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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. The primary 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 2008. 

	Name and Principal Positions
 
	 	2008 Base

Salary
	 	2008 Annual

Bonus Target

	Bruce Davis, Chief Executive Officer/Chairman of the Board of Directors	 	$	410,000	 	$	328,000
	Michael McConnell, Chief Financial Officer and Treasurer	 	$	260,000	 	$	143,000
	Robert Eckel, President, Government Programs	 	$	270,000	 	$	148,500
	Robert Chamness, Chief Legal Officer and Secretary	 	$	250,000	 	$	137,500
	Reed Stager, Executive Vice President	 	$	250,000	 	$	137,500

        For
Mr. Davis, 30% of his bonus will be calculated based on Digimarc's revenue growth targets in 2008, 25% of his bonus will be calculated on Digimarc's EBITDAS (earnings before
interest, taxes, depreciation, amortization and share-based compensation expense) targets for 2008, and 30% of his bonus will be calculated based on the achievement of individual performance goals.
For Mr. McConnell, 20% of his bonus will be calculated based on Digimarc's revenue growth targets in 2008, 45% of his bonus will be calculated on Digimarc's EBITDAS targets for 2008, and 20% of
his bonus will be calculated based on the achievement of individual performance goals. For Mr. Eckel and Mr. Stager, 45% of the bonus will be calculated based on Digimarc's ID and
digital watermarking revenue growth targets respectively for 2008, 20% of the bonus will be calculated on Digimarc's EBITDAS targets for 2008, and 20% will be calculated based on the achievement of
individual performance goals. For Mr. Chamness, 20% of his bonus will be calculated based on Digimarc's revenue growth targets in 2008, 25% of his bonus will be calculated on Digimarc's EBITDAS
targets for 2008, and 40% of his bonus will be calculated based on the achievement of individual performance goals. An additional 15% of each executive's bonus will be calculated based on the
achievement of significant events in 2008 that place the Company on track for projected revenue growth in 2009 and beyond. The Compensation Committee may increase the bonus payments above the target
amount for significant performance that exceeds the applicable performance goals. 

        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. 

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Exhibit 10.19QuickLinks
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Exhibit 10.20    
    

Summary of Key Terms of Non-Employee Director Compensation Arrangements  

        Directors who are also employees of Digimarc receive no additional compensation for their services as directors. Directors who are not employees of Digimarc
receive cash compensation and equity compensation as described below. All directors are also reimbursed for reasonable and necessary travel, communications, and other
out-of-pocket business expenses incurred in connection with their attendance at meetings, while on corporate business or for continuing education related to their board
service. 

	Annual Cash Retainer	 	$	30,000	 	 
	

Additional Annual Cash Retainers for:	
 	
 	

 	
 	

 
	 	
 Lead Director	
 	
$	

20,000	
 	

 
	 	Audit Committee Chair	 	$	20,000	 	 
	 	Audit Committee Member	 	$	10,000	 	 
	 	Compensation Committee Chair	 	$	10,000	 	 
	 	Compensation Committee Member	 	$	5,000	 	 
	 	Other Standing Committee Chair	 	$	7,500	 	 
	 	Other Standing Committee Member	 	$	3,750	 	 
	

Additional fee for meetings in excess of eight meetings per calendar year	
 	
$
$	

1,000

500	
 	

for in-person attendance /

for teleconference
	

Initial Option Grant (upon first joining the Board)	
 	
 	

20,000 shares
	

Annual Option Grant (Continuing Director)	
 	
 	

6,000 shares
	

Annual restricted Stock Grant (Continuing Director)	
 	
 	

3,000 shares
	

Annual Standing Committee Member Option Grant*	
 	
 	

3,000 shares

	*
	The
Board has elected not to grant these awards every year since 2004. The last committee-based awards were made in May of 2003. 

        All
options are granted with an exercise price equal to the fair market value of our stock on the grant date. Initial option grants vest and become exercisable in 36 equal installments
on each monthly anniversary of the grant date, such that the stock option will be fully exercisable three years after the grant date. Annual option grants to continuing directors, including annual
option grants to standing committee members when granted, are made immediately following each annual meeting of
shareholders and vest and become exercisable in twelve equal installments on each monthly anniversary of the grant date, such that the stock option will be fully exercisable one year after the grant
date. 

        The
restricted stock awards are subject to a forfeiture restriction that lapses as to 100% of the shares subject to the award one year after the grant date. 

        The
Board of Directors has discretion to elect not to make the annual option and restricted stock grants to continuing directors and standing committee members. Since 2004, the Board has
elected not to make the annual 3,000 share grant to directors for service on one or more committees. 

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Exhibit 10.21    
    

 
 

PERFORMANCE VESTING SHARE AGREEMENT    
    

        THIS PERFORMANCE VESTING SHARE AGREEMENT (this "Agreement") is made
effective                                    (the "Grant Date"),
by and between Digimarc Corporation, a Delaware corporation (the "Company")
and                                    ("Executive"). In connection
with his services as Executive Vice President, the Company desires to grant
Executive a performance vesting share award of                        shares of the Company's common stock. 

        1.    Grant of Performance Vesting Shares.    The Company hereby
grants to Executive, as of the Grant Date, a performance vesting share award of                        shares of the Company's
common stock (the "Shares") pursuant to the terms and conditions contained in
this Agreement and the terms and conditions of the Company's Restated 1999 Stock Incentive Plan (the "1999 Plan"), subject to the vesting rules set forth in Section 2 below. 

        2.    Vesting of the Shares.    

        2.1    Performance Condition and Release Date.    Subject to the terms
of this Agreement, if                        (the "Performance Condition"), then the Shares shall vest and no longer be subject to
forfeiture on the date on which the Performance Condition is satisfied (the
"Release Date"). All rights to performance vesting shares are contingent on Executive remaining continuously employed by the Company, or any parent or subsidiary of the Company, from the Grant Date
through the Release Date. 

        2.2    Termination Without Cause Prior to Release Date.    In the
event of termination by the Company of Executive's employment without "Cause" (as defined below) prior to the earlier of the third anniversary of the Grant Date (the "Expiration Date") and the Release
Date, the Shares shall be fully
vested and the forfeiture restriction shall lapse as of the date of termination of employment by the Company. 

        2.3    Termination Due to Death or Disability.    In the event of
termination of Executive's employment due to Executive's death or "Disability" (as defined in the 1999 Plan) prior to the earlier of the Expiration Date and the Release Date, the Shares shall be fully
vested and the forfeiture restriction shall lapse as of the date of Executive's death or Disability. 

        2.4    Resignation for Good Reason Following a Change in
Control.    In the event there is a "Change in Control" of the Company (as defined below) prior to the earlier of the Expiration Date and the Release Date and as a
consequence of such Change in Control, Executive resigns for "Good Reason" (as defined below) prior to the earlier of the Expiration Date and the Release Date, the Shares shall be fully vested and the
forfeiture restriction shall lapse as of the date of Executive's resignation for Good Reason. 

        2.5    Termination for Other Reasons.    In the event that Executive's
employment terminates prior to the earlier of the Expiration Date and the Release Date for any reason other than those specified in Sections 2.2, 2.3, and 2.4 above, including termination
voluntarily by Executive or by the Company for Cause, the Shares shall immediately be forfeited by Executive without payment of any further consideration to Executive. 

        2.6    Certain Definitions.    

        (a)   "Cause."
For purposes of this Section 2, "Cause" shall mean: (i) a willful act of embezzlement, fraud, or dishonesty by Executive, which is materially
injurious to the Company; (ii) Executive's continued violation of his obligation to perform the duties and responsibilities normally required of an executive, which are willful or grossly
negligent, after 

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Executive
has been given written notice from the Company's Board of Directors describing his violations and has failed to cure or commence to cure such violations within thirty (30) days; or
(iii) Executive's conviction of, or plea of nolo contendere to, a felony which the Board of Directors reasonably believes has had or will have a material detrimental effect on the Company's
reputation or business. 

        (b)   "Good
Reason." For purposes of this Section 2, "Good Reason" shall mean a resignation by Executive of his employment with the Company, or any parent or subsidiary
of the Company, as a result of any of the following: 

          (i)  a
meaningful and detrimental alteration of his position, his title, or the nature or status of his responsibilities (including his reporting responsibilities) from
those in effect immediately prior to the Change in Control. 

         (ii)  a
reduction by the Company in Executive's annual base salary as in effect immediately prior to the Change in Control or as the same may be increased from time to time
thereafter; 

        (iii)  the
relocation of the Company's office where Executive is employed as of the Change in Control to a location which is more than seventy-five
(75) miles away from such office, or a requirement that Executive be based more than seventy-five (75) miles away from his Company office as of the Change in Control. 

        (c)   "Change
in Control." For purposes of this Section 2, "Change of Control" means the direct or indirect acquisition by any person or related group of persons (other
than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Company's outstanding securities pursuant to a tender or exchange offer made directly to the Company's stockholders, which a majority of the Company's Board of Directors
who are not affiliated with the offeror do not recommend such stockholders accept. 

        3.    Restriction on Transfer.    Executive shall not sell, transfer,
pledge, hypothecate, or otherwise dispose of any Shares prior to the Release Date. 

        4.    Escrow of Shares.    Promptly after the execution of this
Agreement, the Company shall cause the transfer agent for the Company's common stock to make a book entry record, showing ownership for the Shares in the name of Executive subject to the terms and
conditions of this Agreement. The Shares shall be issued from common stock reserved for issuance pursuant to the 1999 Plan as granted under such plan. Subject to the terms hereof, Executive shall have
all rights of a shareholder with respect to the Shares while they are held in escrow, including without limitation the right to vote the Shares and receive any cash dividends declared thereon. If,
from time to time prior to the earlier of the Expiration Date and the Release Date, there is (a) any stock dividend, stock split, or other change in the Shares, or (b) any merger or sale
of all or substantially all of the assets or other acquisition of the Company, any and all new, substituted, or additional securities to which Executive is entitled by reason of his ownership of the
Shares shall be held on his behalf by the Company's transfer agent and included thereafter as "Shares" for purposes of this Agreement and the forfeiture restriction. A certificate for the Shares
granted pursuant to this Agreement will be issued to Executive following the Release Date, or, at Executive's election, such Shares may be transferred in book-entry form to Executive's
brokerage account (subject to any adjustment made therein to withhold Shares to pay taxes as provided in Section 5.2 below). 

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        5.    Tax Consequences.    

        5.1    Section 83(b) Election.    Executive understands that he
(and not the Company) shall be responsible for his own tax liability that may arise as a result of the transactions contemplated by this Agreement. Executive understands that Section 83 of the
Internal Revenue Code of 1986, as amended (the "Code") taxes as ordinary income the fair market value of the Shares as of the date the Shares vest and the forfeiture restriction on the Shares lapses.
Executive understands that he may elect to be taxed at the time the Shares are granted rather than when the Shares vest and the forfeiture restriction lapses by filing an election under
Section 83(b) of the Code with the Internal Revenue Service within 30 days from the Grant Date. Executive understands that failure to file such an election in a timely manner may result
in adverse tax consequences for Executive; provided, however, that if the election is timely filed with the IRS, Executive will be responsible for the income taxes due on the fair market value of the
Shares determined as of the date of this Agreement. The tax payments to the IRS in connection with an 83(b) election cannot be recovered if the Shares later fail to vest and are forfeited. Executive
further understands that an additional copy of such election form should be filed with his federal income tax return for the calendar year in which the Grant Date falls. Executive acknowledges that
the foregoing is only a summary of the effect of United States federal income taxation with respect to the grant of the Shares hereunder and does not purport to be complete. Executive further
acknowledges that the Company has directed Executive to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state, or foreign country in
which Executive may reside, and the tax consequences of Executive's death. Executive agrees that he will execute and deliver to the Company with this executed Agreement a copy of the
Section 83(b) Election set forth on the attached Exhibit A if Executive desires to make such an election within thirty days from the date
of this Agreement. 

        5.2    Withholding.    The Company shall be required to withhold the
amount of taxes required to satisfy any applicable federal, state, and local tax withholding obligations arising from either (a) Executive's Section 83(b) election, or (b) the
lapse of restrictions on the Shares. Executive shall satisfy any such tax obligation in cash or by directing the Company to withhold from the Shares issued to Executive as a result of the lapse of the
restrictions on the Shares the number of whole shares of the Company's common stock required to satisfy such tax obligation, the number to be determined by the fair market value of the Shares on the
date of the lapse of the restrictions on the Shares. If Executive elects to withhold shares of the Company's common stock to satisfy any such tax obligation, Executive shall pay in cash any obligation
that remains after the application of whole shares that is less than the value of a whole share. It is understood that if Executive makes an 83(b) election (which can only be made within thirty days
from the date of this Agreement), Executive cannot satisfy the tax obligation by directing the Company to withhold from the Shares since none of the Shares will be vested at the time of such election. 

        6.    Representations by Executive.    Executive represents that the
Shares are being acquired for investment and that Executive has no present intention to transfer, sell, or otherwise dispose of the Shares, except
in compliance with applicable securities laws, and the parties agree that the Shares are being acquired in accordance with and subject to the terms, provisions, and conditions of this Agreement. 

        7.    General Provisions.    

        7.1   This Agreement and the 1999 Plan represent the entire agreement and understanding between the parties as to the subject
matter hereof and supersede all prior or contemporaneous agreements, whether written or oral. 

        7.2   Subject to the limitations contained in this Agreement, all terms and conditions of the 1999 Plan are incorporated in
this Agreement and made part of this Agreement as if stated herein. 

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        7.3   Neither this Agreement nor the issuance of any of the Shares shall confer on Executive any right with respect to
continuance of employment or other service with the Company, or any parent or subsidiary of the Company, nor shall they interfere in any way with any right the Company, or any parent or subsidiary of
the Company, would otherwise have to terminate or modify the terms of Executive's employment or other service at any time. 

        7.4   This Agreement shall be governed by the laws of the State of Oregon without reference to its conflicts of law principles. 

        7.5   No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding, unless in writing and
signed by duly authorized representatives of the parties hereto. This Agreement shall be binding on, and shall inure to the benefit of, the parties and their respective successors and assigns. 

        7.6   This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument. 

        The
parties have duly executed this Agreement effective as of the date first set forth above. 

	The Company:	 
	 	 	 
	DIGIMARC CORPORATION	 
	 	 	 
	 	 	 
	By:	    
	 
	Name:	 	 
	Title:	Secretary	 
	 	 	 
	Executive:	 
	 	 	 
	 	 	 
	
 Name:	 

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EXHIBIT A    
    
    SECTION 83(b) ELECTION    
    

        The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code, to include in taxpayer's gross income for the current
taxable year, the amount of any compensation taxable to taxpayer in connection with taxpayer's receipt of the property described below: 

        1.     The
name, address, taxpayer identification number and taxable year of the undersigned are as follows:

	 	 	Name of Taxpayer:	

	

 	
 	

Name of Spouse:	

	

 	
 	

Address:	

	

 	
 	

 	

	

 	
 	

Identification No. of Taxpayer:	

	

 	
 	

Identification No. of Spouse:	

	

 	
 	

Taxable Year:	

        2.     The
property with respect to which the election is made is described as follows: 

                        shares
of the Common Stock (the "Shares") of Digimarc Corporation, a Delaware corporation (the "Company"). 

        3.     The
date on which the property was transferred is:                        , 20    . 

        4.     The
property is subject to the following restrictions: 

The
Shares will be forfeited to the Company for no consideration if the performance vesting condition is not met or taxpayer's employment terminates under certain circumstances
before                        ,
20    . 

        5.     The
fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property
is: $                  . 

        6.     The
amount (if any) paid for such property is: $0.00. 

        The
undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned's receipt of the above-described property.
The transferee of such property is the person performing the services in connection with the transfer of said property. The undersigned understands that the foregoing election may not be revoked
except with the consent of the Commissioner. 

	 	 	 	 	 
	    
	 	Date	    

	Taxpayer Name:	    
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	    
	 	Date	    

	Spouse Name:	    
	 	 	 

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Exhibit 10.21

PERFORMANCE VESTING SHARE AGREEMENT

EXHIBIT A SECTION 83(b) ELECTION

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