Document:

Exhibit 10.4

 

INDEMNITY AGREEMENT

 

THIS INDEMNITY
AGREEMENT (this “Agreement”) is made as of __________, 2018, by and between SUMMIT SEMICONDUCTOR,
INC., a Delaware corporation (the “Company”), and _______________________ (“Indemnitee”).

 

RECITALS

 

WHEREAS,
highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities
unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims
and actions against them arising out of their service to and activities on behalf of such corporations;

 

WHEREAS,
the board of directors of the Company (the “Board”) has determined that, in order to attract and retain
qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect
persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among publicly traded corporations and other business enterprises, the Company believes that,
given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with
more exclusions. At the same time, directors, officers and other persons in service to corporations or business enterprises are
being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally
would have been brought only against the Company or business enterprise itself. The bylaws of the Company (the “Bylaws”)
require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant
to applicable provisions of the Delaware General Corporation Law (“DGCL”). The Bylaws and the DGCL expressly
provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the Board, officers and other persons with respect to indemnification, hold harmless,
exoneration, advancement and reimbursement rights;

 

WHEREAS,
the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such
persons;

 

WHEREAS,
the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests
of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty
of such protection in the future;

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, hold harmless, exonerate
and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or
continue to serve the Company free from undue concern that they will not be so protected against liabilities;

 

     

     

    

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the DGCL and the Bylaws and any resolutions adopted pursuant thereto, and
shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS,
Indemnitee may not be willing to serve as an officer or director, advisor or in another capacity without adequate protection, and
the Company desires Indemnitee to serve in such capacity. 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 so indemnified; and

 

NOW, THEREFORE,
in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

 

TERMS AND CONDITIONS

 

1. SERVICES TO THE COMPANY.
Indemnitee will serve or continue to serve as an officer, director, advisor, key employee or in any other capacity of the Company,
as applicable, for so long as Indemnitee is duly elected, appointed or retained or until Indemnitee tenders his or her resignation.

 

2. DEFINITIONS. As used in
this Agreement:

 

2.1. References
to “agent” shall mean any person who is or was a director, officer or employee of the Company or a subsidiary
of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity
as a director, officer, employee, advisor, fiduciary or other official of another corporation, partnership, limited liability company,
joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company
or a subsidiary of the Company.

 

2.2. The terms
“Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth
in Rule 13d-3 promulgated under the Exchange Act (as defined below) as in effect on the date hereof.

 

2.3. A “Change
in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following
events:

 

2.3.1. Acquisition
of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner, directly or indirectly, of securities
of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding
securities entitled to vote generally in the election of directors, unless (1) the change in the relative Beneficial Ownership
of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of
securities entitled to vote generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing
Directors (as defined below) and such acquisition would not constitute a Change in Control under part 2.3.3 of this definition;

 

     

     

    

 

2.3.2. Change
in Board. Individuals who, as of the date hereof, constitute the Board, and any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then
still in office who were directors on the date hereof or whose election for nomination for election was previously so approved
(collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority
of the members of the Board;

 

2.3.3. Corporate
Transactions. The effective date of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or
similar business combination, involving the Company and one or more businesses (a “Business Combination”),
in each case, unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were
the Beneficial Owners of securities entitled to vote generally in the election of directors immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then outstanding securities
of the Company entitled to vote generally in the election of directors resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership immediately
prior to such Business Combination, of the securities entitled to vote generally in the election of directors; (2) no Person (excluding
any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the
combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the surviving
corporation except to the extent that such ownership existed prior to the Business Combination; and (3) at least a majority of
the Board resulting from such Business Combination were Continuing Directors at the time of the execution of the initial agreement,
or of the action of the Board, providing for such Business Combination;

 

2.3.4. Liquidation.
The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements
for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than factoring the
Company’s current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed
with such a liquidation, sale, or disposition in one transaction or a series of related transactions); or

 

2.3.5. Other
Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule
14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as
defined below), whether or not the Company is then subject to such reporting requirement.

 

2.4. The term
“Corporate Status” describes the status of a person who is or was a director, officer, trustee, general
partner, managing member, fiduciary, employee or agent of the Company or of any other Enterprise (as defined below) which such
person is or was serving at the request of the Company.

 

2.5. The term “Delaware
Court” shall mean the Court of Chancery of the State of Delaware.

 

     

     

    

 

2.6. The term
“Disinterested Director” shall mean a director of the Company who is not and was not a party to the Proceeding
(as defined below) in respect of which indemnification is sought by Indemnitee.

 

2.7. The term
“Enterprise” shall mean the Company and any other corporation, constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger to which the Company (or any of its wholly owned subsidiaries)
is a party, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee
is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee
or agent.

  

2.8. The term “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

2.9. The term
“Expenses” shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever,
including, without limitation, all attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding
costs, telephone charges, postage, delivery service fees, fax transmission charges, secretarial services and all other disbursements,
obligations or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing
to be a witness in, settlement or appeal of, or otherwise participating in, a Proceeding (as defined below), including reasonable
compensation for time spent by the Indemnitee for which he or she is not otherwise compensated by the Company or any third party.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding (as defined below), including
without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other
appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments
or fines against Indemnitee.

 

2.10. The term
“Independent Counsel” shall mean a law firm or a member of a law firm with significant experience in
matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company
or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements); or (ii) any other party to the Proceeding (as defined
below) giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent 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 rights under this Agreement.

 

2.11. References
to “fines” shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan;
references to “serving at the request of the Company” shall include any service as a director, officer, employee, agent
or fiduciary of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary
with respect to an employee benefit plan, its participants or beneficiaries; and if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan, Indemnitee
shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.

 

     

     

    

 

2.12. The term
“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act as in effect
on the date hereof; provided, however, that “Person” shall exclude: (i) the Company; (ii) any Subsidiaries (as defined
below) of the Company; (iii) any employment benefit plan of the Company or of a Subsidiary (as defined below) of the Company or
of any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company; and (iv) any trustee or other fiduciary holding securities under an employee benefit plan of
the Company or of a Subsidiary (as defined below) of the Company or of a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company.

  

2.13. The term
“Proceeding” shall include any threatened, pending or completed action, suit, arbitration, mediation,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed
proceeding, whether brought in the right of the Company or otherwise and whether of a civil (including intentional or unintentional
tort claims), criminal, administrative, or investigative or related nature, in which Indemnitee was, is, will or might be involved
as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any
action (or failure to act) taken by him or her or of any action (or failure to act) on his or her part while acting as a director
or officer of the Company, or by reason of the fact that he or she is or was serving at the request of the Company as a director,
officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise, in each case whether
or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement
of expenses can be provided under this Agreement.

 

2.14. The term
“Subsidiary,” with respect to any Person, shall mean any corporation or other entity of which a majority
of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person.

 

3. INDEMNITY IN THIRD-PARTY PROCEEDINGS. To
the fullest extent permitted by applicable law, the Company shall indemnify, hold harmless and exonerate Indemnitee in accordance
with the provisions of this Section 3 if Indemnitee was, is, or is threatened to be made, a party to or a participant
(as a witness or otherwise) in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment
in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified, held harmless and exonerated against all
Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement)
actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or
matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that his or her conduct
was unlawful.

 

     

     

    

 

4. INDEMNITY IN PROCEEDINGS BY
OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by applicable law, the Company shall indemnify,
hold harmless and exonerate Indemnitee in accordance with the provisions of this Section 4 if Indemnitee was,
is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of
the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified, held harmless
and exonerated against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed
to be in or not opposed to the best interests of the Company. No indemnification, hold harmless or exoneration for Expenses shall
be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally
adjudged by a court to be liable to the Company, unless and only to the extent that any court in which the Proceeding was brought
or the Delaware Court shall determine upon application that, despite the adjudication of liability but in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnification, to be held harmless or to exoneration.

  

5. INDEMNIFICATION FOR EXPENSES
OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding any other provisions of this Agreement, to the extent
that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense
of any claim, issue or matter therein, in whole or in part, the Company shall, to the fullest extent permitted by applicable law,
indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by him or her in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable
law, indemnify, hold harmless and exonerate Indemnitee against all Expenses actually and reasonably incurred by him or her or on
his or her behalf in connection with each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful
in such Proceeding, the Company also shall, to the fullest extent permitted by applicable law, indemnify, hold harmless and exonerate
Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or
matter on which the Indemnitee was successful. For purposes of this Section 5 and without limitation, the termination
of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

 

6. INDEMNIFICATION FOR EXPENSES
OF A WITNESS. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he or she shall, to the fullest
extent permitted by applicable law, be indemnified, held harmless and exonerated against all Expenses actually and reasonably incurred
by him or her or on his or her behalf in connection therewith.

 

     

     

    

 

7. ADDITIONAL INDEMNIFICATION,
HOLD HARMLESS AND EXONERATION RIGHTS.

 

7.1 Notwithstanding
any limitation in Sections 3, 4, or 5, the Company shall, to the fullest extent permitted by
applicable law, indemnify, hold harmless and exonerate Indemnitee if Indemnitee is a party to or threatened to be made a party
to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses,
judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably
incurred by Indemnitee in connection with the Proceeding.

 

8. CONTRIBUTION IN THE EVENT
OF JOINT LIABILITY.

 

8.1. To the
fullest extent permissible under applicable law, if the indemnification, hold harmless and/or exoneration rights provided for in
this Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying,
holding harmless or exonerating Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether
for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with
any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right
of contribution it may have at any time against Indemnitee.

 

8.2. The Company
shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined
in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

 

8.3. The Company
hereby agrees to fully indemnify, hold harmless and exonerate Indemnitee from any claims for contribution which may be brought
by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee.

 

9. EXCLUSIONS.

 

Notwithstanding any provision in
this Agreement, the Company shall not be obligated under this Agreement to make any indemnification, hold harmless or exoneration
payment in connection with any claim made against Indemnitee:

 

	 	(a)	for which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount actually received under any insurance policy, contract, agreement, other indemnity provision or otherwise;

 

	 	(b)	for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or

 

     

     

    

 

	 	(c)	except as otherwise provided in Sections 14.5 and 14.6 hereof, prior to a Change in Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, hold harmless or exoneration payment, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

10. ADVANCES OF EXPENSES;
DEFENSE OF CLAIM.

 

10.1. Notwithstanding
any provision of this Agreement to the contrary, and to the fullest extent not prohibited by applicable law, the Company shall
pay the Expenses incurred by Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three months)
in connection with any Proceeding within ten (10) days after the receipt by the Company of a statement or statements requesting
such advances from time to time, prior to the final disposition of any Proceeding. Advances shall be unsecured and interest free.
Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s
ultimate entitlement to be indemnified, held harmless or exonerated under the other provisions of this Agreement. Advances shall
include any and all reasonable Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses
incurred preparing and forwarding statements to the Company to support the advances claimed. To the fullest extent required by
applicable law, such payments of Expenses in advance of the final disposition of the Proceeding shall be made only upon the Company’s
receipt of an undertaking, by or on behalf of the Indemnitee, to repay the advance to the extent that it is ultimately determined
that Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement, the Bylaws, applicable
law or otherwise. This Section 10.1 shall not apply to any claim made by Indemnitee for which an indemnification,
hold harmless or exoneration payment is excluded pursuant to Section 9.

 

10.2. The Company will
be entitled to participate in the Proceeding at its own expense.

 

10.3. The Company
shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty
or limitation on the Indemnitee without the Indemnitee’s prior written consent.

 

11. PROCEDURE FOR NOTIFICATION AND APPLICATION
FOR INDEMNIFICATION.

 

11.1. Indemnitee
agrees to notify promptly the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any Proceeding or matter which may be subject to indemnification, hold harmless or exoneration
rights, or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the
Company of any obligation which it may have to the Indemnitee under this Agreement, or otherwise.

 

11.2. Indemnitee
may deliver to the Company a written application to indemnify, hold harmless or exonerate Indemnitee in accordance with this Agreement.
Such application(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion.
Following such a written application for indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification shall
be determined according to Section 12.1 of this Agreement.

 

     

     

    

 

12. PROCEDURE UPON
APPLICATION FOR INDEMNIFICATION.

 

12.1. A determination,
if required by applicable law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific
case by one of the following methods, which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board (ii) by Independent Counsel in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee; or (iii) by vote of the Company’s stockholders. The Company promptly will advise
Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description
of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the
person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.
Any costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

12.2. In the
event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12.1 hereof,
the Independent Counsel shall be selected as provided in this Section 12.2. The Independent Counsel shall be selected
by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee shall give written notice
to the Company advising it of the identity of the Independent Counsel so selected and certifying that the Independent Counsel so
selected meets the requirements of “Independent Counsel” as defined in Section 2 of this Agreement.
If the Independent Counsel is selected by the Board, the Company shall give written notice to Indemnitee advising him or her of
the identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements
of “Independent Counsel” as defined in Section 2 of this Agreement. In either event, Indemnitee or
the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver
to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity
the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel.
If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel
unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without
merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section
11.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may
petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s
selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Delaware Court,
and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 12.1 hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section
14.1 of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity
(subject to the applicable standards of professional conduct then prevailing).

 

     

     

    

 

12.3. The Company
agrees to pay the reasonable fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent
Counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement
pursuant hereto.

 

13. PRESUMPTIONS AND EFFECT OF
CERTAIN PROCEEDINGS.

 

13.1. In making
a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 11.2 of this Agreement, and the Company shall have the burden of proof to overcome
that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.
Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the
commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has
met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel)
that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that
Indemnitee has not met the applicable standard of conduct.

 

13.2. If the
person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee
is entitled to indemnification shall not have made a determination within thirty (30) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification,
or (ii) a final judicial determination that any or all such indemnification is expressly prohibited under applicable law;
provided, however, that such 30-day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days,
if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires
such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

 

     

     

    

 

13.3. The termination
of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which
he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

13.4. For purposes
of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based
on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee
by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise,
its Board, any committee of the Board or any director, or on information or records given or reports made to the Enterprise, its
Board, any committee of the Board or any director, by an independent certified public accountant or by an appraiser or other expert
selected by the Enterprise, its Board, any committee of the Board or any director. The provisions of this Section 13.4 shall
not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed or found to
have met the applicable standard of conduct set forth in this Agreement.

 

13.5. The knowledge
and/or actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

14. REMEDIES OF INDEMNITEE.

 

14.1. In the
event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advancement of Expenses, to the fullest extent permitted by applicable law, is not
timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 12.1 of this Agreement within thirty (30) days after receipt by the Company
of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 5, 6, 7 or
the last sentence of Section 12.1 of this Agreement within ten (10) days after receipt by the Company of a written
request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 8 of this Agreement,
(vi) payment of indemnification pursuant to Section 3 or 4 of this Agreement is not made within
ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vii) payment to Indemnitee
pursuant to any hold harmless or exoneration rights under this Agreement or otherwise is not made within ten (10) days after receipt
by the Company of a written request therefor, Indemnitee shall be entitled to an adjudication by the Delaware Court to such indemnification,
hold harmless, exoneration, contribution or advancement rights. Alternatively, Indemnitee, at his or her 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. Except as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall apply
to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

     

     

    

 

14.2. In the
event that a determination shall have been made pursuant to Section 12.1 of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall
be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason
of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14, Indemnitee
shall be presumed to be entitled to be indemnified, held harmless, exonerated to receive advances of Expenses under this Agreement
and the Company shall have the burden of proving Indemnitee is not entitled to be indemnified, held harmless, exonerated and to
receive advances of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination
pursuant to Section 12.1 of this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences a judicial
proceeding or arbitration pursuant to this Section 14, Indemnitee shall not be required to reimburse the Company for
any advances pursuant to Section 10 until a final determination is made with respect to Indemnitee’s entitlement
to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

14.3. If a determination
shall have been made pursuant to Section 12.1 of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section
14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

 

14.4. The Company
shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that
the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court
or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

 

14.5. The Company
shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee,
shall (within ten (10) days after the Company’s receipt of such written request) pay to Indemnitee, to the fullest extent
permitted by applicable law, such Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration
brought by Indemnitee (i) to enforce his or her rights under, or to recover damages for breach of, this Agreement or any other
indemnification, hold harmless, exoneration, advancement or contribution agreement or provision of the certificate of incorporation
of the Company (the “Charter”) or the Bylaws now or hereafter in effect; or (ii) for recovery or
advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless of the outcome and whether
Indemnitee ultimately is determined to be entitled to such indemnification, hold harmless or exoneration right, advancement, contribution
or insurance recovery, as the case may be (unless such judicial proceeding or arbitration was not brought by Indemnitee in good
faith).

 

14.6. Interest
shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies, holds
harmless or exonerates, or is obliged to indemnify, hold harmless or exonerate for the period commencing with the date on which
Indemnitee requests indemnification, to be held harmless, exonerated, contribution, reimbursement or advancement of any Expenses
and ending with the date on which such payment is made to Indemnitee by the Company.

 

     

     

    

 

15. SECURITY. Notwithstanding
anything herein to the contrary, to the extent requested by the Indemnitee and approved by the Board, the Company may at any time
and from time to time provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank
line of credit, funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released
without the prior written consent of the Indemnitee.

 

16. NON-EXCLUSIVITY; SURVIVAL
OF RIGHTS; INSURANCE; SUBROGATION.

 

16.1. The rights
of Indemnitee as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the Charter, the Bylaws, any agreement, a vote of the Company’s stockholders or a resolution
of the Company’s directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof
shall limit or restrict any right of Indemnitee under this Agreement in respect of any Proceeding (regardless of when such Proceeding
is first threatened, commenced or completed) arising out of, or related to, any action taken or omitted by such Indemnitee in his
or her Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law, whether by
statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than
would be afforded currently under the Charter, the Bylaws or this Agreement, then this Agreement (without any further action by
the parties hereto) shall automatically be deemed to be amended to require that the Company indemnify Indemnitee to the fullest
extent permitted by law. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other right or remedy.

 

16.2. The DGCL
and the Bylaws permit the Company to purchase and maintain insurance on behalf of Indemnitee against any liability asserted against
him or her or incurred by or on behalf of him or her or in such capacity as a director, officer, employee or agent of the Company,
or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such
liability under the provisions of this Agreement or under the DGCL, as it may then be in effect (“Indemnification Arrangements”).
The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in any way limit or affect the rights
and obligations of the Company or of the Indemnitee under this Agreement except as expressly provided herein, and the execution
and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights and obligations
of the Company or the other party or parties thereto under any such Indemnification Arrangement.

 

     

     

    

 

16.3. The Company
shall maintain an insurance policy or policies providing liability insurance for directors, officers, trustees, partners, managing
members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such person serves at the request of
the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent
of the coverage available for any such director, officer, trustee, partner, managing member, fiduciary, employee or agent under
such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is
a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company
shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

16.4. In the
event of any 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 take all action necessary to secure such rights, including execution
of such documents as are necessary to enable the Company to bring suit to enforce such rights.

  

16.5. The Company’s
obligation to indemnify, hold harmless, exonerate or advance Expenses hereunder to Indemnitee who is or was serving at the request
of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise
shall be reduced by any amount Indemnitee has actually received as indemnification, hold harmless or exoneration payments or advancement
of expenses from such Enterprise. Notwithstanding any other provision of this Agreement to the contrary, (i) Indemnitee shall have
no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement, contribution
or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction and
performance of all its obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this Agreement
without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, exoneration,
contribution or insurance coverage rights against any person or entity other than the Company.

 

17. DURATION OF AGREEMENT. All
agreements and obligations of the Company contained herein shall continue during the period Indemnitee serves as a director or
officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request
of the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible Proceeding (including any rights
of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement or commenced
after the Indemnitee no longer serves in any capacity listed in this sentence) by reason of his or her Corporate Status, whether
or not he or she is acting in any such capacity at the time any liability or expense is incurred for which indemnification can
be provided under this Agreement.

 

     

     

    

 

18. SEVERABILITY. If
any provision or provisions of this Agreement 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 (including, without limitation, each
portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable
to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested thereby.

 

19. ENFORCEMENT AND BINDING EFFECT.

 

19.1. The Company
expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order
to induce Indemnitee to serve as a director, officer or key employee of the Company, and the Company acknowledges that Indemnitee
is relying upon this Agreement in serving as a director, officer or key employee of the Company.

 

19.2. Without
limiting any of the rights of Indemnitee under the Charter or Bylaws, as they each may be amended from time to time, this Agreement
constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

19.3. The indemnification,
hold harmless, exoneration and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding
upon 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), shall continue
as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at the
Company’s request, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors
and administrators and other legal representatives.

 

19.4. The Company
shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially
all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory
to the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform if no such succession had taken place.

 

19.5. The Company
and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable
and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto
agree that Indemnitee may enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance
hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific
performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he or she may be entitled. The
Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including
temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other
undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required
of Indemnitee by a Court of competent jurisdiction and the Company hereby waives any such requirement of such a bond or undertaking.

 

     

     

    

 

20. MODIFICATION AND WAIVER. No
supplement, modification or amendment of this Agreement shall be binding unless executed in writing by 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 of this Agreement
nor shall any waiver constitute a continuing waiver.

 

21. NOTICES. All
notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
or (ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it
is so mailed:

 

	 	(a)	If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide in writing to the Company.

 

	 	(b)	If to the Company, to:

 

Summit Semiconductor,
Inc.

6840 Via Del Oro, Ste.
280

San Jose, CA 95119

Attn: [______]

 

With a copy, which shall not constitute
notice, to:

 

Robinson Brog Leinwand
Greene

Genovese & Gluck,
P.C.

875 3rd Avenue

New York, NY 10022

Attn: David E. Danovitch,
Esq.

 

or to any other address as may have
been furnished to Indemnitee in writing by the Company.

 

     

     

    

 

22. APPLICABLE LAW AND CONSENT
TO JURISDICTION. This Agreement and the legal relations among the parties hereto shall be governed by, and construed
and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect
to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee
hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement
shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America or any
court in any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action
or proceeding arising out of or in connection with this Agreement; (c) waive any objection to the laying of venue of any such action
or proceeding in the Delaware Court; and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding
brought in the Delaware Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury
trial.

 

23. IDENTICAL 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. Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced to evidence the existence of this Agreement.

 

24. MISCELLANEOUS. 
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

25. PERIOD OF LIMITATIONS. No
legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s
spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such
cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the
timely filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action such shorter period shall govern.

 

26. ADDITIONAL ACTS. If
for the validation of any of the provisions in this Agreement any act, resolution, approval or other procedure is required, the
Company undertakes to cause such act, resolution, approval or other procedure to be affected or adopted in a manner that will enable
the Company to fulfil its obligations under this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

  

     

     

    

 

IN WITNESS
WHEREOF, the parties hereto have caused this Indemnity Agreement to be signed as of the day and year first above written.

 

	 	SUMMIT SEMICONDUCTOR, INC.
	 	 
	 	By:
	 	 
	 	Name:
	 	Title:
	 	 
	 	INDEMNITEE
	 	 
	 	Name:
	 	Address:

 

[Signature Page to Indemnity Agreement]Exhibit
10.5

 

EMPLOYMENT
AGREEMENT

(“Agreement”)

 

FOCUS
Enhancements, Inc., a Delaware Corporation (hereinafter referred to as “Employer”) and Brett Moyer (hereinafter referred
to as “Employee”), in consideration of the mutual promises made herein, agree as follows:

 

ARTICLE 1

TERM
OF EMPLOYMENT 

 

Specified
Period

 

Section
1.1

 

Employer
hereby employs Employee, and Employee hereby accepts employment with Employer for the period beginning on the effective date of
this Agreement as set forth below (the “effective date”) and terminating two years after the effective date (“Initial
Term”).

 

Succeeding
Term

 

Section
1.2

 

This
Agreement shall extend on the end of the Initial Term and annually thereafter at the annual anniversary date for an additional
one-year period (the “Succeeding Term”), unless terminated by either party for any reason or not renewed upon written
notice given by one party to the other party at least thirty (30) days before such applicable anniversary date.

 

“Employment
Term” Defined

 

Section
1.3

 

As
used herein, the phrase “employment term” refers to the entire period of employment of Employee by Employer hereunder,
whether for the periods provided above, or whether terminated earlier as hereinafter provided or extended automatically or by mutual
agreement between Employer and Employee.

 

ARTICLE 2

DUTIES
AND OBLIGATIONS OF EMPLOYEE

 

General
Duties

 

Section
2.1

 

As
of the date set forth in Section 8.8, Employee shall serve as Employer’s President & Chief Executive Officer, and he
shall also serve as a member of Employer’s Board of Directors. Prior to such date, Employee shall continue to serve in his
current capacity as Executive Vice-President working under the direction of and reporting to Michael D’Addio, the Company’s
current President and Chief Executive Officer.

 

    	 	1	 

     

    

 

In
his capacity as President and Chief Executive Officer, Employee shall do an perform all services, acts or things in accordance
with the policies set by Employer’s Board of Directors. Employee shall perform such services primarily in Campbell, California,
which shall serve as the Employer’s principal facility, except that the parties understand that temporary travel on Employer’s
business to other sites shall be required. The parties may designate another location for Employee to primarily perform his services;
provided, however, that Employee’ permanent place of employment shall not be more than fifty miles from Campbell, California
absent Employee’s written consent.

 

Devotion
to Employer’s Business

 

Section
2.2

 

(a)           Employee
shall devote substantially all his productive time, ability an attention to the business of Employer during the employment term.

 

(b)           Employee
shall not engage in any other business duties or pursuit whatsoever, or directly or indirectly render any services of a
business, commercial or professional nature to any other person or organization, whether for compensation or otherwise,
without the prior written consent of the Board of Directors except for (1) boards of directors or private companies on which
Employee currently serves and (2) other boards of directors to which Employee shall not devote more than 16 hours of service
per month (measured on an annual basis). However, the expenditure of reasonable amounts of time for education, charitable  or
professional activities shall not be deemed a breach of this Agreement if those activities do not materially interfere with
the services required under this Agreement.

 

(c)           In
addition to Employee’s providing occasional service as a member of the Board(s) of Directors as provided above, this Agreement
shall not be interpreted to prohibit Employee from making passive personal investments or conducting private business affairs if
those activities do not materially interfere with the services required under this Agreement.

 

Confidential
Information; Tangible Property; Competitive Activities

 

Section
2.3

 

(a)           Employee
shall hold in confidence and not use or disclose to any person or entity without the express written authorization of Employer,
either during the employment term or any time thereafter, secret or confidential information of Employer. Information and materials
received in confidence from third parties by Employee with respect to the performance of his duties for Employer is included within
the meaning of this section. If any confidential information described below is sought by legal process, Employee will promptly
notify Employer and will cooperate with Employer in preserving its confidentiality in connection with any legal proceeding.

 

    	 	2	 

     

    

 

The
parties hereto hereby stipulate that, to the extent it is not known publicly, the following information is important,
material and has independent economic value (actual or potential) from not being generally known to others who could obtain
economic value from its disclosure or use (“Confidential Information”), and that any breach of any terms of this
Section 2.3 is a material breach of this Agreement:

 

		(i)	The names, buying habits and practices of Employer’s
customers or prospective customers;

		(ii)	Employer’s marketing methods and related data;

		(iii)	The names of Employer’s vendors and suppliers;

		(iv)	Cost of materials / services;

		(v)	The prices Employer obtains or has obtained or for which
it sells or has sold its products or services;

		(vi)	Production costs;

		(vii)	Compensation paid to employees or other terms of employment;

		(viii)	Employer’s past and projected sales volumes;

		(ix)	Proposed new products / services;

		(x)	Enhancements of existing products / services; and

		(xi)	Any additional information deemed by Employer to be confidential
by marking or stamping “Confidential” or similar words on the cover of such information, by advising Employee orally
or in writing that certain information is confidential.

 

All
software code, methodologies, models, samples, tools, machinery, equipment, notes, books, correspondence, drawings and other written,
graphical or electromagnetic records relating to any of the products of Employer or relating to any of the Confidential Information
of Employer which Employee shall prepare, use, construct, observe, possess, or control shall be and shall remain the sole property
of Employer and shall be returned by Employee upon termination of employment.

 

(b)           During
the employment term, Employee shall not, directly or indirectly, either as an employee, consultant, agent, principal, partner,
stockholder (except in a publicly held company), corporate officer, director, or in any other individual or representative capacity,
engage or participate in any business that is in competition in any manner whatsoever with the then business of Employer.

 

(c)           During
the employment term, Employee agrees that Employee will not undertake planning for or organization of any business activity competitive
with Employer’s business, or combine or conspire with other employees or representatives of Employer’s business for
the purpose of organizing any competitive business activity.

 

(d)           During
the employment term and for two (2) years thereafter, Employee agrees that he will not directly or indirectly, or by action in
concert with others, induce or influence (or seek to induce or influence) any person who is then engaged (as an employee, agent,
independent contractor, or otherwise) by Employer to terminate his employment or engagement for the purpose of employing such person
in any enterprise in which Employee is a member of Management or has a material interest.

 

    	 	3	 

     

    

 

(e)           Covenants
of this Section 2.3 shall be construed as separate covenants covering their subject matter in each of the separate counties and
states in the United States in which Employer transacts its business. To the extent that any covenant shall be judicially unenforceable
in any one or more of said counties or states, said covenants shall not be affected with respect to each other county and state;
each covenant with respect to each other county and state being construed as severable and independent.

 

(f)           Employee
represents and warrants that Employee is free to enter into this Agreement and to perform each of its terms and covenants, and
that doing so will not violate the terms or conditions of any other agreement between Employee and any third party.

 

Inventions
and Original Works

 

Section
2.4

 

(a)           Employee
agrees that he will promptly make full written disclosure to Employer, will hold in trust for the sole right and benefit of Employer,
and hereby assigns to Employer all of his right, title and interest in and to any and all inventions (and patent rights with respect
thereto), original works of authorship relating to the business of FOCUS Enhancements (including all copyrights with respect thereto),
developments, improvements or trade secrets which Employee may solely or jointly conceive or develop or reduce to practice, or
cause to be conceived or developed or reduced to practice, during the course of performing his duties under this Agreement.

 

(b)           Employee
acknowledges that all original works of authorship relating to the business of FOCUS Enhancements which are made by him (solely
or jointly with others) within the scope of his duties under this Agreement and which are protectable by copyrights are “works
made for hire” as that term is defined in the United States Copyright Act (17 U.S.C.A., Section 101), and that Employee is
an employee as defined under that Act. Employee further agrees from time to time to execute written transfers to Employer of ownership
or specific original works or authorship (and all copyrights therein) made by Employee (solely or jointly with others) which may,
despite the preceding sentence, be deemed by a court of law not to be “works made for hire” in such form as is acceptable
to Employer in its reasonable discretion.

 

Maintenance
of Records

 

Section
2.5

 

Employee
agrees to keep and maintain adequate and current written records of all inventions, original works of authorship, trade secrets
developed or made by him (solely or jointly with others) during the employment term. The records will be in the form of notes,
sketches, drawings and other formats that may be specified by Employer. The records will be available to and remain the sole property
of Employer at all times.

 

    	 	4	 

     

    

 

Obtaining
Letters Patent and Copyright Registration

 

Section
2.6

 

Employee
agrees to assist Employer to obtain United States or foreign letters patent, and copyright registrations (as well as any transfers
of ownership thereof) covering inventions and original works of authorship assigned hereunder to Employer. Such obligation shall
continue beyond the termination of this Agreement, but after such termination Employer shall compensate Employee at a reasonable
rate for time actually spent by Employee at Employer’s request on such assistance.

 

If
Employer is unable for any reason whatsoever, including Employee’s mental or physical incapacity to secure Employee’s
signature to apply for or to pursue any application for any United States or foreign letters, patent or copyright registrations
(or any document transferring ownership thereof) covering inventions or original works or authorship assigned to Employer under
this Agreement, Employee hereby irrevocably designates and appoints Employer and its duly authorized officers and agents as Employee’s
agent and attorney-in-fact to act for and in his behalf and stead to execute and file any such applications and documents and to
do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations or transfers
thereof with the same legal force and effect as if executed by Employee. This appointment is coupled with an interest in and to
the inventions and works of authorship and shall survive Employee’s death or disability. Employee hereby waives and quitclaims
to Employer any and all claims of any nature whatsoever which Employee now or may hereafter have for infringement of any patents
or copyrights resulting from or relating to any such application for letters, patent or copyright registrations assigned hereunder
to Employer.

 

Article 3

OBLIGATIONS
OF EMPLOYER

 

General
Description

 

Section
3.1

 

Employer
shall provide Employee with the compensation, incentives and benefits specified in Section 4 of this Agreement.

 

Office
and Staff

 

Section
3.2

 

Employer
shall provide Employee with a private office, office and technical equipment, supplies and other facilities, equipment and services
suitable to Employee’s position and adequate for the performance of his duties.

 

    	 	5	 

     

    

 

Article 4

COMPENSATION
OF EMPLOYEE

 

Annual
Salary

 

Section
4.1

 

As
compensation for his services hereunder, Employee shall be paid at a base salary rate of $190,000 (one hundred ninety thousand
dollars) in the first year of the Initial Term. For the second year of the Initial Term, Employer shall pay Employee at a base
salary rate of $200,000 (two hundred thousand dollars). Salary shall be paid in equal installments not less frequently than once
per month.

 

Bonus
Compensation and Relocation Expenses Reimbursement

 

Section
4.2

 

(a)           In
addition to his regular base salary, Employee shall be entitled to participate in an incentive bonus plan to earn up to an additional
$110,000 per year. $55,000 (fifty five thousand dollars) of this bonus amount shall be based upon the Employer’s quarterly
revenue growth year over year; provided that no revenue attributable to any existing written agreement as of the effective date
between Employer and its major undisclosed OEM (contracted with in June 2001) shall be included in any revenue calculations. From
the effective date of this Agreement until December 31,
2003, the bonus rate will be 1.34% of the quarterly revenue growth year over year. From the effective date of this Agreement
until December 31, 2003, up to an additional $55,000 (fifty five thousand dollars) in bonus amount shall be paid based upon the
Employer’s quarterly cash flow provided by operations (as calculated using the Company’s 10-Q and 10-K filings) as
follows, starting in the first full quarter beginning after the effective date: if more than $25,000 and less than $100,000 in
cash flow is provided by operations, this will result in a bonus payment of $6,000; if more than $100,000 and less than $200,000
in cash flow is provided by operations, this will result in a bonus payment of $8,500; if more than $200,000 and less than $500,000
in cash flow is provided by operations, this will result in a bonus payment of $13,500; if more than $500,000 and less than $750,000
in cash flow is provided by operations, this will result in a bonus payment of $20,000; if more than $750,000 in cash flow is provided
by operations, this will result in a bonus payment of $25,000. (For illustrative purposes see table below.)

 

	If quarterly cash flows from operations are:	 	Bonus Payment	 
	Greater than $25,000 but less than $100,000	 	$	6,000	 
	Greater than $100,000 but less than $200,000	 	$	8,500	 
	Greater than $200,000 but less than $500,000	 	$	13,500	 
	Greater than $500,000 but less than $750,000	 	$	20,000	 
	Greater than $750,000	 	$	25,000	 

 

    	 	6	 

     

    

 

From
January 1, 2004 through the termination of this Agreement or until otherwise agreed to by the Employee and the Board of Directors
(excluding Employee), whichever is first, the bonus plan described above (Section 4.2 (a)) shall remain in effect except that,
if any change is made in calculating the bonus, Employee shall receive a minimum guaranteed bonus of $6,875 (six thousand eight
hundred seventy five dollars) per quarter under each bonus criteria that is changed. (Bonus criteria are defined as (i) quarterly
revenue growth and (ii) quarterly increases in cash flow provided by operations.) No change to any bonus criteria shall be effective
unless agreed by Employee and the Board of Directors (excluding Employee) at least 60 (sixty) days prior to the start of a quarter.

 

(b)           Employer
shall reimburse Employee for all relocation expenses reasonably incurred in moving Employee’s household and family from the
greater Boston, Massachusetts area up to a maximum of $85,000 (eighty-five thousand dollars). Relocation costs include reasonable
temporary family and personal living expenses in California, transportation, lodging and living expenses while moving and commission
costs associated with the sale of Employee’s current home in the greater Boston, Massachusetts area. (“Temporary family
and personal living expenses” as used in the above sentence shall not be for more than 6 weeks and shall be paid only during
the period Employee and his family have moved to California from the greater Boston Massachusetts area but Employee has not yet
sold his home in the greater Boston, Massachusetts area.)

 

(c)           If
Employer terminates Employee’s employment in the Initial Term other than for Cause as set forth below in Section 6.3, Employer
shall pay Employee the reasonable costs to move his family and household to the greater Boston, Massachusetts area. If the Employee
does not elect to return to the Boston area within a six-month window from such termination without Cause, then the Employer is
not obligated to pay any additional remuneration to the Employee for relocation.

 

(d)           If
the Employee elects to terminate his employment during the Initial Term, the he is obligated to reimburse the Employer for a prorated
portion of the initial relocation costs.

 

Tax
Withholding

 

Section
4.3

 

Employer
shall have the right to deduct or withhold from the compensation due to Employee hereunder any and all sums required for federal
income and social security taxes and all state or local taxes now applicable or that may be enacted and become applicable in the
future, for which withholding is required by law.

 

Non
Qualified Stock Options

 

Section
4.4

 

Employee
shall be granted Non Qualified Stock Options to purchase 350,000 shares of Employer’s Common Stock under Employer’s
Available Stock Option Plans, said grant to be made on the effective date by the Employer’s Board of Directors. Said Options
shall be exercisable at the fair market value on the day immediately prior to the effective date, shall vest in equal installments
at the rate of one-thirty-sixth (1/36) per month thereafter over three (3) years, and shall expire at the longer of (1) five (5)
years from the date of grant or (2) if permitted thereunder, ten years from the date of grant. The Company shall request the approval
of an adequate number of stock options at the next Shareholder Meeting to grant to Employee the 150,000 stock options immediately
following that meeting.

 

    	 	7	 

     

    

 

Article 5

EMPLOYEE
BENEFITS

 

Annual
Vacation

 

Section
5.1

 

Employee
shall be entitled to 20 business days of paid vacation during each year of this Agreement. Employee may be absent from his employment
for vacation only at such times the Employee notifies at a minimum of 10 (ten) days in advance the Employer’s Board of Directors
Compensation Committee of the planned vacation. Unused vacation will carry over from one year to the next but the maximum amount
of vacation, which can be accrued (unused) at any one time, shall not exceed 20 business days. Unused vacation will not be paid
in the form of cash, except upon termination of employment.

 

Benefits

 

Section
5.2

 

Employee
shall be eligible to participate in any and all benefit plans provided by Employer, on the same basis as same are made available
to other employees, including health, disability and life insurance coverage should Employee elect to participate in any such plans.

 

Business
Expenses

 

Section
5.3

 

Employer
shall reimburse Employee for all appropriate expenses for travel and entertainment by Employee for legitimate business purposes,
provided that they are approved in writing by the Chief Financial Officer of the Employer and provided that Employee furnishes
to Employer adequate records and documentary evidence for the substantiation of each such expenditure, as required by the Internal
Revenue Code of 1986, as amended.

 

Article 6

TERMINATION
OF EMPLOYMENT

 

Termination

 

Section
6.1

 

Employer
shall not terminate the Employee’s employment except as provided in Section 6.3 and/or 6.4. Employee’s employment hereunder
may be terminated by Employee for any reason, without further obligation or liability, except as expressly provided herein.

 

Resignation,
Retirement, Death or Disability

 

Section
6.2

 

Employee’s
employment hereunder shall be terminated at any time by Employee’s resignation, or by Employee’s retirement at or after
attainment of age sixty (60) at Employee’s option (“Retirement”), death, or his inability to perform his duties
under this Agreement on a full-time basis for a continuous period of ninety (90) days or more because of a physical or mental illness
(“Disability”). Employer shall not be liable for payment of bonus compensation during any period of Disability, though
salary and benefits shall continue to be paid during such period.

 

    	 	8	 

     

    

 

Termination
for Cause

 

Section
6.3

 

Employer
may terminate Employee for Cause at any time. “Cause” shall mean personal dishonesty, conflict of interest or breach
of fiduciary duty involving material personal or family profit, willfully engaging in conduct with the purpose and effect of materially
injuring Employer, the willful and continued failure by the Employee to substantially perform his duties hereunder in a reasonably
competent manner expected of similarly situated executives for comparable public companies in the high technology electronics industiy.
For purposes of this Section 6.3, no act, or failure to act, on the Employee’s part shall be considered “willful”
unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the
best interest of the Employer. Notwithstanding the foregoing, the Employee shall not be terminated for Cause without (i) reasonable
notice to the Employee setting forth the reasons for the Employer’s intention to terminate for Cause and a reasonable period
of time to cure such “Cause” if same is capable of being cured within such period; (ii) if not capable of being so
cured within a reasonable period, an opportunity for the Employee, together with his counsel, to be heard before the Board of Directors;
and (iii) if clause (i) shall be inapplicable, then, after the opportunity to be heard as set forth in clause (ii), delivery to
the Employee of a Notice of Termination as defined in Section 6.6 hereof from the Board finding that in the good faith opinion
of the majority of the Board of Directors, the Employee has engaged in conduct set forth above, and specifying the particulars
thereof in detail.

 

Termination
Without Cause

 

Section
6.4

 

(a)           Employer
may terminate Employee without Cause at any time. For the first year of the Initial Term, if Employer terminates Employee without
Cause, Employee shall receive, as severance pay for the remainder of the Initial Term, all regular salary and benefits otherwise
which would be due to him on the same schedule as same were paid at the time of termination, as if he were still employed through
such Initial Term. If Employee is terminated without Cause or this Agreement is allowed to expire without renewal during the second
year of the Initial Term or in the first Succeeding Year of the Initial Term, Employee shall receive, as severance pay for the
twelve months immediately after such termination date, regular salary and benefits payable at the same rate he was earning on the
same schedule as such were paid at the time of termination. If Employee is terminated without Cause or this Agreement is allowed
to expire without renewal during the Initial Term or in the first Succeeding Year after the Initial Term, as described in this
paragraph, any unvested stock options issued to Employee which have not lapsed and which are not otherwise exercisable shall vest,
accelerate, and become immediately exercisable by Employee. If Employee is terminated without Cause or this Agreement is allowed
to expire without renewal during any Succeeding Year which commences one or more year(s) after the end of the Initial Term, then
Employee shall receive as severance pay for the twelve months immediately after such termination date regular salary and benefits
payable at the same rate he was earning and on the same schedule at the time of termination. In the event of Employee’s subsequent
death after his termination by Employer without Cause, Employer shall continue to pay the same payments and benefits to Employee’s
surviving spouse, or if none, to Employee’s estate as Employee was entitled to at the date of his death.

 

    	 	9	 

     

    

 

Employee’s
employment hereunder may be terminated without Cause upon ten (10) business days’ notice for any reason.

 

(b)           Employee
may terminate this Agreement with or without Cause for any reason at any time upon thirty (30) days prior notice. Upon such termination
by Employee, Employee shall receive all salary, benefits and options vested through such termination date.

 

Expiration

 

Section
6.5

 

Unless
otherwise renewed in accordance herewith, Employee’s employment shall end upon expiration of the employment term as provided
in Section(s) 1.1 and 1.2.

 

Notice
for Termination

 

Section
6.6

 

Any
termination of the Employee’s employment (other than termination by reason of death) shall be communicated by written Notice
of Termination to the other party. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which
shall include the specific termination provision in this Agreement relied upon, and shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination.

 

Date
of Termination

 

Section
6.7

 

The
“Date of Termination” shall be:

 

(a)           if
the Employee’s employment is terminated by his death, the date of his death;

 

(b)           if
the Employee’s employment is terminated by reason of Employee’s Disability, thirty (30) days after Notice of Termination
is given (provided that the Employee shall not have returned to the performance of his duties on a full-time basis during such
thirty (30) day period);

 

(c)           if
the Employee’s employment is terminated for Cause, subject to Section 6.3 above, the date of the Notice of Termination is
given or after if so specified in such Notice of Termination;

 

(d)           if
the Employee’s employment is terminated by either party for any other reason than those set forth in clauses 6.7(a)-(c) above,
the date on which the Notice of Termination specifies.

 

    	 	10	 

     

    

 

Article 7

PAYMENTS
TO EMPLOYEE UPON TERMINATION

 

Death,
Disability or Retirement

 

Section
7.1

 

Upon
Employee’s Retirement, Death or Disability, all benefits generally available to Employer’s employees as of the date
of such an event shall be payable to Employee or Employee’s estate without reduction, in accordance with the terms of any
plan, contract, understanding or arrangement forming the basis for such payment. Employee shall be entitled to such other payments
as might arise from any other plan, contract, understanding or arrangement between Employee and Employer at the time of any such
event.

 

Termination
for Came or Resignation

 

Section
7.2

 

If
Employer terminates Employee for Cause or Employee voluntarily resigns for reasons other than constructive discharge, neither Employer
nor any affiliate shall have any further obligation to Employee under this Agreement or otherwise, except to the extent provided
in any other plan, contract, understanding or arrangement, or as may be expressly required by law.

 

Article 8

GENERAL
PROVISIONS

 

Notices

Section
8.1

Any
notices to be given hereunder by either party to the other shall be in writing and may be transmitted by personal delivery or by
mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties
at:

 

“Employee”

Brett Moyer

38 Heritage Lane

Stow, MA 01775

 

“Employer”

FOCUS Enhancements, Inc.

1370 Dell Avenue

Campbell, California 95008

 

Each
party may change that address or addressee by written notice in accordance with this section. All notices delivered shall be deemed
communicated as of the date of actual receipt.

 

    	 	11	 

     

    

 

Arbitration

 

Section
8.2

 

(a)           Any
controversy between Employer and Employee involving the construction or application of any of the terms, provisions or conditions
of this Agreement or the breach thereof shall be settled by binding arbitration before a single arbitrator selected by the American
Arbitration Association, in accordance with its then current commercial rules. Judgment upon the award rendered by the arbitrator(s)
may be entered in any court having jurisdiction. Arbitration shall comply with and be governed by the provisions of the American
Arbitration Association, Commercial Division. No discovery shall be permitted in such arbitration other than an exchange of documents,
and the parties hereby agree to limit the number of hearing days in arbitration to two (2) days. The arbitrator shall issue a written
decision listing findings of fact, reasons for the decision, and conclusions of law in any arbitration. The arbitration award shall
be specifically enforceable.

 

(b)           The
cost of arbitration (including the prevailing party’s reasonable attorneys’ fees) shall be borne by the non-prevailing
party as determined by the arbitrator or in such proportions as the arbitrator decides.

 

(c)           Such
arbitration and any litigation shall take place solely in Santa Clara County, California.

 

Attorneys’
Fees and Costs

 

Section
8.3

 

If
any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to obtain from the non-prevailing party, reasonable attorneys’ fees, costs and necessary disbursements in addition
to any other relief to which that party may be entitled. This provision shall be construed as applicable to this entire Agreement.

 

Entire
Agreement

 

Section
8.4

 

This
Agreement supersedes, merges and voids any and all other agreements, either oral or in writing, between the parties hereto with
respect to its subject matter and no other covenants and agreements between the parties exist with respect thereto. Each party
to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made
by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or
promise not contained in this Agreement shall be valid or binding on either party.

 

Modifications

 

Section
8.5

 

Any
modification of this Agreement will be effective only if it is in writing and signed by the Employee and properly authorized by
Employer’s Board of Directors and signed by a representative thereof (who may, but need not be, Chairman).

 

    	 	12	 

     

    

 

Effect
of Waiver

 

Section
8.6

 

The
failure of either party to insist on strict compliance with any of the terms, covenants or conditions of this Agreement by the
other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right
or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times. No waiver
shall be effective unless in a writing and signed by the person charged with making such waiver

 

Partial
Invalidity

 

Section
8.7

 

If
any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

 

Effective
Date

 

Section
8.8

 

The
effective date of this Agreement shall be the date it is signed by both parties. However, Employee shall become President and Chief
Executive Officer and a member of the Company’s Board of Directors on the earlier to occur of (i) three (3) days after the
Company’s public announcement that purchase orders for commercial quantities of units have been placed under the above-described
undisclosed June 2001 OEM agreement or (ii) September 30, 2002.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on August
6th, 2002, at Campbell, California.

 

	“Employer”	 	“Employee”
	 	 	 
	FOCUS Enhancements, Inc.	 	 
	 	 	 
	By:	/s/ Michael D’Addio	 	/s/ Brett Moyer
	 	Michael D’Addio	 	Brett Moyer
	 	CEO	 	 
	 	 	 	 
	 		 	 
	 	Witness	 	 

 

    	 	13

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