Company: DMRC
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001437749-25-009135
Chunk: 47

Company: Digimarc CORP
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 47
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 |                          77.0 |    |     |        | 12.5 | % |
| Strategic Operating Objectives              |     |      | 12.5 | % |     |           | 2.75 |   |     |        | 3.75 |   |     |         | N/A |   |     |        |                          4.07 |    |     |        | 12.5 | % |
|                                             |     |      |      |   |     |           |      |   |     |        |      |   |     |         |     |   |     |        | Total Payout (as % of Target) |    |     |        | 96.0 | % |

<div align='center'>28</div>

Long-Term Incentive Plan

For 2024, Digimarc continued to award performance-based long-term equity for all executive officers, similar to the plans for 2022 and 2023. The plan provides for performance-based equity awards to be earned from 0% to 200% of the target amount tied to measures of revenue growth and relative total shareholder return (vs. the S&P US Small Cap Software & Services Index), which will cliff-vest in three years based on the Company’s performance on both metrics (split 50/50). The revenue growth metric is fiscal year 2026 subscription revenue, measured using a compound annual growth rate (“CAGR”) relative to the fiscal year 2023 subscription revenue. The relative total shareholder return (“rTSR”) metric is calculated as the cumulative TSR for Digimarc vs. the constituents in the S&P US Small Cap Software and Services Index (measurement starting as of 1/1/2024). The results of the subscription revenue and rTSR goals are weighted 50% each and combined for potential payout of 50% at threshold, up to 200% at the maximum level of performance. Awards are zero below the threshold and linearly interpolated between threshold and target and target and maximum performance levels.

Generally, the recipient of equity awards granted by Digimarc will forfeit the awards if the recipient does not perform as anticipated. The most obvious circumstances involve the PRSUs, where the recipient forfeits the award if the recipient does not achieve the preconditions to vesting, as well as if the employee does not remain employed until the end of the applicable performance period. For employees we place on performance improvement plans to address performance deficiencies, we