Shareholders' Buy-Sell Agreement - Progressive Networks Inc. and Robert Glaser
PROGRESSIVE NETWORKS, INC.
SHAREHOLDERS' BUY-SELL AGREEMENT
dated
March 31, 1995
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TABLE OF CONTENTS
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PAGE
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RECITALS ..................................................................... 1
AGREEMENT ..................................................................... 1
1. General Restriction on Transfer ............................. 1
2. Exempt Transfers ............................................. 1
2.1 Transfers to Company ............................... 1
2.2 Transfers to Family ................................. 2
3. Transfers ................................................... 2
3.1 Offer Notice ....................................... 2
3.2 Offer to Sell ....................................... 2
3.3 Share Purchase Procedures ........................... 2
4. Terms of Sale and Closing ................................... 4
5. Other Events Constituting an Offer to Transfer Shares ....... 4
5.1 Repurchase Events ................................... 4
5.2 Purchase of Shares ................................. 5
5.3 Offer Notice; Offered Price ......................... 5
5.4 Payment for the Shares ............................. 5
6. Determined Price ............................................. 6
7. Effect of Non-complying Transfer ............................. 7
8. Confidentiality ............................................. 7
9. Spouses ..................................................... 7
9.1 Spousal Consent ......................................... 7
9.2 Future Spouses ......................................... 7
9.3 Agreement Drafted by Counsel to the Company ............. 8
10. Independent Counsel ......................................... 8
11. Miscellaneous Provisions ..................................... 8
11.1 Further Assurances ................................. 8
11.2 Attorney's Fees ..................................... 8
11.3 Construction and Venue ............................. 8
11.4 Number and Gender ................................... 8
11.5 Section Headings ................................... 8
11.6 Legend on Shares ................................... 8
11.7 Amendments ......................................... 9
11.8 Successors and Assigns ............................. 9
11.9 Testamentary Provisions ............................. 9
11.10 Severability ....................................... 9
11.11 Entire Agreement ................................... 9
11.12 Termination ......................................... 9
11.13 Notices ............................................. 9
11.14 Counterparts ....................................... 10
11.15 Confirmation of Definition of Shares ............... 10
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SHAREHOLDERS' BUY-SELL AGREEMENT
THIS SHAREHOLDERS' BUY-SELL AGREEMENT (this "Agreement") is entered
into effective as of the 31st day of March, 1995, by and among Progressive
Networks, Inc., a Washington corporation (the "Company"), Robert Glaser (the
"Founder"), and the holders of shares of common stock in the Company acquired
(i) by exercising options under the Company's 1995 Stock Option Plan, as
hereafter amended, or under any other stock option plan or similar compensation
plan adopted after the date hereof by the Company, or (ii) pursuant to a stock
bonus, warrant or other form of security issued or granted for services
rendered to the Company (together, the "Shares"), who sign a "Consent to Be
Bound" by this Agreement in the form of attached Exhibit A and who shall be
listed on attached Exhibit B. The Founder and the persons listed on attached
Exhibit B shall be referred to, collectively, as the "Shareholders" and,
individually, as a "Shareholder."
RECITALS
The Shareholders and the Company believe it is in their and the
Company's best interests to restrict the free transferability of the Shares to
assure continuity in the control and management of the corporation.
NOW, THEREFORE, the parties agree as follows:
AGREEMENT
1. GENERAL RESTRICTION ON TRANSFER. No Share or any interest
therein shall be validly sold, assigned, awarded, pledged, encumbered,
confirmed, or otherwise transferred, for consideration or otherwise, whether
voluntarily, involuntarily, or by operation of law (collectively, a
"Transfer"), except in accordance with the provisions of this Agreement. A
purported transferee of a Transfer not made in accordance with the provisions
of this Agreement shall not be recognized as a shareholder of the Company for
any purpose whatsoever. A Transfer or attempt to effect a Transfer subject to
the provisions of this Agreement shall be deemed to occur whenever any interest
in any Share is transferred or is attempted to be transferred, voluntarily,
involuntarily, or by operation of law, irrespective of whether any change in
the record ownership of the Shares occurs.
2. EXEMPT TRANSFERS.
2.1 TRANSFERS TO COMPANY. Notwithstanding anything in
this Agreement to the contrary, a Shareholder may effect a Transfer of all or
any portion of his or her Shares to the Company.
2.2 TRANSFERS TO FAMILY. Notwithstanding anything in
this Agreement to the contrary, a Shareholder may, during his life, effect a
Transfer of all or any portion of his
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or her Shares to his or her spouse, or his or her lineal ancestors or
descendants, or a trustee of a trust for the exclusive benefit of such spouse
or ancestors or descendants (the "Permitted Transferees," who would then become
"Shareholders"), provided that the transferee shall execute a "Consent to be
Bound" by this Agreement in the form of attached Exhibit A.
3. TRANSFERS.
3.1 OFFER NOTICE. If any Shareholder (the "Transferor")
desires to effect a Transfer of any or all of his or her Shares to any person
other than a Permitted Transferee or the Company pursuant to a bona fide
written offer, the Transferor shall (a) give notice to the Company (an "Offer
Notice") specifying the name, address and telephone number of the proposed
transferee, the number of Shares proposed to be transferred (the "Offered
Shares"), the price per Share proposed to be paid by the proposed transferee
for the Offered Shares (the "Offered Price"), and all other terms and
conditions of the proposed Transfer; (b) provide a legible photocopy of the
written offer, and (c) provide such additional information about the proposed
transferee as the Company or any Remaining Shareholder (defined below) may
reasonably request, which information shall be provided within ten (10) days of
receipt of the request.
3.2 OFFER TO SELL. Giving an Offer Notice to the Company
shall constitute an offer by the Transferor on the date the Offer Notice is
received by the Company (the "Offer Date") to sell the Offered Shares to the
Company and/or the other Shareholders (the "Remaining Shareholders") at a
purchase price per Share (the "Purchase Price") equal to the Offered Price and
in the manner provided in Section 3.3. If the Offered Shares are proposed to
be sold for consideration other than solely cash, the Offered Price shall be
deemed to be the sum of (a) the fair market value of the consideration other
than cash offered for the Offered Shares as determined in good faith by the
Board of Directors of the Company, and (b) any cash consideration so offered.
3.3 SHARE PURCHASE PROCEDURES. Each purchase of Shares
by the Company and/or the Remaining Shareholders pursuant to this Section 3
shall be made as follows:
3.3.1 The Company shall have the first right to purchase
any or all of the Offered Shares. It shall exercise this right by giving
written notice to the Transferor (the "Company Acceptance Notice") within
forty-five (45) days (the "Company Acceptance Period") after the Offer Date,
stating the number of Offered Shares that the Company agrees to purchase.
Delivery of the Company Acceptance Notice to the Transferor shall create a
binding contract between the Company and the Transferor for the purchase and
sale, at the Purchase Price and on the terms and conditions described in
Section 4, of the number of Shares specified in the Company Acceptance Notice.
3.3.2 No later than ten (10) days after the expiration of
the Company Acceptance Period, the Company shall provide each of the Remaining
Shareholders with a copy of the Offer Notice and inform them of the number of
Offered Shares the Company has
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agreed to purchase. If the Company does not exercise its right to purchase all
of the Offered Shares, each of the Remaining Shareholders shall then have the
right to purchase those Offered Shares that the Company has elected not to
purchase (the "Remaining Offered Shares") which are allocated to the
Shareholder pursuant to Section 3.3.4.
3.3.3 Within forty-five (45) days after the expiration of
the Company Acceptance Period (the "Shareholder Acceptance Period"), each
Remaining Shareholder desiring to purchase all or part of the Remaining Offered
Shares (an "Accepting Shareholder") shall deliver to the Company notice of his
or her acceptance of the offer (the "Shareholder Acceptance Notice"),
specifying the number of such Shares that he or she agrees to purchase.
Delivery of a Shareholder Acceptance Notice to the Company shall create a
binding contract between the Accepting Shareholder and the Transferor for the
purchase and sale, at the Purchase Price and on the terms and conditions
described in Section 4, of that portion of the Remaining Offered Shares
allocated to such Accepting Shareholder under Section 3.3.4.
3.3.4 Each Accepting Shareholder shall first have allocated
to him or her such portion of the Remaining Offered Shares as the number of
Shares of Capital Stock (as defined below) held by such Shareholder bears to
the total number of Shares of Capital Stock held by all of the Accepting
Shareholders (a Shareholder's "Pro Rata Portion"), but limited by the number of
Shares specified in his or her Shareholder Acceptance Notice. If any Accepting
Shareholder agrees to purchase less than his or her Pro Rata Portion of the
Remaining Offered Shares, each Accepting Shareholder who agrees to purchase
more than his or her Pro Rata Portion of the Remaining Offered Shares shall
have allocated to him or her such additional portion of the Remaining Offered
Shares not so allocated under the preceding sentence as the number of Shares of
Capital Stock held by such Accepting Shareholder bears to the total number of
Shares of Capital Stock held by all Accepting Shareholders who agree to
purchase more than their Pro Rata Portion of the Remaining Offered Shares, but
again limited by the number of Shares specified in his or her Shareholder
Acceptance Notice. This procedure shall continue until the Remaining Offered
Shares have been allocated among the Accepting Shareholders to the extent
specified in their respective Shareholder Acceptance Notices. "Shares of
Capital Stock" shall mean the number of shares of common stock held by one or
more Shareholders plus that number of shares of common stock into which any
shares of preferred stock then held by the Shareholder or Shareholders could be
converted at that time under the terms of the Company's Articles of
Incorporation, as amended from time to time.
3.3.5 If the Company and the Remaining Shareholders have
not agreed to purchase all of the Offered Shares, the Transferor may effect a
Transfer of any remaining Offered Shares to the proposed transferee at any time
within sixty (60) days after the expiration of the Shareholder Acceptance
Period at the Offered Price and on the terms and conditions stated in the Offer
Notice only, provided that the proposed transferee shall have first executed a
"Consent to Be Bound" by this Agreement in the form of attached Exhibit A.
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4. TERMS OF SALE AND CLOSING. The Transfer of Offered Shares to
the Company and/or to Accepting Shareholders (collectively, the "Purchasers")
shall be consummated on the terms and conditions set forth in the Offer Notice
on a date set by the Company (the "Closing Date"), which date shall be not less
than fifteen (15) nor more than thirty (30) days after expiration of (a) the
Company Acceptance Period if the Company is purchasing all of the Offered
Shares; or (b) the Shareholder Acceptance Period if the Company and/or the
Remaining Shareholders are purchasing all or a portion of the Offered Shares.
At least fourteen (14) days prior to the Closing Date, the Company shall give
notice to the Transferor and all the Remaining Shareholders, specifying the
number, if any, of the Offered Shares to be purchased by the Company and each
of the Remaining Shareholders and specifying the Closing Date.
5. OTHER EVENTS CONSTITUTING AN OFFER TO TRANSFER SHARES.
5.1 REPURCHASE EVENTS. Each of the following events or
conditions shall constitute a Repurchase Event:
(a) the filing of a petition in bankruptcy by or against
the Shareholder (unless the petition is dismissed within sixty (60) days);
(b) any general assignment by the Shareholder for the
benefit of his or her creditors;
(c) any decree of divorce, dissolution or separate
maintenance, or any property settlement or separation agreement wherein Shares
are awarded to a Shareholder's former or separated spouse or partner who is not
also a Shareholder (a "Former Spouse");
(d) the termination of employment for "cause" of any
Shareholder who is also an employee of the Company; provided, however, that the
Company's board of directors, in its sole discretion, may determine that the
termination of employment for "cause" of any Shareholder who is also an
employee of the Company shall not be considered a Repurchase Event
("employment" shall include full time employment, part time employment, or
service as a consultant, on an advisory board, or on the Company's board of
directors; termination of employment for "cause" shall have the meaning given
that term in any employment agreement or consulting agreement to which the
Shareholder is a party or, in the absence thereof, the conduct that shall
constitute "cause" for purposes of this Agreement shall be insubordination,
dishonesty, incompetence, moral turpitude or the refusal to perform the
individual's duties and responsibilities for any reason other than illness or
incapacity);
(e) any Non-complying Transfer (defined in Section 7); or
(f) any other event, other than a Transfer pursuant to
Section 2, which, were it not for the provisions of this Agreement, would cause
any such Shares, or any interest therein, to be sold, assigned, awarded,
confirmed or otherwise transferred, for
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consideration or otherwise, to any person, whether voluntarily, involuntarily
or by operation of law under circumstances that would not bring such event
within Section 3 of this Agreement.
5.2 PURCHASE OF SHARES. Upon the occurrence of a
Repurchase Event, as defined in Section 5.1 (except the Repurchase Event
described in Section 5.1(c)), the Company and secondarily the Remaining
Shareholders shall have the right to purchase such Shareholder's Shares on the
same terms and conditions as if such Shareholder had made an offer to sell such
Shares pursuant to Section 3 at a price per Share equal to the Determined Price
established pursuant to Section 6. Upon the occurrence of the Repurchase Event
specified in Section 5.1(c), first that Shareholder whose Former Spouse was
awarded Shares, and then the Company and, after the Company, the Remaining
Shareholders shall have the right to purchase any or all Shares owned, in whole
or in part, by that Shareholder's Former Spouse on the same terms and
conditions as if such Shareholder's Former Spouse made an offer to sell such
Shares pursuant to Section 3 at a price per Share equal to the price per share
at which the Shares were valued for purposes of the Former Spouse's property
settlement or, if no value was ascribed to the Shares for purposes of the
property settlement, the Determined Price established pursuant to Section 6.
5.3 OFFER NOTICE; OFFERED PRICE. Within thirty (30) days
after the occurrence of a Repurchase Event, the Shareholder or his or her
trustee in bankruptcy, personal representative, guardian, executor or
administrator, as appropriate (the "Transferor"), shall give written notice to
the Company and the other Shareholders (the "Remaining Shareholders") of such
event specifying the date of such event and describing in reasonable detail the
nature of the event and the number of Shares affected. The price per Share
shall be as specified in the last sentence of Section 5.2 or the Determined
Price established pursuant to Section 6, as appropriate. Such notice shall be
deemed to be the Offer Notice for purposes of Section 3, the number of Shares
affected shall be deemed to be the Offered Shares, and such Determined Price
shall be deemed to be the Offered Price. If the Company or any Remaining
Shareholder has not received this notice upon the expiration of the thirty-
(30-) day period, any Shareholder or director of the Company who has knowledge
of such event may give notice to the Company and the Remaining Shareholders at
any time after the end of such period, and the notice shall be deemed to be the
Offer Notice.
5.4 PAYMENT FOR THE SHARES. The Purchase Price for the
Offered Shares for purposes of this Section 5 shall be paid in five (5) equal
annual installments, together with interest on the unpaid balance compounded
semi-annually at a per annum rate equal to the minimum annual rate of interest
necessary to avoid the imputation of interest under federal income tax laws.
The first installment of principal and interest shall be paid on the last day
of the fiscal year in which the Repurchase Event occurred. Interest shall
accrue commencing on the Closing Date as defined in Section 4. The unpaid
balance of the Purchase Price for the Offered Shares may be prepaid in whole or
in part at any time without penalty, and may be accelerated in the event of
failure to pay any installment when due, in which case reasonable attorneys'
fees and costs may also be recovered if any legal action for
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collection is commenced. The other terms and conditions and procedures for
transferring Offered Shares shall be determined in accordance with Section 4.
6. DETERMINED PRICE.
The Determined Price for each Share shall be calculated as
follows:
6.1 Within sixty (60) days of the Repurchase Event, the
Company and the Transferor shall attempt to agree on the Determined Price.
6.2 If the Company and the Transferor are unable to agree
upon the Determined Price within such period, the Determined Price shall equal
the Fair Market Value of the Transferor's Shares (as defined below), as
established by an independent qualified appraiser, divided by the number of
Shares to be transferred. The "Fair Market Value of the Transferor's Shares"
means the cash or cash equivalent price at which those Shares would have
changed hands between a willing buyer and a willing seller on the date of the
Repurchase Event, both being adequately informed of the relevant facts and
neither being compelled to buy or sell (it is the intent of the parties that in
determining the Fair Market Value of the Transferor's Shares, all appropriate
factors will be considered, including, but not limited to, minority discounts
and discounts for lack of marketability).
The Company and the Transferor shall attempt to agree upon such an
appraiser, and, if an appraiser is agreed upon in writing by the parties, the
resulting calculation shall be final and binding. The costs of such appraiser
shall be divided evenly between the Company and the Transferor.
6.3 If the Company and the Transferor are unable to agree
upon a single appraiser within ninety (90) days of the Repurchase Event, then
either party shall be entitled to notify the other in writing of such party's
institution of the following appraisal procedure:
Within ten (10) days of one party's giving notice to the other that he
or she is instituting the appraisal process, each party shall notify the other
in writing of his or her appointed qualified independent appraiser (each, a
"Party Appraiser"), which appraiser must be experienced in the valuation of
closely held corporations and of the type of business engaged in by the
Company. The two appraisers shall select a third qualified independent
appraiser (the "Independent Appraiser") within thirty (30) days of the
appointment of the second Party Appraiser. If the two Party Appraisers cannot
agree on an Independent Appraiser within the thirty (30) day period, the
Independent Appraiser shall be selected pursuant to the American Arbitration
Association's Commercial Arbitration Rules, Sections 13 and 15, as such
sections may be amended or succeeded from time to time. Each Party Appraiser
shall complete and submit to the Independent Appraiser a calculation of the
Determined Price, pursuant to Section 6.1, within sixty (60) days of the
appointment of the first Party Appraiser. The Independent Appraiser shall
select as the Determined Price one of the two calculations of the Determined
Price submitted by the Party Appraisers. The calculation of the Determined
Price selected by the Independent Appraiser shall be final and
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binding and shall constitute the Determined Price. Each party shall bear the
costs associated with the appraiser he or she selects and shall share equally
the costs of the Independent Appraiser. If either party fails to appoint an
appraiser within the allotted time period, or if either appraiser fails to
complete the calculation within the allotted time period, the calculation of
the appraiser appointed by the other party shall be final and binding and shall
be deemed to constitute the Determined Price.
7. EFFECT OF NON-COMPLYING TRANSFER. If any Transfer in violation
of this Agreement shall be attempted, or if any involuntary or other purported
Transfer by law of any Shares occurs or is attempted (each, a "Non-complying
Transfer"), it shall be void and upon presentation for transfer the Company
shall not give effect to such purported Transfer. The failure of the Company
or its Shareholders to purchase, pursuant to Section 5, Shares which are the
subject matter of a Non-complying Transfer shall not be construed as permission
to proceed with such Transfer. In addition, any Shareholder or the Company may
institute and maintain a proceeding to compel specific performance of this
Agreement by the Shareholder attempting such Transfer, it being agreed that the
other Shareholders not in default and the Company do not have an adequate
remedy at law.
8. CONFIDENTIALITY.
Each Shareholder agrees to hold in strict confidence all information
concerning or related to the Company ("Confidential Information") and shall not
disclose any Confidential Information to third parties unless such Confidential
Information is already generally publicly known through no fault of the
Shareholder.
9. SPOUSES.
9.1 SPOUSAL CONSENT. The execution of this Agreement by a
Shareholder's spouse who is not also a Shareholder (a "Spouse") signifies that
he or she authorizes, ratifies, confirms and approves the execution of this
Agreement by the Shareholder, and acknowledges that any interest he or she now
owns or hereafter acquires in the Shares, pursuant to community property laws
or otherwise, shall be subject to the terms of this Agreement as if such
interests constituted Shares and as if such Spouse were a Shareholder. He or
she further authorizes and appoints his or her spouse as his or her
attorney-in-fact to exercise all rights he or she may have with respect to the
ownership of any Shares, including the encumbrance and disposition of such
Shares. Except to the extent specifically provided in this Section 9, the
Spouse of a Shareholder shall not be considered a Shareholder.
9.2 FUTURE SPOUSES. If a Shareholder marries or remarries
after executing this Agreement, the Shareholder shall have his or her Spouse
execute a "Consent to Be Bound" by this Agreement in the form of attached
Exhibit A within a reasonable time, not to exceed thirty (30) days, following
the marriage.
9.3 AGREEMENT DRAFTED BY COUNSEL TO THE COMPANY. Each Spouse,
by signing this Agreement or a "Consent to Be Bound" by this Agreement,
acknowledges that he
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or she (a) has read and understood this Agreement, and understands the effect
of this Section 9, (b) has had the opportunity to obtain separate and
independent counsel of his or her own choosing prior to signing this Agreement
or a "Consent to Be Bound" by this Agreement and has either exercised or waived
such right, and (c) understands that this Agreement has been drafted by
attorneys for the Company.
10. INDEPENDENT COUNSEL. Each Shareholder understands that this
Agreement has been drafted by attorneys for the Company and acknowledges that
he or she has had the opportunity to obtain separate and independent counsel of
his or her own choosing prior to signing this Agreement or a "Consent to Be
Bound" by this Agreement and has either exercised or waived such right.
11. MISCELLANEOUS PROVISIONS.
11.1 FURTHER ASSURANCES. Each party agrees to perform any
further acts and to execute and deliver any further documents that may be
reasonably necessary to carry out the provisions of this Agreement. The
obligation imposed by this Section 11.1 shall be specifically enforceable.
11.2 ATTORNEY'S FEES. In the event it is necessary for
any party to engage an attorney to enforce the terms of this Agreement,
regardless of whether a lawsuit or arbitration is commenced, the prevailing
party shall, in addition to any other relief, be entitled to recover from the
party in default reasonable attorney's fees and costs, including any on appeal.
11.3 CONSTRUCTION AND VENUE. It is agreed and understood
that this Agreement is made in accordance with and shall be interpreted under
the laws of the State of Washington. If any action or other proceeding be
brought on or in connection with this Agreement, the venue of said action or
other proceeding shall be in King County, Washington.
11.4 NUMBER AND GENDER. Unless some other meaning or
intent is apparent from the context, the plural shall include the singular and
vice versa, and masculine, feminine and neuter words shall be used
interchangeably.
11.5 SECTION HEADINGS. Section headings have been
included solely for convenience and shall not be considered a part of this
Agreement for any purpose relating to the interpretation or construction of its
terms.
11.6 LEGEND ON SHARES. Upon execution of this Agreement,
Shareholders shall deliver all certificates representing Shares to the Company
to have placed upon them a legend in substantially the following form:
The Shares represented by this certificate are subject to the
terms of a Shareholders' Buy-Sell Agreement, as such agreement
may
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be amended from time to time as provided in the agreement, a
copy of which may be examined at the principal office of the
corporation. All terms and provisions of the Shareholders'
Buy-Sell Agreement are hereby incorporated by reference and made
a part of this certificate.
11.7 AMENDMENTS. The provisions of this Agreement may be
altered, amended or repealed, in whole or in part, only upon the written
consent of the Company and the Shareholders holding two-thirds (2/3) of the
outstanding Shares of Capital Stock (as defined in Section 3.3.4).
11.8 SUCCESSORS AND ASSIGNS. This Agreement shall be
binding on, and shall inure to the benefit of, the parties to it and their
respective heirs, personal representatives, successors and assigns.
11.9 TESTAMENTARY PROVISIONS. Each Shareholder agrees to
insert in his or her will a direction and authorization to the executor to
fulfill and comply with the provisions of this Agreement.
11.10 SEVERABILITY. Should any provision or portion of
this Agreement be held unenforceable or invalid for any reason, the remaining
provisions and portions shall be unaffected by such holding.
11.11 ENTIRE AGREEMENT. This instrument constitutes the
sole and entire agreement of the parties with respect to its subject matter and
correctly sets forth the rights, duties and obligations of each as to the other
with respect to the subject matter as of its date. Any prior agreements,
promises, negotiations or representations concerning its subject matter not
expressly set forth in this Agreement are of no force or effect.
11.12 TERMINATION. This Agreement shall terminate on the
written agreement of the Company and the Shareholders holding two-thirds (2/3)
of the outstanding Shares of Capital Stock (as defined in Section 3.3.4); upon
the dissolution, bankruptcy or insolvency of the Company; or at such time as
only one Shareholder (other than the Founder) remains, after the Shares of all
other Shareholders have been transferred, redeemed or purchased.
11.13 NOTICES. Any notice or other communication required
or permitted to be given under this Agreement shall be in writing, and notice
shall be deemed given when delivered personally to, or deposited in the United
States mail, first-class, postage prepaid, addressed to the Company or the
Founder at 616 First Avenue, Suite 701, Seattle, WA 98104, or to the
Shareholder at the Shareholder's address as set forth on attached Exhibit B.
Any party may at any time give notice in writing to the other parties of a
change of his or her address for purposes of this Section 11.13.
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11.14 COUNTERPARTS. This Agreement may be executed by the
parties in one or more counterparts, all of which taken together shall
constitute one instrument.
11.15 CONFIRMATION OF DEFINITION OF SHARES. The parties
expressly acknowledge and confirm that, as noted above, this Agreement binds
only those Shares of Shareholders acquired (a) pursuant to the exercise of
options granted under the Company's 1995 Stock Option Plan, as hereafter
amended, or under any other stock option plan or similar compensation plan
adopted after the date hereof by the Company, or (b) pursuant to a stock bonus,
warrant or other form of security issued or granted for services rendered to
the Company.
IN WITNESS WHEREOF, the parties have executed this Shareholders'
Buy-Sell Agreement effective as of the date first written above.
"COMPANY"
PROGRESSIVE NETWORKS, INC.
By /s/ Robert Glaser
-------------------------------------
Robert Glaser, President
"FOUNDER"
/s/ Robert Glaser
-------------------------------------
Robert Glaser
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