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OFFON

REALNETWORKS, INC.

(RNWK)
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RealNetworks : OBJECTIVE OF THE PLAN (Form 8-K)

08/27/2021 | 04:33pm EST

OBJECTIVE OF THE PLAN

The objective of the RealNetworks' Executive MBO Plan is to reward participants for their contribution to the company's success and ensure market competitiveness as we work to attract and retain high caliber talent. RealNetworks has adopted this plan to reward high performance consistent with our core business objectives. The Executive MBO Plan is administered under RealNetworks' 2005 Stock Incentive Plan, as amended and restated.

EFFECTIVE DATE

The effective date of the 2021 Executive MBO Plan is January 1, 2021 - December 31, 2021. Payout, if earned, will be made by no later than March 15, 2022.

PLAN METRICS

Total attainment for the target period is based on (i) revenue (weighted at 50%, split evenly between Company revenue and SAFR revenue), (ii) contribution margin by reportable segment (weighted at 25%), and (iii) strategic leadership and business objectives (weighted at 25%).

Contribution margin by reportable segment is a non-GAAP measure that we define as operating income (loss) including other income (expense) net, but excluding the impact of the following: depreciation and amortization, acquisitions related intangible asset amortization, stock-based compensation, restructuring and other charges, and lease exit and related charges.

MBO PAYOUT MECHANICS

Any bonuses payable pursuant to the Plan may be payable in the form of cash or fully vested equity, or a combination thereof.

Revenue Metric:

In order to encourage revenue growth year over year, performance under 90% of the revenue target goal will not be rewarded.

Attainment

Incentive Payout

No Payout
90% - 100% 50% - 100%
100% - 120%+ 100% - 200%*
*

Payout for revenue results will have a maximum payout of 200%. Payout is capped at 125% if contribution margin is attained at less than 100% of target.

Adjusted EBITDA Metric:

In order to maintain fiscal responsibility, performance lower than $2,000,000 (or $5,000,000 depending on the executive) below contribution margin target will not be rewarded.

Attainment

Incentive Payout

> $2 million below budget No Payout
$2 million below budget up to budget 50% - 100%
Budget up to $2 million over budget* 100% - 200%*
*

Payout for adjusted EBITDA results will be capped at 125% until revenue attainment reaches 100%, and will have a maximum payout of 200%.

TERMS AND CONDITIONS

Executive MBO Plan calculations and payments are completed and made after the end of the plan year with payout timing approximately 30 - 45 days after the close of the plan year. In all circumstances, any payouts that are earned in the plan year will be paid by March 15 of the following year, at the latest.

You must be in an eligible position on the first and last day of the month to participate in the plan for that month.

Salary, eligible position changes and/or transfers from one eligible group to another within a month will be based on status at the beginning of the month. Changes after the first day of the month will be reflected in the next month.

In order to receive a payout from the plan you must be on the company's payroll as of the last day of the plan year and on the company's payroll as of the date the award is scheduled to be paid, subject to the following. If your employment terminates due to your total and permanent disability or death, you or your estate, still may, in the discretion of the Compensation Committee be eligible to receive any payout that otherwise was earned.

Notwithstanding any other provision of the plan, the Compensation Committee may, in its sole discretion, increase (other than for an officer), reduce or eliminate a participant's award at any time before it is paid, whether or not calculated on the basis of pre-established performance goals or formulas.

The Compensation Committee has all power and discretion to interpret and administer the plan, including (but not limited to) the power to determine who is eligible for the plan and the size of any payouts.

The Compensation Committee may delegate all or any part of its powers under the plan to the company's chief executive officer or head of human resources, except that such individual may not administer the plan with respect to participants who are executive officers of the company. (For this purpose, an individual will be considered an executive officer of the company if his or her role at the company falls within the definition of 'officer' under Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934, as amended.)

The Compensation Committee reserves the right to adjust targets/measurements based on acquisition or disposition of businesses/assets.

Disclaimer

RealNetworks Inc. published this content on 27 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 20:31:08 UTC.


ę Publicnow 2021
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Financials (USD)
Sales 2021 59,1 M - -
Net income 2021 -26,4 M - -
Net Debt 2021 - - -
P/E ratio 2021 -1,73x
Yield 2021 -
Capitalization 49,0 M 49,0 M -
Capi. / Sales 2021 0,83x
Capi. / Sales 2022 0,81x
Nbr of Employees 325
Free-Float 55,4%
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Number of Analysts 1
Last Close Price 1,04 $
Average target price 4,00 $
Spread / Average Target 285%
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Managers and Directors
Robert Glaser Chairman & Chief Executive Officer
Michael J. Ensing President & Chief Operating Officer
Christine Chambers Chief Financial Officer, Treasurer & Senior VP
Mike B. Slade Independent Director
Dawn G. Lepore Independent Director
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