Document:

Executive Employment Agreement, dated November 14, 2002

 Exhibit 10.6 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (the “Agreement”) is entered into as of November 14, 2002 by and between ArcSoft, Inc., a California
corporation (“ArcSoft”), as the employer; and Todd Jason Rumaner, an individual (“Employee”), as the employee. ArcSoft and Employee may be referred to collectively in this Agreement as the
“Parties”. 
  
 RECITALS 
  
 WHEREAS, ArcSoft desires to obtain the services of Employee as its Senior
Vice President, Sales and Marketing in the manner hereinafter specified; and 
  
 WHEREAS, Employee is willing to be employed by ArcSoft as its Senior Vice President, Sales and Marketing and to perform the duties incident to such employment upon the terms and subject to the conditions hereinafter
set forth; 
  
 NOW, THEREFORE, in consideration of the promises
and the mutual covenants and agreements set forth herein, the Parties agree to enter into this Agreement as follows: 
  
 TERMS AND CONDITIONS 
  

	1.	Position, Starting Date, Authorities and Responsibilities 

  
 (a) Position and Starting Date Employee shall be employed by ArcSoft as its Senior Vice President, Sales and Marketing. Employee shall report
directly and solely to ArcSoft’s Chief Executive Officer, or other personnel designated by the Chief Executive Officer upon Employee’s written consent as described in Section 6 (a). Upon the effectiveness of this Agreement, the employment
shall commence on the first day when Employee officially reports to ArcSoft. 
  
 (b) Duties As Senior Vice President, Sales and Marketing, Employee shall render such business and professional services in the performance of his duties, consistent with his position within ArcSoft, as shall
reasonably be assigned to him by the Chief Executive Officer. The period of Employee’s employment under this Agreement is referred to herein as the “Employment Term.” 
  
 (c) Obligations Employee, in his capacity as an employee of ArcSoft, shall be responsible to and obey the reasonable
and lawful directives of the Chief Executive Officer. During the Employment Term, Employee will perform his duties faithfully and to the best of his ability and will devote his full business efforts and time to ArcSoft. Employee shall use his best
efforts during the Term of Employment to protect, encourage, and promote the interests of ArcSoft. For the duration of the Employment Term, Employee agrees not to actively engage in any other employment, occupation or consulting activity for any
direct or indirect remuneration without the prior written approval of the Board of Directors of ArcSoft (“the “Board”), or the Chief Executive Officer as the Board delegated. Notwithstanding the foregoing, Employee may serve on the
board of directors of any other companies that are not directly or indirectly in competition with ArcSoft, or work in non-profit pursuits as long as such service does not materially interfere with the performance of his duties to ArcSoft.

  

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 (d) Fiduciary Duty Employee acknowledges and agrees that Employee owes a fiduciary duty of
loyalty, fidelity and allegiance to act at all times in the best interests of ArcSoft, and not to do any act which would injure the business, interests, or reputation of ArcSoft or any of its subsidiaries. 
  

	2.	Compensation 

  
 In consideration of, and in exchange for, the services to be provided by Employee, Employee shall receive the amounts and benefits set for in this Section
2 as of Starting Date of this Agreement unless otherwise specified: 
  
 (a) Base Salary Employee’s annual Base Salary shall be $200,000 paid semi-monthly, on ArcSoft’s regular payday (15th and the last day of each month), less all applicable taxes, social security payments and other items that ArcSoft is required by law to withhold or deduct therefrom. 
  
 (b) Incentive Bonus During the first two years of the Employment Term,
provided the employment is not terminated pursuant to Section 6, Employee shall receive an Incentive Bonus of $200,000 in total, less any applicable withholdings required by law. The said amount shall be paid out in eight (8) installments of
$25,000 each, payable at the end of each calendar quarter. 
  
 The Incentive Bonus Program shall be subject to annual review by the Chief Executive Officer by the end of the 24th month after the Starting Date, and may be adjusted after completion of two (2) years of consecutive employment in light of the performance of Employee and the size and financial situation of ArcSoft. 
  
 $20,000 shall be paid to Employee as sign-on bonus within five (5)
business days after the Starting Date, less any applicable withholding required by law. 
  
 (c) Stock Option Employee shall be eligible to participate in the Stock Option Plans of ArcSoft and any additional or successor plans including any equity plans. 
  
 (i) Option Grant Upon execution of this Agreement, Employee shall be
granted an option to purchase 600,000 shares of ArcSoft’s common stock (the “Stock Option” or “Option”). The Option shall be vested in accordance to ArcSoft standard vesting schedule, which is 25% shall become vested and
exercisable at the end of twelfth (12th) month of continuous full-time employment, and 6.25% for each three (3)
consecutive months of full-time employment for the remaining twelve (12) quarters. 
  
 (ii) Option Price The exercise price (or “option price”) shall be equal to the price set forth by the Board at the date of grant. 
  

	3.	Other Benefits 

  
 During the Employment Term and for services rendered hereunder, Employee shall also be entitled to receive all other benefits which are, and may be in the
future, generally available to ArcSoft employees and members of ArcSoft’s senior management: 
  

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 (a) Group Insurance Employee shall be covered by ArcSoft group insurance programs including
Health, Dental, Vision, Disability, and Life. Employee’s spouse and children under 18 (or otherwise determined by the plans) can join the insurance programs subject to ArcSoft policies and applicable laws. The premium of such insurance
program(s) shall be paid by ArcSoft. 
  
 (b) 401(k) and Other
Retirement Plans Employee shall be eligible to participate in employee benefit plans maintained by ArcSoft and in other benefits provided by ArcSoft to its employees and senior Employees, now and in the future, including 401(k) and other
retirement plans, deferred compensation and similar benefits subject to change from time to time at the reasonable discretion of ArcSoft. 
  
 (c) Other Benefits Employee shall also be entitled to other benefits provided by ArcSoft to its employees and senior Employees from time to time,
including but not limited to annual vacation, paid holiday, sick leave, and other similar benefits. Employee shall be entitled to paid vacation up to 3 weeks per calendar year. 
  
 (d) Employee Term Life Insurance ArcSoft shall purchase a key person term insurance on Employee’s life in the
face amount of at least $1,000,000 in. the event that Employee dies or becomes permanently disabled defined in the policy or applicable laws. ArcSoft and the beneficiaries designated by Employee shall each receive half of the proceeds (50%),
and ArcSoft shall bear the expense of such insurance policy and be the holder and owner of such policy. 
  
 (e) Relocation ArcSoft agrees to reimburse Employee for moving his home from Pennsylvania to San Francisco Bay Area, California up to
$40,000 subject to the requirements set forth in the Internal Revenue Code regulating moving and relocation expenses. Any unused balance of the said reimbursement amount will be paid to Employee in twelve (12) installments, payable at the end
of each month in accordance with ArcSoft payroll practice, less any applicable withholding of tax required by law. 
  

	4.	Employment Term 

  
 The term of Employee’s Employment with ArcSoft shall be four (4) year, from Starting Date to November 15, 2006. 
  

	5.	Restrictive Covenants 

  
 (a) Non-Competition; Non-Solicitation The Parties hereto recognize that Employee’s services are unique and the Restrictive Covenants on
Employee set forth in this Section 5 are essential to protect the business (including trade secret and other confidential information disclosed by ArcSoft to, learned or developed by Employee during the course of employment by ArcSoft) and good will
of ArcSoft. As part of the consideration for the compensation and benefits to be paid to Employee hereunder, Employee agrees that during the Employment Term, and for a period of twelve (12) months thereafter (the “Covenant Period”),
Employee shall not: 
  
 (i) Engage in any business similar or
related to or competitive with the business conducted by ArcSoft or any of its subsidiaries or affiliates described from time to time 

  

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in ArcSoft Annual Report to its shareholders and Board (the “Core Business of ArcSoft”); 
  
 (ii) Render advice or services to, or otherwise assist, any other person,
association, or entity that is engaged, directly or indirectly, in any business similar or related to or competitive with the Core Business of ArcSoft; 
  
 (iii) Transact any business in any manner pertaining to suppliers or customers of ArcSoft or any of its subsidiaries affiliates which, in any manner,
would have, or is likely to have, an adverse effect upon the Core Business of ArcSoft or any of its subsidiaries affiliates; 
  
 (iv) For himself, or others, directly or indirectly, induce, or in any manner of this nature, any employee of ArcSoft or any of its subsidiaries
affiliates to terminate his or her employment with ArcSoft or any of its subsidiaries affiliates, or hire or assist in the hiring of any such employee by any person or entity not affiliated with, ArcSoft; 
  
 (v) Conduct any other activities that are prohibited in ArcSoft Employee
Manual and Confidentiality Agreement. 
  
 For purposes of this
Agreement, “affiliate” shall mean any entity which owns or controls, is owned or controlled by, or is under common ownership or control, with ArcSoft. 
  

Notwithstanding the foregoing, if ArcSoft abandons a particular aspect of the Core Business, that is, ceases such aspect of its business with the
intention to permanently refrain from such aspect of its business, then this post-employment non-competition covenant shall not apply to such former aspect of ArcSoft’s business. 
  
 (b) Confidentiality Employee acknowledges that it is the policy of ArcSoft and its subsidiaries or affiliates to
maintain as secret and confidential all valuable and unique information herebefore or hereafter acquired, developed or used by ArcSoft and its subsidiaries relating to the business, operations, employees and customers of ArcSoft and its subsidiaries
or affiliates, which information gives ArcSoft and its subsidiaries or affiliates a competitive advantage in the industry, and which information includes technical knowledge, know-how or trade secrets and information concerning the operations,
sales, personnel, suppliers, customers, costs, profits, markets, pricing policies, and other confidential materials (the “Confidential Information”). 
  

(c) Non-Disclosure Employee recognizes that the services to be performed by Employee are special and unique, and that by reason of his duties he
will acquire or learn Confidential Information. Employee recognizes that all such Confidential Information is the sole and exclusive property of ArcSoft and its subsidiaries or affiliates. As part of consideration of the compensation and benefits to
be paid to Employee under this Agreement, Employee agrees not to disclose the Confidential Information to anyone outside ArcSoft, either during or after the employment by ArcSoft, except as authorized by ArcSoft in connection with performance of the
duties set forth in this Agreement, or other duties assigned by ArcSoft from time to time. 
  
 (d) Return of Confidential Information Employee agrees to deliver promptly upon termination of his employment with ArcSoft, or at any time requested by ArcSoft, all memos, notes, records, reports, manuals,
drawings, and any other documents containing any Confidential Information, including all copies of such materials which Employee may then possess or have under his control. 
  

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 (e) Injunctive Relief Employee acknowledges that any breach or violation of the provision of this
section of the Agreement will result in immediate and irreparable harm to ArcSoft and its subsidiaries or affiliates for which ArcSoft and its subsidiaries or affiliates would have no adequate remedy at law. In the event of a breach by Employee of
any of such provisions, in addition to any and all other rights and remedies it may have under this Agreement or otherwise, ArcSoft and its subsidiaries or affiliates may immediately seek any judicial action deemed necessary, including, without
limitation, temporary and preliminary injunctive relief. 
  
 (f)
Ownership of Trade Secrets; Assignment of Rights Employee is required to executed ArcSoft standard Employee Confidentiality Agreement on the Starting Date, which shall remain in full force throughout the Employment Term and thereafter.
Excluding those brought to ArcSoft and its subsidiaries or affiliates by Employee and disclosed by Employee in the said ArcSoft standard Employee Confidentiality Agreement, Employee agrees that all know-how, documents, reports, plans, proposals,
marketing and sales plans, client lists, client files and materials made by him or by ArcSoft and its subsidiaries (the “Work Product”) are the property of ArcSoft and its subsidiaries and shall not be used by him in any way adverse to the
interests of ArcSoft and its subsidiaries or affiliates. Employee assigns to ArcSoft and its subsidiaries any rights which Employee may have in any such Work Product; provided, however, that such assignment does not apply to any right which
qualifies fully under California Labor Code Section 2870. This paragraph shall survive any termination of the employment relationship. Employee shall not deliver, reproduce or in any way allow such documents or things to be delivered or used by any
third party without specific direction or consent of the Board. Employee assigns to ArcSoft and its subsidiaries or affiliates any rights, which he may have in any such trade secret or proprietary information. Likewise, Employee shall not disclose
to ArcSoft and its subsidiaries or affiliates, use in ArcSoft and its subsidiaries or affiliates business, or cause ArcSoft and its subsidiaries or affiliates to use, any information or material that is a trade secret of others. 
  

	6.	Termination and Severance Benefits 

  
 (a) Termination without Cause If Employee’s employment with ArcSoft terminates other than for “Cause” (as defined below), and
Employee signs and does not revoke a standard release of claims with ArcSoft, then, in addition to payment for all salary and vacation accrued but unpaid as of the date of termination, and the benefits will be continued under the terms of such plans
and policies in accordance with applicable law, subject to the Conditions set out below, Employee shall be entitled to receive continuing payments of severance pay (less applicable withholding taxes) at a rate equal to his Base Salary rate, as then
in effect, for a period of twelve (12) months from the date of such termination, to be paid, periodically in accordance with ArcSoft’s normal payroll policies. 
  
 In the event that Employee is no longer required to report directly and solely to the present Chief Executive Officer of
ArcSoft, ArcSoft shall obtain Employee’s written consent on such change. Nevertheless, when Employee does not consent, he may elect to resign from the position offered herein. This Section 6(a) shall apply to such termination. 
  
 (b) Termination for Cause If Employee’s employment with ArcSoft
terminates for Cause by ArcSoft, then Employee will only be eligible for (i) Employee’s then Base Salary paid as of the date of termination; (ii) Any then vested Stock Option and other options as of 

  

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the date of termination; (iii) Vacation accrued but unpaid as of the date of termination; (iv) Continuance of group insurance program in accordance with
COBRA; and (v) Any un-reimbursed business expenses or dues described in this Agreement. 
  
 For purpose of this Agreement, Cause shall be defined as follows: 
  
 (i) Willful refusal without proper legal cause to perform (other than reason of physical or mental disability or death) the duties set forth in this
Agreement or delegated by the Chief Executive Officer or other personnel the Chief Executive Officer designated from time to time, which remains uncorrected for fifteen (15) days following written notice to Employee by ArcSoft; 
  
 (ii) Willfully engaging in conduct that Employee knows or should know may be
materially injurious to ArcSoft or its subsidiaries or affiliates; 
  
 (iii) Fraud, dishonesty or material misappropriation of Arc business and assets that is intended to result in substantial personal benefits of Employee and harming the business of ArcSoft and its subsidiaries or affiliates; 
  
 (iv) Conviction of a felony or entry into a plea of guilty that negatively
reflects on Employee’s fitness to perform the duties or harms ArcSoft’s reputation or business; 
  
 (v) Any willful violation of this Agreement and other material ArcSoft employment policies, and breach of fiduciary duties. 
  
 (c) Voluntary Termination by Employee If Employee’s employment
with ArcSoft is voluntarily terminated by Employee, then Employee will only be eligible for (i) Employee’s then Base Salary paid as of the date of termination; (ii) Any then vested Stock Option and other options as of the date of termination;
(iii) Vacation accrued but unpaid as of the date of termination; (iv) Continuance of group insurance program in accordance with COBRA; and (v) Any un-reimbursed business expenses or dues described in this Agreement. 
  
 (d) Severance Payment Condition Employee acknowledges that the nature
of ArcSoft’s business is such that if Employee were to become employed by, or substantially involved in, the business of a competitor of ArcSoft during the Restrictive Period set forth in Section 5 of this Agreement, it would be very difficult
for Employee not to rely on or use ArcSoft’s trade secrets and Confidential Information. Thus, to avoid the inevitable disclosure of ArcSoft’s trade secrets and Confidential Information, Employee agrees and acknowledges that
Employee’s right to receive the severance payments set forth in this Section 6 (to the extent Employee is otherwise entitled to such payments) shall be conditioned upon Employee’s full compliance with the Restrictive Covenants set forth in
Section 5 of this Agreement. Upon any breach of the Restrictive Covenants, all severance payments pursuant to this Agreement shall immediately cease, and ArcSoft reserves its rights to pursue legal actions against Employee. 
  

	7.	Liability Insurance 

  
 ArcSoft shall maintain a directors and officers liability insurance in the amount of no less than $5 Million to cover Employee both during and, while
potential liability exists, the Term of this Agreement in the same amount and to the same extent, as ArcSoft covers its other officers and directors. 
  

	8.	Arbitration 

  

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 (a) Agreement The Parties agree that any dispute or controversy arising out of, relating to, or in
connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by confidential, final and binding arbitration conducted in Santa Clara, California or such other location
agreed by the Parties hereto, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. The decisions of the arbitrator shall be final, conclusive and binding on the
Parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Parties will be entitled to reasonable discovery of essential matters as determined by the arbitrator. In the arbitration,
the Parties will be entitled to all remedies that would have been available if the matter were litigated in a court of law. 
  
 (b) Governing Law The arbitrator shall apply California law to the merits of dispute or claim, without reference to rules of conflicts of law.

  
 (c) Costs and Fees of Arbitration The Parties hereby
agree the prevailing party shall be entitled to the costs and fees incurred hereof and enforcing the decisions of the arbitrator. 
  

	9.	Miscellaneous 

  
 (a) Entire Agreement This Agreement represents the entire understanding and agreement between ArcSoft and Employee concerning Employee’s
employment relationship with ArcSoft, and supersedes and replaces any and all prior agreements and understanding concerning Employee’s employment relationship with ArcSoft entered into prior to the date hereof. This Agreement may not be amended
or modified except in writing by the Parties. 
  
 (b)
Severability In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

  
 (c) Governing Law This Agreement shall be interpreted
and enforced in accordance with the laws of the State of California, except that any arbitration shall be governed by the Federal Arbitration Act. 
  
 (d) Acknowledgment Employee acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney,
has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
  
 [INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, the undersigned have executed this Agreement. 
  

											
	 ARCSOFT, INC.
	 	 	 	 EMPLOYEE:

					
	By:	 	 /s/ Michael Deng
	 	 	 	By:	 	 /s/ Todd Rumaner

	 	 	 Michael Hui Deng
	 	 	 	 	 	 Todd Jason Rumaner

						
	 	 	 Chief Executive Officer
	 	 	 	 	 	 Address:
	 	 409 Partridgeberry Lane
 Chester Springs, PA
19425

					
	 Date:
	 	November 15, 2002	 	 	 	 Date:
	 	11/15/02

  

 8Executive Employment Agreement, dated March 30, 2004

 Exhibit 10.7 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (the “Agreement”) is entered into as of March 30, 2004 (the
“Effective Date”) by and between ArcSoft, Inc., a California corporation (“ArcSoft”), as the employer; and Alfred V. Lerrenaga, a resident of 50 Hudson Street, Redwood City, California, an individual
(“Executive”), as the employee. ArcSoft and Executive may be referred to collectively in this Agreement as the “Parties”. 
  
 RECITALS 
  
 ArcSoft has agreed to employ the Executive and the Executive has agreed to accept such employment, subject to the terms and conditions set forth herein.

  
 Therefore, in consideration of the promises and the mutual
covenants and agreements set forth herein, the Parties agree to enter into this Agreement as follows: 
  

	1.	Position and Duties 

  
 (a) ArcSoft hereby employs Executive as its Vice President of Finance and Chief Financial Officer, and Executive agrees to serve ArcSoft as such, upon the
terms and conditions hereof. 
  
 (b) Executive shall report to the
Chief Executive Officer of ArcSoft, and Executive’s primary responsibilities shall be to (i) lead the development of ArcSoft’s financial procedures, (ii) manage financial operations, financial reporting, administrations, and information
systems; and (iii) any other duties customary to the positions offered. Executive will be a member of the Executive Team with responsibility for determining the long-term direction and goals of ArcSoft, and for developing strategies and tactics to
meet those goals, along with all other duties as assigned by ArcSoft. Executive shall also discharge such duties and authority as are generally incident to such position, or in such other senior management position as ArcSoft shall determine,
provided that such other position shall be comparable in authority and responsibility to the position specified above. 
  
 (c) Executive agrees that he will devote substantially all of his employment time and attention to the affairs of ArcSoft and use his best efforts to
promote the business and interests of ArcSoft and that he will not engage, directly or indirectly, in any other occupation during the term of employment. Executive further acknowledges and agrees that Executive owes a fiduciary duty of loyalty,
fidelity and allegiance to act at all times in the best interests of ArcSoft, and not to do any act which would injure the business, interests, or reputation of ArcSoft or any of its subsidiaries. 
  

	2.	Term 

  
 The term of employment hereunder (“Term”) shall commence on the Effective Date hereof and continue until March 29, 2008, unless otherwise terminated in accordance with the provisions hereof.

  

	3.	Compensation 

  

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 In consideration of, and in exchange for, the services to be provided by Executive (including, without
limitation, all services to be rendered by him as an officer and/or other duties may be assigned by ArcSoft), Executive shall receive the amounts and benefits set for hereunder. 
  
 (a) Base Salary Executive’s annual Base Salary shall be $200,000 paid semi-monthly, on ArcSoft’s
regular payday (15th and the last day of each month), less all applicable taxes, social security payments and other
items that ArcSoft is required by law to withhold or deduct therefrom. The Base Salary shall be subject to annual review by the Chief Executive Officer or ArcSoft Compensation Committee, if applicable, and may be adjusted in light of the size and
performance of ArcSoft. After any such change, Executive’s new level of Base Salary shall be Executive’s Base Salary for purpose of this Agreement. 
  
 (b) Incentive Bonus During the Term of this Agreement, Executive shall receive an Incentive Bonus for each of ArcSoft’s fiscal years ending on
June 30th in an amount equal to 30% of the Base Salary (or the adjusted Base Salary) upon the achievement of
the management objective set out for each fiscal year. The Incentive Bonus shall be paid after 60 days following the close of each fiscal year. Nothing contained hereunder shall prohibit the Board of Directors of ArcSoft from suspending or declining
to bonus payment deemed necessary by the Board for all executive officers, or by the Chief Executive Officer with authority custom to the position or as delegated by the Board for all employees. 
  
 (c) Stock Option Executive shall be eligible to participate in the
Stock Option Plans of ArcSoft and any additional or successor plans including any equity plans. Upon execution of this Agreement, Executive shall be granted an option to purchase 180,000 shares ArcSoft common stock (the “Stock
Option” or “Option”) at the exercise price set by the Board of Directors of ArcSoft at the date of grant and in accordance with the standard vesting schedule. The standard vesting schedule is that one-fourth (1/4) of the shares
granted will become vested and exercisable at the end of the first full twelve months of continuous status as an employee of ArcSoft following the vesting commencement date, and thereafter one-sixteenth (1/16) of the shares will become vested and
exercisable at the end of each successive three-month period of continuous employment. Specific terms and conditions will be included in a definitive stock option agreement and will include optionee’s right to purchase the shares according to a
vesting schedule. 
  

	4.	Other Benefits 

  
 During the Term of this Agreement and for services rendered hereunder, Executive shall also be entitled to receive other benefits which are, and may be in
the future, generally available to ArcSoft full-time employees and members of ArcSoft’s Executive Team. 
  
 (a) Group Insurance Executive shall be automatically covered by ArcSoft group insurance programs including Health, Dental, Vision, Disability, and
Life. Executive’s spouse and children under 18 (or otherwise determined by the plans) can join the insurance programs subject to ArcSoft policies and applicable laws. The premium of such insurance program(s) shall be paid by ArcSoft.

  
 (b) 401(k) and Other Retirement Plans Executive shall
be eligible to participate in employee benefit plans maintained by ArcSoft and in other benefits provided by ArcSoft to its employees and senior executives, now and in the future, including 401(k) and other retirement plans, deferred 

  

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compensation and similar benefits subject to change from time to time at the reasonable discretion of ArcSoft. 
  
 (c) Other Benefits Executive shall also be entitled to other benefits
provided by ArcSoft to its employees and senior executives from time to time, including but not limited to annual vacation, paid holiday, sick leave, and other similar benefits. Executive shall be entitled to paid vacation up to 3 weeks per calendar
year. 
  
 (d) Executive Term Life Insurance ArcSoft has
purchased and shall continue maintain during the Term of this Agreement a key person term insurance on Executive’s life in the face amount of $1,000,000 (or other amount as ArcSoft determines from time to time in connection with such
policy provided to other executive officers) in the event that Executive dies or becomes Permanently Disabled defined hereunder during the Term of this Agreement and Executive’s employment hereunder. ArcSoft and the beneficiaries designated by
Executive shall each receive half of the proceeds (50%), and ArcSoft shall bear the expense of such insurance policy and be the holder and owner of such policy. 
  

(e) Reimbursement of Business Related Expenses Executive shall be entitled to receive prompt reimbursement for reasonable expenses incurred by
him in performing services hereunder during the Term of this Agreement in accordance with the policies and procedures then in effect and established by ArcSoft for its employees), provided that Executive properly accounts therefore in accordance
with ArcSoft policy. Executive may also be entitled to reimbursement of Executive membership dues and related ongoing costs of appropriate professional organizations. 
  
 (f) Notwithstanding the foregoing, ArcSoft may, in its discretion, at any time and from time to time, change or revoke any
of its employee benefits plans, programs or policies and Executive shall not be deemed, by virtue of this Agreement, to have any vested interest in any such plans, programs or policies. 
  

	5.	Obligations and Restrictive Covenants 

  
 (a) Obligations Executive agrees, during the Term of this Agreement and Executive’s employment hereunder, not to engage in any other
employment, occupation or consulting activity for any direct or indirect remuneration. This obligation shall not preclude Executive from (i) serving in any capacity with any professional, community, industry, civic, educational or charitable
organization; (ii) serving as a member of corporate boards of directors, provided that the Chief Executive Officer has provided his written consent, so long as these activities or services do not materially interfere or conflict with
Executive’s responsibilities to, or ability to perform his duties of employment by ArcSoft under this Agreement; or (iii) engaging in personal investment activities for himself and his family, which do not interfere with the performance of his
duties hereunder. 
  
 (b) Non-Competition; Non-Solicitation
The Parties hereto recognize that Executive’s services are unique and the Restrictive Covenants on Executive set forth in this Section 5 are essential to protect the business (including trade secret and other confidential information disclosed
by ArcSoft to, learned or developed by Executive during the course of employment by ArcSoft) and good will of ArcSoft. As part of the consideration for the compensation and benefits to be paid to Executive hereunder, Executive agrees that during the
Term of this Agreement, and for a period of 12 months thereafter (the “Covenant Period”), Executive shall not: 
  

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 (i) Engage in any business similar or related to or competitive with the business conducted by ArcSoft or
any of its subsidiaries or affiliates described from time to time in ArcSoft Annual Report to its shareholders and Board (the “Core Business of ArcSoft”); 
  
 (ii) Render advice or services to, or otherwise assist, any other person, association, or entity that is engaged, directly
or indirectly, in any business similar or related to or competitive with the Core Business of ArcSoft; 
  
 (iii) Transact any business in any manner pertaining to suppliers or customers of ArcSoft or any of its subsidiaries affiliates which, in any manner,
would have, or is likely to have, an adverse effect upon the Core Business of ArcSoft or any of its subsidiaries affiliates; 
  
 (iv) Induce any employee of ArcSoft or any of its subsidiaries or affiliates to terminate his or her employment with ArcSoft or any of its subsidiaries
affiliates, or hire or assist in the hiring of any such employee by any person or entity not affiliated with ArcSoft. 
  
 For purposes of this Agreement, “affiliate” shall mean any entity which owns or controls, is owned or controlled by, or is under common
ownership or control, with ArcSoft. 
  

	6.	Confidentiality 

  
 Executive acknowledges that it is the policy of ArcSoft and its subsidiaries or affiliates to maintain as secret and confidential all valuable and unique
information herebefore or hereafter acquired, developed or used by ArcSoft and its subsidiaries relating to the business, operations, employees and customers of ArcSoft and its subsidiaries or affiliates, which information gives ArcSoft and its
subsidiaries or affiliates a competitive advantage in the industry, and which information includes technical knowledge, know-how or trade secrets and information concerning the operations, sales, personnel, suppliers, customers, costs, profits,
markets, pricing policies, and other confidential materials (the “Confidential Information”). 
  
 (a) Non-Disclosure Executive recognizes that the services to be performed by Executive are special and unique, and that by reason of his duties he
will acquire or learn Confidential Information. Executive recognizes that all such Confidential Information is the sole and exclusive property of ArcSoft and its subsidiaries or affiliates. As part of consideration of the compensation and benefits
to be paid to Executive under this Agreement, Executive agrees not to disclose the Confidential Information to anyone outside ArcSoft, and not to use the Confidential Information other than for the performance his duties hereunder, either during or
after the employment by ArcSoft, except as authorized by ArcSoft in connection with performance of the duties set forth in this Agreement, or other duties assigned by ArcSoft from time to time. 
  
 (b) Return of Confidential Information Executive agrees to deliver
promptly upon termination of employment with ArcSoft, or at any time requested by ArcSoft, all memos, notes, records, reports, manuals, drawings, and any other documents containing any Confidential Information, including all copies of such materials
which Executive may then possess or have under his control. 
  
 (c) Ownership of Trade Secrets; Assignment of Rights Excluding those brought to ArcSoft and its subsidiaries or affiliates by Executive and disclosed by Executive in ArcSoft standard Employee Confidentiality Agreement executed as of
the Effective Date, Executive agrees that all know-how, 

  

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documents, reports, plans, proposals, marketing and sales plans, client lists, client files and materials made by him or by ArcSoft and its subsidiaries (the
“Work Product”) are the property of ArcSoft and its subsidiaries and shall not be used by him in any way adverse to the interests of ArcSoft and its subsidiaries or affiliates. Executive assigns to ArcSoft and its subsidiaries any rights
which Executive may have in any such Work Product; provided, however, that such assignment does not apply to any right which qualifies fully under California Labor Code Section 2870. This paragraph shall survive any termination of the employment
relationship. Executive shall not deliver, reproduce or in any way allow such documents or things to be delivered or used by any third party without specific direction or consent of the Board. Executive assigns to ArcSoft and its subsidiaries or
affiliates any rights, which he may have in any such trade secret or proprietary information. Likewise, Executive shall not disclose to ArcSoft and its subsidiaries or affiliates, use in ArcSoft and its subsidiaries or affiliates business, or cause
ArcSoft and its subsidiaries or affiliates to use, any information or material that is a trade secret of others. 
  

	7.	Termination 

  
 Notwithstanding any other term or provision contained in this Agreement, this Agreement and the employment hereunder may be terminated prior to the
expiration under the following circumstances: 
  
 (a) Upon
Executive’s death. 
  
 (b) Disability Upon
Executive becoming “Permanently Disabled”, which, for purposes of this Agreement, shall mean Executive’s incapacity due to physical or mental illness or cause, which results in the Executive being unable to perform his duties on a
full-time basis for 6 consecutive months in a period of 12 months. 
  
 (c) Termination by ArcSoft for Cause Upon a written notice stating the effective date 30 days prior to the stated effective date, ArcSoft shall terminate this Agreement for Cause, which, for purpose of this Agreement, shall mean
termination by action of the Board because of Executive’s: 
  
 (i) Willful refusal without proper cause to perform (other than reason of physical or mental disability or death) the duties set forth in this Agreement or delegated from time to time in writing by the Chief Executive Officer, which remains
uncorrected for 30 days following written notice to Executive by the Chief Executive Officer; 
  
 (ii) Gross negligence, self dealing or willful misconduct of Executive in connection with the performance of his duties hereunder, including without limitation, misappropriation of funds or property of ArcSoft,
securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of ArcSoft or any willful act or gross negligence having the effect of injuring the reputation, business or business relationships of
ArcSoft and its subsidiaries or affiliates; 
  
 (iii) Fraud,
dishonesty or misappropriation of ArcSoft business and assets that is intended to result in substantial personal benefits of Executive and harming the business of ArcSoft and its subsidiaries or affiliates; 
  
 (iv) Insobriety, abuse of alcohol or use of drugs; 
  
 (v) Engaging in any criminal enterprise involving moral turpitude;

  
 (vi) Indictment or being held for trial in connection with
misdemeanor involving moral turpitude or any felony; 
  

 5 

 (vii) Conviction of a felony or entry into a guilty plea that negatively reflects on Executive’s
fitness to perform the duties or harms ArcSoft’s reputation or business; 
  
 (viii) Any material breach of any covenants under this Agreement and other material policy of ArcSoft, which remains uncorrected for 30 days following written notice to Executive by the Chief Executive Officer.

  
 (d) Termination by ArcSoft without Cause Upon a written
notice stating the effective date 30 days prior to the stated effective date, ArcSoft may terminate this Agreement without any Cause. 
  
 (e) Termination by Executive with Good Reason Upon a written notice stating the effective date 30 days prior to the stated effective date,
Executive shall also have the right to terminate this Agreement and the employment hereunder, within 180 days after occurrence of the following “Good Reason”: 
  
 (i) Material change in the nature of Executive’s title, duties, authorities and responsibilities set forth in this
Agreement by ArcSoft unless Executive expressly consents; 
  
 (ii) Material reduction in the nature of Executive’s compensation as established under this Agreement unless Executive expressly consents. This Section 8(e)(ii) does not apply to any reduction by ArcSoft with respect to a general
readjustment of all executive officers’ compensation level for reasonable business purposes; 
  
 (iii) Change in reporting structure without prior written consent by Executive; 
  
 (iv) A material breach by ArcSoft of any material sections of this Agreement which remains uncorrected for 30 days after
following written notice of by Executive to ArcSoft; 
  
 (f)
Termination by Executive without Good Reason Upon a written notice stating the effective date 30 days prior to the stated effective date, Executive may terminate this Agreement and resign from Executive’s employment hereunder without any
Good Reason. 
  

	8.	Severance Benefits 

  
 Upon termination of this Agreement, Executive will receive payment for all salary and vacation accrued but unpaid as of the effective date of termination,
and the benefits will be continued under the terms of such plans and policies in accordance with applicable law. Notwithstanding, Executive shall be entitled to receive severance benefits described below: 
  
 (a) Termination by ArcSoft for Cause If this Agreement and
Executive’s employment hereunder is terminated by ArcSoft before the expiration of the Term for Cause pursuant to Sections 7(c), Executive shall not entitled to any additional payments or benefits hereunder, other than: 
  
 (i) Executive’s then Base Salary paid as of the effective date of
termination; 
  
 (ii) Any then vested Stock Option as of the
effective date of termination; 
  
 (iii) Any vacation accrued but
unused and unpaid as of the effective date of termination; 
  
 (iv) Continuance of group insurance program in accordance with COBRA; and 
  
 (v) Any unreimbursed legitimate business expenses described in this Agreement. 
  
 (b) Termination by ArcSoft without Cause; Termination by Executive with Good Reason If this Agreement and Executive’s employment hereunder is
terminated by ArcSoft before the expiration 

  

 6 

 
of the Term without Cause pursuant to Section 7 (d), or by Executive for Good Reason as defined in Section 7 (e), within 30 business days after the effective
date of termination, Executive shall receive: 
  
 (i) Any
vacation accrued but unused and unpaid; 
  
 (ii) A lump sum
payment equal to one full year of Executive’s then Base Salary, or the Base Salary for the remaining Term of this Agreement, whichever is less; 
  
 (iii) The earned but unpaid Bonus for the preceding fiscal year before the effective date of termination, and prorated Bonus for the current fiscal year;

  
 (iv) Continuance coverage and premium payment by ArcSoft
under ArcSoft’s group insurance programs for Executive and his family members for twelve months after the effective date of termination; 
  
 (v) Any unreimbursed business expenses or dues described in this Agreement. 
  
 (c) Termination by Executive without Good Reason If this Agreement and Executive’s employment hereunder is
terminated by Executive without any Good Reason pursuant to Section 7(f), Executive shall receive: 
  
 (i) Executive’s then Base Salary paid as of the effective date of termination; 
  
 (ii) Any earned but unpaid Bonus for the preceding fiscal year; 
  
 (iii) Any vacation accrued but unused and unpaid as of the date of
termination; 
  
 (iv) Continuance of group insurance program in
accordance with COBRA; and 
  
 (v) Any unreimbursed business
expenses or dues described in this Agreement. 
  
 (d)
Termination because of Death and Disability of Executive ArcSoft shall pay to the Executive’s surviving spouse, children and/or family trust (or estate, if none), in the event of the death of Executive, pay to Executive in the event of
Disability, the payment described under Section 8 (c). Executive’s rights under the benefit plans of ArcSoft shall be determined under the provisions of the plans. 
  
 (e) Change in Control In the event of a Change in Control (as defined below), as a result of which Executive is not
offered the same or comparable position in the surviving company, Executive may, within 60 days of the effective date of such Change in Control, terminate this Agreement, with written notice stating the effective date 30 days prior to the such
effective date, with the effects as provided herein for a termination by Executive with Good Reason. In addition the Severance Benefits provided in the above Section 8 (b), the Stock Option offered to Executive under this Agreement shall accelerate
and become vested and exercisable immediately as of the effective date of termination. 
  
 For purposes of this Agreement, Change of Control shall mean: 
  
 (i) ArcSoft merges or consolidates with any other corporation (other than one of ArcSoft’s subsidiaries), as a result of which ArcSoft is not the surviving company, or the shares of ArcSoft voting stock
outstanding immediately after such transaction do not constitute, become exchanged for or converted into more than 50% of the Voting Shares of the merged or consolidated company (as defined below); 
  
 (ii) ArcSoft sells or disposes all or substantially all of its assets to any
other person or entity; 
  

 7 

 (iii) Any third person or entity shall become directly the Beneficial Owner, as defined by Rule 13(d)-3
under Securities Exchange Act of 1934, of at least 50% of the Voting Shares of ArcSoft’s then outstanding voting securities. 
  
 (iv) For purposes of this Agreement, Voting Shares shall mean the combined voting securities entitled to vote in election of directors of a corporation,
including ArcSoft, the merged or consolidated, or the new surviving company. 
  
 (v) The foregoing does not include any transfers among present stockholders of ArcSoft or among ArcSoft and its subsidiaries, public offerings or debt or equity funding of ArcSoft in which ArcSoft receives the
proceeds of such sale. 
  

	9.	Liability Insurance 

  
 ArcSoft shall maintain a directors and officers liability insurance in the amount of no less than $5 million to cover Executive during the Term of this
Agreement. Upon close of ArcSoft initial public offering, such coverage shall be increased to no less than $20 million or other amount deemed adequate by the Board. 
  

	10.	Arbitration 

  
 (a) Agreement Except as otherwise provided in this Agreement, the Parties agree that any dispute or controversy arising out of, relating to, or in
connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by confidential, final and binding arbitration conducted in Santa Clara, California or such other location
agreed by the Parties hereto, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. In the arbitration, the Parties will be entitled to all remedies that would have
been available if the matter were litigated in a court of law. The decisions of the arbitrator shall be final, conclusive and binding on the Parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having
jurisdiction. The Parties will be entitled to reasonable discovery of essential matters as determined by the arbitrator. The fees and expenses of the arbitration, including but not limited to legal fees and arbitrator’s fees, shall be borne as
the arbitrators may determine to be appropriate. A judgment on the arbitration award may be entered in any court of competent subject matter jurisdiction in Santa Clara County. 
  
 (b) Governing Law This Agreement and its validity, construction and performance shall be governed by California law,
without reference to rules of conflicts of law. 
  
 (c)
Equitable Remedies Executive acknowledges that he has been employed for his unique talents and that his leaving the employment of ArcSoft would seriously hamper the business of ArcSoft and that ArcSoft will suffer irreparable damage if any
provisions of Sections 5 and 6 hereof are not performed strictly in accordance with their terms or are otherwise breached. Executive hereby expressly agrees that ArcSoft shall be entitled as a matter of right to injunctive or other equitable relief,
in addition to all other remedies permitted by law, to prevent a breach or violation by Executive and to secure enforcement of the provisions of Sections 5 and 6 hereof. Resort to such equitable relief, however, shall not constitute a waiver or any
other rights or remedies which ArcSoft may have. 
  

	11.	Miscellaneous 

  

 8 

 (a) Governing Law This Agreement shall be interpreted and enforced in accordance with the laws of
the State of California, except that any arbitration shall be governed by the Federal Arbitration Act. 
  
 (b) Entire Agreement This Agreement represents the entire understanding and agreement between ArcSoft and Executive concerning Executive’s
employment relationship with ArcSoft. This Agreement may not be amended or modified except in writing by the Parties. 
  
 (c) Notices Any notices or other communications under this Agreement shall be in writing, signed by the party making the same, and shall be
delivered by personally or sent by certified or registered mail, postage prepaid, addressed as follows: 
  

			
	If to Executive:	  	At the last residential address known by ArcSoft
		
	If to ArcSoft:	  	 ArcSoft, Inc.
 46601 Fremont Blvd.
 Fremont, CA 94538
 Attn.: Chief Executive Officer

  
 (d)
Severability In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

  
 IN WITNESS WHEREOF, the undersigned have executed this
Agreement. 
  

											
	 ARCSOFT, INC.
	 	 	 	 EXECUTIVE

					
	By:	 	 	 	 	 	By:	 	 
	 	 	 Michael Deng
	 	 	 	 	 	 Print name:
	 	 
					
	 Title:
	 	 Chief Executive Officer and President
	 	 	 	 Address: 
	 	 
					
	 	 	 	 	 	 	 	 	 

  

 9

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