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EXHIBIT 10.33
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June 30, 1998

Mr. Michael Hoberg
8 Bellflower Lane
San Carlos, CA 94070

Dear Mike:

This letter will constitute an agreement between you and Faroudja 
Laboratories, Inc. and it's corporate parent, Faroudja, Inc. (collectively, 
the "Company") regarding the terms of your continued relationship with the 
Company.  Effective immediately your status will change and you will become 
an advisor to the President.  This relationship will continue until January 
1, 1999 or the date you secure full-time employment, if earlier (the 
"Separation Date").  This agreement is in lieu of any other plan or program 
providing severance benefits.

The terms are as follows:

1.   You will receive base salary paid in equal semi-monthly installments, net
     of normal deductions and withholdings ("Installments") from the date hereof
     until the Separation Date.

2.   You have already received $3,636.26 (less withholding), as full payment in
     lieu of all unused vacation to which you were entitled as of the date of
     this Agreement.

3.   You will receive continuation of medical and dental insurance benefits
     until the Separation Date.  These benefits will end as soon as you become
     eligible for coverage with another employer.  The COBRA period will begin
     upon the Separation Date.

4.   Your options will continue to vest until the Separation Date.  You must
     exercise any remaining exercisable options within 30 days after the
     Separation Date, or you will not be able to exercise them.

5.   You will have access to and exclusive use of the phone number              
     (408) 617-7217 and the voicemail service associated with such number   
     until the Separation Date.


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6.   Unless otherwise specifically set forth in this agreement, the date of this
     Agreement shall be the date of termination of your employment with the
     Company and its parent, subsidiaries and affiliates for purposes of all
     Company-related plans, agreements and/or benefits in which you participate
     or to which you are a party, including without limitation, the vacation
     policy, the 401(k) plan, the stock purchase plan, and the bonus plan.  All
     of your rights upon termination of employment with respect to any of such
     plans, agreements and/or benefits shall be as set forth in the provisions
     of the governing documents relating thereto.

7.   Notwithstanding anything herein to the contrary and without limiting the
     Company's rights, if you engage in any activities adverse to the Company's
     best interests your right to all remaining payments and benefit coverage's
     under this agreement, except as required by law, shall cease immediately.
     Activities adverse to the Company's best interests are those a reasonable
     man would find to be adverse under the circumstances and include, but are
     not limited to (1) public statements or, except as required by law,
     statements to customers, suppliers, government agencies or other entities
     which statements are critical of the Company or its products, services,
     directors, officers or employees; (2) disclosure or utilization in any
     manner of Company confidential business, product, engineering and financial
     information and inventions, or any other Company confidential information;
     and (3) your participation in the solicitation of Company employees either
     by yourself or on behalf of a competitor.

8.   You agree that you will not make public statements or, except as required
     by law, statements to customers, suppliers, government agencies or other
     entities which statements are critical of the Company or its products,
     services, directors, officers or employees.

9.   The Company agrees not to make public statements critical of you or, except
     as required by law, any critical statements to customers, suppliers,
     government agencies or other entities.

10.  You agree that for a period of one (1) year you will not participate in the
     solicitation of Company employees, yourself or on behalf of a competitor
     without the consent of the Company.

11.  You agree to return immediately any Company documents in your possession
     containing confidential or trade secret information.  You further agree to
     promptly advise the Company and take appropriate steps to return such
     documents in the event you become aware following your termination of the
     existence of any Company documents under your control containing Company
     confidential information.

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12.  You hereby release and discharge the Company, its subsidiaries, affiliates,
     officers, directors, shareholders, employees, and agents (collectively "the
     Company and its Affiliates") from any and all actions, liabilities, and
     other claims for relief and remuneration whatsoever, with respect to any
     act, omission or transaction occurring up to and including the date of this
     Agreement, known and unknown, arising out of, or in any way connected with
     your employment or former employment at the Company or your separation from
     said employment, including, but not limited to, all matters in law, in
     equity, in contract, or in tort, or pursuant to statute, including Title
     VII of the Civil Rights Act of 1964 or the Age Discrimination in Employment
     Act, as amended.  This release does not apply to any claims or rights that
     may arise after the date this Agreement has been executed or other rights
     set forth herein.  Notwithstanding anything stated in the foregoing
     release, you do not release any claims of contribution or indemnity you
     have or may have against the parties released herein with respect to third
     party claims made against you as a result of your employment or position
     with the Company and its subsidiaries.

13.  You hereto expressly waive the benefits of Section 1542 of the Civil Code
     of the State of California, which provides as follows:

     "A general release does not extend to claims which the creditor does not
     know or suspect to exist in his favor at the time of executing the release,
     which if known by him must have materially affected his settlement with the
     debtor."

14.  Except for any act or omission done knowingly and intending that it be
     against the best interests of the Company, the Company agrees to indemnify
     you and hold you harmless as stated in your Indemnification Agreement
     effective as of January 2, 1997, for any losses or expenses incurred by you
     or assessed against you arising out of or in connection with your services
     as an employee of the Company or one of its subsidiaries to the extent
     permitted by the laws of the State of Delaware and the by-laws of the
     Company in effect on the date hereof or as such may from time to time be
     amended or by any other controlling law.  You agree to reasonably assist
     the Company in defending against or prosecuting claims, lawsuits and other
     actions involving matters within your scope of responsibility while
     employed by the Company.  The Company will reimburse you for expenses
     incurred and pay a reasonable per diem in connection with such assistance. 
     Reasonable assistance shall not unduly interfere with your other
     activities.

15.  The Company agrees that it will not file any objection to a claim you make
     for unemployment compensation.

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16.  By signing this Agreement you acknowledge and state that you have read this
     Agreement, that you understand the legal effect and binding nature of this
     Agreement, and that you are acting voluntarily and of your own free will in
     executing this Agreement.  We advise you to consult with an attorney prior
     to executing this Agreement, and that you have twenty-one (21) days from
     receipt of this Agreement in which to consider entering into this
     Agreement.  We further advise that you have until seven (7) days following
     the execution of this Agreement to revoke this Agreement, in which case
     this Agreement shall not become effective or enforceable and all terms of
     this Agreement shall become null and void.

17.  The parties agree to keep the terms and conditions of this Agreement
     confidential except as required by law.  Nothing herein shall prevent
     confidential conversations with lawyers, accountants or other professional
     advisors and family.

18.  This is the entire Agreement of the parties and supersedes any prior
     agreements or undertakings concerning the subject matter of this Agreement.
     It can be modified only by a written agreement signed by the parties.

IN WITNESS WHEREOF, the parties have caused this agreement to be properly
executed as of the date written below.

Faroudja Laboratories, Inc.             Michael Hoberg


By: /S/ MICHAEL J. MOONE                /S/ MICHAEL C. HOBERG

President and CEO

Dated:     7/22/98                      Dated:       7/22/98
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