Document:

EX-4.2

 Exhibit 4.2 

SECOND AMENDMENT OF RIGHTS AGREEMENT 

THIS SECOND AMENDMENT OF RIGHTS AGREEMENT (this “Amendment”), effective as of November 5, 2013, is made by
Digimarc Corporation, a Delaware corporation (the “Company”), and acknowledged by Broadridge Corporate Issuer Solutions, Inc. (the “Rights Agent”). 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows: 
  

	 	1.	Amendments 

 (a) Subject to the terms hereof, and pursuant to Section 26 of that
certain Rights Agreement, dated as of July 31, 2008, and amended effective October 30, 2008, by and between the Company and Computershare Trust Company, N.A. (the “Rights Agreement”), the parties hereby amend the Rights
Agreement to restate the first sentence of the Rights Agreement, in its entirety, as follows: 
 “RIGHTS AGREEMENT,
dated as of July 31, 2008, between Digimarc Corporation, a Delaware corporation (the “Company”), and Broadridge Corporate Issuer Solutions, Inc., as successor Rights Agent to Computershare Trust Company, N.A. (the
“Rights Agent”).” 
 (b) Subject to the terms hereof, and pursuant to Section 26 of the Rights Agreement,
the parties hereby amend the Rights Agreement to: 
 (i) change the address of the Rights Agent in Section 25 of the Rights Agreement
to: 
 Broadridge Corporate Issuer Solutions, Inc. 

1717 Arch Street, Suite 1300 

Philadelphia, Pennsylvania 19103 

Attention: Corporate Action Department 

(ii) change each occurrence of “Computershare Trust Company N.A.” or “Computershare” throughout the Rights Agreement,
including the cover page and all exhibits to the Rights Agreement, to “Broadridge Corporate Issuer Solutions, Inc.” or “Broadridge,” respectively, as successor Rights Agent to Computershare. 

(c) Subject to the terms hereof, and pursuant to Section 26 of the Rights Agreement, the parties hereby amend the Rights Agreement to
restate the last sentence of Section 8, in its entirety, as follows: “The Rights Agent shall, at the written request of the company, deliver all cancelled Rights Certificates to the Company, or shall destroy such cancelled Right
Certificates in accordance with the Securities and Exchange Commission rules regarding destruction of securities certificates. Upon completion of such destruction, the Rights Agent shall deliver a certificate of destruction to the Company.”

	 	2.	Condition to Effectiveness 

 This Amendment shall be effective as of November 5,
2013. By execution hereof, each of the Former Rights Agent and the Rights Agent hereby acknowledges that it has received written notice of the Amendment; provided, however, that the Former Rights Agent and the Rights Agent shall not be
deemed to have any knowledge of the effectiveness of this Amendment prior to the date of the execution of this Amendment. 
  

	 	3.	Reference to and Effect on Rights Agreement 

 Each reference in the Rights Agreement to
“this Agreement,” “hereunder,” “hereof,” “herein” or any other expression of like import referring to the Rights Agreement shall mean and be a reference to the Rights Agreement as amended by the First
Amendment of Rights Agreement, effective October 30, 2008, and this Amendment. 
  

	 	4.	Governing Law 

 This Amendment shall be governed by, and construed in accordance with,
the laws of the State of Delaware applicable to contracts executed in and to be performed entirely in such State. 
  

	 	5.	Continuing Effect 

 The Rights Agreement, as amended hereby, shall remain in full force
and effect. 
 [THE REMAINDER OF THIS PAGES IS INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, the Company has executed this Amendment on June 9, 2014. 

 

					
	DIGIMARC CORPORATION
		
	By:	 	/s/ Robert P. Chamness
		 	Name:	 	Robert P. Chamness
		 	Title:	 	Chief Legal Officer and Secretary

  
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	Acknowledged by:
	
	BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.
		
	By:	 	/s/ John P. Dunn
		 	Name:	 	John P. Dunn
		 	Title:	 	Vice President

  
 -4-EX-10.1

 Exhibit 10.1 

EQUITY COMPENSATION PROGRAM 

FOR NON-EMPLOYEE DIRECTORS 

UNDER THE DIGIMARC CORPORATION 2008 INCENTIVE PLAN 

(As Amended on February 21, 2011, and February 20, 2014) 

The following provisions set forth the terms of the equity compensation program (the “Program”) for non-employee directors of Digimarc
Corporation (the “Company”) under the Digimarc Corporation 2008 Incentive Plan (the “Plan”). The following terms are intended to supplement, not alter or change, the provisions of the Plan, and in the event of any
inconsistency between the terms contained in this document and in the Plan, the Plan shall govern. All capitalized terms that are not defined in this document shall be as defined in the Plan. 

1. Eligibility 
 Each director of the
Company elected or appointed to the Board who is not otherwise an officer or employee of the Company or a Related Company (an “Eligible Director”) is eligible to receive the Awards set forth in the Program. 

2. Initial Option Grants 
 Each Eligible
Director who is first elected or appointed to the Board after the date the Program is approved by the Board will automatically receive a Nonqualified Stock Option to purchase 20,000 shares of Common Stock (an “Initial Grant”). The
Grant Date for an Initial Grant to an Eligible Director is the date of that director’s first election or appointment to the Board. In addition, those Eligible Directors already serving as directors on the date the Program is approved by the
Board will automatically receive a Nonqualified Stock Option to purchase 20,000 shares of Common Stock (an “Existing Director Grant”). The Grant Date for Existing Director Grants will be the date the Program is approved by the
Board. 
 Each Initial Grant will vest and become exercisable over the two-year period commencing on the Initial Option’s Grant Date,
with 50% of the shares to vest and become exercisable on the first anniversary of the Grant Date of the Initial Grant and 1/12th of the remaining shares to vest and become exercisable monthly thereafter. Each Existing Director Grant will vest and
become exercisable over a two-year period commencing on the date the director was first elected or appointed to the Board, with 50% of the shares to vest and become exercisable on the first anniversary of the date the director was first elected or
appointed to the Board and 1/12th of the remaining shares to vest and become exercisable monthly thereafter. 
 3. Annual Equity Grants. 

Commencing with the 2014 annual meeting of stockholders, each Eligible Director will automatically receive immediately following each annual
meeting of stockholders a Restricted Stock Award for the number of shares of Common Stock 

 
calculated by dividing $100,000 by the closing price of the Common Stock on the Grant Date, with any fractional share rounded to the nearest whole share (an “Annual Grant”). The
Grant Date of an Annual Grant will be the date of such annual meeting. Each Annual Grant will vest and cease to be subject to forfeiture on the first anniversary of the Grant Date for the Annual Grant. In the event of an Eligible Director’s
death, any unvested portion of an Annual Grant granted to the director will become fully vested and no longer subject to forfeiture. 
 4. Option
Exercise Price 
 Initial Grants and Existing Director Grants will have a per share exercise price equal to the Fair Market Value of the
Common Stock on the Grant Date of the Option. 
 5. Term of Options 

Each Option expires ten years from its Grant Date, but is subject to earlier termination as follows: 

 

	 	(A)	In the event that an Eligible Director ceases to be a director for any reason other than death, the unvested portion of any Option granted to the director will terminate immediately, and the director may exercise the
vested portion of the Option only within three years after he or she ceases to be a director or prior to the date on which the Option expires by its terms, whichever is earlier. 

 

	 	(B)	In the event of an Eligible Director’s death, the unvested portion of any Option granted to the director will become fully vested and exercisable. The Option is exercisable only within three years after the date of
death of the director or prior to the date on which the Option expires by its terms, whichever is earlier, and only by the personal representative of the director’s estate, the person(s) to whom the director’s rights under the option have
passed by will or the applicable laws of descent and distribution, or any beneficiary designated pursuant to Section 14 of the Plan. 

6. Exercise of Options 
 An Eligible
Director or an individual set forth in Section 5(B), as applicable, may exercise the Options by giving notice to the Company (or a brokerage firm designated or approved by the Company). The notice must state the number of shares of Common Stock
exercised and be accompanied by payment in full for the Common Stock. Payment may be made, to the extent permitted by applicable laws and regulations, in whole or in part, (a) in cash or check; (b) by having the Company withhold shares of
Common Stock that would otherwise be issued on exercise of the Option that have an aggregate Fair Market Value equal to the aggregate exercise price of the shares being purchased under the Option; (c) by tendering (either actually or by
attestation) shares of Common Stock owned by the director that have an aggregate Fair Market Value equal to the aggregate exercise price of the shares being purchased under the Option; (d) if and so long as the Common Stock is registered under
the Exchange Act, by delivery of a properly executed exercise notice, together with 

  
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irrevocable instructions to a broker, to promptly deliver to the Company the amount of proceeds to pay the exercise price, all in accordance with the regulations of the Federal Reserve Board.

 7. Change of Control 
 Upon a Change
in Control or Company Transaction, all Awards outstanding and held by an Eligible Director as of the date of the Change of Control or Company Transaction, and which are not then exercisable and vested or no longer subject to forfeiture, will
immediately become fully exercisable and vested, and no longer subject to forfeiture. 
 8. Amendment 

The Board may amend the provisions contained within this Program as it believes advisable. An amendment may not, without the consent of the
Eligible Director, impair or diminish any rights of an Eligible Director or any rights of the Company under an Award. 
 Provisions of the
Plan (including any amendments) not discussed above, to the extent applicable to Eligible Directors, continue to govern the terms and conditions of Awards granted to Eligible Directors. 

  
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