Document:

Investor Rights Agreement

 Exhibit 4.2 
  

ARCSOFT, INC. 
  
 INVESTORS RIGHTS AGREEMENT 
  
 This INVESTORS RIGHTS AGREEMENT (this “Agreement”) is made as of the 22nd day of December 2000, by and among ArcSoft, Inc., a
California corporation (the “Company”), the holders of the Company’s Series A Preferred Stock listed on Exhibit A (the “Series A Holders”) and the holders of the Company’s Series B
Preferred Stock listed on Exhibit B (the “Series B Holders”). The Series A Holders and the Series B Holders are referred to collectively as the “Holders”. 
  
 RECITALS 
  
 A. The Company and the Series A Holders are parties to that certain Series A
Preferred Stock Purchase Agreement (the “Series A Preferred Purchase Agreement”), and under which, among other things, certain registration rights were granted by the Company to the Series A Holders. 
  
 B. The Company and the Series B Holders are parties to that certain Series B
Preferred Stock Purchase Agreement (the “Series B Preferred Purchase Agreement”), under which, among other things, certain registration rights were granted by the Company to the Series B Holders. 
  
 C. The Company has determined to issue and sell additional shares of its
Series B Preferred Stock to certain additional Series B Holders and has entered into a Second Series B Preferred Stock Purchase Agreement dated the date hereof (the “Second Series B Preferred Purchase Agreement”, together
with Series A Preferred Purchase Agreement and the Series B Preferred Purchase Agreement are referred to as “Purchase Agreements”). It is a condition to the closing of such transaction that the Holders execute this Investors
Rights Agreement. 
  
 D. Pursuant to the Series A Preferred
Purchase Agreement, any term thereof may be amended only with the written consent of the Company and the holders of a majority of the then-outstanding shares of Preferred (as defined therein) including any shares of Common Stock (as defined herein)
of the Company into which such Preferred have been converted and that any such amendment shall be binding upon each transferee of any Preferred, and Common Stock issuable upon conversion of any share of such Preferred, each future holder of all such
securities and the Company. 
  
 E. Pursuant to the Series B
Preferred Purchase Agreement, any term thereof may be amended only with the written consent of the Company and the holders of a majority of the then-outstanding shares of Preferred (as defined therein) including any shares of Common Stock of the
Company into which such Preferred Stock have been converted and that any such amendment shall be binding upon each transferee of any Preferred, and Common Stock issuable upon conversion of any share of such Preferred, each future holder of all such
securities and the Company. 
  
 F. The Company has determined it
to be in the best interests of the Company and its shareholders that the Company and the Holders enter into this Investors Rights Agreement and the Series A Preferred Purchase Agreement be amended by deleting Sections 4, 5 and 7, and Series B
Preferred Purchase Agreement be amended by deleting Section 6 thereof, and to provide certain integrated registration rights and other provisions as described herein. 
  
 In consideration of the foregoing and the promises and covenants contained herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 SECTION 1 
  
 CERTAIN DEFINITIONS 
  
 As used in this
Agreement, the following terms shall have the following respective meanings: 
  
 1.1 “Affiliate” shall mean any entity who is controlled by, who controls or who is under common control with a person. 
  

 1 

 1.2 “Commission” shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act. 
  
 1.3 “Common Stock” shall mean the Common Stock of the Company. 
  
 1.4 “Conversion Shares” means the Common Stock issued or issuable upon conversion of the Preferred Stock. 
  
 1.5 “Holder” or “Holders”
shall mean any person or persons owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 2.12 hereof. 
  

1.6 “Initiating Holders” shall mean Holders of at least forty percent (40%) of Registrable Securities held by the
Major Holders. 
  
 1.7 “IPO”
shall mean the closing of the first sale of the Company’s securities to the public pursuant to (i) a registration statement under the Securities Act (as defined below), or (ii) the listing requirements of an exchange which is qualified as a
“designated offshore securities market” under Rule 902 of the Securities Act. 
  
 1.8 “Major Holder” shall mean a Holder, individually or together with its Affiliates, who holds at least 750,000 shares
of Registrable Securities (adjusted to reflect subdivisions, stock splits, stock dividends, combinations, consolidations, recapitalizations and the like of the Company). 
  
 1.9 “Preferred Stock” shall mean the shares of the Company’s Series A Preferred Stock
(“Series A Preferred Stock”) and Series B Preferred Stock (“Series B Preferred Stock”), issued pursuant to the Purchase Agreements. 
  
 1.10 “Purchase Agreements” shall have the meaning set forth in Recital B. 
  
 1.11 “Qualified IPO” shall mean an IPO that
(a) is made at a price of at least $10 per share (adjusted to reflect subdivisions, stock splits, stock dividends, combinations, consolidations, recapitalizations and the like of the Company) and (b) results in gross proceeds to the Company of at
least $10,000,000. 
  
 1.12
“Register”, “Registered” and “Registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering
of the effectiveness of such registration statement. 
  
 1.13 “Registrable Securities” shall mean (i) Conversion Shares, (ii) any Common Stock issued in respect of, in exchange for or in replacement of the Conversion Shares or other securities issued pursuant to the conversion of
the Preferred Stock or upon any subdivision, stock split, stock dividend, combination, consolidation, recapitalization or the like, and (iii) any other shares of Common Stock now or later held by any holder of Registrable Securities acquired by such
Holder pursuant to the Purchase Agreements or herein. Securities previously sold to the public pursuant to a registered public offering or Rule 144 of the Securities Act shall cease to be Registrable Securities 
  
 1.14 “Registration Expenses” shall mean all
expenses incurred in complying with registrations, filings or qualifications under Sections 2.4, 2.5 and 2.6 hereof, including, without limitation, all registration, qualification and filing fees, accounting fees, printing expenses, exchange listing
fees, escrow fees, fees of transfer agents and registrars, fees and disbursements of counsel for the Company and independent public accountants to the Company, blue sky fees and expenses, the fees and disbursements of a single special counsel to the
Holders not to exceed $15,000, the expense of any special audits incident to or required by any such registration. 
  
 1.15 “Restricted Securities” shall mean the securities of the Company required to bear the legend set forth in Section
2.2 hereof (or any similar legend). 
  
 1.16
“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  

 2 

 1.17 “Securities Exchange Act” shall mean the Securities Exchange Act of
1934, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  
 1.18 “Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of the
Registrable Securities and the fees and disbursements of any counsel for the Holders, other than the fees and disbursements of special counsel included in the definition of Registration Expenses. 
  
 SECTION 2 
  
 RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; 
 COMPLIANCE WITH SECURITIES ACT 
  
 2.1 Restrictions on Transferability. The Preferred Stock and the Conversion Shares shall not be transferable except upon the
conditions specified in Sections 2.2 and 2.3, which conditions are intended to ensure compliance with the provisions of the Securities Act, or, in the case of Section 2.14 hereof, which is intended to assist in an orderly distribution. Until such
time as the restrictive legend set forth in Section 2.2 is no longer required to be placed on Registrable Securities pursuant to Section 2.3(a) and under Section 2.14, each Holder will cause any proposed transferee of the Preferred Stock and the
Conversion Shares held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Section 2 (including the “market stand-off” provisions of Section 2.14). 
  
 2.2 Restrictive Legend. Each certificate representing
the Preferred Stock (and the Conversion Shares), and any securities issued in respect thereof or exchange therefor, shall (unless otherwise permitted by the provisions of Section 2.3 below) be stamped or otherwise imprinted with a legend in
substantially the following form (in addition to any legend required under applicable state securities laws): 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO
COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICE.” 
  
 2.3 Notice of Proposed Transfers. 
  
 (a) The Holder of each certificate representing Restricted Securities agrees to comply in all respects with the provisions of this Section
2.3. Prior to any proposed transfer of any Restricted Securities (unless there is in effect a registration statement under the Securities Act covering the proposed transfer), the Holder thereof shall give written notice to the Company of such
Holder’s intention to effect such transfer. Each such notice shall describe the manner and circumstances of the proposed transfer in sufficient detail, and (except in transactions in compliance with Rule 144) if reasonably requested by the
Company shall be accompanied by either (i) a written opinion of legal counsel, who shall be reasonably satisfactory to the Company, addressed to the Company and reasonably satisfactory in form and substance to the Company’s counsel, to the
effect that the proposed transfer of the Restricted Securities may be effected without registration under the Securities Act, or (ii) a “no action” letter from the Commission to the effect that the transfer of such Restricted Securities
without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the Holder of such Restricted Securities shall be entitled to transfer such Restricted Securities in
accordance with the terms of the notice delivered by the Holder to the Company. Each certificate evidencing the Restricted Securities transferred pursuant to the above shall bear the legend set forth in Section 2.2 above, except that such
certificate shall not bear such restrictive legend if such transfer occurred pursuant to an effective registration statement or Rule 144 or, in the opinion of counsel for the Company, such legend is not required in order to establish compliance with
any provision of the Securities Act. 
  

 3 

 (b) Notwithstanding the provisions of Section 2.3(a), no such registration statement or
opinion of counsel shall be necessary for a transfer by a Holder which is (A) a partnership to its partners or former partners in accordance with partnership interests, (B) a corporation to its shareholders in accordance with their interest in the
corporation or to any Affiliate of the corporation, (C) a limited liability company to its members or former members in accordance with their interest in the limited liability company, or (D) to the Holder’s family member or trust for the
benefit of an individual Holder; provided that in each case the transferee will be subject to the terms of this Agreement to the same extent as if such transferee were an original Holder hereunder. 
  
 2.4 Company Registration. 
  
 (a) Registration. If at any time or from time to
time, the Company shall determine to register any of its securities, either for its own account or the account of a security holder or holders exercising their respective demand registration rights, other than (i) a registration on Form S-8 (or a
similar or successor form) relating solely to employee stock option, stock purchase or other benefit plans, or (ii) a registration on Form S-4 (or similar or successor form) relating solely to a Commission Rule 145 transaction, the Company will:

  
 (i) promptly give to each Holder written
notice thereof (and, in the case of any Holder located outside the continental United States, simultaneously provide a copy of such notice by fax); and 
  
 (ii) include in such registration, any related qualification or other compliance, and in any underwriting involved therein, all the
Registrable Securities specified in a written request or requests, made within twenty (20) days after mailing of written notice by the Company by first-class mail, postage prepaid, by any Holder or Holders (with a copy by fax as provided above),
except as set forth in Section 2.4(b) below. 
  
 (b) Underwriting. If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section
2.4(a)(i). In such event, the right of any Holder to registration pursuant to Section 2.4 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. 
  
 All Holders proposing to distribute their Registrable Securities through such underwriting shall (together with the Company and the other Holders distributing their Registrable Securities through such underwriting) enter into an
underwriting agreement in customary form with the Underwriter’s Representative selected for such underwriting by the Company. Notwithstanding any other provision of this Section 2.4, if the Underwriter’s Representative (or the Company
after consultation with the Holders if the offering is not underwritten) determines in good faith that marketing factors require a limitation of the number of shares to be underwritten, the Underwriter’s Representative may limit the number of
Registrable Securities to be included in the registration and underwriting. The Company shall so advise all Holders and other holders distributing their securities through such underwriting and the number of shares of Registrable Securities that may
be included in the registration and underwriting shall be allocated pro rata among all the Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities held by such Holder at the time of filing the
Registration Statement. In no event will shares of any other selling shareholder be included in such registration which would reduce the number of shares which may be included by Holders without the written consent of Holders of not less than a
majority of the Registrable Securities proposed to be sold in the offering. The number of securities includable by any Holder or other person may, in the discretion of the underwriter, be rounded to the nearest one hundred (100) shares. No
securities excluded from the underwriting by reason of the Underwriter’s Representative marketing limitation shall be included in such registration. 
  
 If any Holder disapproves of the terms of any such underwriting, he may elect to withdraw therefrom by written notice to the Company and
the managing underwriter. Any securities excluded or withdrawn from such underwriting shall be withdrawn from such registration. 
  
 If the Underwriter’s Representative has not limited the number of shares to be underwritten for the Company’s account and the
account of the Holders, the Company may include securities for the account of employees, officers, directors and consultants. 
  
 2.5 Requested Registration. 
  

 4 

 (a) Request for Registration. In case the Company shall receive from Initiating
Holders a written request that the Company effect any registration, qualification or compliance with respect to all or a part of the Registrable Securities, and only in the event that (i) the request is six (6) months after the date of the
Company’s IPO and (ii) the aggregate offering price of the Registrable Securities proposed to be registered equals or exceeds $10,000,000, the Company will: 
  
 (i) promptly give written notice of the proposed registration, qualification or compliance to all other
Holders; and 
  
 (ii) use its best efforts to
effect such registration, qualification or compliance as soon as practicable, as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request
in writing received by the Company within thirty (30) days after mailing of such written notice from the Company by first-class mail, postage prepaid; provided, that the Company shall not be obligated to take any action to effect any such
registration, qualification or compliance pursuant to this Section 2.5: 
  
 (A) In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already
subject to service in such jurisdiction and except as may be required by the Securities Act; 
  
 (B) Prior to six (6) months after the effective date of the Company’s Qualified IPO; 
  
 (C) After the Company has effected one (1) such
registration pursuant to this Section 2.5 and such registration has been declared or ordered effective; 
  
 (D) If the Company is eligible to use a Form S-3; 
  
 (E) Within one hundred eighty days (180) days after the consummation of the Company’s initial firm
commitment underwritten offering of its securities to the general public; or 
  
 (F) Within one hundred eighty (180) days after the effective date of any registration under Section 2.5 or 2.6. 
  
 Subject to the foregoing clauses (A) through (F), the Company shall file a registration statement covering the Registrable Securities so
requested pursuant to this Section 2.5(a); provided, however, that if the Company shall furnish to the Initiating Holders a certificate signed by the President of the Company stating that the Board of Directors of the Company (the “Board of
Directors”) has determined in its good faith judgment, that it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed at such time, the Company shall have the right to defer such
filing for a period of not more than one hundred twenty (120) days after receipt of the request of the Initiating Holders (provided that such right shall not be used more than once in any twelve month period). 
  
 (b) Underwriting. If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as part of their request made pursuant to Section 2.5 and the Company shall include such information in the written notice
referred to in Section 2.5(a)(i). The right of any Holder to registration pursuant to Section 2.5 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. 
  
 The underwriter shall be selected by a majority in interest of the Initiating Holders, subject to the reasonable consent of the Company, such consent not to be unreasonably withheld. The Company shall (together with all Holders and other
parties proposing to distribute their securities through such underwriting) enter into an underwriting agreement in customary form with the representative(s) of the underwriter(s) (collectively, the “Underwriter’s
Representative”) selected for such underwriting by the Initiating Holders. Notwithstanding any other provision of this Section 2.5, if the Underwriter’s Representative (or the Company after consultation with the Initiating Holders if
the offering is not underwritten) advises the Initiating Holders in writing that it has determined in good faith 

  

 5 

 
that the marketing factors require a limitation of the number of shares to be underwritten, the Company and the Underwriter’s Representative shall so
advise the Initiating Holders and all Holders of Registrable Securities, and the Underwriter’s Representative may limit the number of shares of Registrable Securities to be included in the registration and underwriting on a pro rata basis based
upon the total number of Registrable Securities entitled to registration held by the Holders exercising their respective registration rights under Section 2.5(a); provided, however, that the number of shares of Registrable Securities to be included
in such underwriting by the Holders shall not be reduced unless all other securities proposed to be sold by the Company or persons other than the Holders are first entirely excluded from the underwriting. The number of securities includable by any
Holder or other person may, in the discretion of the underwriters, be rounded to the nearest one hundred (100) shares. No securities excluded from the underwriting by reason of the underwriter’s marketing limitation shall be included in such
registration. 
  
 If any Holder of Registrable
Securities disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the Underwriter’s Representative and the Initiating Holders. The Registrable Securities and/or other
securities so withdrawn shall also be withdrawn from registration; provided, however, that, if by the withdrawal of such Registrable Securities a greater number of Registrable Securities held by other participating Holders may be included in such
registration (up to the maximum of any limitation imposed by the Underwriter’s Representative), then the Company shall allocate such greater number of Registrable Securities to such Holders in proportion, as nearly as practicable, to the
respective amount of Registrable Securities held by such participating Holders. 
  
 If the Underwriter’s Representative has not limited the number of Registrable Securities to be underwritten, the Company may include
securities for its own account or for the account of other stockholders of the Company in such registration if the Underwriter’s Representative so agrees. 
  

2.6 S-3 Registrations. If the Company is requested (and qualifies under applicable Commission rules) to undertake a registration
on Form S-3 (or a similar or successor form) and any related qualification or compliance, of its securities by the Holders of Registrable Securities which will be reasonably estimated to result in aggregate gross proceeds of at least $1,000,000, the
Company shall promptly give notice of such proposed registration to all Holders of Registrable Securities (and, in the case of any Holder located outside the continental United States, simultaneously provide a copy of such notice by fax) and the
Company shall, as expeditiously as possible, use its best efforts to effect the registration on Form S-3 (or a similar or successor form) of the Registrable Securities which the Company has been requested to register (i) in each request and (ii) in
any response given within twenty (20) days after mailing of the written notice by the Company by first-class mail, postage prepaid, of the foregoing notice from the Company. Notwithstanding the foregoing, however, such registration shall be subject
to the following: 
  
 (a) The Company shall not
be required to effect more than one (1) such registrations pursuant to this Section 2.6 in any twelve (12) month period. 
  
 (b) The Company shall not be required to effect a registration pursuant to this Section 2.6 within one hundred eighty (180) days of the
effective date of any registration referred to in Section 2.5. 
  
 The Company may include in the registration under this Section 2.6 any other shares of Common Stock (including issued and outstanding shares of Common Stock as to which the holders thereof have contracted with the
Company for “piggyback” registration rights) so long as the inclusion in such registration of such shares will not, in the opinion of the Underwriter’s Representative (or in the reasonable opinion of the Company after consultation
with the Holders in the event that the offering is not underwritten), interfere with the successful marketing in accordance with the intended method of sale or other disposition of all the shares of Registrable Securities sought to be registered by
the Holder or Holders of Registrable Securities pursuant to this Section 2.6. If it is determined as provided above that there will be such interference, the other shares of Common Stock sought to be included by the Company shall be excluded to the
extent deemed necessary by such Underwriter’s Representative (or the Company after consultation with the Holders if the offering is not underwritten), and all other shares of Common Stock held by other parties shall be excluded before the
exclusion of any shares of Registrable Securities held by the Holders who desire to have their shares included in the registration and offering. If, as contemplated above, and after excluding all other shares of Common Stock held by other parties,
Registrable Securities of the Holders are to be excluded, the number of Registrable Securities of each participating Holder which are to be excluded shall be proportionate to the number of shares which such party is seeking to register. 

 

 6 

 2.7 Expenses of Registration. All Registration Expenses incurred in connection
with any registration, qualification or compliance pursuant to Sections 2.4, 2.5 and 2.6 shall be borne by the Company; and, unless otherwise stated, all Selling Expenses relating to securities registered by the Holders, shall be borne by the
Holders of such securities pro rata on the basis of the number of shares so registered; provided, that unless otherwise agreed, any Holder that retains its own counsel (in addition to the single special counsel for all Holders) shall be solely
responsible for the fees and expenses of such counsel. 
  
 2.8 Registration Procedures. In the case of each registration, qualification or compliance effected by the Company pursuant to this Section 2, the Company will keep each Holder advised in writing as to the initiation of each
registration, qualification and compliance and as to the completion thereof. The Company will: 
  
 (a) Prepare and file with the Commission a registration statement with respect to such securities and use its best efforts to cause such
registration statement to become and remain effective for a period of one hundred and twenty (120) days or until the Holder or Holders have completed the distribution described in the registration statement relating thereto, whichever occurs first.

  
 (b) Furnish to the Holders and to each
underwriter such number of copies of the registration statement and the prospectus included therein (including each preliminary prospectus) as such persons may reasonably request in order to facilitate the intended disposition of the Registrable
Securities covered by such registration statement. 
  
 (c) Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration statement for the period set forth in paragraph (a) above. 
  
 (d) Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act. 
  
 (e) In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under
such an agreement. 
  
 (f) Notify each Holder of
Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances
then existing, and promptly prepare and file with the Commission such amendments and supplements to such prospectus and registration statement as may be required such that such registration statement and prospectus, as so amended and supplemented,
will no longer include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 
  
 (g) Use its best efforts to furnish, on the date that such
Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, or on the effective date of such registration statement, if such offering is not underwritten, (i) an opinion, dated as of
such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the selling
Holders, and (ii) a letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering addressed to the underwriters and to the selling Holders. 
  
 2.9 Indemnification. 
  

 7 

 (a) The Company will, and does hereby undertake to, indemnify and hold harmless each
Holder, each of its officers, directors, employees and agents and partners, and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification or compliance has been
effected pursuant to this Section 2, and each underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages and liabilities (or actions in
respect thereof), including settlement of any litigation, commenced or threatened, or any rule or regulation under the Securities Act or other applicable law, to which they may become subject, arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any registration statement, prospectus (preliminary or final), offering circular or other document or amendments thereto, or arising out of or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or arising out of, or based on any violation or alleged violation by the
Company of any federal, state or common law rule or regulation applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and will promptly reimburse
each such Holder, each of its officers, directors and partners, and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection
with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is
based on any untrue statement or omission or alleged untrue statement or omission, made in the Company’s reliance on and in conformity with written information furnished to the Company by an instrument executed by such Holder or managing
underwriter expressly for use in connection with such registration statement, prospectus, offering circular or other document. 
  
 (b) Each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify and hold harmless the Company, each of its directors and officers, agents and employees, each underwriter, if any, of the Company’s securities covered by such a registration statement,
each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, and each other such Holder, each of its officers, directors, employees, agents and partners and each person controlling such Holder
within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities, joint or several, (or actions in respect thereof to which they may become subject) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or amendments thereto, or any omission (or alleged omission) to state therein a material fact required to be
stated therein in light of the circumstances in which they were made, or necessary to make the statements therein, not misleading, and will promptly reimburse the Company, each such other Holder, such directors, officers, employees and agents,
underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such
untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the
Company by an instrument executed by such Holder expressly for use in connection with such registration statement, prospectus, offering circular or other document; provided, however, that the aggregate liability of Holder hereunder and under Section
2.9(d) below shall be limited to an amount equal to the net proceeds to such Holder of Registrable Securities from the sale of such Registrable Securities as contemplated herein. 
  
 (c) Each party entitled to indemnification under this Section 2.9 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall deliver written
notice to the Indemnifying Party of commencement thereof. The Indemnifying Party, at its sole option, may participate in or assume the defense of any such claim or any litigation resulting therefrom with counsel reasonably satisfactory to the
Indemnified Party, and the Indemnified Party may participate in such defense at the Indemnified Party’s expense, provided, that if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the
Indemnified Party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may
be deemed to conflict with the interests of the Indemnifying Party, the Indemnified Party shall have the right to select a separate counsel and to assume such legal defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. The failure of any Indemnified Party to give notice as provided 

  

 8 

 
herein shall not relieve the Indemnifying Party of its obligations under this Section 2 except to the extent that such failure to give notice shall
materially adversely affect the Indemnifying Party in the defense of any such litigation. No Indemnifying Party, in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional term a release from all liability in respect to such claim or litigation by the claimant or plaintiff to such Indemnified Party. 
  
 (d) If the indemnification provided for in this Section 2.9
is applicable by its terms but is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any losses, claims, damages or liabilities referred to herein, the Indemnifying Party, in lieu of indemnifying such
Indemnified Party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations.
The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party; provided, that in no event shall the sum of any contribution by a Holder hereunder and any amount payable by such Holder under Section 2.9(b)
above exceed in the aggregate the net proceeds from the offering received by such Holder. 
  
 (e) The obligations of the Company and Holders under this Section 2.9 shall survive completion of any offering of Registrable Securities
in a registration statement and the termination of this Agreement. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. 
  
 2.10 Information by Holder. Each Holder included in
any registration shall furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing and as shall be required in connection with any registration,
qualification or compliance referred to in this Section 2. 
  
 2.11 Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Securities to the public without
registration, the Company agrees to: 
  
 (a)
Register its Common Stock under Section 12(g) of the Securities Exchange Act, as soon as practicable, but in any event not later than ninety (90) days after the close of the Company’s first fiscal year following the effective date of the first
registration statement filed by the Company relating to a public offering other than to employees of the Company under an employee option plan or employee stock purchase plan; 
  
 (b) Make and keep public information available, as those terms are understood and defined in Rule 144 under
the Securities Act, at all times after the effective date of the first registration under the Securities Act filed by the Company; 
  
 (c) File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Securities Exchange Act (at any time after it has become subject to such reporting requirements); and 
  
 (d) Furnish to the Holders, so long as the Holders own any Restricted Securities, written notice of the Company’s qualification as a
registrant, as soon as practicable after such qualification; the Company further shall furnish forthwith upon request a written statement as to its compliance with the reporting requirements of Rule 144 and of its compliance with the Securities Act
and the Securities Exchange Act (at any time after it has become subject to such reporting requirements); the Company shall provide forthwith upon written request a copy of the most recent annual or quarterly report of the Company, and such other
reports and documents of the Company as the Holders of Restricted Securities may reasonably request in availing itself of any rule or regulation of the Commission allowing Holders to sell any such securities without registration. 
  

 9 

 2.12 Assignment of Registration Rights. The rights to cause the Company to
register securities and related rights granted each Holder under Section 2 may not be assigned except: (i) to a purchaser of more than 250,000 shares of Registrable Securities or in the case of an assignment under Section 2.5 hereof, to a purchaser
of more than 750,000 shares of Registrable Securities (in both cases adjusted to reflect subdivisions, stock splits, stock dividends, combinations, consolidations, recapitalizations, and the like), (ii) to a successor entity to a Holder pursuant to
a reorganization or recapitalization of a Holder, (iii) to an Affiliate of a Holder, (iv) to the partners, members or shareholders of a Holder or (v) pursuant to an inter vivos transfer to a Holder’s ancestors or descendants or spouse or to a
trustee for their benefit; provided, that the Company receives a written notice within twenty (20) days following any such assignment. 
  
 2.13 Termination of Registration Rights. The registration rights and related rights granted pursuant to Section 2 shall terminate
as to each Holder (and permitted transferee under Section 2.12 above) upon the earlier of (i) such time as all Restricted Securities held by such Holder or permitted transferee can be sold within a given three (3) month period without compliance
with the registration requirements of the Securities Act pursuant to Rule 144 (or its successor provision) or (ii) five (5) years after the effective date of the Company’s Qualified IPO. 
  
 2.14 “Market Stand-Off” Agreement. Any
Holder of Conversion Shares, if required by the Company and the managing underwriter of Common Stock, shall agree not to sell, make any short sale of, loan, grant any option for the purchase of or otherwise transfer or dispose of any Conversion
Shares held by such Holder (other than transfers to any partners or former partners of such Holder, or any spouse or family member of any such partner or retired partner, or any trust for the benefit of any such person, or any Affiliate of any
Holder, if the transferee shall agree in writing to be bound by the provisions of this Section, and other than resales of any securities acquired in the public markets), during the period not to exceed one hundred and eighty (180) days following the
effective date of the Company’s Qualified IPO, provided that all officers, and directors of the Company and all other holders of one percent (1%) or more of the Company’s Common Stock enter into similar agreements. Such agreement shall be
in writing in the form reasonably satisfactory to the Company and such managing underwriter. The obligations described in this Section 2.14 shall not apply to a registration relating solely to employee benefit plans on Form S-8 or a similar form
that may be promulgated in the future, or a registration relating solely to a transaction under Rule 145 of the Securities Act or Form S-4 or a similar form that may be promulgated in the future. The Company may impose a stop-transfer instruction
with respect to such Conversion Shares subject to the foregoing restriction until the end of such period. 
  
 SECTION 3 
  
 NEW ISSUANCE RIGHT OF FIRST REFUSAL 
  
 3.1 Right. Subject to Section 3.5, if, at any time prior to the expiration of the period set forth in Section 3.6 below, the Company should desire to issue any new equity securities, the Company shall give each
Major Holder the first right to purchase up to its pro rata share of all of such equity securities on the same terms and same price as the Company is willing to sell such equity securities to any other person. Such “pro rata share,” for
the purpose of this provision, is the ratio of the number of shares of Conversion Stock owned by such Major Holder immediately prior to such issuance of new equity securities, assuming full conversion of the shares and exercise of any option or
warrant held by such Major Holder, to the total number of shares of Common Stock outstanding immediately prior to such issuance of new equity securities, assuming full conversion of all outstanding convertible securities, and exercise of all vested
and exercisable rights, options and warrants to acquire Common Stock of the Company (“Pro Rata Share”). 
  
 3.2 Notification. Prior to any sale or issuance by the Company of any equity securities, the Company shall notify each Major
Holder, in writing by first-class mail, postage prepaid (and, in the case of any Holder located outside the continental United States, simultaneously provide a copy of such notice by fax), of its intention to issue or sell such equity securities,
setting forth in reasonable detail the terms, price and description under which it proposes to make such issuance or sale. Within twenty (20) days thereafter, each Major Holder shall notify the Company of its intention to exercise such option and
election to purchase all or any portion of its Pro Rata Share (or any part thereof) of the equity securities so offered. 
  

 10 

 3.3 Waiver. If, within fifteen (15) days after the Company gives notice pursuant
to Section 3.2 above, if any Major Holder does not notify the Company that it desires to purchase any of its Pro Rata Share of the equity securities described in such notice upon the terms and conditions set forth therein, the Company may, during a
period of ninety (90) days following the end of such fifteen (15) day period, sell and issue such equity securities as to which any Major Holder does not indicate a desire to purchase to another person upon the same terms and conditions as those set
forth in the notice but at a price at least as great as the price offered to the Major Holders; provided, that failure by a Major Holder to exercise its option to purchase with respect to one offering, sale or issuance shall not affect its option to
purchase equity securities in any subsequent offering, sale, issuance or transfer. In the event the Company has not sold the equity securities, or entered into a binding agreement to sell the equity securities, within such ninety (90) day period,
the Company shall not thereafter issue or sell any equity securities without first offering such equity securities to each Major Holder in the manner provided above. 
  
 3.4 Issuance. If a Major Holder gives the Company notice that it desires to purchase any of the
equity securities offered, payment for the equity securities shall be by check or wire transfer, against delivery of the equity securities at the executive offices of the Company within ten (10) days after giving the Company such notice, or if
later, the closing date for the sale of such equity securities. The Company shall take all such action as may be required by any regulatory authority in connection with the exercise by each Major Holder of the right to purchase equity securities as
set forth in this Section 3, but the right of any Major Holder is subject to the Company’s reasonable compliance with regulatory requirements. 
  
 3.5 Excluded Securities. The right of first offer in this Section 3 shall not be applicable to the issuance or sale of (i) Common
Stock to officers, directors or employees of, or consultants to, the Company pursuant to stock grant, option plan or purchase plan or other stock incentive program or agreement approved by the Board of Directors; (ii) securities pursuant to any
bank, lease financing or leasing arrangement approved by the Board of Directors and not having equity financing as a primary purpose; (iii) securities pursuant to any merger or acquisition approved by the Board of Directors, in which the
shareholders of the Company immediately prior to such transaction will hold more than fifty percent (50%) of the surviving entity; (iv) securities pursuant to strategic relationships approved by the Board of Directors and not having equity financing
as a primary purpose; (v) securities pursuant to a Qualified IPO; (vi) shares of Common Stock upon conversion of Preferred Stock, or securities pursuant to the conversion or exercise of securities which were not subject to the right of first refusal
in this Section 3 or for which the right was not exercised; (vii) securities in connection with any stock split, stock dividend or recapitalization by the Company. 
  
 3.6 Termination. The right of first refusal contained in this Section 3 shall terminate as to any
Major Holder upon the earlier of: (i) the time when such Holder ceases to be a Major Holder; (ii) the closing of the Qualified IPO; or (iii) an acquisition of the Company that constitutes a liquidation for purposes of the Company’s Articles.

  
 3.7 Assignment. The rights specified
in this Section 3 may not be assigned except: (i) to a purchaser who will hold at least 750,000 shares of Registrable Securities (adjusted to reflect subdivisions, stock splits, stock dividends, combinations, consolidations, recapitalizations, and
the like), (ii) to an Affiliate, (iii) to a successor entity of a Major Holder pursuant to a reorganization or recapitalization of such Major Holder, or (iv) pursuant to an inter vivos transfer to a Major Holder’s ancestors or descendants or
spouse or to a trustee for their benefit; provided, that the Company receives a written notice within twenty (20) days following any such assignment. 
  
 SECTION 4 
  
 TRANSFER RIGHT OF FIRST REFUSAL 
  
 4.1 The Company has the right of first refusal to purchase the Preferred Stock or the Conversion Stock before the Holder, the
Holder’s heirs, personal representatives, successors, or assigns, may sell such person’s stock to competitor of the Company as determined by the Company (the “Competitor”) on the same terms and conditions as that offered
to the Competitor. 
  
 4.2 In the event the
Holder proposes to sell the Preferred Stock or the Conversion Stock, Holder shall give the Company written notice of such Holder’s intention, describing the price and other terms and conditions upon which the Holder proposes to sell the stock
and the name of such party. If the Company determines that such 

  

 11 

 
proposed transferee is a Competitor, then the Company shall have thirty (30) days from the date of receipt of any such notice to agree to purchase part or
all of the Holder’s stock for the price and upon the general terms specified in the notice by giving written notice to the Holder and stating therein the quantity of stock to be purchased. 
  
 4.3 In the event the Company fails to exercise the right of
first refusal within such thirty (30) day period, then the Holder may dispose of some or all of the shares for sale to such third party but only within a period of ninety (90) days from the date of such Holder’s first notice to the Company.
However, the Holder shall not sell or transfer any of the shares for sale at a lower price or on terms more favorable to the purchaser or transferee than those specified in the notice to the Company. After the ninety (90) day period, the procedure
for first offering to the Company shall again apply. 
  
 4.4 Transfer by Gift or at Death. The requirements of this Section that no transfer of the Holder’s shares shall be valid until it is first offered to the Company shall not apply to transfers by inter vivos gift or by intestate
succession or testamentary disposition on the Holder’s death. However, the transferee shall be bound by this Section 4 and any subsequent transfer by the donee, estate, representative or beneficiary transferee must be made in accordance with
the provisions of this Section 4. 
  
 4.5
Termination. The right of first refusal shall expire upon the first to occur of the following: (a) the Company is merged with or into, or sells its assets to, or exchanges stock with, another corporation where the shareholders of Company do
not own in excess of fifty percent (50%) of the voting shares of the surviving corporation, or (b) the Company completes an IPO. 
  
 4.6 Assignment. The right of first refusal hereunder is not assignable except by the Company to any shareholder of the Company.

  
 SECTION 5 
  
 INFORMATION REQUIREMENTS 
  
 5.1 Financial Information. The Company will mail the
following reports to a Major Holder: 
  
 (a)
Within one-hundred twenty (120) days after the end of each fiscal year, consolidated balance sheets of the Company and its subsidiaries, if any, as of the end of such fiscal year, and consolidated statements of income and consolidated statements of
cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with generally accepted accounting principles, all in reasonable detail and audited by a nationally recognized independent public accountant selected by
the Company. 
  
 (b) Within forty-five (45) days
after the end of the first, second and third quarter of each fiscal year, consolidated balance sheets of the Company and its subsidiaries, if any, as of the end of such quarter, and consolidated statements of income and cash flows of the Company and
its subsidiaries, if any, for such quarter, prepared in accordance with generally accepted accounting principles and certified by the Chief Financial Officer of the Company. 
  
 5.2 Termination. The right to information contained in this Section 5 shall terminate as to any Major
Holder upon the earlier of: (i) the time when such Holder ceases to be a Major Holder; (ii) the closing of the Qualified IPO; or (iii) the acquisition of the Company that constitutes a liquidation for purposes of the Company’s charter.

  
 5.3 Assignment. The rights specified
in this Section 5 may not be assigned except: (i) to a purchaser who will hold at least 750,000 shares of Registrable Securities (adjusted to reflect subdivisions, stock splits, stock dividends, combinations, consolidations, recapitalizations, and
the like), (ii) to an Affiliate, (iii) to a successor entity to a Major Holder pursuant to a reorganization or recapitalization of such Major Holder, or (iv) pursuant to an inter vivos transfer to a Major Holder’s ancestors or descendants or
spouse or to a trustee for their benefit; provided, that the Company receives a written notice within twenty (20) days following any such assignment. 
  

 12 

 SECTION 6 
  

MISCELLANEOUS 
  
 6.1 Amendment to Purchase Agreements. 
  
 (a) Pursuant to Section 9.12 of the Series A Stock Purchase Agreement, effective upon the execution of this Agreement by the Company and
the holders of a majority of the then-outstanding “Preferred” (as defined therein) including any shares of Common Stock of the Company into which such Preferred have been converted, the Series A Preferred Stock Purchase Agreement will be
amended by deleting Sections 4, 5 and 7 thereof. 
  
 (b) Pursuant to Section 7.4 of the Series B Stock Purchase Agreement, effective upon the execution of this Agreement by the Company and the holders of a majority of the then-outstanding “Preferred” (as defined therein) including
any shares of Common Stock of the Company into which such Preferred have been converted, the Series B Preferred Stock Purchase Agreement will be amended by deleting Section 6 thereof. 
  
 6.2 Transfer; Successors and Assigns. The terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
  
 6.3 Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to
agreements among California residents entered into and to be performed entirely within California. 
  
 6.4 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
  
 6.5 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 6.6 Notices. All notices and other communications
required or permitted under this Agreement shall be effective upon receipt and shall be in writing and may be delivered in person, by telecopy, or overnight or international courier service, addressed to the Company, the Holders, as the case may be,
at their respective addresses as the Company, the Holders, shall have furnished to the other parties in writing. All notices and other communications shall be effective upon the earlier of actual receipt thereof by the person to whom notice is
directed or (i) in the case of notices and communications sent by personal delivery or telecopy, one business day after such notice or communication arrives at the applicable address or was successfully sent to the applicable telecopy number, (ii)
in the case of notices and communications sent by overnight courier service, at noon (local time) on the second business day following the day such notice or communication was sent, and (iii) in the case of notices and communications sent by
international courier service, at noon (local time) on the third business day following the day such notice or communication was sent. 
  
 6.7 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be
waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of a majority of the then-outstanding shares of Series A Preferred Stock and Series B
Preferred Stock, including any shares of Common Stock into which the Preferred Stock have been converted (but excluding in all cases shares that have been sold to the public), voting as separate classes. Any amendment or waiver effected in
accordance with this Section shall be binding upon each transferee of any Preferred Stock, and Common Stock issuable upon conversion of any Preferred Stock, each future holder of all such securities, and the Company. 
  
 6.8 Severability. If any provision of this Agreement
is held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

  

 13 

 6.9 Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties hereto relating to the subject matter hereof (including, without limitation, any provisions of the Purchase
Agreements relating to registration rights or pre-emptive rights) are expressly canceled and superseded. 
  

 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ H. M. Chiu

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Huang Mi-Mei Chiu

	 	 	 	 	 	 	 by Shan Shuong Chan FPOA

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 /s/ Nobuo Inami

	 	 	 	 	 	 	 Global Alliance Inc.

	 	 	 	 	 	 	 Name:
	 	 Nobuo Inami

	 	 	 	 	 	 	 Title:
	 	 President

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Jiaming Wang

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Jiaming Wang

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Michael Yan Li

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Michael Yan Li

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 /s/ Creative Data Products, Inc.

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 Timony Ten

	 	 	 	 	 	 	 Title:
	 	 President

	 	 	 	 	 	 	 	 	 04/20/01

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 TLin

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 Alliance III Venture Capital Corp.

	 	 	 	 	 	 	 Title:
	 	 President

				
	 	 	 	 	 	 	 TLin

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Timothy Lin

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 /s/ Shang-Te Chan

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 Technology Partners Venture Capital Co.

	 	 	 	 	 	 	 Title:
	 	 Shang-Te Chan/President

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Samson Huang

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Samson Huang

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 Hsun K. Chou

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 Hsun K. Chou

	 	 	 	 	 	 	 Title:
	 	 Trustee, Hsun Kwei Chou and Aiko Chou

	 	 	 	 	 	 	 	 	 Living Trust

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	 /s/ Samuel Ng

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Samuel Ng

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Ye Xun Guang

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Xun Guang Ye

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Yang, Yong Mei

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Yang, Yong Mei

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Mu Zhen. Yan

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Mu Zhen. Yan

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Qi Xiong Lin

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Qi Xiong Lin

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Run Qing Li

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Run Qing Li

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Cai Ying Kun

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Cai Ying Kun

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Yu Lian, Qui

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Yu Lian, Qui

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	 	 	 	 	HOLDER:
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	 /s/ Pang Wai

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 Pang Wai

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	HOLDER:	 	 	 	 
				
	 	 	 	 	 	 	 /s/ S. Hamaguchi

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 	 	 Matsushita-Kotobuki Electronics Industries, Ltd.

	 	 	 	 	 	 	 Name:
	 	 Sachihiko Hamaguchi

	 	 	 	 	 	 	 Title:
	 	 President

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

									
	HOLDER:	 	 	 	Seiko Epson Corporation
				
	 	 	 	 	 	 	 /s/ Seiji Hanaoka

	 	 	 	 	 	 	 Name:
	 	 Seiji Hanaoka

	 	 	 	 	 	 	 Title:
	 	Managing Director, Deputy Chief Executive, Imaging & Information Products Div
				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

  

									
	HOLDER:	 	 	 	 
				
	 	 	 	 	 	 	 /s/ Marc Chan

	 	 	 	 	 	 	 CHINA CYBER HOLDINGS, LIMITED

	 	 	 	 	 	 	 Name:
	 	 Marc Chan

	 	 	 	 	 	 	 Title:
	 	 Director

				
	 	 	 	 	 	 	 /s/ Marc Chan

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	COMPANY:	 	 	 	ARCSOFT, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ William E. O’Connor

	 	 	 	 	 	 	 Name:
	 	 William E. O’Connor

	 	 	 	 	 	 	 Title:
	 	 Chief Financial Officer

					
	 	 	 	 	 	 	HOLDER:	 	 /s/ Chun P. Chiu

				
	 	 	 	 	 	 	 Chiu Living Trust

	 	 	 	 	 	 	 (Entity)

	 	 	 	 	 	 	 Name:
	 	 Chun P. Chiu

	 	 	 	 	 	 	 Title:
	 	 Trustee

				
	 	 	 	 	 	 	

	 	 	 	 	 	 	 (Individual)

	 	 	 	 	 	 	 Name:
	 	 

  

 15 

 Exhibit A 
  
 SERIES A HOLDERS 
  

					
	 Name

	 	 	  	No. of Shares

	 Alliance III Venture Capital Corp.
	 	 	  	272,727
	 Ying Kun Cai
	 	 	  	350,000
	 Huang Mi-Mei Chiu
	 	 	  	45,454
	 Chiu Living Trust
	 	 	  	20,000
	 Hsun & Aiko Chou Living Trust
	 	 	  	20,000
	 Creative Data Products, Inc.
	 	 	  	454,545
	 Global Alliance Inc.
	 	 	  	100,000
	 Samson Huang
	 	 	  	45,000
	 Michael Yan Li
	 	 	  	35,000
	 Run Qing Li
	 	 	  	20,000
	 Qi Xiong Lin
	 	 	  	80,000
	 Samuel Wai Ng
	 	 	  	30,000
	 Wai Pang
	 	 	  	35,000
	 Yu Lian Qiu
	 	 	  	40,000
	 Tech Partners VC Corp.
	 	 	  	100,000
	 Jiaming Wang
	 	 	  	20,000
	 David C. Weng Living Trust
	 	 	  	20,000
	 Mu Zhen Yan
	 	 	  	35,000
	 Yong Mei Yang
	 	 	  	90,000
	 Xun Guang Ye
	 	 	  	20,000

  

 16 

 Exhibit B 
  
 SERIES B HOLDERS 
  

					
	 Name

	 	 	  	No. of Shares

	 China Cyber Holdings Ltd.
	 	 	  	2,000,000
	 Matsushita-Kotobuki Electronics
 Industries, Ltd.
	 	 	  	1,333,333
	 Seiko-Epson
	 	 	  	333,333

  

 17Form of Indemnification Agreement

 Exhibit 10.1 
  
 ARCSOFT, INC. 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (this “Agreement”) is entered into as of    , 2004 (the “Effective
Date”), by and between ARCSOFT, INC., a Delaware corporation (the “Company”), and (“Indemnitee”). 
  
 RECITALS 
  
 A. Indemnitee is either a member of the board of directors of the Company (the “Board of Directors”) or an officer of the Company, or both, and
in such capacity or capacities, or otherwise as an Agent (as hereinafter defined) of the Company, is performing a valuable service for the Company. 
  
 B. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he or she be
indemnified as herein provided. 
  
 C. It is intended that
Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate in full the indemnity provided herein. 
  
 NOW, THEREFORE, in consideration of the premises and the covenants in this Agreement, and of Indemnitee continuing to serve the Company as an Agent and
intending to be legally bound hereby, the parties hereto agree as follows: 
  
 1. Services by Indemnitee. Indemnitee agrees to serve (a) as a director or an officer of the Company, or both, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable
provisions of the Certificate of Incorporation and bylaws of the Company, and until such time as Indemnitee resigns or fails to stand for election or is removed from Indemnitee’s position, or (b) as an Agent of the Company. Indemnitee may from
time to time also perform other services at the request or for the convenience of, or otherwise benefiting, the Company. Indemnitee may at any time and for any reason resign or be removed from such position (subject to any other contractual
obligation or other obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in any such position. 
  
 2. Indemnification. Subject to the limitations set forth herein and in Section 7 hereof, the Company hereby agrees to
indemnify Indemnitee as follows: 
  
 The Company shall, with
respect to any Proceeding (as hereinafter defined) associated with Indemnitee’s being an Agent of the Company, indemnify Indemnitee to the fullest extent permitted by applicable law and the Certificate of Incorporation of the Company in effect
on the date hereof or as such law or Certificate of Incorporation may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the Company to provide broader indemnification rights than the law
or Certificate of Incorporation permitted the Company to provide before such amendment). The right to indemnification conferred herein and in the Certificate of Incorporation shall be presumed to have been relied upon by Indemnitee in serving or
continuing to serve the Company as an Agent and shall be enforceable as a contract right. Without in any way diminishing the scope of the indemnification provided by this Section 2, the Company will indemnify Indemnitee to the full extent permitted
by law if and wherever Indemnitee is or was a party or is threatened to be made a party to any Proceeding, including any Proceeding brought by or in the right of the Company, by reason of the fact that Indemnitee is or was an Agent or by reason of
anything done or not done by Indemnitee in such capacity, against Expenses (as hereinafter defined) and Liabilities (as hereinafter defined) actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the investigation,
defense, settlement or appeal of such Proceeding. In addition to, and not as a limitation of, the foregoing, the rights of indemnification of Indemnitee provided under this Agreement shall include those rights set forth in Sections 3 and 9 below.
Notwithstanding the foregoing, the Company shall be required to indemnify Indemnitee in connection with a Proceeding commenced by 

  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 1

 
Indemnitee (other than a Proceeding commenced by Indemnitee to enforce Indemnitee’s rights under this Agreement) only if the commencement of such
Proceeding was authorized by the Board of Directors. 
  
 3.
Advancement of Expenses. All reasonable Expenses incurred by or on behalf of Indemnitee (including costs of enforcement of this Agreement) shall be advanced from time to time by the Company to Indemnitee within thirty (30) days after the
receipt by the Company of a written request for an advance of Expenses, whether prior to or after final disposition of a Proceeding (except to the extent that there has been a Final Adverse Determination (as hereinafter defined) that Indemnitee is
not entitled to be indemnified for such Expenses), including, without limitation, any Proceeding brought by or in the right of the Company. The written request for an advancement of any and all Expenses under this paragraph shall contain reasonable
detail of the Expenses incurred by Indemnitee. In the event that such written request shall be accompanied by an affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and that such Expenses are reasonable in
such counsel’s view, then such expenses shall be deemed reasonable in the absence of clear and convincing evidence to the contrary. By execution of this Agreement, Indemnitee shall be deemed to have made whatever undertaking as may be required
by law at the time of any advancement of Expenses with respect to repayment to the Company of such Expenses. In the event that the Company shall breach its obligation to advance Expenses under this Section 3, the parties hereto agree that
Indemnitee’s remedies available at law would not be adequate and that Indemnitee would be entitled to specific performance. 
  
 4. Surety Bond. 
  
 (a) In order to secure the obligations of the Company to indemnify and advance Expenses to Indemnitee pursuant to this Agreement, the Company shall obtain
at the time of any Change in Control (as hereinafter defined) a surety bond (the “Bond”). The Bond shall be in an appropriate amount not less than one million dollars ($1,000,000), shall be issued by a commercial insurance company or other
financial institution headquartered in the United States having assets in excess of $10 billion and capital according to its most recent published reports equal to or greater than the then applicable minimum capital standards promulgated by such
entity’s primary federal regulator and shall contain terms and conditions reasonably acceptable to Indemnitee. The Bond shall provide that Indemnitee may from time to time file a claim for payment under the Bond, upon written certification by
Indemnitee to the issuer of the Bond that (i) Indemnitee has made written request upon the Company for an amount not less than the amount Indemnitee is drawing under the Bond and that the Company has failed or refused to provide Indemnitee with such
amount in full within thirty (30) days after receipt of the request, and (ii) Indemnitee believes that he or she is entitled under the terms of this Agreement to the amount that Indemnitee is drawing upon under the Bond. The issuance of the Bond
shall not in any way diminish the Company’s obligation to indemnify Indemnitee against Expenses and Liabilities to the full extent required by this Agreement. 
  
 (b) Once the Company has obtained the Bond, the Company shall maintain and renew the Bond or a substitute Bond meeting the
criteria of Section 4(a) during the term of this Agreement so that the Bond shall have an initial term of five (5) years, be renewed for successive five-year terms, and always have at least one (1) year of its term remaining. 
  
 5. Presumptions and Effect of Certain Proceedings. Upon making a
request for indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Company shall have the burden of proof to overcome that presumption in reaching any contrary determination. The termination of
any Proceeding by judgment, order, settlement, arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not affect this presumption or, except as determined by a judgment or other final adjudication adverse to
Indemnitee, establish a presumption with regard to any factual matter relevant to determining Indemnitee’s rights to indemnification hereunder. If the person or persons so empowered to make a determination pursuant to Section 6 hereof shall
have failed to make the requested determination within ninety (90) days after any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent, or other disposition or partial
disposition of any Proceeding or any other event that could enable the Company to determine Indemnitee’s entitlement to indemnification, the requisite determination that Indemnitee is entitled to indemnification shall be deemed to have been
made. 
  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 2

 6. Procedure for Determination of Entitlement to Indemnification. 
  
 (a) Whenever Indemnitee believes that Indemnitee is entitled to
indemnification pursuant to this Agreement, Indemnitee shall submit a written request for indemnification to the Company. Any request for indemnification shall include sufficient documentation or information reasonably available to Indemnitee for
the determination of entitlement to indemnification. In any event, Indemnitee shall submit Indemnitee’s claim for indemnification within a reasonable time, not to exceed five (5) years after any judgment, order, settlement, dismissal,
arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent, or final determination, whichever is the later date for which Indemnitee requests indemnification. The Secretary or other appropriate officer shall, promptly
upon receipt of Indemnitee’s request for indemnification, advise the Board of Directors in writing that Indemnitee has made such request. Determination of Indemnitee’s entitlement to indemnification shall be made not later than ninety (90)
days after the Company’s receipt of Indemnitee’s written request for such indemnification, provided that any request for indemnification for Liabilities, other than amounts paid in settlement, shall have been made after a determination
thereof in a Proceeding. 
  
 (b) The Company shall be entitled to
select the forum in which Indemnitee’s entitlement to indemnification will be heard; provided, however, that if there is a Change in Control of the Company, Independent Legal Counsel (as hereinafter defined) shall determine whether Indemnitee
is entitled to indemnification. The forum shall be any one of the following: 
  
 (i) the stockholders of the Company; 
  
 (ii) a majority vote of Disinterested Directors (as hereinafter defined), even though less than a quorum; 
  
 (iii) Independent Legal Counsel, whose determination shall be made in a written opinion; or 
  
 (iv) a panel of three (3) arbitrators, one selected by the
Company, another by Indemnitee and the third by the first two arbitrators; or if for any reason three (3) arbitrators are not selected within thirty (30) days after the appointment of the first arbitrator, then selection of additional arbitrators
shall be made by the American Arbitration Association. If any arbitrator resigns or is unable to serve in such capacity for any reason, the American Arbitration Association shall select such arbitrator’s replacement. The arbitration shall be
conducted pursuant to the commercial arbitration rules of the American Arbitration Association now in effect. 
  
 7. Specific Limitations on Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated under
this Agreement to make any payment to Indemnitee with respect to any Proceeding: 
  
 (a) To the extent that payment is actually made to Indemnitee under any insurance policy, or is made to Indemnitee by the Company or an affiliate otherwise than pursuant to this Agreement. Notwithstanding the
availability of such insurance, Indemnitee also may claim indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under such insurance to the extent Indemnitee is paid by the Company; 
  
 (b) Provided there has been no Change in Control, for Liabilities in
connection with Proceedings settled without the Company’s consent, which consent, however, shall not be unreasonably withheld; 
  
 (c) For an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company within the meaning of Section 16(b) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of any state statutory or common law; or 
  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 3

 (d) To the extent it would be otherwise prohibited by law, if so established by a judgment or other final
adjudication adverse to Indemnitee. 
  
 8. Fees and Expenses of
Independent Legal Counsel or Arbitrators. The Company agrees to pay the reasonable fees and expenses of Independent Legal Counsel or a panel of three arbitrators should such Independent Legal Counsel or such arbitrators be retained to make a
determination of Indemnitee’s entitlement to indemnification pursuant to Section 6(b) of this Agreement, and to fully indemnify such Independent Legal Counsel or arbitrators against any and all expenses and losses incurred by any of them
arising out of or relating to this Agreement or their engagement pursuant hereto. 
  
 9. Remedies of Indemnitee. 
  
 (a) In the event that (i) a determination pursuant to Section 6 hereof is made that Indemnitee is not entitled to indemnification, (ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made
following a determination of entitlement to indemnification pursuant to this Agreement or (iv) Indemnitee otherwise seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the State of
Delaware of the remedy sought. Alternatively, unless (x) the determination was made by a panel of arbitrators pursuant to Section 6(b)(iv) hereof, or (y) court approval is required by law for the indemnification sought by Indemnitee, Indemnitee at
Indemnitee’s option may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration Association now in effect, which award is to be made within ninety (90) days
following the filing of the demand for arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or arbitration award. In any such proceeding or arbitration, Indemnitee shall be presumed to be entitled to
indemnification and advancement of Expenses under this Agreement and the Company shall have the burden of proof to overcome that presumption. 
  
 (b) In the event that a determination that Indemnitee is not entitled to indemnification, in whole or in part, has been made pursuant to Section 6 hereof,
the decision in the judicial proceeding or arbitration provided in paragraph (a) of this Section 9 shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination that Indemnitee is not entitled to indemnification.

  
 (c) If a determination that Indemnitee is entitled to
indemnification has been made pursuant to Section 6 hereof, or is deemed to have been made pursuant to Section 5 hereof or otherwise pursuant to the terms of this Agreement, the Company shall be bound by such determination in the absence of a
misrepresentation or omission of a material fact by Indemnitee in connection with such determination. 
  
 (d) The Company shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable. The
Company shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement and is precluded from making any assertion to the contrary. 
  
 (e) Expenses reasonably incurred by Indemnitee in connection with
Indemnitee’s request for indemnification under, seeking enforcement of or to recover damages for breach of this Agreement shall be borne by the Company when and as incurred by Indemnitee irrespective of any Final Adverse Determination that
Indemnitee is not entitled to indemnification. 
  
 10.
Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall
contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (b) the 

  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 4

 
relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

  
 11. Maintenance of Insurance. Upon the Company’s
purchase of directors’ and officers’ liability insurance policies covering its directors and officers, then, subject only to the provisions within this Section 11, the Company agrees that so long as Indemnitee shall have consented to serve
or shall continue to serve as a director or officer of the Company, or both, or as an Agent of the Company, and thereafter so long as Indemnitee shall be subject to any possible Proceeding (such periods being hereinafter sometimes referred to as the
“Indemnification Period”), the Company will use all reasonable efforts to maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable policies of directors’ and officers’ liability insurance from
established and reputable insurers, providing, in all respects, coverage both in scope and amount which is no less favorable than that provided by such preexisting policies. Notwithstanding the foregoing, the Company shall not be required to
maintain said policies of directors’ and officers’ liability insurance during any time period if during such period such insurance is not reasonably available or if it is determined in good faith by the then directors of the Company either
that: 
  
 (a) The premium cost of maintaining such insurance is
substantially disproportionate to the amount of coverage provided thereunder; or 
  
 (b) The protection provided by such insurance is so limited by exclusions, deductions or otherwise that there is insufficient benefit to warrant the cost of maintaining such insurance. 
  
 Anything in this Agreement to the contrary notwithstanding, to the extent
that and for so long as the Company shall choose to continue to maintain any policies of directors’ and officers’ liability insurance during the Indemnification Period, the Company shall maintain similar and equivalent insurance for the
benefit of Indemnitee during the Indemnification Period (unless such insurance shall be less favorable to Indemnitee than the Company’s existing policies). 
  

12. Modification, Waiver, Termination and Cancellation. No supplement, modification, termination, cancellation or amendment of this Agreement
shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver. 
  
 13. Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure
such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 
  
 14. Notice by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative or investigative, but the omission so to notify the Company will not relieve it from any liability that it may
have to Indemnitee if such omission does not prejudice the Company’s rights. If such omission does prejudice the Company’s rights, the Company will be relieved from liability only to the extent of such prejudice. Notwithstanding the
foregoing, such omission will not relieve the Company from any liability that it may have to Indemnitee otherwise than under this Agreement. With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof:

  
 (a) The Company will be entitled to participate therein at its
own expense; and 
  
 (b) The Company jointly with any other
indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided, however, that the Company shall not be entitled to assume the defense of any Proceeding if there has
been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee with respect to such Proceeding. After notice from the Company to Indemnitee of its election to
assume 

  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 5

 
the defense thereof, the Company will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection
with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but the fees and expenses of such counsel incurred
after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless: 
  
 (i) the employment of counsel by Indemnitee has been authorized by the Company; 
  
 (ii) Indemnitee shall have reasonably concluded that counsel
engaged by the Company may not adequately represent Indemnitee due to, among other things, actual or potential differing interests; or 
  
 (iii) the Company shall not in fact have employed counsel to assume the defense in such Proceeding or shall not in fact have assumed such
defense and be acting in connection therewith with reasonable diligence; in each of which cases the fees and expenses of such counsel shall be at the expense of the Company. 
  
 (c) The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee
without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold his or her consent to any proposed settlement. 
  
 15. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if
(a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) delivered by facsimile with telephone confirmation of receipt or (c) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so mailed: 
  
 (i) If to Indemnitee, to the address or facsimile number set forth on the signature page hereto. 
  
 (ii) If to the Company, to: 
  
 ArcSoft, Inc. 
 46601 Fremont Boulevard 
 Fremont, CA 94538 
 Attn: Corporate Secretary 
  
 or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
  
 16. Nonexclusivity. The rights of Indemnitee hereunder shall not be
deemed exclusive of any other rights to which Indemnitee may be entitled under applicable law, the Company’s Certificate of Incorporation or bylaws, or any agreements, vote of stockholders, resolution of the Board of Directors or otherwise, and
to the extent that during the Indemnification Period the rights of the then existing directors and officers are more favorable to such directors or officers than the rights currently provided to Indemnitee thereunder or under this Agreement,
Indemnitee shall be entitled to the full benefits of such more favorable rights. 
  
 17. Certain Definitions. 
  
 (a) “Agent” shall mean any person who is or was, or who has consented to serve as, a director, officer, employee, agent, fiduciary, joint venturer, partner, manager or other official of the Company or a subsidiary or an
affiliate of the Company, or any other entity (including without limitation, an employee benefit plan) either at the request of, for the convenience of, or otherwise to benefit the Company or a subsidiary of the Company. 
  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 6

 (b) “Change in Control” shall mean the occurrence of any of the following: 

 
 (i) Both (A) any “person” (as defined below) is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least twenty percent (20%) of the total voting power represented by the
Company’s then outstanding voting securities and (B) the beneficial ownership by such person of securities representing such percentage has not been approved by a majority of the “continuing directors” (as defined below); 

 
 (ii) Any “person” is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least fifty percent (50%) of the total voting power represented by the Company’s then
outstanding voting securities; 
  
 (iii) A change
in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the “look-back date” (as defined below) (the
“Original Directors”) or (B) were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority in the aggregate of the Original Directors who were still in office at the time of the
election or nomination and directors whose election or nomination was previously so approved (the “continuing directors”); 
  
 (iv) The stockholders of the Company approve a merger or consolidation of the Company with any other corporation, if such merger or
consolidation would result in the voting securities of the Company outstanding immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) fifty percent (50%) or less
of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
  
 (v) The stockholders of the Company approve (A) a plan of complete liquidation of the Company or (B) an
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 For purposes of Subsection (i) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange
Act, but shall exclude (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary of the Company or (y) a corporation owned directly or indirectly by the stockholders of the Company
in substantially the same proportions as their ownership of the common stock of the Company. 
  
 For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x) the Effective Date and (y) the date twenty-four (24) months prior to the date of the event that may constitute a
“Change in Control.” 
  
 Any other provision of this
Section 17(b) notwithstanding, the term “Change in Control” shall not include a transaction, if undertaken at the election of the Company, the result of which is to sell all or substantially all of the assets of the Company to another
corporation (the “surviving corporation”); provided that the surviving corporation is owned directly or indirectly by the stockholders of the Company immediately following such transaction in substantially the same proportions as their
ownership of the Company’s common stock immediately preceding such transaction; and provided, further, that the surviving corporation expressly assumes this Agreement. 
  
 (c) “Disinterested Director” shall mean a director of the Company who is not or was not a party to or
otherwise involved in the Proceeding in respect of which indemnification is being sought by Indemnitee. 
  
 (d) “Expenses” shall include all direct and indirect costs (including, without limitation, attorneys’ fees, retainers, court costs,
transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, all other disbursements or out-of-pocket expenses 

  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 7

 
and reasonable compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the Company or any third party) actually and
reasonably incurred in connection with either the investigation, defense, settlement or appeal of a Proceeding or establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise; provided, however, that
“Expenses” shall not include any Liabilities. 
  
 (e)
“Final Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification shall have been made pursuant to Section 6 hereof and either (1) a final adjudication in the Court of Chancery of the
State of Delaware or decision of an arbitrator pursuant to Section 9(a) hereof shall have denied Indemnitee’s right to indemnification hereunder, or (2) Indemnitee shall have failed to file a complaint in a Delaware court or seek an
arbitrator’s award pursuant to Section 9(a) for a period of one hundred twenty (120) days after the determination made pursuant to Section 5 hereof. 
  
 (f) “Independent Legal Counsel” shall mean a law firm or a member of a firm selected by the Company and approved by Indemnitee (which
approval shall not be unreasonably withheld) or, if there has been a Change in Control, selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld), that neither is presently nor in the past five (5) years
has been retained to represent: (i) the Company or any of its subsidiaries or affiliates, or Indemnitee or any corporation of which Indemnitee was or is a director, officer, employee or agent, or any subsidiary or affiliate of such a corporation, in
any material matter, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement. 
  
 (g) “Liabilities” shall mean liabilities of any type
whatsoever including, but not limited to, any judgments, fines, ERISA excise taxes and penalties, penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect of such
judgments, fines, penalties or amounts paid in settlement) of any Proceeding. 
  
 (h) “Proceeding” shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding
whether civil, criminal, administrative or investigative, that is associated with Indemnitee’s being an Agent of the Company. 
  
 18. Binding Effect; Duration and Scope of Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), spouses, heirs and personal
and legal representatives. This Agreement shall continue in effect during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent. 
  
 19. Severability. If any provision or provisions of this Agreement (or any portion thereof) shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: 
  
 (a) the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby; and 
  

(b) to the fullest extent legally possible, the provisions of this Agreement shall be construed so as to give effect to the intent of any provision
held invalid, illegal or unenforceable. 
  
 20. Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within the State of Delaware,
without regard to conflict of laws rules. 
  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 8

 21. Consent to Jurisdiction. The Company and Indemnitee each irrevocably consent to the
jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the
state courts of the State of Delaware. 
  
 22. Entire
Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts or understandings between the parties hereto with respect to the subject matter of this Agreement, except as
specifically referred to herein or as provided in Section 16 hereof. 
  
 23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 
  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a
duly authorized officer and Indemnitee has executed this Agreement as of the date first above written. 
  

			
	 ARCSOFT, INC.,
 a Delaware corporation

		
	 By
	 	 

			
		
	 Print Name
	 	 

			
		
	 Title
	 	 

  

			
	
	 INDEMNITEE

		
	 Signature
	 	 

			
		
	 Print Name
	 	 

			
		
	 Address
	 	 
		
	 	 	 

  

			
		
	 Telephone  
	 	 

			
		
	 Facsimile
	 	 

			
		
	 E-mail
	 	 

  

 ARCSOFT, INC. 
 INDEMNIFICATION AGREEMENT 
  
 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]