, may determine that, upon the occurrence of a Change of
Control of the Company, each Option and Stock Appreciation Right outstanding shall terminate within
a specified number of days after notice to the Participant, and/or that each Participant shall
receive, with respect to each Share subject to such Option or Stock Appreciation Right, an amount
equal to the excess of the Fair Market Value of such Share immediately prior to the occurrence of
such Change of Control over the exercise price per share of such Option and/or Stock Appreciation
Right; such amount to be payable in cash, in one or more kinds of stock or property (including the
stock or property, if any, payable in the transaction) or in a combination thereof, as the
Committee, in its discretion, shall determine.

11.2. Assumption Upon Change of Control. Notwithstanding the foregoing, if in the event of a
Change of Control the successor company assumes or substitutes for an Option, Stock Appreciation
Right, Share of Restricted Stock or Other Stock Unit Award, then each outstanding Option, Stock
Appreciation Right, Share of Restricted Stock or Other Stock Unit Award shall not be accelerated as
described in Sections 11.1(a), (c) and (e). For the purposes of this Section 11.2, an Option,
Stock Appreciation Right, Share of Restricted Stock or Other Stock Unit Award shall be considered
assumed or substituted for if following the Change of Control the award confers the right to
purchase or receive, for each Share subject to the Option, Stock Appreciation Right, Restricted
Stock Award or Other Stock Unit Award immediately prior to the Change of Control, the consideration
(whether stock, cash or other securities or property) received in the transaction constituting a
Change of Control by holders of Shares for each Share held on the effective date of such
transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding shares); provided, however, that if such
consideration received in the transaction constituting a Change of Control is not solely common
stock of the successor company, the Committee may, with the consent of the successor company,
provide that the consideration to be received upon the exercise or vesting of an Option, Stock
Appreciation Right, Restricted Stock Award or Other Stock Unit Award, for each Share subject
thereto, will be solely common stock of the successor company substantially equal in fair market
value to the per share consideration received by holders of Shares in the transaction constituting
a Change of Control. The determination of such substantial equality of value of consideration
shall be made by the Committee in its sole discretion and its determination shall be conclusive and
binding. Notwithstanding the foregoing, on such terms and conditions as may be set forth in an
Award Agreement, in the event of a termination of a Participant’s employment in such successor
company within a specified time period following such Change in Control, each Award held by such
Participant at the time of the Change in Control shall be accelerated as described in Sections
11.1(a), (c) and (e).

12. GENERALLY APPLICABLE PROVISIONS

12.1. Amendment and Termination of the Plan. The Board may, from time to time, alter, amend,
suspend or terminate the Plan as it shall deem advisable, subject to any requirement for
shareholder approval imposed by applicable law, including the rules and regulations of the NASDAQ
Stock Market provided that the Board may not amend the Plan in any manner that would result in
noncompliance with Rule 16b-3 of the Exchange Act; and further provided that the Board may not,
without the approval of the Company’s shareholders, amend the Plan to (a) increase the number of
Shares that may be the subject of Awards under the Plan (except for adjustments pursuant to Section
12.2), (b) expand the types of awards available under the Plan, (c) materially expand the class of
persons eligible to participate in the Plan, (d) amend any provision of Section 5.3, (e) increase
the maximum permissible term of any Option specified by Section 5.4, or (f) amend any provision of
Section 10.4. In addition, no amendments to, or termination of, the Plan shall in any way impair
the rights of a Participant under any Award previously granted without such Participant’s consent.

12.2. Adjustments. In the event of any merger, reorganization, consolidation,
recapitalization, dividend or distribution (whether in cash, shares or other property, other than a
regular cash dividend), stock split, reverse stock split, spin-off or similar transaction or other
change in corporate structure affecting the Shares or the value thereof, such adjustments and other
substitutions shall be made to the Plan and to Awards as the Committee, in its sole discretion,
deems equitable or appropriate, including such adjustments in the aggregate number, class and kind
of securities that may be delivered under the Plan and, in the aggregate or to any one Participant,
in the number, class, kind and option or exercise price of securities subject to outstanding Awards
granted under the Plan (including, if the Committee deems appropriate, the substitution of similar
options to purchase the shares of, or other awards denominated in the shares of, another company)
as the Committee may determine to be appropriate in its sole discretion; provided, however, that
the number of Shares subject to any Award shall always be a whole number.

12.3. Transferability of Awards. Except as provided below, and except as otherwise authorized
by the Committee in an Award Agreement, no Award and no Shares subject to Awards described in
Article 8 that have not been issued or as to which any applicable restriction, performance or
deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise
encumbered, other than by will or the laws of descent and distribution, and such Award may be
exercised during the life of the Participant only by the Participant or the Participant’s guardian
or legal representative.

12.4. Termination of Employment. The Committee shall determine and set forth in each Award
Agreement whether any Awards granted in such Award Agreement will continue to be exercisable, and
the terms of such exercise, on and after the date that a Participant ceases to be employed by or to
provide services to the Company or any Subsidiary (including as a Director), whether by reason of
death, disability, voluntary or involuntary termination of employment or services, or otherwise.
The date of termination of a Participant’s employment or services will be determined by the
Committee, which determination will be final.

13. MISCELLANEOUS

13.1. Tax Withholding. The Company shall have the right to make all payments or distributions
pursuant to the Plan to a Participant (or a Permitted Assignee thereof) (any such person, a
“Payee”) net of any applicable federal, state and local taxes required to be paid or withheld as a
result of (a) the grant of any Award, (b) the exercise of an Option or Stock Appreciation Right,
(c) the delivery of Shares or cash, (d) the lapse of any restrictions in connection with any Award
or (e) any other event occurring pursuant to the Plan. The Company or any Subsidiary shall have
the right to withhold from wages or other amounts otherwise payable to such Payee such withholding
taxes as may be required by law, or to otherwise require the Payee to pay such withholding taxes.
If the Payee shall fail to make such tax payments as are required, the Company or its Subsidiaries
shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to such Payee or to take such other action as may be necessary to satisfy
such withholding obligations. The Committee shall be authorized to establish procedures for
election by Participants to satisfy such obligation for the payment of such taxes by tendering
previously acquired Shares (either actually or by attestation, valued at their then Fair Market
Value) that have been owned for a period of at least six months (or such other period to avoid
accounting charges against the Company’s earnings), or by directing the Company to retain Shares
(up to the Participant’s minimum required tax withholding rate or such other rate that will not
trigger a negative accounting impact) otherwise deliverable in connection with the Award.

13.2. Right of Discharge Reserved; Claims to Awards. Nothing in the Plan nor the grant of an
Award hereunder shall confer upon any Employee or Director the right to continue in the employment
or service of the Company or any Subsidiary or affect any right that the Company or any Subsidiary
may have to terminate the employment or service of (or to demote or to exclude from future Awards
under the Plan) any such Employee or Director at any time for any reason. Except as specifically
provided by the Committee, the Company shall not be liable for the loss of existing or potential
profit from an Award granted in the event of termination of an employment or other relationship.
No Employee or Participant shall have any claim to be granted any Award under the Plan, and there
is no obligation for uniformity of treatment of Employees or Participants under the Plan.

13.3. Prospective Recipient. The prospective recipient of any Award under the Plan shall not,
with respect to such Award, be deemed to have become a Participant, or to have any rights with
respect to such Award, until and unless such recipient shall have executed an agreement or other
instrument evidencing the Award and delivered a copy thereof to the Company, and otherwise complied
with the then applicable terms and conditions.

13.4. Cancellation of Award. Notwithstanding anything to the contrary contained herein, all
outstanding Awards granted to any Participant may be canceled if the Participant, without the
consent of the Company, while employed by the Company or any Subsidiary or after termination of
such employment or service, engages in activity that violates any agreement between the Company and
Participant, including any agreement not to compete with the Company, as determined by the
Committee in its sole discretion.

13.5. Stop Transfer Orders. All certificates for Shares delivered under the Plan pursuant to
any Award shall be subject to such stop-transfer orders and other restrictions as the Committee may
deem advisable under the rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Shares are then listed, and any applicable federal or
state securities law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

13.6. Nature of Payments. All Awards made pursuant to the Plan are in consideration of
services performed or to be performed for the Company or any Subsidiary, division or business unit
of the Company. Any income or gain realized pursuant to Awards under the Plan and any Stock
Appreciation Rights constitute a special incentive payment to the Participant and shall not be
taken into account, to the extent permissible under applicable law, as compensation for purposes of
any of the employee benefit plans of the Company or any Subsidiary except as may be determined by
the Committee or by the Board or board of directors of the applicable Subsidiary.

13.7. Other Plans. Nothing contained in the Plan shall prevent the Board from adopting other
or additional compensation arrangements, subject to shareholder approval if such approval is
required; and such arrangements may be either generally applicable or applicable only in specific
cases.

13.8. Severability. If any provision of the Plan shall be held unlawful or otherwise invalid
or unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (a)
be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid
and/or enforceable and as so limited shall remain in full force and effect, and (b) not affect any
other provision of the Plan or part thereof, each of which shall remain in full force and effect.
If the making of any payment or the provision of any other benefit required under the Plan shall be
held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such
unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from
being made or provided under the Plan, and if the making of any payment in full or the provision of
any other benefit required under the Plan in full would be unlawful or otherwise invalid or
unenforceable, then such unlawfulness, invalidity or unenforceability shall not prevent such
payment or benefit from being made or provided in part, to the extent that it would not be
unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful,
invalid or unenforceable shall be made or provided under the Plan.

13.9. Construction. As used in the Plan, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed
by the words “without limitation.”

13.10. Unfunded Status of the Plan. The Plan is intended to constitute an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant by
the Company, nothing contained herein shall give any such Participant any rights that are greater
than those of a general creditor of the Company. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations created under the
Plan to deliver the Shares or payments in lieu of or with respect to Awards hereunder; provided,
however, that the existence of such trusts or other arrangements is consistent with the unfunded
status of the Plan.

13.11. Governing Law. The Plan and all determinations made and actions taken thereunder, to
the extent not otherwise governed by the Code or the laws of the United States, shall be governed
by the laws of the State of Washington, without reference to principles of conflict of laws, and
construed accordingly.

13.12. Effective Date of Plan; Termination of Plan. The Plan shall be effective on the date
of the approval of the Plan by the holders of the shares entitled to vote at a duly constituted
meeting of the shareholders of the Company. The Plan shall be null and void and of no effect if
the foregoing condition is not fulfilled and in such event each Award shall, notwithstanding any of
the preceding provisions of the Plan, be null and void and of no effect. Awards may be granted
under the Plan at any time and from time to time on or prior to the tenth anniversary of the
effective date of the Plan, on which date the Plan will expire except as to Awards then outstanding
under the Plan. Such outstanding Awards shall remain in effect until they have been exercised or
terminated, or have expired.

13.13. Foreign Employees. Awards may be granted to Participants who are foreign nationals or
employed outside the United States, or both, on such terms and conditions different from those
applicable to Awards to Employees employed in the United States as may, in the judgment of the
Committee, be necessary or desirable in order to recognize differences in local law or tax policy.
The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize
the Company’s obligation with respect to tax equalization for Employees on assignments outside
their home country.

13.14. Compliance with Section 409A of the Code. This Plan is intended to comply and shall be
administered in a manner that is intended to comply with Section 409A of the Code and shall be
construed and interpreted in accordance with such intent. To the extent that an Award or the
payment, settlement or deferral thereof is subject to Section 409A of the Code, the Award shall be
granted, paid, settled or deferred a manner that will comply with Section 409A of the Code,
including regulations or other guidance issued with respect thereto, except as otherwise determined
by the Committee. Any provision of this Plan that would cause the grant of an Award or the
payment, settlement or deferral thereof to fail to satisfy Section 409A of the Code shall be
amended to comply with Section 409A of the Code on a timely basis, which may be made on a
retroactive basis, in accordance with regulations and other guidance issued under Section 409A of
the Code.

13.15. Captions. The captions in the Plan are for convenience of reference only, and are not
intended to narrow, limit or affect the substance or interpretation of the provisions contained
herein.

2EX-10.2

Exhibit 10.2

RealNetworks, Inc. 2005 Stock Incentive Plan

Non-Qualified Stock Option Terms and Conditions

Non-Qualified Stock Option Terms and Conditions (the “Agreement”) made and entered into
as of the effective date (the “Grant Date”) set forth in the Notice of Grant of Stock Options and
Option Agreement attached hereto (the “Notice of Grant”), by and between RealNetworks, Inc., a
Washington corporation (the “Company”), and you (the “Optionee”) pursuant to the RealNetworks, Inc.
2005 Stock Incentive Plan (the “Plan”). Capitalized terms not defined in this Agreement have the
meanings ascribed to them in the Plan.

1. Grant of Stock Option. The Company hereby grants to the Optionee
pursuant to the Plan an option (the “Option”) to purchase, subject to the terms of this Agreement
and the Plan the number of Shares set forth in the Notice of Grant at the purchase price per Share
set forth in the Notice of Grant (the “Option Exercise Price”).

2. Non-Qualified Stock Option. The Option is a non-qualified stock option
and is not intended to qualify as an incentive stock option under Section 422 of the Code.

3. Expiration Date. The Option expires on the seventh anniversary of the
Grant Date (the “Expiration Date”) and must be exercised on or before the earlier of the Expiration
Date or the date on which this Option is terminated in accordance with the provisions of Sections 5
and 6.

4. Vesting. Except as otherwise provided herein, the vesting schedule
applicable to the Option shall be as set forth in the Notice of Grant, and the Option may only be
exercised to the extent that it is vested. The Option shall cease to vest upon the Optionee’s
termination of employment, and may be exercised after the date of the Optionee’s termination of
employment only as set forth Sections 5 and 6. Notwithstanding the foregoing, the Committee may,
in its discretion, accelerate the date that any installment of the Option vests.

5. Termination of Employment.

(a) Termination Other Than for Cause. If the Company terminates the
employment of the Optionee for any reason other than for Cause (as defined in paragraph (c) of this
Section) and the Option is not fully vested, the next installment of the Option scheduled to vest
(if any) shall vest on a pro rata basis for the portion of the year elapsed since the Grant Date or
the last anniversary thereof, expressed in full months (the “Pro Rata Portion”), provided
that the Optionee executes and delivers a Settlement Agreement and Release (“Release”) satisfactory
to the Company before the Effective Date (as defined in the Release); and the Option shall expire
and may no longer be exercised after three months from the termination of the Optionee’s
employment, but in no event later than the Expiration Date. For purposes hereof, employment shall
not be considered as having terminated during any leave of absence if the leave of absence has been
approved in writing by the Company; in the event of any unpaid leave of absence, vesting of the
Option shall be suspended (and the unpaid portion of the leave of absence shall be added to all
vesting installment dates) unless otherwise determined by the Committee.

(b) Termination for Cause. If the employment of the Optionee is terminated
by the Company for Cause (as defined below), the Option shall expire and may no longer be exercised
to any extent whatsoever.

(c) Cause. For purposes of this Agreement, “Cause” means conduct involving
one or more of the following: (i) the conviction of the Optionee, or plea of nolo
contendere by the Optionee to, a felony or misdemeanor involving moral turpitude; (ii) the
indictment of the Optionee for a felony or misdemeanor involving moral turpitude under the federal
securities laws; (iii) the substantial and continuing failure of the Optionee after written notice
thereof to render services to the Company in accordance with the terms or requirements of the
Optionee’s employment for reasons other than illness or incapacity; (iv) the willful misconduct or
gross negligence by the Optionee; (v) fraud, embezzlement, theft, misrepresentation or dishonesty
by the Optionee involving the Company or any Subsidiary, or willful violation by the Optionee of a
policy or procedure of the Company, resulting in any case in significant harm to the Company; or
(vi) the Optionee’s violation of any confidentiality or non-competition agreements with the Company
or its Subsidiaries.

6. Death; Disability.

(a) Death. If the Optionee’s employment terminates due to the Optionee’s
death, the Option will fully vest on the date of termination of employment and may be exercised by
the Optionee’s estate, legal representative or beneficiary to whom the Option has been transferred
pursuant to Section 10, at any time within one (1) year after the date of death.

(b) Disability. If the Optionee’s employment is terminated by reason of his
or her disability, the Option may be exercised, to the extent vested on the date employment
terminates, at any time within one (1) year after such termination of employment, but not later
than the Expiration Date. For purposes hereof, “disability” means “permanent and total disability”
as defined in Section 22(e)(3) of the Code.

7. Exercise of Option. The Option may be exercised by written notice to the
Company or to such agent as the Company shall designate. The notice shall state the election to
exercise the Option, the number of Shares for which it is being exercised and shall be signed by
the person or persons so exercising the Option. The Option may not be exercised unless such
exercise is in compliance, to the reasonable satisfaction of the Company with all applicable
federal and state securities laws as in effect on the date of exercise. The Option may not be
exercised as to fewer than 100 Shares unless it is exercised as to all Shares as to which the
Option is then exercisable.

The exercise notice must be accompanied by payment of the full exercise price of the Shares
for which the Option is being exercised, or evidence of satisfaction of one of the alternative
payment methods set forth on Section 8, and the Company shall deliver a certificate or certificates
representing such Shares, or cause such Shares to be delivered electronically, as soon as
practicable after the notice shall be received. The Company may postpone such delivery until it
receives satisfactory proof that the issuance of such Shares will not violate any of the provisions
of the Securities act of 1933, as amended, or the Exchange Act, any rules or regulations of the
Securities and Exchange Commission (the “SEC”) promulgated thereunder, or the requirements of
applicable state law relating to authorization, issuance or sale of securities, or until there has
been compliance with the provisions of such acts or rules. The Optionee understands that the
Company is under no obligation to register or qualify the Shares with the SEC, any state securities
commission or any stock exchange to effect such compliance. The certificate or certificates shall
be registered in the name of the person or persons so exercising the Option (or, if the Option is
exercised by the Optionee and the Optionee shall so request in the notice exercising the Option,
shall be registered in the name of the Optionee and another person jointly, with right of
survivorship). In the event the Option shall be exercised, pursuant to Section 6 hereof, by any
person or persons other than the Optionee, such notice shall be accompanied by appropriate proof of
the right of such person or persons to exercise the Option.

8. Payment of Exercise Price.

(a) Payment Options. The exercise price of the Option shall be paid by one
or any combination of the following forms of payment:

(i) in cash, or by check payable to the order of the Company; or

(ii) delivery of an irrevocable and unconditional undertaking, satisfactory in form
and substance to the Company, by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Optionee to the Company of a copy of
irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a
creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the
exercise price; or

(iii) by delivery of Shares having a Fair Market Value equal as of the date of
exercise to the exercise price, subject to paragraph (b) and in accordance with procedures
established by the Committee, provided the Shares are then traded on a national securities exchange
or on the NASDAQ Stock Market (or successor trading system).

(b) Limitations on Payment by Delivery of Shares. The Optionee may not pay
any part of the exercise price hereof by transferring Shares to the Company unless such Shares have
been owned by the Optionee free of any substantial risk of forfeiture for at least six months
unless otherwise determined by the Committee, are free and clear of all liens, claims, encumbrances
or security interests.

9. Option Not Transferable. The Option is not transferable or assignable
except by will or by the laws of descent and distribution. During the Optionee’s lifetime only the
Optionee can exercise the Option.

10. No Obligation to Continue Employment. Neither the Plan, this Agreement,
nor the grant of the Option imposes any obligation on the Company or its Subsidiaries to continue
the Optionee’s employment, or limit in any way the rights of the Company or a Subsidiary to
terminate the Optionee’s employment at any time.

11. No Rights as Shareholder. The Optionee shall have no rights as a
stockholder with respect to any Shares subject to the Option until such time as the Optionee has
satisfied all of the requirements of this Agreement for the delivery of Shares pursuant to the
exercise of the Option. Except as is expressly provided in the Plan with respect to certain
changes in the capitalization of the Company, no adjustment shall be made for dividends or similar
rights for which the record date is prior to such date of exercise.

12. Adjustment for Capital Changes. The Plan contains provisions covering
the treatment of options in the event of mergers, stock splits, spin-offs and certain other
corporate transactions. Provisions in the Plan for such adjustment are hereby made applicable
hereunder and are incorporated herein by reference.

13. Change in Control. Provisions regarding a Change in Control are set
forth on Appendix A.

14. Withholding. Prior to the issuance of Shares pursuant to the exercise
of the Option the Optionee must pay to the Company, or make satisfactory provision to the Company
for payment of, any federal, state or local withholding taxes required by law to be withheld in
respect of the Option. The Optionee agrees that the Company may withhold such taxes from the
Optionee’s wages or other remuneration. In the discretion of the Company, the taxes may be
withheld in kind from the Shares deliverable to the Optionee on exercise of the Option.

15. Policy on the Avoidance of Insider Trading. The Optionee acknowledges that
he/she has received and read the RealNetworks Policy on the Avoidance of Insider Trading, and, if
applicable, the Addendum to the Policy on the Avoidance of Insider Trading, and the Optionee agrees
to comply with the Policy’s terms, together with the Addendum, if applicable.

16. Miscellaneous.

(a) Notices. All notices hereunder shall be in writing and shall be deemed
given when sent by certified or registered mail, postage prepaid, return receipt requested, if to
the Optionee, to the address indicated on the signature page below or at the most recent address
shown on the records of the Company, and if to the Company, to the Company’s principal office,
attention of the Corporate Secretary.

(b) Entire Agreement; Modification. This Agreement and the Plan constitute
the entire agreement between the parties relative to the subject matter hereof, and supersedes all
understandings between the parties relating to the subject matter of this Agreement. This
Agreement may be modified, amended or rescinded only by a written agreement executed by both
parties.

(c) Cost of Litigation. In any action at law or in equity to enforce any of
the provisions or rights under this Agreement, the unsuccessful party to such litigation, as
determined by the court in a final judgment or decree, shall pay the successful party or parties
all costs, expenses and reasonable attorneys’ fees incurred by the successful party or parties
(including without limitation costs, expenses and fees in any appellate proceedings), and if the
successful party recovers judgment in any such action or proceeding, such costs, expenses and
attorney’s fees shall be included as part of the judgment.

(d) Severability. The invalidity, illegality or unenforceability of any
provision of this Agreement shall in no way affect the validity, legality or enforceability of any
other provision.

(e) Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns, including the
Optionee’s heirs, executors, administrators and legal representatives.

(f) Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Washington, without giving effect to the principles of the
conflicts of laws thereof.

1

APPENDIX A

Change in Control

Notwithstanding anything contained herein to the contrary, if (i) the Option is continued,
assumed, converted or substituted for immediately following the Change in Control and (ii) within
twenty-four (24) months after a Change in Control the Optionee’s employment is terminated by the
Company or its successor without Cause or by the Optionee for Good Reason, all of the Shares
subject to the Option shall be vested immediately and the Option may be exercised at any time
within twenty-four (24) months following such termination, but not later than the Expiration Date.
Furthermore and notwithstanding anything contained herein to the contrary, if the Option is not
continued, assumed, converted or substituted for immediately following the Change in Control, all
of the Shares subject to the Option shall vest immediately upon the Change in Control and the
Option may be exercised at any time within twelve (12) months thereafter. The Option shall be
considered to be continued, assumed, converted or substituted for:

	 	(A)	 	if there is no change in the number of outstanding Shares and the Change in
Control does not result from the consummation of a merger, consolidation, statutory
share exchange, reorganization or similar form of corporate transaction, there are no
changes to the terms and conditions of this option that materially and adversely affect
this option, including the number of Shares subject to the Option and the exercise
price of the option; or

	 	(B)	 	if there is a change in the number of outstanding Shares and/or the Change in
Control does result from the consummation of a merger, consolidation, statutory share
exchange, reorganization or similar form of corporate transaction: (1) the Shares
subject to the Option and the exercise price of the option are adjusted in a manner
which is not materially less favorable than as provided under Section 424(a) of the
Code and regulations thereunder, (2) if applicable, the Shares subject to the Option
are converted into the common stock of the Parent Corporation or, if there is no Parent
Corporation, the Surviving Corporation (as such terms are defined below), and (3) there
are no other changes to the terms and conditions of this option that materially and
adversely affect the Option.

For purposes of this Agreement:

“Change in Control” means the occurrence of any one of the following events:

(i) during any period of twenty-four (24) consecutive months, individuals who, at the
beginning of the period constitute the Board (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a director
subsequent to the initial public offering whose election or nomination for election was approved by
a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific
vote or by approval of the proxy statement of the Company in which such person is named as a
nominee for director, without written objection to such nomination) shall be an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with respect to directors or
as a result of any other actual or threatened solicitation of proxies by or on behalf of any person
other than the Board shall be deemed to be an Incumbent Director;

(ii) any “person” (as such term is defined in the Exchange Act and as used in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
35% or more of the combined voting power of the Company’s then outstanding securities eligible to
vote for the election of the Board (the “Company Voting Securities”); provided,
however, that the event described in this paragraph (ii) shall not be deemed to be a Change
in Control by virtue of any of the following acquisitions: (A) by the Company or any subsidiary,
(B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such
securities, (D) pursuant to a Non-Qualifying Transaction, as defined in paragraph (iii), or (E) by
any person of Voting Securities from the Company, if a majority of the Incumbent Board approves in
advance the acquisition of beneficial ownership of 35% or more of Company Voting Securities by such
person;

(iii) the consummation of a merger, consolidation, statutory share exchange, reorganization or
similar form of corporate transaction involving the Company or any of its subsidiaries that
requires the approval of the Company’s stockholders, whether for such transaction or the issuance
of securities in the transaction (a “Business Combination”), unless immediately following such
Business Combination: (A) more than 50% of the total voting power of (x) the corporation resulting
from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate
parent corporation that directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Company Voting Securities that were outstanding immediately prior to such Business
Combination (or, if applicable, is represented by shares into which such Company Voting Securities
were converted pursuant to such Business Combination), and such voting power among the holders
thereof is in substantially the same proportion as the voting power of such Company Voting
Securities among the holders thereof immediately prior to the Business Combination, (B) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving
Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly,
of 35% or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) and (C) at least half of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Business Combination were Incumbent Directors at the time of the Board’s
approval of the execution of the initial agreement providing for such Business Combination (any
Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall
be deemed to be a “Non-Qualifying Transaction”); or

(iv) the shareholders of the Company approve a plan of complete liquidation or dissolution of
the Company or the consummation of a sale of all or substantially all of the Company’s assets.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of more than 35% of the Company Voting Securities as a result
of the acquisition of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control of the Company shall then occur.

“Good Reason” means:

(i) a reduction by the Company or its successor of more than 10% in the Optionee’s rate of
annual base salary as in effect immediately prior to such Change in Control;

(ii) a reduction by the Company or its successor of more than 10% of the Optionee’s individual
annual target or bonus opportunity; or

(iii) any requirement of the Company that Optionee be based anywhere more than fifty (50)
miles from Optionee’s primary office location at the time of the Change in Control and more than
fifty (50) miles from Optionee’s principal residence at the time of the Change in Control.

2

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