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                                                                   Exhibit 10.18
                        EXECUTIVE EMPLOYMENT AGREEMENT
                             PLANAR SYSTEMS,  INC.

PARTIES:  Planar Systems, Inc.              ("Company"),
          1400 NW Compton Drive
          Beaverton, Oregon 97008

          Balakrishnan Krishnamurthy        ("Executive")
          3131 NW 128th Place
          Portland, OR 97229

DATE:     September 24, 1999


                                   RECITAL:


     The Company wishes to obtain the services of the Executive and Executive
wishes to provide his services to the Company upon the terms and conditions set
out in this Agreement.

                                  AGREEMENT:

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


                                   ARTICLE 1
                                  DEFINITIONS
                                  -----------

     1.1  "Base Salary" shall mean regular cash compensation paid on a periodic
           -----------
     basis exclusive of benefits, bonuses or incentive payments.

     1.2  "Board" shall mean the Board of Directors of Company.
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     1.3  "Disability" shall mean the inability of the Executive to perform the
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     essential functions of his position under this Agreement, with reasonable
     accommodation, because of physical or mental incapacity for a continuous
     period of five (5) months, as reasonably determined by the Board after
     consultation with a qualified physician selected by the Board.

     1.4  "Company" shall mean Planar Systems, Inc. and, any successor in
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     interest by way of consolidation, operation of law, merger or otherwise.

                                   ARTICLE 2
                          EMPLOYMENT, DUTIES AND TERM
                          ---------------------------

Exhibit A - List of Business Interests
<PAGE>

     2.1  Employment.  Upon the terms and conditions set forth in this
          ----------
     Agreement, the Company hereby employs the Executive in the position of
     President and Chief Executive Officer, and the Executive accepts such
     employment effective as of September 27, 1999.

     2.2  Duties.  The Executive shall devote his full-time and best efforts to
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     the Company and to fulfilling the duties of his position which shall
     include all duties commonly incident to the offices of President and Chief
     Executive Officer, including but not limited to, supervision and direction
     of Company operations; personnel and financial matters; reports to the
     Board concerning all phases of the operation of the Company and maintenance
     of all records sufficient to meet the reporting requirements of the
     Company, and such other duties as may from time to time be assigned to him
     by the Board.  The Executive shall comply with the Company's policies and
     procedures to the extent they are not inconsistent with this Agreement, in
     which case the provisions of this Agreement shall prevail.

     2.3  Term.  This Agreement shall remain in effect until the earlier of (i)
          ----
     termination pursuant to Article 4 of this Agreement or (ii) the second
     Anniversary of the date hereof; provided, however, that commencing on the
     second Anniversary of the date hereof and each Anniversary thereafter, the
     term of this Agreement shall automatically be extended for one additional
     year unless at least 90 days prior to such Anniversary Executive or the
     Company shall have given notice to the other that the term of this
     Agreement shall not be extended.

     2.4  Board Membership.  Company shall appoint Executive to the Board to
          ----------------
     serve until the next Board election at which time Company shall use its
     best efforts to obtain Executive's re-election to the Board.

                                   ARTICLE 3
                           COMPENSATION AND EXPENSES
                           -------------------------

     3.1  Base Salary.  For all services rendered under this Agreement, the
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     Company shall pay Executive a Base Salary at an annual rate of $350,000.
     Company shall pay Executive in approximately equal monthly amounts pursuant
     to its standard payroll schedule.  All amounts paid to Executive under this
     Agreement shall be reduced by such amounts as are required to be withheld
     by law.

     3.2  Bonus. Upon execution of this Agreement, the Company shall pay
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     Executive a bonus of $75,000, reduced by such amounts as are required to
     be withheld by law. In addition, Executive shall be eligible to participate
     in the Company's Executive Bonus Program.  Such program shall provide an
     opportunity for Executive to earn annual bonus compensation in the amount
     of 70% ($245,000) of his annual Base Salary if target performance is
     achieved; provided, however, that Executive's bonus pursuant to the
     Company's Executive Bonus Program for fiscal year 2000 shall not be less
     than $140,000.

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     3.3  Stock Grant.   Upon execution of this Agreement or within ten days
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     thereafter, Company shall grant Executive 50,000 shares of the Company's no
     par value common stock ("Shares").  Except as otherwise stated herein, the
     grant of such Shares shall be subject to the terms and conditions of the
     Planar Systems, Inc. Restricted Stock Award Agreement in the form attached
     hereto as Exhibit A.

     3.4  Stock Options. Upon execution of this Agreement or within ten days
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     thereafter, Company shall grant Executive options to purchase 250,000
     shares of the Company's no par value common stock as follows: (i) options
     to purchase up to 50,000 shares shall be incentive stock options with an
     exercise price fixed in accordance with the provisions of the Planar
     Systems, Inc. 1996 Stock Incentive Plan and the exact number of options
     determined based on the application of the statutory $100,000 limitation,
     and (ii) the remaining options shall be nonqualified stock options with an
     exercise price of $6.5625. Except as otherwise stated herein, such Shares
     shall be subject to the terms and conditions of the Planar Systems, Inc.
     Nonqualified Stock Option Agreement in the form attached hereto as Exhibit
     B and the Planar Systems, Inc. 1996 Stock Incentive Plan and the associated
     Planar Systems, Inc. 1996 Stock Incentive Plan Stock Option Agreement,
     respectively.

     3.5  Benefits.  Executive shall be entitled to receive such insurance and
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     other employment benefits as are available to other executive officers of
     Company under the same terms and conditions applicable to such other
     executive officers. Such benefits may change from time to time or may be
     eliminated by Company.

     3.6  Business Expenses.  The Company shall, in accordance with, and to the
          -----------------
     extent of, its policies in effect from time to time, reimburse all ordinary
     and necessary business expenses reasonably incurred by the Executive in
     performing his duties as an employee of the Company, provided that the
     Executive accounts promptly for such expenses to the Company in the manner
     prescribed from time to time by the Company.

     3.7  Vacation. Executive shall be immediately credited with 200 hours of
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     Paid Time Off (PTO) which may be used at Executive's discretion at any time
     after the date hereof.  Except as provided herein, Executive shall be
     entitled to vacation and sick leave according to the standard policies and
     procedures of Company.

     3.8  Reimbursement of Professional Expenses. Company shall reimburse
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     professional fees incurred by Executive to obtain tax and financial
     planning advice up to a maximum amount of $10,000 annually.

                                   ARTICLE 4
                                  TERMINATION
                                  -----------

     4.1  Termination.  This Article 4 governs termination of this Agreement at
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     any time during the term of this Agreement.

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     4.2  Termination for Cause.  The Company may terminate this Agreement and
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     Executive's employment immediately for "Cause" as that term is defined
     herein, upon written notice to the Executive.

          4.2.1  "Cause" means any one of the following: (a) fraud, (b)
                 misrepresentation by Executive (c) theft or embezzlement of the
                 Company assets, (d) intentional violations of law involving
                 moral turpitude, (e) the continued failure by the Executive to
                 satisfactorily perform his duties as reasonably assigned to the
                 Executive pursuant to Section 2.2 of this Agreement for a
                 period of thirty (30) days after a written demand for such
                 satisfactory performance which specifically and with reasonable
                 detail identifies the manner in which it is alleged that the
                 Executive has not satisfactorily performed such duties,
                 provided, however, that no termination for Cause pursuant to
                 this subparagraph (e) will be effective until after Executive,
                 together with Executive's counsel, have had an opportunity to
                 be heard before the Board, and (f) any material breach of this
                 Agreement which, if curable, has not been cured within thirty
                 (30) days after written notice to Executive of such breach.

          4.2.2  In the event of termination for Cause pursuant to this Section
                 4.2, the Executive shall be paid his Base Salary through the
                 date of termination specified in any notice of termination.
                 Executive shall not be entitled to any additional compensation
                 or severance.

     4.3  Termination Without Cause. This Section 4.3 shall not be applicable in
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     the event of a Change of Control Termination (which shall be governed by
     Article 6), where Cause for termination is asserted or in the event of
     termination due to Executive's death or Disability.

          4.3.1  Executive may terminate this Agreement and Executive's
                 employment at any time by providing at least thirty (30) days'
                 written notice to Company.

          4.3.2  If any of the following events occur without Executive's prior
                 written consent, Executive may terminate this Agreement and
                 Executive's employment by providing written notice to the
                 Company specifically describing the event upon which such
                 termination is based not later than ninety (90) days after the
                 occurrence of such event:

                 4.3.2.1  A reduction in Executive's Base Salary or annual bonus
                          opportunity under the Company's Executive Bonus
                          Program below the amounts stated in Sections 3.1 and
                          3.2, respectively.

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                 4.3.2.2  The removal of Executive from the position as Chief
                          Executive Officer of the Company or the institution by
                          the Company of a requirement that Executive regularly
                          report other than to the Board of Directors.

                 4.3.2.3  The institution by the Company of a requirement that
                          Executive be based anywhere other than within 25 miles
                          of Beaverton, Oregon.

          4.3.3  The Company may terminate this Agreement and Executive's
                 employment at any time without Cause upon giving Executive at
                 least thirty (30) days' written notice; provided, however, that
                 the Company shall have the option of making termination of the
                 Agreement and termination of Executive's employment effective
                 immediately upon notice, in which case, in addition to the
                 payments provided for by Section 4.3.4 below, Executive shall
                 be paid his Base Salary through a notice period of thirty (30)
                 days.

          4.3.4  If the Company gives notice pursuant to Section 2.3 that the
                 term of this Agreement shall not be extended, or if this
                 Agreement and Executive's employment are terminated by
                 Executive pursuant to Section 4.3.2 or by the Company pursuant
                 to Section 4.3.3, then:

                 4.3.4.1  for a period of eighteen (18) months following the
                          effective date of Executive's termination, the Company
                          shall continue to pay Executive his Base Salary,
                          payable according to Company's normal payroll
                          practices; and

                 4.3.4.2  If Executive elects to continue his group health
                          benefits under the Consolidated Omnibus Budget
                          Reconciliation Act of 1985 ("COBRA"), the Company
                          shall pay the premium for Executive's COBRA
                          continuation coverage for a period of up to eighteen
                          (18) months; and

                 4.3.4.3  If life and disability insurance coverage maintained
                          by Executive through the Company may, under the terms
                          of the plans, be continued in effect for former
                          employees, Company shall pay the premiums to continue
                          such coverage in effect for a period of eighteen (18)
                          months following the effective date of Executive's
                          termination; and

                 4.3.4.4  All outstanding stock options and stock grants held by
                          Executive at the effective date of Executive's
                          termination that would, by their terms, vest within
                          eighteen (18) months of the effective date of
                          Executive's termination shall become fully vested
                          effective as of the effective date of Executive's
                          termination; and

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                 4.3.4.5  As a condition of receiving the compensation and other
                          benefits pursuant to this Section 4.3.4, Executive
                          agrees to sign, at the time of termination, the form
                          of release attached hereto as Exhibit C.

     4.4  Termination in the Event of Death or Disability.  This Agreement and
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     Executive's employment shall terminate immediately in the event of
     Executive's death or Disability.  Executive shall cooperate with the Board
     to provide information and submit to such examinations as the Board may
     find necessary to make a determination regarding Executive's Disability.

          4.4.1  In the event of the Executive's death, the Company shall pay
                 Executive's Base Salary owing to Executive as of the date of
                 termination plus an amount equal to eighteen (18) months of
                 Base Salary at the rate in effect at the time of Executive's
                 death. Such amount shall be paid (1) to the beneficiary or
                 beneficiaries designated in writing to Company by Executive,
                 (2) in the absence of such designation, to the surviving
                 spouse, or (3) if there is no surviving spouse, or such
                 surviving spouse disclaims all or any part, then the full
                 amount, or such disclaimed portion, shall be paid to the
                 executor, administrator or other personal representative of
                 Executive's estate. The amount shall be paid as a lump sum as
                 soon as practicable following Company's receipt of notice of
                 Executive's death. No further payments shall be made by Company
                 to Executive.

          4.4.2  In the event of termination due to Executive's Disability,
                 Executive's Base Salary shall be paid through the date of
                 termination. In addition, the Company shall pay Executive a
                 lump sum amount equal to eighteen (18) months Base Salary at
                 the rate in effect at the time of termination. No further
                 payments shall be made by Company to Executive.

          4.4.3  In the event of termination after the second anniversary of the
                 date of this Agreement due to Executive's death or Disability,
                 all outstanding stock options and stock grants held by
                 Executive at the effective date of Executive's termination that
                 would, by their terms, vest within eighteen months of the
                 effective date of Executive's termination shall become fully
                 vested as of the effective date of Executive's termination.

     4.5  Entire Termination Payment.  The compensation provided for in this
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     Article 4 shall constitute Executive's sole remedy for termination of this
     Agreement.

     4.6  Resignation From The Board.  Upon termination of Executive's
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     employment with Company for any reason, Executive shall offer his
     resignation as a member of the Board and as an officer or director of any
     subsidiary or affiliate of the Company in which he holds such positions.

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                                   ARTICLE 5
              CONFIDENTIALITY/NONCOMPETITION/CONFLICT OF INTEREST
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     5.1  Proprietary Information.   Executive shall keep confidential, except
          -----------------------
     as the Company may otherwise consent in writing, and not disclose or make
     any use of except for the benefit of the Company, at any time either during
     or subsequent to his employment by the Company, any Proprietary Information
     which he may produce, obtain or otherwise acquire during the course of his
     employment.  As used herein, "Proprietary Information" shall include any
     trade secrets, confidential information, knowledge, data, or other
     information of the Company relating to products, processes, know-how,
     software designs, formulae, test procedures and results, customer lists,
     business plans, marketing plans and strategies, and pricing strategies, or
     other subject matter pertaining to any business of the Company for any of
     its clients, customers, consultants, licensees of affiliates, which
     information is not in the public domain at the time of the alleged breach.
     In the event of the termination of the Executive's employment for any
     reason whatsoever, Executive shall promptly return all records, materials,
     equipment, drawings, software and the like pertaining to any Proprietary
     Information.

     5.2  Covenant Not to Compete.  Executive acknowledges that he will provide
          -----------------------
     special skills, and acquire special information, regarding the activities
     of the Company.  Executive agrees, therefore, that he will not, for a
     period of eighteen (18) months from and after the date he ceases to be
     employed by the Company, join, control or participate in the ownership,
     management, operation or control of or be connected with or provide
     services in any manner to, any business which is in direct or indirect
     competition with the Company or any of the Company's subsidiaries or
     affiliates or which is developing products or services which will be in
     direct or indirect competition with the Company or any of the Company's
     subsidiaries or affiliates.  Executive agrees that he shall be deemed to be
     "connected with" a business if such a business is carried on by a
     partnership in which he is a general or limited partner or employee of a
     corporation or association of which he is a shareholder, officer, director,
     employee, member, consultant or agent; provided, that nothing herein shall
     prohibit the purchase or ownership by him of shares of less than five
     percent (5%) in a publicly or privately held corporation. The non-
     competition restrictions of this section are effective regardless of the
     reason for Executive's termination of employment with the Company.

     5.3  Consent to Injunction.  Executive agrees that the Company will or
          ---------------------
     would suffer an irreparable injury if Executive were to breach Section 5.1
     or 5.2 of this Agreement and that the Company would by reason of such
     breach be entitled to injunctive relief in a court of appropriate
     jurisdiction and Executive stipulates to the entering of such injunctive
     relief.

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     5.4  Severability.  The parties intend that the covenants contained in
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     Section 5.2 be deemed to be separate covenants as to each county and state,
     and that if in any judicial proceeding a court shall refuse to enforce all
     of the separate covenants included herein because, taken together, they
     cover too extensive a geographic area or because any one includes too large
     an area or because they are excessive as to duration, the parties intend
     that such covenants shall be reduced in scope to the extent required by law
     or, if necessary, eliminated from the provisions hereof, and that all of
     the remaining covenants hereof not so affected shall remain fully effective
     and enforceable.

     5.5  Assignment of Inventions.  As used in this Agreement, "inventions"
          ------------------------
     shall include, but not be limited to, ideas, improvements, designs, and
     discoveries.  Executive hereby assigns and transfers to the Company his
     entire right, title and interest in and to all inventions whether or not
     conceived by Executive (whether made solely by Executive or jointly with
     others) during the period of his employment with the Company which relate
     in any manner to the actual or demonstrably anticipated business, work, or
     research and development of the Company or its subsidiaries, or result from
     or are suggested by any tasks assigned to Executive or any work performed
     by Executive for or on behalf of the Company or its subsidiaries.
     Executive agrees that all such inventions are the sole property of the
     Company. The provisions of this Section 5.5 are subject to and qualified by
     Executive's obligation to assign to Tektronix, Inc. any inventions
     developed by Executive during the six-month period following Executive's
     termination of employment from Tektronix that relate to Tektronix
     activities or that result from tasks assigned to Executive by Tektronix.

     5.6  Disclosure of Inventions, Patents.  Executive agrees that in
          ---------------------------------
     connection with any invention as defined in Section 5.5, above:

          5.6.1  Executive will disclose such invention promptly in writing to
                 the Board regardless of whether he believes the invention is
                 protected by applicable state law, in order to permit the
                 Company to claim rights to which it may be entitled under this
                 Agreement. Such disclosure shall be received in confidence by
                 the Company;

          5.6.2  Executive will, at the Company's request, promptly execute a
                 written assignment of title to the Company for any invention
                 required to be assigned by Section 5.5 ("assignable invention")
                 and Executive shall preserve any such assignable invention as
                 confidential information of the Company;

          5.6.3  Upon request, Executive agrees to assist the Company or its
                 nominee (at its expense) during and at any time subsequent to
                 his employment in every reasonable way to obtain for its own
                 benefit patents and copyrights for such assignable inventions
                 in any and all countries. Executive agrees to

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                 execute such papers and perform such lawful acts as the Company
                 deems to be reasonably necessary to allow it to exercise all
                 right, title, and interest in such patents and copyrights; and

          5.6.4  Executive agrees to submit a list of inventions made prior to
                 his employment by the Company on Exhibit D attached hereto and
                 incorporated by reference herein.

     5.7  Execution of Documentation.  In connection with Section 5.5 and
          --------------------------
     Section 5.6, Executive further agrees to execute, acknowledge and deliver
     to the Company or its nominee upon request and at its expense all such
     assignments of inventions, patents, and copyrights to be issued therefor,
     as the Company may determine necessary or desirable for which to apply.

     5.8  Third-Party Obligations.  Executive acknowledges that the Company from
          -----------------------
     time to time may have agreements with other persons or with the U.S.
     Government, or agencies thereof, which impose obligations or restrictions
     on the Company regarding inventions made during the course of work
     thereunder or regarding the confidential nature of such work.  Executive
     agrees to be bound by all such obligations and restrictions.

     5.9  Confidentiality or Non-Competition Obligations Owed to Others.
          -------------------------------------------------------------
     Executive represents that his employment by the Company does not breach any
     agreement to keep in confidence proprietary information, knowledge, or data
     acquired by Executive in confidence or in trust prior to his employment
     with the Company, nor does it breach any restrictive covenant or
     noncompetition agreements.  Executive will not disclose to the Company, or
     induce the Company to use, any confidential or proprietary information or
     material belonging to any previous employer or others.  Executive agrees
     not to enter into any agreement either written or oral in conflict
     herewith.

     5.10 Conflict of Interest.  During Executive's employment with the
          --------------------
     Company, Executive will engage in no activity or employment which may
     conflict with the interest of the Company without the prior written consent
     of the Company and will comply with the Company's policies and guidelines
     pertaining to business conduct and ethics.

     5.11 Survival of Obligations.  The provisions of this Article 5 shall
          -----------------------
     survive termination of this Agreement.

                                   ARTICLE 6
                               CHANGE OF CONTROL
                               -----------------

     For purposes of this Article 6, the following definitions shall be applied:

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     6.1  Definitions.
          ------------

          6.1.1  "Change of Control" shall mean any of the following events:
                  -----------------

                 6.1.1.1  the approval by the Company's shareholders of a
                          merger, reorganization, consolidation or similar
                          transaction (a "Merger") to which the Company is a
                          party unless the individuals and entities who were the
                          beneficial owners (as defined in Rule 13d-3 under the
                          Securities Exchange Act of 1934) of the common stock
                          and other securities of the Company that are entitled
                          to vote generally in the election of directors
                          (collectively, "Voting Securities") immediately prior
                          to the effective date of the Merger would have
                          beneficial ownership (as defined in Rule 13d-3 under
                          the Securities Exchange Act of 1934) immediately after
                          the effective date of the Merger of more than fifty
                          percent (50%) of the total combined voting power of
                          the common stock and other securities entitled to vote
                          generally in the election of directors of the
                          corporation resulting from the Merger in substantially
                          the same proportions relative to each other as their
                          ownership of Voting Securities immediately prior to
                          the effective date of the Merger;

                 6.1.1.2  the acquisition (other than directly from the Company)
                          by any person or entity, or group of associated
                          persons or entities acting in concert of direct or
                          indirect beneficial ownership (as defined in Rule 13d-
                          3 under the Securities Exchange Act of 1934) of
                          securities of the Company representing twenty-five
                          percent (25%) or more of the total combined voting
                          power of the Company's then issued and outstanding
                          securities;

                 6.1.1.3  the approval by the Company's shareholders of the sale
                          of all or substantially all of the assets of the
                          Company to any person or entity which is not a wholly-
                          owned subsidiary of the Company; or

                 6.1.1.4  the approval by the Company's shareholders of any plan
                          or proposal for the liquidation of the Company.

          6.1.2  "Good Reason" shall mean a good faith determination by
                  -----------
                 Executive, in Executive's reasonable judgment, that any one or
                 more of the following events has occurred without Executive's
                 express written consent, after a Change of Control:

                 6.1.2.1  A change in Executive's responsibilities, titles or
                          offices as in effect immediately prior to the Change
                          of Control, or any removal of Executive from, or any
                          failure to re-elect Executive to, any of

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                          such positions, which has the effect of materially
                          diminishing Executive's responsibility or authority;

                 6.1.2.2  A reduction by Company in Executive's Base Salary as
                          in effect immediately prior to the Change of Control
                          or any failure to pay Executive any compensation or
                          benefits to which he or she is entitled when due;

                 6.1.2.3  A requirement by Company that Executive be based
                          anywhere other than within 25 miles of Beaverton,
                          Oregon;

                 6.1.2.4  Without replacement by plans, programs or arrangements
                          which, taken as a whole, provide benefits to Executive
                          at least reasonably comparable to those discontinued
                          or adversely affected, (A) the failure by Company to
                          continue in effect (without reduction in benefit level
                          and/or reward opportunities), any material
                          compensation or employee benefit plan, program or
                          arrangement in which Executive was participating
                          immediately prior to a Change of Control; or (B) the
                          taking of any action by Company that would materially
                          adversely affect Executive's participation or
                          materially reduce Executive's benefits under any of
                          such plans, programs or arrangements;

                 6.1.2.5  The failure by Company to obtain an agreement,
                          reasonably satisfactory to Executive, from any
                          successor or assign of the Company to assume and agree
                          to perform this Agreement; or

                 6.1.2.6  Any material breach of this Agreement by Company which
                          breach is not remedied for a period of thirty (30)
                          days following written notice by Executive to Company,
                          which notice specifically identifies the nature of the
                          breach.

          6.1.3  "Change of Control Termination" shall mean, with respect to
                  -----------------------------
                 Executive, any of the following events occurring within two
                 years after a Change of Control:

                 6.1.3.1  Termination of the Executive's employment by the
                          Company for any reason other than for Cause, as
                          defined in Section 4.2.1 of this Agreement.

                 6.1.3.2  Termination of the Executive's employment by the
                          Executive pursuant to Section 6.2 of this Agreement. A
                          Change of Control Termination shall not, however,
                          include termination by death or disability.

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     6.2  Change of Control Termination Right.  For a period of two (2) years
          -----------------------------------
          following a Change of Control, Executive shall have the right, at any
          time and within Executive's sole discretion, to terminate employment
          with Company for Good Reason.  Such termination shall be accomplished
          by, and effective upon, Executive giving written notice to Company of
          Executive's decision to terminate.

     6.3  Change of Control Termination Payment.  In the event of a Change of
          -------------------------------------
          Control Termination, then, and without further action by the Board,
          the Company shall provide the benefits identified in Sections 4.3.4.2,
          4.3.4.3 and 4.3.4.4 of this Agreement and, within ten (10) days of
          such termination, make a lump sum payment to Executive in an amount
          equal to eighteen (18) months Base Salary at the higher of (i) the
          rate in effect on the date of the Change of Control, or (ii) the rate
          in effect on the date of the Change of Control Termination.

     6.4  Interest.  In the event the Company does not make timely payment in
          --------
          full of the Change of Control Termination payment described in Section
          6.3, Executive shall be entitled to receive interest on any unpaid
          amount at the prime rate of interest (or such comparable index as may
          be adopted) established from time to time by the Company's principal
          banking institution.

     6.5  Attorneys' Fees.  In the event Executive incurs any legal expense to
          ---------------
          enforce or defend his or her rights under this Article VI of this
          Agreement, or to recover damages for breach thereof, Executive shall
          be entitled to recover from Company any expenses for attorneys' fees
          and disbursements incurred.

                                   ARTICLE 7
                              GENERAL PROVISIONS
                              ------------------

     7.1  Notices.  All notices, requests and demands given to or made pursuant
          -------
     hereto shall, except as otherwise specified herein, be in writing and shall
     be deemed to have been duly given to any party when delivered personally
     (by courier service or otherwise), when delivered by facsimile and
     confirmed by return facsimile, or three days after being mailed by first-
     class mail, postage prepaid and return receipt requested in each case to
     the applicable address as set forth at the beginning of this Agreement.
     Either party may change its address, by notice to the other party given in
     the manner set forth in this Section.

     7.2  Caption. The various headings or captions in this Agreement are for
          -------
     convenience only and shall not affect the meaning or interpretation of this
     Agreement.

     7.3  Governing Law/Forum.  The validity, construction and performance of
          -------------------
     this Agreement shall be governed by the laws of the State of Oregon.  The
     exclusive forum for any disputes arising under this Agreement that are not
     subject to arbitration shall be the appropriate state or federal court
     located in Portland, Oregon.

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<PAGE>

     7.4  Mediation.  In case of any dispute arising under this Agreement which
          ---------
     cannot be settled by reasonable discussion, the parties agree that, prior
     to commencing any arbitration proceeding as contemplated by Section 7.5
     they will first engage the services of a professional mediator agreed upon
     by the parties and attempt in good faith to resolve the dispute through
     confidential nonbinding mediation.  Each party shall bear one-half  of the
     mediator's fees and expenses and shall pay all of its own attorneys' fees
     and expenses related to the mediation.

     7.5  Arbitration.  Any dispute concerning the interpretation, construction,
          -----------
     breach or enforcement of this Agreement or arising in any way from
     Executive's employment with the Company or termination of employment shall
     be submitted to final and binding arbitration.  The arbitration is to be
     conducted before a single arbitrator in Portland, Oregon.  The arbitration
     shall be conducted pursuant to the rules of the American Arbitration
     Association ("AAA").  Executive and the Company agree that, except for
     Company's right to ask a court for injunctive relief pursuant to Section
     5.3, the procedures outlined in Section 7.4 and 7.5 are the exclusive
     method of dispute resolution.

     7.6  Attorney Fees.  If any action at law, in equity or by arbitration is
          -------------
     taken to enforce or interpret the terms of this Agreement, the prevailing
     party shall be entitled to reasonable attorneys' fees, costs and necessary
     disbursements in addition to any other relief to which such party may be
     entitled, including fees and expenses on appeal.

     7.7  Construction.  Wherever possible, each provision of this Agreement
          ------------
     shall be interpreted in such manner as to be effective and valid under
     applicable law, but if any provision of this Agreement shall be prohibited
     by or invalid under applicable law, such provision shall be ineffective
     only to the extent of such prohibition or invalidity without invalidating
     the remainder of such provision or the remaining provisions of this
     Agreement.

     7.8  Waivers.  No failure on the part of either party to exercise, and no
          -------
     delay in exercising, any right or remedy hereunder shall operate as a
     waiver thereof; nor shall any single or partial exercise of any right or
     remedy hereunder preclude any other or further exercise thereof or the
     exercise of any other right or remedy granted hereby or by any related
     document or by law.

     7.9  Successors and Assigns.  This Agreement shall be binding upon and
          ----------------------
     inure to the benefit of the Company and its successors and assigns, and
     shall be binding upon the Executive, his administrators, executors,
     legatees, and heirs.  In that this Agreement is a personal services
     contract, it shall not be assigned by the Executive.

     7.10  Modification.  This Agreement may not be and shall not be modified or
           ------------
     amended except by written instrument signed by the parties hereto.

     7.11  Entire Agreement.  This Agreement constitutes the entire agreement
           ----------------
     and understanding between the parties hereto in reference to all the
     matters herein agreed

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<PAGE>

     upon. This Agreement replaces and supersedes all prior agreements or
     understandings of the parties hereto with respect to the subject matter
     hereof.

     7.12  Board Approval.  This Agreement shall be subject to approval by the
           --------------
     Board.

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

EXECUTIVE                               PLANAR SYSTEMS, INC.


/s/ Balakrishnan Krishnamurthy          By: /s/ William D. Walker
------------------------------              ---------------------------
Balakrishnan Krishnamurthy              Title: President and CEO


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