OFFER OF EMPLOYMENT

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Exhibit 10.8

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December 13, 2004

Chris Russell
P.O. Box 2967
Culver City, CA 90231

Dear Chris;

        DivXNetworks, Inc. is pleased to formally extend to you an offer of employment for the position of Vice President, Advanced Technology based in San Diego, CA. You will be expected to perform various duties consistent with your position and will report to Jordan Greenhall, CEO. Of course, the Company may change your position, duties, and work location from time to time as it deems necessary.

        Your compensation will be $12,000 per month (equivalent to $150,000 per annum) less payroll deductions and all required withholdings. You will be paid semi-monthly. You will also receive relocation assistance in the amount of $15,000, payable upon your first day of employment.

        It will be recommended to the Board that you be granted an option to purchase 50,000 shares of common stock of DivXNetworks, Inc. You will also be eligible for an additional 15,000 share of common stock based upon your performance in 2005. The price per share for these options will be fixed based on the Company's common stock price for the three days prior to date of grant. Subject to your continued employment by the Company, this grant will vest according to the following 4-year schedule: 25% on the one-year anniversary of the commencement date of your employment and then ¹ / 48 per completed month thereafter.

        With regard to benefits, you will receive all the employment benefits available to full time, regular exempt employees of DivXNetworks, Inc. These benefits include medical, dental, life insurance, AD&D, and STD/LTD, for which the premiums for employees are paid 99% by the Company, accrual of 20 days vacation during the year, and 9 paid holidays. In addition you can contribute to the Company's 401(k) plan; currently, there is no Company matching of 401(K) contributions. Details about these benefits are provided in the Benefits Summary, which is available for your review. DivXNetworks, Inc. may modify your compensation and benefits from time to time as it deems necessary.

        Normal working hours are from 8:30a.m. to 5:30p.m., Monday through Friday. Your position is salaried and ineligible for overtime pay. Your particular schedule will be coordinated between you and your manager. You may be expected to work additional hours as required by the nature of your work assignme