CHAIR AND BOARD SERVICE AGREEMENT
This Agreement (the “Agreement”) is made and entered into effective as of December 12, 2006 (the
“Effective Date”), by and between Allen Alley (the “Chair”) and Pixelworks, Inc., an Oregon corporation (the
R E C I T A L S
A. Chair has served as both the CEO and Chair of the Company since its founding. Effective as of
December 31, 2006, he has resigned as CEO, and will thereafter no longer be an employee of the Company.
B. The Company and Chair wish to confirm the fees and benefits the Company will provide to the Chair,
while he continues in that office.
For good and valuable consideration the receipt and sufficiency of which the parties acknowledge, the parties
agree as follows:
1. Title . Chair’s formal title will be Chairman of the Board of Directors.
2. Tenure . Chair will serve as Chairman of the Board of Directors at the pleasure of the Board, contingent
upon his continued status as a member of the Board of Directors.
3. Fee and Options . Chair will receive, for his services as Chair and as a member of the Board of Directors,
an annual fee of Seventy-Five Thousand Dollars ($75,000) (or such higher amount as may be approved from
time-to-time by the Board), payable quarterly. Chair will also receive annual awards of equity compensation
(options or otherwise) in conformance with policies generally applicable to the Company’s Board of Directors.
4. Medical Benefits . During his service on the Board of Directors, Company will make comprehensive health
insurance coverage available to Chair and Chair’s family, equivalent to that provided to its senior executives in the
United States, either through its existing plan or by securing amendments, extensions, or parallel instantiations of
that plan or that will permit it to be applicable to Chair. Chair will pay the actual premium cost of coverage he
wishes to obtain under this paragraph.
5. Electronic Communicat