Document:

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                                                                    Exhibit 10.2

                         REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of February
27, 2001, is made and entered into between (i) SONIC SOLUTIONS, a California
corporation (the "Company"), and (ii) DAIKIN INDUSTRIES, LTD., a corporation
organized under the laws of Japan (the "Investor").

     WHEREAS, the Company and the Investor have entered into that certain Asset
Purchase Agreement, dated as of February 27, 2001 (the "Asset Purchase
Agreement"), pursuant to which the Company has issued and the Investor has
received 395,000 shares of the Company's Common Stock, 700,000 shares of the
Company's Series D Preferred Stock (the "Series D Preferred") and may issue
additional shares of Series D Preferred to the Investor as dividends (together
with the Common Stock issued or issuable upon conversion of the Series D
Preferred, and any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of, such any of the above-described securities, the "Registrable
Securities");

     WHEREAS, pursuant to the terms of, and in consideration for, the Investor's
agreement to enter into the Asset Purchase Agreement, the Company has agreed to
provide the Investor with certain registration rights with respect to the
Registrable Securities;

     NOW, THEREFORE, in consideration of the premises, the representations,
warranties, covenants and agreements contained herein and in the Asset Purchase
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, intending to be legally bound
hereby, the parties hereto agree as follows:

                                   ARTICLE I

                              REGISTRATION RIGHTS

     Section 1.1  REGISTRATION STATEMENT.

          (a)  Filing of Registration Statement.  Subject to the terms and
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conditions of this Agreement, the Company shall file with the SEC a registration
statement on Form S-3 or such other form acceptable to the SEC under the
Securities Act of 1933, as amended (the "Securities Act") for the registration
of the Registrable Securities for resale by the Investor to the public (the
"Registration Statement") within fifteen (15) days following the date that the
Company's independent auditors receive from the Investor all financial
information related to the DVD business of the Investor acquired by the Company
pursuant to the Asset Purchase Agreement which are acceptable to such auditors
(the "Filing Deadline").

          (b)  Effectiveness of the Registration Statement.  The Company shall
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use its reasonable efforts to have the Registration Statement declared effective
by the SEC as soon as practicable and to ensure that the Registration Statement
remains in effect throughout the term of this Agreement as set forth in Section
4.2, subject to the terms and conditions of this Agreement. If the Registration
Statement is not declared effective by the SEC within the first ninety (90)
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calendar days after the Filing Deadline (the "Registration Deadline"), an
adjustment to the Conversion Rate, as that term is defined in the Certificate of
Determination of Series D Preferred Stock of the Company, shall be made in
accordance with Section 6(f) of that Certificate of Determination; provided,
however, that if the Registration Deadline would otherwise occur while a
Blackout Notice (as defined below) remains in effect, the Registration Deadline
shall be extended by the number of days covered by such Blackout Notice.

          (c)  Deferral and Suspension.  If the Company shall furnish to the
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Investor notice signed by the Chairman and Chief Executive Officer of the
Company stating that the Board of Directors of the Company has, by duly
authorized resolution, determined in good faith that it would be seriously
detrimental to the Company and its shareholders for the Registration Statement
to be filed (or remain in effect) and it is therefore essential to defer the
filing of such Registration Statement (or temporarily suspend the effectiveness
of such Registration Statement or use of the related prospectus) (a "Blackout
Notice"), the Company shall have the right to defer such filing (or suspend such
effectiveness) immediately for a period of not more than thirty (30) days beyond
such the date by which such Registration Statement was otherwise required to be
filed (or required to remain in effect). The Investor acknowledges that it would
be seriously detrimental to the Company and its shareholders for such
Registration Statement to be filed (or remain in effect) and therefore essential
to defer such filing (or suspend such effectiveness) and agrees to suspend any
disposition of the Registrable Securities pursuant to any such Registration
Statement immediately for a period of not more than thirty (30) days upon
receipt of such notice. The Company may not utilize any of its rights under this
Section 1.1(c) to defer the filing of a Registration Statement (or suspend its
effectiveness) more than once in any eighteen (18) month period.

                                  ARTICLE II
                            REGISTRATION PROCEDURES

     Section 2.1. FILINGS; INFORMATION.  The Company will effect the
registration and sale of such Registrable Securities in accordance with the
intended methods of disposition thereof. Without limiting the foregoing, the
Company in each such case will do the following as expeditiously as possible,
but in no event later than the deadline, if any, prescribed therefor in this
Agreement:

          (a)  The Company shall (i) prepare and file with the SEC a
Registration Statement on Form S-3 (if use of such form is then available to the
Company pursuant to the rules of the SEC and, if not, on such other form
promulgated by the SEC for which the Company then qualifies and which counsel
for the Company shall deem appropriate and which form shall be available for the
sale of the Registrable Securities to be registered thereunder in accordance
with the provisions of this Agreement and in accordance with the intended method
of distribution of such Registrable Securities); (ii) use reasonable efforts to
cause such filed Registration Statement to become and remain effective (pursuant
to Rule 415 under the Act or otherwise); (iii) as expeditiously as possible,
prepare and file with the SEC such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may be
necessary to keep such Registration Statement effective for the time periods
prescribed by Section 1.1(b); (iv) comply with the provisions of the Securities
Act with respect to the

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disposition of all securities covered by such Registration Statement during such
period in accordance with the intended methods of disposition by the Investor
set forth in such Registration Statement; (v) act in good faith and use
reasonable efforts to take all actions that (A) will facilitate the Registration
Statement to be filed and declared effective as expeditiously as possible or (B)
are reasonably necessary to implement the intentions of the parties set forth in
this Agreement.

          (b)  The Company shall file all necessary amendments to the
Registration Statement in order to effectuate the purpose of this Agreement.

          (c)  If so requested by the managing underwriters, if any, or the
holders of a majority in aggregate principal amount of the Registrable
Securities being sold in connection with the filing of a Registration Statement
under the Securities Act for the offering on a continuous or delayed basis in
the future of all of the Registrable Securities (a "Shelf Registration"), the
Company shall (i) promptly incorporate in a prospectus supplement or post-
effective amendment such information as the managing underwriters, if any, and
such holders agree should be included therein, and (ii) make all required
filings of such prospectus supplement or post-effective amendment as soon as
practicable after the Company has received notification of the matters to be
incorporated in such prospectus supplement or post-effective amendment;
provided, however, that the Company shall not be required to take any action
pursuant to this Section 2.1(c)(ii) that would, in the opinion of counsel for
the Company, violate applicable law.

          (d)  In connection with the filing of a Shelf Registration, and in
connection with any underwritten public offering of the Registrable Securities,
the Company shall enter into such agreements and take all such other reasonable
actions in connection therewith (including those reasonably requested by the
managing underwriters, if any, or the holders of a majority in aggregate
principal amount of the Registrable Securities being sold) in order to expedite
or facilitate the disposition of such Registrable Securities, and in such
connection, whether or not an underwriting agreement is entered into and whether
or not the registration is an underwritten registration, (i) make such
representations and warranties to the holders of such Registrable Securities and
the underwriters, if any, with respect to the business of the Company (including
with respect to businesses or assets acquired or to be acquired by the Company),
and the Registration Statement, prospectus and documents, if any, incorporated
or deemed to be incorporated by reference therein, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in
underwritten offerings, and confirm such representations and warranties if and
when requested; (ii) if an underwriting agreement is entered into, the same
shall contain indemnification provision and procedures no less favorable to the
selling holders of such Registrable Securities and the underwriters, if any,
than those set forth herein (or such other provisions and procedures acceptable
to the holders of a majority in aggregate principal amount of Registrable
Securities covered by such Registration Statement and the managing underwriters,
if any); and (iii) deliver such documents and certificates as may be reasonably
requested by the holders of a majority in aggregate principal amount of the
Registrable Securities being sold, their counsel and the managing underwriters,
if any, to evidence the continued validity of their representations and
warranties made pursuant to clause (i) above and to evidence compliance with any
customary conditions contained in the underwriting agreement or other agreement

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entered into by the Company. The Company shall also use its reasonable efforts
to furnish, on the date that the Registrable Securities are delivered to the
underwriters for sale, if such securities are being sold through underwriters,
(i) an opinion, dated as of such date, of the counsel representing the Company
for the purposes of such registration, in form and substance as is customarily
given to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and (ii) a letter, dated as of such date, from the
independent certified public accountants of the Company, in form and substance
as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering addressed to the underwriters.

          (e)  No less than five (5) Trading Days prior to filing the
Registration Statement or prospectus, or any amendment or supplement thereto
(excluding amendments deemed to result from the filing of documents incorporated
by reference therein), the Company shall deliver to the Investor and one firm of
counsel representing the Investor, in accordance with the notice provisions of
Section 4.8, copies of such Registration Statement as proposed to be filed,
together with exhibits thereto, which documents will be subject to review by
such parties, and thereafter deliver to the Investor and its counsel, in
accordance with the notice provisions of Section 4.8, such number of copies of
such Registration Statement, each amendment and supplement thereto (in each case
including all exhibits thereto), the prospectus included in such Registration
Statement (including each preliminary prospectus) and such other documents or
information as the Investor or counsel may reasonably request in order to
facilitate the disposition of the Registrable Securities.

          (f)  The Company shall deliver, in accordance with the notice
provisions of Section 4.8, to each seller of Registrable Securities covered by
such Registration Statement such number of conformed copies of such Registration
Statement and of each amendment and supplement thereto (in each case including
all exhibits and documents incorporated by reference), such number of copies of
the prospectus contained in such Registration Statement (including each
preliminary prospectus and any summary prospectus) and any other prospectus
filed under Rule 424 promulgated under the Securities Act relating to such
seller's Registrable Securities, and such other documents, as such seller may
reasonably request to facilitate the disposition of its Registrable Securities.

          (g)  After the filing of the Registration Statement, the Company shall
promptly notify the Investor of any stop order issued or threatened by the SEC
in connection therewith and take all reasonable actions required to prevent the
entry of such stop order or to remove it if entered.

          (h)  The Company shall use its reasonable efforts to (i) register or
qualify such Registrable Securities under such other securities or blue sky laws
of such jurisdictions in the United States as the Investor may reasonably (in
light of its intended plan of distribution) request, and (ii) cause such
Registrable Securities to be registered with or approved by such other
governmental agencies or authorities in the United States as may be necessary by
virtue of the business and operations of the Company and do any and all other
acts and things that may be reasonably necessary or advisable to enable the
Investor to consummate the disposition of the Registrable Securities; provided
that the Company will not be required to qualify generally to do

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business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph (h), subject itself to taxation in any such jurisdiction,
or consent or subject itself to general service of process in any such
jurisdiction.

          (i)  The Company shall immediately notify the Investor upon the
occurrence of any of the following events in respect of a Registration Statement
or related prospectus in respect of an offering of Registrable Securities: (i)
receipt of any request for additional information by the SEC or any other
federal or state governmental authority during the period of effectiveness of
the Registration Statement for additional information, amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the
SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose; (iii) receipt of any notification with respect
to the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; (iv) the happening of any event
that makes any statement made in the Registration Statement or related
prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any
changes in the Registration Statement, related prospectus or documents so that,
in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
that in the case of the related prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and (v) the Company's
reasonable determination that a post-effective amendment to the Registration
Statement would be appropriate; and the Company will promptly make available to
the Investor any such supplement or amendment to the related prospectus.

          (j)  The Company shall enter into customary agreements and take such
other actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities (whereupon the Investor may, at its
option, require that any or all of the representations, warranties and covenants
of the Company also be made to and for the benefit of the Investor).

          (k)  The Company shall appoint a transfer agent and registrar for all
such Registrable Securities covered by such Registration Statement not later
than the effective date of such Registration Statement.

          (l)  The Company may require the Investor to promptly furnish in
writing to the Company such information as may be legally required in connection
with such registration including, without limitation, all such information as
may be requested by the SEC or the National Association of Securities Dealers.
The Investor agrees to provide such information requested in connection with
such registration within ten (10) business days after receiving such written
request and the Company shall not be responsible for any delays in obtaining or
maintaining the effectiveness of the Registration Statement caused by the
Investor's failure to timely provide such information.

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     Section 2.2.  REGISTRATION EXPENSES.  In connection with each Registration
Statement, the Company shall pay all registration expenses incurred in
connection with the registration thereunder (the "Registration Expenses"),
including, without limitation: (i) all registration, filing, securities exchange
listing and fees required by the National Association of Securities Dealers,
(ii) all registration, filing, qualification and other fees and expenses of
compliance with securities or blue sky laws (including reasonable fees and
disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities), (iii) all word processing, duplicating, printing,
messenger and delivery expenses, (iv) the Company's internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), (v) the fees and expenses
incurred in connection with the listing of the Registrable Securities, (vi)
reasonable fees and disbursements of counsel for the Company and customary fees
and expenses for independent certified public accountants retained by the
Company, (vii) the fees and expenses of any special experts retained by the
Company in connection with such registration, (viii) premiums and other costs of
policies of insurance obtained at the discretion of the Company against
liabilities arising out of any public offering of the Registrable Securities
being registered, and (ix) any fees and disbursements of underwriters
customarily paid by issuers or sellers of securities, but excluding underwriting
fees, discounts, transfer taxes or commissions, if any, attributable to the sale
of Registrable Securities, which shall be payable by each holder of Registrable
Securities pro rata on the basis of the number of Registrable Securities of each
such holder that are included in a registration under this Agreement.

                                  ARTICLE III
                       INDEMNIFICATION AND CONTRIBUTION

     Section 3.1.  INDEMNIFICATION BY THE COMPANY. To the extent permitted by
law, the Company agrees to indemnify and hold harmless the Investor, its
partners, affiliates, officers, directors, employees and duly authorized agents,
and each Person or entity, if any, who controls the Investor within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act, together
with the partners, Affiliates, officers, directors, employees and duly
authorized agents of such controlling Person or entity (collectively, the
"Controlling Persons"), from and against any loss, claim, damage, liability,
costs and expenses (including, without limitation, reasonable attorneys' fees
and disbursements and costs and expenses of investigating and defending any such
claim) (collectively, "Damages"), joint or several, and any action or proceeding
in respect thereof to which the Investor, its partners, affiliates, officers,
directors, employees and duly authorized agents, and any such Controlling Person
may become subject under the Securities Act or otherwise as incurred and,
insofar as such Damages (or actions or proceedings in respect thereof) arise out
of, or are based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or prospectus relating to
the Registrable Securities or any preliminary prospectus, (ii) any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, except insofar as
the same are based upon information furnished in writing to the Company by the
Investor expressly for use therein, or (iii) any violation or alleged violation
by the Company of the Securities Act, the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any state securities
law in connection with the

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offering covered by such registration statement and shall reimburse the
Investor, its partners, affiliates, officers, directors, employees and duly
authorized agents, and each such Controlling Person for any legal and other
expenses reasonably incurred by the Investor, its partners, affiliates,
officers, directors, employees and duly authorized agents, or any such
Controlling Person, as incurred, in investigating or defending or preparing to
defend against any such Damages or actions or proceedings; provided, however,
that the Company shall not be liable to the Investor to the extent that any such
Damages arise out of or are based upon an untrue statement or omission made in
any preliminary prospectus if (i) the Investor failed to send or deliver a copy
of the final prospectus delivered by the Company to the Investor with or prior
to the delivery of written confirmation of the sale by the Investor to the
Person asserting the claim from which such Damages arise, and (ii) the final
prospectus would have corrected such untrue statement or alleged untrue
statement or such omission or alleged omission, and provided further, that the
indemnity agreement contained in this Section 3.1 shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company, which consent shall
not be unreasonably withheld.

     Section 3.2. INDEMNIFICATION BY THE INVESTOR. To the extent permitted by
law, the  Investor agrees to indemnify and hold harmless the Company, its
partners, affiliates, officers, directors, employees and duly authorized agents,
and each Controlling Person, from and against any Damages, joint or several, and
any action or proceeding in respect thereof to which the Company, its partners,
affiliates, officers, directors, employees and duly authorized agents, and any
such Controlling Person may become subject under the Securities Act or otherwise
as incurred and, insofar as such Damages (or actions or proceedings in respect
thereof) arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or
prospectus relating to the Registrable Securities or any preliminary prospectus,
or arises out of, or are based upon, any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and shall reimburse the Company, its
partners, affiliates, officers, directors, employees and duly authorized agents,
and each such Controlling Person for any legal and other expenses reasonably
incurred by the Company, its partners, affiliates, officers, directors,
employees and duly authorized agents, or any such Controlling Person, as
incurred, in investigating or defending or preparing to defend against any such
Damages or actions or proceedings; provided, however, that the indemnity
agreement contained in this Section 3.2 shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Investor, which consent shall
not be unreasonably withheld; and provided further, that in no event shall any
indemnity under this Section 3.2 exceed the net proceeds from the offering
received by the Investor.

     Section 3.3. CONDUCT OF INDEMNIFICATION PROCEEDINGS.  Promptly after
receipt by any person or entity in respect of which indemnity may be sought
pursuant to Section 3.1 or 3.2 (an "Indemnified Party") of notice of any claim
or the commencement of any action, the Indemnified Party shall, if a claim in
respect thereof is to be made against the person or entity against whom such
indemnity may be sought (the "Indemnifying Party"), notify the Indemnifying
Party in writing of the claim or the commencement of such action; in the event
an Indemnified Party shall fail to give such notice as provided in this Section
3.3 and the Indemnifying Party to whom notice was not given was unaware of the
proceeding to which such

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notice would have related and was materially prejudiced by the failure to give
such notice, the indemnification provided for in Section 3.1 or 3.2 shall be
reduced to the extent of any actual prejudice resulting from such failure to so
notify the Indemnifying Party; provided, that the failure to notify the
Indemnifying Party shall not relieve the Indemnifying Party from any liability
that it may have to an Indemnified Party otherwise than under Section 3.1 or
3.2. If any such claim or action shall be brought against an Indemnified Party,
and it shall notify the Indemnifying Party thereof, the Indemnifying Party shall
be entitled to participate therein, and, to the extent that it wishes, jointly
with any other similarly notified Indemnifying Party, to assume the defense
thereof with counsel reasonably satisfactory to the Indemnified Party. After
notice from the Indemnifying Party to the Indemnified Party of its election to
assume the defense of such claim or action, the Indemnifying Party shall not be
liable to the Indemnified Party for any legal or other expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof other
than reasonable costs of investigation; provided that the Indemnified Party
shall have the right to employ separate counsel to represent the Indemnified
Party and its Controlling Persons who may be subject to liability arising out of
any claim in respect of which indemnity may be sought by the Indemnified Party
against the Indemnifying Party, but the fees and expenses of such counsel shall
be for the account of such Indemnified Party unless (i) the Indemnifying Party
and the Indemnified Party shall have mutually agreed to the retention of such
counsel or (ii) in the reasonable judgment of the Company and such Indemnified
Party, representation of both parties by the same counsel would be inappropriate
due to actual or potential conflicts of interest between them, it being
understood, however, that the Indemnifying Party shall not, in connection with
any one such claim or action or separate but substantially similar or related
claims or actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than
one separate firm of attorneys (together with appropriate local counsel) at any
time for all Indemnified Parties, or for fees and expenses that are not
reasonable. No Indemnifying Party shall, without the prior written consent of
the Indemnified Party, effect any settlement of any claim or pending or
threatened proceeding in respect of which the Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified
Party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such claim or proceeding.
Whether or not the defense of any claim or action is assumed by the Indemnifying
Party, such Indemnifying Party will not be subject to any liability for any
settlement made without its consent, which consent will not be unreasonably
withheld.

     Section 3.4. OTHER INDEMNIFICATION. Indemnification similar to that
specified in the preceding paragraphs of this Article III (with appropriate
modifications) shall be given by the Company and each seller of Registrable
Securities with respect to any required registration or other qualification of
securities under any federal or state law or regulation of any governmental
authority other than the Securities Act. The provisions of this Article III
shall be in addition to any other rights to indemnification, contribution or
other remedies which an Indemnified Party may have pursuant to law, equity,
contract or otherwise.

     Section 3.5. CONTRIBUTION. If the indemnification provided for in this
Article III is unavailable to the Indemnified Parties in respect of any Damages
referred to herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Damages as between the

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Company on the one hand and the Investor on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of the Investor in
connection with such statements or omissions, as well as other equitable
considerations. The relative fault of the Company on the one hand and of the
Investor on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and the Investor agree that it would not be just and equitable if
contribution pursuant to this Section 3.5 were determined by pro rata allocation
or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Party as a result of the Damages referred to
in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably incurred
by such Indemnified Party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 3.5, the
Investor shall in no event be required to contribute any amount in excess of the
amount by which the total price at which the Registrable Securities of the
Investor were sold to the public (less underwriting discounts and commissions)
exceeds the amount of any damages which the Investor has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

                                   ARTICLE IV
                                 MISCELLANEOUS

     Section 4.1. NO OUTSTANDING REGISTRATION RIGHTS. The Company represents and
warrants to the Investor that there is not in effect on the date hereof any
agreement by the Company pursuant to which any holders of securities of the
Company have a right to cause the Company to register or qualify such securities
under the Securities Act or any securities or blue sky laws of any jurisdiction
that would conflict or be inconsistent with any provision of this Agreement,
except to the extent such agreements are disclosed in documents filed with the
SEC by the Company under the Exchange Act.

     Section 4.2. TERM. The registration rights provided to the holders of
Registrable Securities hereunder shall terminate at such time as all Registrable
Securities (i) have been disposed of pursuant to the Registration Statement,
(ii) have been sold under circumstances under which all of the applicable
conditions of Rule 144 (or any similar provision then in force) under the
Securities Act ("Rule 144") are met, (iii) have been otherwise transferred to
holders who may trade such shares without restriction under the Securities Act,
and the Company has delivered a new certificate or other evidence of ownership
for such securities not bearing a restrictive legend, or (iv) may be sold
without any time, volume or manner limitations pursuant to Rule 144(k) (or any
similar provision then in effect) under the Securities Act in the opinion of
counsel to the Company, which counsel shall be reasonably acceptable to the
Investor; provided, however, that such registration rights shall not terminate
sooner than two years following the

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date hereof. Notwithstanding the foregoing, paragraph (c) of Section 1.1,
Article III, Section 4.8, and Section 4.9 shall survive the termination of this
Agreement.

     Section 4.3. RULE 144. The Company covenants that it will file all reports
required to be filed by it under the Act and the Exchange Act and that it will
take such further action as holders of Registrable Securities may reasonably
request, all to the extent required from time to time to enable the Investor to
sell Registrable Securities without registration under the Act within the
limitation of the exemptions provided by (a) Rule 144, as such Rule may be
amended from time to time, or (b) any similar rule or regulation hereafter
adopted by the SEC. If at any time the Company is not required to file such
reports, it will, upon the request of any holder of Registrable Securities, make
publicly available other information so long as necessary to permit sales
pursuant to Rule 144. Upon the request of the Investor, the Company will deliver
to the Investor a written statement as to whether it has complied with such
requirements.

     Section 4.4. CERTIFICATE. The Company will, at its expense, forthwith upon
the request of any holder of Registrable Securities, deliver to such holder a
certificate, signed by the Company's principal financial officer, stating (a)
the Company's name, address and telephone number (including area code), (b) the
Company's Internal Revenue Service identification number, (c) the Company's
Commission file number, (d) the number of shares of each class of Stock
outstanding as shown by the most recent report or statement published by the
Company, and (e) whether the Company has filed the reports required to be filed
under the Exchange Act for a period of at least ninety (90) days prior to the
date of such certificate and in addition has filed the most recent annual report
required to be filed thereunder.

     Section 4.5. AMENDMENT AND MODIFICATION. Any provision of this Agreement
may be waived, provided that such waiver is set forth in a writing executed by
both parties to this Agreement. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the Company has obtained the written consent of the holders of a majority
of the then outstanding Registrable Securities. Notwithstanding the foregoing,
the waiver of any provision hereof with respect to a matter that relates
exclusively to the rights of holders of Registrable Securities whose securities
are being sold pursuant to a Registration Statement and does not directly or
indirectly affect the rights of other holders of Registrable Securities may be
given by holders of at least a majority of the Registrable Securities being sold
by such holders; provided that the provisions of this sentence may not be
amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence. No course of dealing between or among any
Person having any interest in this Agreement will be deemed effective to modify,
amend or discharge any part of this Agreement or any rights or obligations of
any person under or by reason of this Agreement.

     Section 4.6. SUCCESSORS AND ASSIGNS; ENTIRE AGREEMENT. This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. The Investor may
assign its rights under this Agreement to any subsequent holder the Registrable
Securities, provided that the Company shall have the right to require any holder
of Registrable Securities to execute a counterpart of this Agreement as a
condition to such holder's claim to any rights hereunder;

                                       10
<PAGE>

provided further that such holder is an "accredited investor" as defined in Rule
501 of Regulation D of the Securities Act. This Agreement, together with the
Asset Purchase Agreement, sets forth the entire agreement and understanding
between the parties as to the subject matter hereof and merges and supersedes
all prior discussions, agreements and understandings of any and every nature
among them.

     Section 4.7. SEPARABILITY. If any provision of this Agreement is held to be
invalid, illegal or incapable of being enforced by any law or public policy, all
other terms and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any
party. Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner in order that the
transactions contemplated hereby are consummated as originally contemplated to
the greatest extent possible.

     Section 4.8. NOTICES. Any notice or other communication required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given on the date of service if served personally, by recognized expedited
delivery service, or by facsimile (with confirmation copies of any facsimile
notice to be provided by at least one other method of delivery permitted
hereunder), or five (5) days after the date of mailing if mailed, by first class
mail, registered or certified, postage prepaid. Notices shall be addressed as
follows:

           To Investor at:     Daikin Industries, Ltd.
                               Tokyo Opera City Building
                               20-2, 3-chome, Nishi-Shinjuku
                               Shinjuku-ku, Tokyo 163-14
                               Japan
                               Attn: General Manager Electronics Division

           with a copy (which shall not constitute notice) to:

                               McCarthy Tetrault
                               P.O Box 10424
                               Pacific Centre, Suite 1300
                               777 Dunsmuir Street
                               Vancouver, B.C.
                               Canada V7Y 1K2
                               Attn: Tim McCafferty

                               Cooley Godward LLP
                               3000 El Camino Real
                               Palo Alto, CA 94306
                               Attn: Thomas M. Shoesmith

                                       11
<PAGE>
               To the Company at:  Sonic Solutions

                               101 Rowland Way
                               Novato, California 94945
                               Attn: Chief Financial Officer

               with a copy (which shall not constitute notice) to:

                               Heller Ehrman White & McAuliffe LLP
                               2500 Sand Hill Road, Suite 100
                               Menlo Park, California 94025
                               Attn: Kyle Guse

     or to such other address as a party has designated by notice in writing to
the other party in the manner provided by this Section.

     Section 4.9.  GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of California applicable to
contracts entered into and wholly to be performed in the State of California by
California residents. The parties hereby waive trial by jury in connection with
any action or suit under this Agreement or otherwise arising from the
relationship between the parties hereto.

     Section 4.10. HEADINGS. The headings in this Agreement are for convenience
of reference only and shall not constitute a part of this Agreement, nor shall
they affect their meaning, construction or effect.

     Section 4.11. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original instrument and all
of which together shall constitute one and the same instrument.

     Section 4.12. FURTHER ASSURANCES. Each party shall cooperate and take such
action as may be reasonably requested by another party in order to carry out the
provisions and purposes of this Agreement and the transactions contemplated
hereby.

     Section 4.13. REMEDIES. In the event of a breach or a threatened breach by
any party to this Agreement of its obligations under this Agreement, any party
injured or to be injured by such breach will be entitled to specific performance
of its rights under this Agreement or to injunctive relief, in addition to being
entitled to exercise all rights provided in this Agreement and granted by law.
The parties agree that the provisions of this Agreement shall be specifically
enforceable, it being agreed by the parties that the remedy at law, including
monetary damages, for breach of any such provision will be inadequate
compensation for any loss and that any defense or objection in any action for
specific performance or injunctive relief that a remedy at law would be adequate
is waived.

                                       12
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be executed by the undersigned, thereunto duly authorized, as of
the date first set forth above.

SONIC SOLUTIONS

By: /s/ Clay Leighton
    ------------------------------------------
     A. Clay Leighton
     Senior Vice President

DAIKIN INDUSTRIES, LTD.

By:  /s/ Kiyoshi Nakajima
    ------------------------------------------

Name:   Kiyoshi Nakajima
      ----------------------------------------

Title:  General Manager - Electronics Division
       ---------------------------------------

                                       13<PAGE>

                                                                    EXHIBIT 10.3

                                SONIC SOLUTIONS
                             CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (the "Agreement") is made and entered into as of
February 27, 2001, by and between Sonic Solutions, a California corporation
("Sonic") and Daikin Industries, Ltd., a Japanese corporation ("Daikin").

     WHEREAS, Sonic and Daikin have entered into that certain Asset Purchase
Agreement dated February 27, 2001 (the "Asset Purchase Agreement"), pursuant to
which Daikin has agreed to sell to Sonic, and Sonic has agreed to purchase from
Daikin, certain of the assets owned or used in connection with Daikin's DVD
related business; and

     WHEREAS, Sonic desires to obtain from Daikin, on the terms and conditions
set forth herein, certain consulting services in connection with Sonic's
operation of its own DVD business for a limited period of time; and

     WHEREAS, Daikin is willing to provide to Sonic, on the terms and conditions
set forth herein, such services;

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter
recited, the sufficiency of which is hereby acknowledged, Sonic and Daikin agree
as follows:

                                   ARTICLE 1
                                  APPOINTMENT

1.1  Appointment. Sonic hereby appoints Daikin as consultant to provide the
     -----------
Services described herein, and Daikin hereby accepts such appointment, all in
accordance with the terms and subject to the conditions contained herein.

1.2  Purposes of Engagement. The parties acknowledge that the purpose of the
     ----------------------
engagement of Daikin is to provide certain software consulting and development
services related to the Products (as that term is defined in the Asset Purchase
Agreement) acquired from Daikin so as to assist Sonic in acquiring the know-how
and other expertise associated with those Products and the other assets and
rights acquired by Sonic under the Asset Purchase Agreement and the integration
of such Products and using such rights with those of Sonic.

1.3  Independent Contractor. In performing its services hereunder, Daikin is
     ----------------------
acting as an independent contractor and nothing in this Agreement should be
interpreted or construed or this Agreement be deemed to constitute a partnership
or joint venture between the parties or any of the directors, officers,
employees or agents of Daikin be considered a partner, servant, employee or
agent of Sonic.
<PAGE>

1.4  Daikin Authority. Daikin shall have no right or authority, express or
     ----------------
implied, to bind, contract in the name of, commit or otherwise obligate Sonic in
any manner whatsoever except to the extent expressly provided for herein or as
Sonic may otherwise authorize, in writing.

1.5  Sonic Representative. Daikin shall at all times be entitled to rely and to
     ---------------------
act on the instructions, directions and communications received from the Chief
Executive Officer or such other officer or director of Sonic as Sonic may
designate in writing from time to time (the Chief Executive Officer and such
other person being referred to herein as the "Sonic Representative") as being
fully authorized to bind and to act for and on behalf of and in the name of
Sonic.

1.6  Daikin's Representative. Sonic shall at all times be entitled to rely and
     -----------------------
to act on the advice, recommendations or communications received from General
Manager, Electronics Division of Daikin or such other officer or director of
Daikin as Daikin may designate in writing from time to time (such person being
referred to herein as the "Daikin Representative") as being fully authorized to
bind and to act for and on behalf of and in the name of Daikin.

1.7  Non-Exclusive Services. Sonic acknowledges and agrees that during the term
     ----------------------
of this Agreement or any renewals hereof, Daikin may, either for its own account
or in partnership or in conjunction with any other person, firm, syndicate or
corporation in any manner whatsoever, carry on or be engaged in or concerned
with or advise in the operation of any other business or enterprise, other than
as prohibited under the non-competition provisions of the Asset Purchase
Agreement.

                                   ARTICLE 2
                                   SERVICES

2.1  Services. Daikin shall, subject to the provisions set out in this Section
     --------
2.1 and the exclusions set out in Section 2.3, provide the Services set out on
Exhibit "A" (the "Services") at the request and direction of Sonic. The parties
acknowledge that the descriptions provided in Exhibit "A" are based on the
present understanding of the anticipated needs and requirements of Sonic and the
current expertise and staffing presently available to Daikin. However, the
parties acknowledge and agree that even though they will be using commercially
reasonable efforts, no assurance can or is given that the Services will be
provided in the manner contemplated nor is any assurance given that any
specified goals described in the attached Exhibit "A" will be achieved. The
parties also acknowledge that Daikin's performance of the Services will be
solely by and through the Employees (as defined below) and not by or through any
other resources of Daikin. If Sonic directs or requests certain items described
in Exhibit "A" to be performed as a priority, then the performance of other
items described in such Exhibit "A" may be inhibited. The parties further
acknowledge and agree that any material change to the Services to be provided as
set out in Exhibit "A" will be subject to agreement of the parties and confirmed
in writing.

2.2  Additional Services. In the event Sonic from time to time requests Daikin
     -------------------
to provide additional services that are of a nature not provided for in this
Agreement, if Daikin agrees to provide such additional services, it shall be
entitled to such additional fees and expenses as Sonic and Daikin may agree.

                                      -2-
<PAGE>

2.3       Services Excluded. Without limitation, except as otherwise necessary
          -----------------
to perform the Services contemplated in Section 2.1 or as may be requested by
Sonic pursuant to Section 2.2 hereof, the services to be provided by Daikin to
Sonic shall not include the following:

     (1)  responsibility with respect to any clerical, administrative or
          professional services required by Sonic, including legal, accounting
          or administrative services; or

     (2)  carrying out any instruction or direction from Sonic that, in Daikin's
          opinion, would be illegal, unlawful or expose Daikin, Sonic or any of
          their respective directors, officers, agents, subcontractors or
          employees to an unacceptable level risk of personal injury, loss,
          damage or liability.

2.4       Daikin's Employees. Sonic acknowledges that the Services to be
          ------------------
provided by Daikin hereunder will be provided by a team of individuals currently
employed by Daikin as listed on Exhibit B, and subject to the agreement of
Sonic, such additional or replacement employees (the "Employees"). Daikin shall
pay and grant to the Employees engaged in performing the Services on its behalf
the salaries, wages, bonuses and other benefits required by law or agreed to by
Daikin.

2.5       Standard of Care. Daikin shall be responsible for ensuring that all
          ----------------
Work Product and other Services provided under this Agreement are performed in a
professional and workmanlike manner.

2.6       Employment Offers. Sonic is expressly permitted to extend offers of
          -----------------
employment at any time to any of the Employees. Daikin shall not oppose or
otherwise impede such Employees from accepting employment with Sonic.

2.7       Services and Facilities. Except as provided in Section 2.8, Sonic
          -----------------------
acknowledges that the Services to be provided by the Employees will be provided
from Daikin's existing or a comparable facility in Japan. Daikin confirms that
it presently has and will allow the Employees the continued use throughout the
term of this Agreement, without cost or charge to Sonic, of the equipment,
software, computers, office facilities and tools necessary at that facility in
order to allow the Employees to perform the technology transfer and sustaining
engineering work forming part of the Services contemplated hereunder. To the
extent any additional equipment, software, computers or other tools not
presently available at Daikin's facility are reasonably necessary to allow the
Employees to perform the new development work forming part of the Services
contemplated hereunder, such additional equipment, software, computers or other
tools shall be provided by Sonic, at Sonic's expense or if Sonic and Daikin
agree, Daikin may purchase such equipment, software, computers or other tools,
which will be the property of and owned by Sonic upon Daikin being reimbursed by
Sonic for the expenses thereof (the "Sonic Equipment") and Sonic may at any time
notify Daikin that it wishes to have any of such Sonic Equipment delivered to
Sonic provided that Sonic shall be responsible for making all necessary
arrangements and paying all necessary expenses for such delivery. At the request
of Sonic, Daikin will act reasonably in facilitating such delivery arrangement
provided Sonic will reimburse Daikin for any costs so incurred.

2.8       Travel by Employees. At the request of Sonic, Daikin shall make the
          -------------------
Employees available to provide all or some of the Services at a Sonic facility
in the United States or

                                      -3-
<PAGE>

elsewhere (provided that Sonic acknowledges that Daikin cannot compel an
Employee to do so without their consent and approval), provided Sonic:

     (1)  has provided reasonable written notice to Daikin of the intended dates
          and duration during which the Employee will be working at the Sonic
          facility;

     (2)  makes all arrangements for and pays for all such travel,
          transportation and accommodation, consistent with such arrangements as
          Daikin generally provides for its employees, as may be necessary to
          permit the Employees to travel to and work at Sonic's facility; and

     (3)  makes all arrangements required in order to lawfully permit the
          Employee to travel to and work at such Sonic facility, including
          making all such arrangements reasonably satisfactory to Daikin and the
          Employee concerning working visas or satisfying other immigration
          concerns.

2.9       Sonic Obligations. In order to permit Daikin to provide the Services
          -----------------
contemplated hereunder, Sonic shall ensure that it has adequate and competent
staff familiar with the Products and conversant in the Japanese language
available to work with the Employees to achieve the purposes set out in Section
1.2.

                                   ARTICLE 3
                                 COMPENSATION

3.1       Consulting Fee. As compensation for the services to be provided by
          --------------
Daikin pursuant to this Agreement, Sonic shall pay to Daikin, in respect of each
quarterly calendar period during the term hereof, consulting fees at a rate of
(Yen)20,400,000 per quarter, which fees will be deemed to accrue day to day, and
shall be due and payable on August 31, 2001 and in the event the term is
extended pursuant to Section 4.2, fees accruing after August 31, 2001 shall be
due and payable on the last day of the month in which this Agreement will then
terminate.

3.2       Adjustment of Consulting Fees. The parties acknowledge that the
          -----------------------------
consulting fees provided for in Section 3.1 are based on the assumption that the
Employees will be available and providing Services continually during the
quarterly calendar period on a full time basis. In the event the employment of
an Employee is terminated, for whatever reason, or the Employee is otherwise
unable or unwilling to provide the Services contemplated hereunder or, after
August 31, 2001, Sonic has advised Daikin that it no longer requires the
services of an Employee, (each a "Termination of Service Event"), the consulting
fees payable under Section 3.1 shall be adjusted proportionately effective as of
the date of such Termination of Service Event and Daikin shall be under no
obligation nor incur any liability as a result of any reduction in the Services
it may thereafter be able to provide hereunder.

3.3       Reimbursement of Expenses. Sonic shall promptly reimburse Daikin, on
          -------------------------
demand, for any expenses incurred by Daikin in the preceding month and in
connection with any fees, charges or expenses incurred by Daikin for or on
behalf of Sonic under this Agreement.

3.4       Receipts. Daikin shall provide to Sonic, in the same manner as Sonic
          --------
requires under its policies and procedures for reimbursement of the expenses of
Sonic's own officers,

                                      -4-
<PAGE>

such vouchers, receipts and other information as may be reasonably requested by
Sonic regarding any expenses in respect of which Daikin is requesting
reimbursement hereunder.

3.5       Value Added Taxes. Sonic shall be responsible for the payment of any
          -----------------
value added, ad valorem, consumption or goods and services tax required by law
in respect of the payments to be made to Daikin under this Agreement. Daikin
confirms that as of the date hereof the payments hereunder are not subject to
any such taxes in Japan.

3.6       Offset of Payments. All amounts due and payable under this Agreement
          ------------------
may be offset against any other amount owing under that certain Distribution
Agreement entered into by the parties and dated February 27, 2001 (the
"Distribution Agreement") or other amounts owing by Daikin to Sonic from time to
time.

3.7       Unpaid Fees or Expenses. Any amount owing by Sonic hereunder (which
          -----------------------
shall include any costs incurred by Daikin in enforcing payment, including legal
or other fees) and remaining unpaid shall bear interest at a rate of 12% per
annum from the date on which such payment was due until payment.

                                   ARTICLE 4
                             TERM AND TERMINATION

4.1       Effective Date. This Agreement is effective as of February 27, 2001
          --------------
and will remain in force until August 31, 2001 unless it is earlier terminated
pursuant to Section 4.3 or extended pursuant to Section 4.2.

4.2       Extension. Provided Sonic is not in material default of its
          ---------
obligations hereunder (it being acknowledged that a default in making any
payment required hereunder will constitute a material default), Sonic may, on
the written request of Sonic made not later than thirty (30) days before the
expiration of the term, extend the engagement of Daikin under this Agreement on
a monthly basis to a date no later than February 28, 2002, subject to the
covenants, provisos and agreements as are herein contained.

4.3       Termination. This Agreement may be terminated prior to the expiry of
          -----------
the term, or any extension of the term:

     (1)  after August 31, 2001, by Sonic giving Daikin written notice of
          termination at least thirty (30) days prior to the termination date
          set forth in such notice;

     (2)  by either of Daikin or Sonic giving written notice to the other in the
          event the other is in material default in the performance or
          observance of any of its terms, covenants, conditions or obligations
          contained in this Agreement and fails to cure such default within
          thirty (30) days of written notice thereof or, if such default is not
          capable of being cured within such period, fails to commence in good
          faith, rectification of such default forthwith upon receiving written
          notice thereof, continues to diligently pursue and rectifies such
          default within thirty (30) days thereafter;

                                      -5-
<PAGE>

     (3)  upon there being no remaining Employees in the employ of Daikin and
          available to provide Services as contemplated herein; and

     (4)  by mutual agreement of the parties,

and upon such termination Daikin shall have no further obligation to provide any
Services to Sonic hereunder.

4.4       Compensation of Daikin on Termination. Upon termination of this
          -------------------------------------
Agreement pursuant to Section 4.3 Daikin shall be entitled to immediately
receive all sums due and payable under this Agreement to the date of such
termination.

4.5       Liabilities and Obligations Surviving Termination. Notwithstanding the
          -------------------------------------------------
termination of this Agreement, the liabilities and obligations set out in
Sections 5.1, and Articles 6 and 7 shall survive and continue in full force and
effect.

                                   ARTICLE 5
                                 WORK PRODUCT

5.1       Confidentiality. Daikin acknowledges that Confidential Information (as
          ---------------
defined in Section 5.4 of this Agreement) is of great value to Sonic. Daikin
shall maintain in confidence any Confidential Information that it receives or
becomes apprised of as the direct or indirect result of this Agreement and shall
refrain from using this Confidential Information or from disclosing same to any
third person including any agent, affiliate, consultant, or subcontractor except
as required to fulfill the purposes of this Agreement. This obligation shall not
apply to the extent that Daikin can establish that the Confidential Information:

     (1)  is or becomes generally known to the public through no fault of
          Daikin;

     (2)  is known to Daikin before the date of its becoming aware of the
          Confidential Information through its performance of the Services, as
          evidenced by the written records of Daikin;

     (3)  is disclosed, lawfully and not in breach of any contractual or other
          legal obligation, by a third person;

     (4)  is required by law to be disclosed provided that notice of this
          requirement is delivered to Sonic so that it may contest this
          potential disclosure.

Except as required to fulfill the purposes of this Agreement, Daikin shall not
directly or indirectly cause or permit any Confidential Information to be copied
or otherwise reproduced.  Any such copy shall be marked as confidential and
proprietary to Sonic. Nothing in this Agreement shall confer upon Daikin any
right, title, interest or license in any Confidential Information except as
expressly stated in this Agreement.

Upon the expiration or termination of this Agreement, Daikin agrees to deliver
to Sonic all documents, papers, drawings, tabulations, reports and similar
documentation which are furnished by Sonic to Daikin or which were prepared by
Daikin in performance of the Services.  Upon the

                                      -6-
<PAGE>

expiration or termination of this Agreement, Daikin agrees to make no further
use or utilization of any Confidential Information.

5.2       Work Product and Original Works of Authorship. All Work Product (as
          ---------------------------------------------
defined in Section 5.4 of this Agreement) and all original works of authorship
(including without limitation, computer code and the documentation and notes
related thereto) made or conceived by Daikin in the course of performing the
Services for Sonic during the term of this Agreement shall be considered works-
made-for-hire and shall become and remain the sole and exclusive property of
Sonic. To the extent that such Work Product and original works of authorship are
not considered works-made-for-hire, Daikin hereby transfers and assigns to Sonic
all right, title and interest in and to the same, whether or not patent or
copyright applications are filed thereon. Daikin shall promptly notify Sonic in
writing of all Work Product and original works of authorship so conceived or
made by Daikin. Daikin agrees to execute such further documents and to perform
such further acts, at Sonic's expense, as may be necessary to perfect the
foregoing assignment and to protect Sonic's rights in the Work Product. In the
event Daikin fails or refuses to execute such documents, Daikin hereby appoints
Sonic as Daikin's attorney-in-fact (this appointment to be irrevocable and a
power coupled with an interest) to act on Daikin's behalf and to execute such
documents.

5.3       Moral Rights. Daikin also hereby irrevocably transfers and assigns to
          ------------
Sonic, and waives and agrees never to assert, any and all "Moral Rights" (as
defined in Section 5.4) Daikin may have in or with respect to any Work Product,
even after termination of Daikin's work on behalf of Sonic.

5.4       Definitions. As used in this Agreement:
          -----------

     (1)  "Confidential Information" means information of Sonic or any person or
          business entity directly or indirectly controlled by or controlling
          Sonic, or in which any of the aforesaid have at least a 50% interest,
          which information is or has been disclosed to Daikin or known to
          Daikin as a consequence of or through the performance of Services for
          Sonic, whether or not related to his duties for Sonic, including, but
          not limited to, information relating to Work Product, original works
          of authorship, disclosures, processes, systems, methods, formulas,
          trade secrets, procedures, concepts, algorithms, software,
          compositions, techniques, drawings, specifications, models, data,
          source code, object code, documentation, diagrams, flow charts,
          research procedures, copyrights, copyright applications, trademarks,
          trademark applications, devices, machinery, materials, cost of
          production, contract forms, prices, pricing policies, volume of sales,
          promotional methods, identity or information about customers or
          suppliers, marketing techniques or other information of a similar
          nature. Information shall be considered to be Confidential Information
          if identifies as such or would generally be considered confidential in
          the DVD trade generally, even though such information may have been
          disclosed to one or more third parties pursuant to any written
          distribution, joint research or other agreements entered into by Sonic
          under which such information is similarly to be considered
          Confidential Information.

                                      -7-
<PAGE>

     (2)  "Work Product" means all deliverables, inventions, innovations,
          improvements, or other works of authorship Daikin, through the
          Employees, may conceive or develop in the course of performing the
          Services for Sonic, or as a result of that work, whether or not they
          are eligible for patent, copyright, trademark, trade secret, or other
          legal protection and which relate to the Services.

     (3)  "Moral Rights" means any rights to claim authorship of Work Product,
          to object to or prevent any modification of any Work Product, to
          withdraw from circulation or control the publication or distribution
          of any Work Product, and any similar right, existing under judicial or
          statutory law of any country in the world, or under any treaty,
          regardless of whether or not such right is called or generally
          referred to as a "moral right."

                                   ARTICLE 6
                          WARRANTIES AND INDEMNITIES

6.1       Provision of Intellectual Property by Employees. Other than with
          -----------------------------------------------
respect to any information or other intellectual property provided by Sonic to
Daikin, Daikin shall ensure that all Work Product provided by Daikin hereunder
is not known to it to be a trade secret or other non-public proprietary
technical or business information which would violate or infringe the legal
rights of any third party. Daikin shall not use any third party Intellectual
Property in connection with the Work Product unless it has first notified Sonic
of its intention to do so, in writing, and has obtained the prior written
consent of Sonic.

6.2       Indemnity by Daikin for Injury or Loss. Daikin shall indemnify Sonic
          --------------------------------------
and hold Sonic harmless from any and all claims, demands, causes of action,
losses, damages, liabilities, costs and expenses, including attorneys' fees
arising from the death or injury of any person or persons or from the damage or
destruction of any physical property or properties (a "Claim") which is directly
attributable to, resulted from or arose as a result of the breach by Daikin of
this Agreement, provided that Daikin shall have no obligation to indemnify Sonic
for any Claim which is attributable to, resulted from or arose as a result of an
action, omission or service performed by Daikin or its employees at the request
or direction of Sonic.

6.3       Daikin Indemnity for Infringement. Daikin shall defend, indemnify and
          ---------------------------------
shall hold Sonic harmless, at its expense, from any proceeding brought against
Sonic for any patent infringement (if intentional or grossly negligent)
copyright or trade secret infringement or unfair competition violation, or any
and all other claims arising out of the assignment of or use by Sonic of the
Work Product, and any other information furnished by or created by Daikin in
performing Services pursuant to this Agreement in breach of Section 6.1 hereof,
provided, however, that Daikin shall have no duty to indemnify Sonic for claims
relating to third-party intellectual property if Daikin has made Sonic aware of
and obtained its consent to the use of such third party rights pursuant to
Section 6.1 or if such claim is attributable to, resulted from, or arose as a
result of any action or service performed by Daikin or its employees at the
request or direction of Sonic. Daikin's agreement to defend and its obligation
to indemnify Sonic under this Section 6.3 shall extend to all damages including
indirect and punitive damages awarded in any such proceedings, as well as
reasonable attorneys' fees, providing that Sonic will provide reasonable
information and assistance to Daikin at Daikin's expense in defense of such
claim.

                                      -8-
<PAGE>

6.4  Provision of Intellectual Property by Sonic. Sonic shall ensure that all
     -------------------------------------------
information or other intellectual property provided to Daikin in connection with
the Services is not know to it to be a trade secret or other non-public
proprietary technical or business information which would violate or infringe
the legal rights of any third party. Sonic shall not direct Daikin to use any
third party intellectual property in connection with the Services to be provided
hereunder without the prior written consent of the person which legally holds or
enjoys the rights hereto.

6.5  Indemnity by Sonic for Injury or Loss. Sonic shall indemnify Daikin and
     -------------------------------------
hold Daikin harmless from any and all Claim which is directly attributable to,
resulted from, or arose as a result of any breach by Sonic of this Agreement or
any request or direction of Sonic hereunder.

6.6  Sonic Indemnity for Infringement. Sonic shall defend, indemnify and shall
     --------------------------------
hold Daikin harmless, at its expense, from any proceeding brought against Daikin
for any patent infringement (if intentional or grossly negligent), copyright or
trade secret infringement or unfair competition violation, or any and all other
claims which is attributable to, resulted from or arise as a result of: (i) the
Services to be provided by Daikin at the request or direction of Sonic pursuant
to this Agreement, (ii) the use of any third party intellectual property in
connection with the Work Product, where Sonic has provided consent pursuant to
Section 6.1 to such use, or (iii) any information or other intellectual property
provided by Sonic in breach of Section 6.4 hereof. Sonic's agreement to defend
and its obligation to indemnify Daikin extends to all damages including indirect
and punitive damages awarded in any such proceedings, as well as reasonable
attorneys' fees, providing that Daikin will provide reasonable information and
assistance to Sonic at Sonic's expense in defense of such claim.

                                   ARTICLE 7
                                    GENERAL

7.1  Assignment. Neither party may assign its rights or obligations under this
     ----------
Agreement or any interest herein, nor delegate any obligation hereunder without
the prior written consent of the other provided however that Sonic may assign
its rights hereunder in connection with the merger or consolidation of Sonic
with, or the sale of all or substantially all of its assets to, another entity.

7.2  Expenses. Except as otherwise expressly provided herein, each party will
     --------
pay its own costs and expenses, including legal and accounting expenses, related
to the transactions provided for herein, irrespective of when incurred.

7.3  Governing Law. This Agreement shall be governed by and construed in
     -------------
accordance with the laws of the State of California applicable to contracts made
between California residents and wholly to be performed in California. The
parties hereby waive trial by jury in connection with any action or suit under
this Agreement or otherwise arising from the relationship between the parties
hereto.

                                      -9-
<PAGE>

7.4       Headings. The headings in this Agreement are intended principally for
          --------
convenience and shall not, by themselves, determine the rights and obligations
of the parties to this Agreement.

7.5       Notices. All notices, requests, demands, and other communications
          -------
required by, or made in connection with, this Agreement or the transactions
contemplated by this Agreement, shall be in writing and shall be deemed to have
been duly given on the date of delivery, if delivered in person, or five days
after mailing if mailed by certified or registered mail, postage prepaid, return
receipt requested, addressed as follows:

          If to Sonic:  Sonic Solutions
                        101 Rowland Way
                        Novato, California 94945
                        Attn:  President

          with a copy (which shall not constitute notice) to:

                        Heller Ehrman White & McAuliffe LLP
                        2500 Sand Hill Road, Suite 100
                        Menlo Park, California 94025
                        Attn:  Kyle Guse

          If to Daikin: The address listed on the signature page hereto.

Such addresses may be changed, from time to time, by means of a notice given in
the manner provided in this Section 7.5.

7.6       Severability. If any provision of this Agreement is held to be
          ------------
unenforceable for any reason, such provision shall be adjusted rather than
voided, if possible, in order to achieve the intent of the parties to the
maximum extent possible. In any event, all other provisions of this Agreement
shall be deemed valid and enforceable to the full extent possible.

7.7       Waiver. The waiver of any term or condition contained in this
          ------
Agreement by any party to this Agreement shall not be construed as a waiver of a
subsequent breach or failure of the same term or condition or a waiver of any
other term or condition contained in this Agreement.

7.8       Entire Agreement. This Agreement and the Asset Purchase Agreement
          ----------------
(including the Exhibits and Schedules thereto) constitute and contain the entire
agreement of the parties and supersede any and all prior negotiations,
correspondence, understandings and agreements between the parties respecting the
subject matter hereof which shall be superseded and replaced in its entirety by
this Agreement. This Agreement may only be amended by written instrument signed
by the parties.

                                      -10-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first written above.

                              SONIC SOLUTIONS

                              By:  /s/ Clay Leighton
                                  ------------------------------------------

                              Name:  A. Clay Leighton
                                    ----------------------------------------

                              Title: Chief Financial Officer
                                     ---------------------------------------

                              DAIKIN INDUSTRIES, LTD.

                              By: /s/ Kiyoshi Nakajima
                                  ------------------------------------------

                              Name:  Kiyoshi Nakajima
                                    ----------------------------------------

                              Title:  General Manager - Electronics Division
                                     ---------------------------------------

                              Address:
                              Tokyo Opera City Building
                              Electronics Division
                              20-2, 3-chomp, Nishi-Shinjuju
                              Shinjuku-ku, Tokyo 163-14
                              Japan

                              Attn:  General Manager, Electronics Division

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