Exhibit 10.19


Summary of Key Terms of Named Executive Officer Compensation
Arrangements


Digimarc has a written employment agreement with its
Chief Executive Officer, Bruce Davis, that governs the minimum terms of his
compensation and is filed as an exhibit to Digimarc’s annual report on
Form 10-K. The Compensation Committee of Digimarc’s Board of Directors
may establish compensation for Mr. Davis that exceeds the minimums
established by his employment agreement.


Digimarc’s other named executive officers are
compensated pursuant to oral, informal compensation arrangements. The
Compensation Committee determines annually the compensation of each named
executive officer. Material elements of Digimarc’s compensation arrangements
with its named executive officers consist of an annual base salary, annual cash
bonus and equity compensation awards.


The following table sets forth the base salary and
annual bonus target amount for each named executive officer for 2007.


 


	
  Name and Principal Positions

  	
   

  	
  2007 Base Salary

  	
   

  	
  2007 Annual

  Bonus

  Target

  (Percentage

  of Base Salary)

  	
   

  
	
  Bruce Davis, Chief
  Executive Officer and Chairman of the Board of Directors

  	
   

  	
  $

  	
  410,000

  	
   

  	
  $

  	
  328,000

  	
   

  
	
  Michael McConnell,
  Chief Financial Officer and Treasurer

  	
   

  	
  $

  	
  260,000

  	
   

  	
  $

  	
  143,500

  	
   

  
	
  Robert Eckel, President,
  Government Programs

  	
   

  	
  $

  	
  270,000

  	
   

  	
  $

  	
  148,500

  	
   

  
	
  Robert Chamness, Chief
  Legal Officer and Secretary

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  137,500

  	
   

  
	
  J. Scott Carr,
  Executive Vice President

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  137,500

  	
   

  
	
  Reed Stager, Executive Vice President

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  137,500

  	
   

  



 


Except as otherwise noted, each named executive
officer will have the opportunity to earn up to approximately 130% of his
annual bonus target amount specified above.  No bonuses will be paid if
Digimarc does not have positive net income in 2007.  Any bonus opportunity
will be allocated among the named executive officers in proportion to their
annual bonus target amounts.  For each named executive officer, other than
Mr. Carr, to the extent the 2007 annual bonus is less than or equal to the
target bonus amount, 60% of the bonus will be calculated based on Digimarc’s
net income for 2007 and 40% will be calculated based on the achievement of
individual performance goals.  For each named executive officer, other
than Mr. Carr, any portion of the 2007 annual bonus that is in excess of the
target bonus amount will be calculated based on Digimarc’s net income for
2007.  For Mr. Carr, 82% of his 2007 annual bonus will be calculated
based on a sales commission plan, and Mr. Carr will have the opportunity
to earn in excess of this portion of his annual bonus target amount specified
above, limited only by the sales performance of the North American sales
organization.  The remaining 18% of Mr. Carr’s 2007 annual bonus will
be paid based on his achievement of individual performance goals, and
Mr. Carr will have the opportunity to earn up to approximately 130% of
this portion of his annual bonus target amount.


 The named
executive officers are also eligible to participate in Digimarc’s equity
compensation plans, and generally receive annual awards of options, restricted
stock and/or performance vesting shares under these plans at the discretion of
the Compensation Committee. Options and restricted stock awards generally vest
over a four-year period following the date of grant. Performance vesting shares
generally vest or terminate on the achievement of one or more specified
performance goals. Specific terms of option grants are governed by a Stock
Option Award Agreement between Digimarc and each named executive officer.
Specific terms of restricted stock awards and performance vesting share awards
are governed by a Restricted Stock Agreement and Performance Vesting Share
Agreement, respectively, between Digimarc and each named executive officer.