Document:

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                                                                   EXHIBIT 10.37

         DATED 1                                                 1 NOVEMBER 2002

         (1)      DIGITAL THEATER SYSTEMS, INC.

         (2)      WILLIAM PAUL SMITH

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                                SERVICE AGREEMENT
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                                    EVERSHEDS

                                 Eversheds House
                           70 Grant Bridgewater Street
                                Manchester MI 5ES
                                Tel: 0161 831 8000
                                Fax: 0161 832 5337

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                                    CONTENTS

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CLAUSE                                                                                                          PAGE
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1.       INTERPRETATION.......................................................................................     i

2.       PREVIOUS AGREEMENTS..................................................................................    ii

3.       APPOINTMENT, TERM AND NOTICE.........................................................................    ii

4.       DUTIES...............................................................................................    iv

5.       PLACE OF WORK........................................................................................    iv

6.       HOURS OF WORK........................................................................................    iv

7.       REMUNERATION.........................................................................................     v

8.       EXPENSES.............................................................................................     v

9.       PENSION AND OTHER BENEFITS...........................................................................     v

10.      HOLIDAYS.............................................................................................    vi

11.      CONFLICT OF INTERESTS................................................................................    vi

12.      SHARE DEALINGS.......................................................................................    vi

13.      RESTRICTIVE COVENANTS................................................................................   vii

14.      CONFIDENTIALITY......................................................................................     x

15.      PATENTS AND COPYRIGHT................................................................................    xi

16.      INCAPACITY...........................................................................................   xii

17.      TERMINATION..........................................................................................  xiii

18.      DEDUCTIONS...........................................................................................    xv

19.      DELIVERY OF DOCUMENTS AND PROPERTY...................................................................    xv

20.      DISCIPLINARY AND GRIEVANCE PROCEDURES................................................................    xv

21.      SALE OR RECONSTRUCTION OF THE COMPANY................................................................    xv

22.      MISCELLANEOUS........................................................................................   xvi
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THIS AGREEMENT is made on 1 November 2002

BETWEEN

(1)      DIGITAL THEATER SYSTEMS INC. having an office at 5171 Clareton Drive,
         Agoura Hills, California 91301 USA ("the Company"); and

(2)      WILLIAM PAUL SMITH of 16 Kinwood Drive, Bangor, Co. Down, Northern
         Ireland, BT19 6UQ ("the Executive").

OPERATIVE CLAUSES

1.       INTERPRETATION

1.1      In this Agreement the following expressions have the following
         meanings:

         "BOARD"                    the Board of Directors of the Company from
                                    time to time and any duly appointed
                                    committee of such board and any other person
                                    authorized by the Board as its
                                    representative for the purposes of this
                                    Agreement;

         "COMMENCEMENT DATE"        the date hereof;

         "COMPROMISE AGREEMENT"     an agreement pursuant to section 203 of the
                                    Employment Rights Act 1996 and the
                                    equivalent sections in other employment
                                    protection legislation;

         "ERA"                      the Employment Rights Act 1996;

         "GROUP COMPANY"            (a) a holding company of the Company or any
                                    subsidiary of the Company or such holding
                                    Company (for which purpose "holding company"
                                    and "subsidiary" have the meanings ascribed
                                    to them by section 736 of the Companies Act
                                    1985 as amended by the Companies Act 1989),
                                    or

                                    (b) a company at least 20% of the issued
                                    equity share capital of which is
                                    beneficially owned by the Company or by a
                                    holding Company of the Company;

         "GROUP"                    the Company and all those Group Companies
                                    wherever registered or incorporated for
                                    which the Executive performs duties and/or
                                    functions pursuant to clause 4;

         "THE LONDON STOCK          London Stock Exchange Limited or its
         EXCHANGE"                  successor body;

         "PERSON"                   includes any individual, firm, partnership,
                                    association or company and any other
                                    incorporated or unincorporated body;

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         "RECOGNISED INVESTMENT     has the meaning in section 285 of the
         EXCHANGE"                  Financial Services and Markets Act 2000
                                    (whether or not yet in force);

         "TERMINATION DATE"         the date on which the Executive's
                                    employment under this Agreement terminates
                                    and references "from the Termination Date"
                                    mean from and including the date of
                                    termination.

1.2      References in this Agreement to clauses are to clauses and sub-clauses
         of this Agreement unless otherwise specified.

1.3      Unless otherwise required words denoting the singular include the
         plural and vice versa.

1.4      References in this Agreement to statutory provisions include all
         modifications and re-enactments of them and all subordinate legislation
         made under them.

1.5      Clause headings are for convenience only and have no legal effect.

2.       PREVIOUS AGREEMENTS

         This Agreement contains the entire and only agreement and will govern
         the employment relationship between the Company and the Executive from
         the Commencement Date in substitution for all previous agreements and
         arrangements whether written, oral or implied between the Company or
         any Group Company and the Executive relating to the services of the
         Executive all of which will be deemed to have terminated by consent
         with effect from the Commencement Date. The Executive and the Company
         acknowledge that in entering into this Agreement neither has relied on
         any representation or undertaking by the other whether oral or in
         writing except as expressly incorporated in this Agreement.

3.       APPOINTMENT, TERM AND NOTICE

3.1      The Company will employ the Executive on the terms of this Agreement
         and the Executive will serve the Company as Vice President of Research
         and Development or in such other capacity as the Company may from time
         to time require.

3.2      The Executive's employment with the Company will commence on the
         Commencement Date and will continue subject as follows unless and until
         the employment is terminated by the Executive giving to the Company 3
         months' written notice or by the Company pursuant to CLAUSE 3.3 or
         CLAUSE 17.1 or by the operation of CLAUSE 3.4.

3.3      Where the Company terminates this Agreement other than pursuant to
         CLAUSES 3.5, 17.1 OR 17.2 at its absolute discretion the Company may
         terminate this Agreement and the Executive's employment with immediate
         effect at any time by giving him written notice and paying him a
         termination payment equivalent to his basic salary over a twelve month
         period as set forth in CLAUSE 7.1 and a payment equivalent to the
         benefits provided under CLAUSE 9 but excluding any payment relating to
         any bonus or incentive arrangements, any

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         entitlement whatsoever to which shall cease on the Termination Date
         (such value to be determined by the Company in its absolute discretion)
         provided that the Company may, at its absolute discretion, provide all
         or any of such benefits in lieu of a cash payment) at the rate
         applicable at the Termination Date for the period from the Termination
         Date until the first anniversary of the Termination Date less PAYE
         deductions ("The Termination Payment"). For the avoidance of doubt the
         Executive's employment will terminate on the date such notice is given
         by the Company. The Termination Payment will be paid in 12 equal
         monthly instalments on the first day of each month and instalments will
         cease when the Termination Payment is paid in full on condition that:

         3.3.1    the Executive complies to the Company's reasonable
                  satisfaction with such provisions of this Agreement which
                  expressly operate or lawfully have effect after the
                  Termination Date including without limitation the restrictions
                  in CLAUSES 13 TO 15 inclusive;

         3.3.2    the Termination Payment (or such instalments are made) is paid
                  by the Company and received by the Executive in full and final
                  settlement of all claims which he has or may have against the
                  Company or any Group Company or any director or employee of
                  the Company or any such company under or arising out of his
                  employment with the Company, the termination of his employment
                  or otherwise;

         3.3.3    the Executive does not institute or continue any proceedings
                  in the Employment Tribunal, High Court, County Court or
                  otherwise against the Company any Group Company or any of its
                  or their directors or employees for claims under or arising
                  out of his employment with the Company, the termination of his
                  employment or otherwise. If this condition is not satisfied,
                  in addition to any other rights and remedies which the Company
                  may have against the Executive any further entitlement to the
                  Termination Payment will be forfeited and no longer payable;

         3.3.4    if the Executive takes any legal action of a kind referred to
                  above, the Executive agrees to repay to the Company a sum
                  equivalent to the net Termination Payment (or instalments as
                  the case may be) received by him after PAYE deductions, the
                  said amount being recoverable by the Company as a debt if not
                  repaid (provided that the Executive will not be required to
                  repay to the Company any more than he has received pursuant to
                  CLAUSE 3.3). If the Executive issues any proceedings before an
                  Employment Tribunal which are subject to restrictions on
                  contracting out, the parties intend that the Termination
                  Payment (or instalments as the case may be) will be off set
                  against any liability of the Company to pay compensation to
                  the Executive in relation to such proceedings. If the net
                  Termination Payment exceeds any compensation awarded or any
                  maximum limit on compensation which the Employment Tribunal
                  may award in such circumstances, the excess will be repayable
                  to the Company pursuant to this CLAUSE 3.3.4;

         3.3.5    the Executive shall be available, in person and/or by
                  telephone, as a consultant to the Company to provide such
                  consultancy services as the Company may reasonably require,
                  taking into account the Executive's duties under any

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                  alternative employment. It is agreed that up to 8 hours per
                  week of such consultancy services shall be reasonable;

3.4      The Executive's continuous employment with the Company for the purposes
         of the ERA commenced on 1 March 1995. No employment with a previous
         employer is included in the Executive's continuous employment.

3.5      Notwithstanding any other provision of this Agreement, the Executive's
         employment under this Agreement shall terminate automatically on the
         Executive's 65th birthday.

4.       DUTIES

4.1      The Executive will carry out such duties and functions, exercise such
         powers and comply with such instructions in connection with the
         business of the Company and the Group Companies as the President and
         Chief Executive Officer of the Company determines from time to time.

4.2      Except when prevented by illness, accident or holiday as provided below
         or with the prior written consent of the President and Chief Executive
         Officer of the Company, the Executive will devote the whole of his
         time, attention and skill to the affairs of the Company and where
         appropriate the Group Companies and use his best endeavours to promote
         its/their interests but the Company shall be under no obligation to
         vest in or assign to the Executive any powers or duties or to provide
         any work for the Executive.

4.3      The Company may at any time or from time to time suspend the Executive
         from the performance of all or some of his duties and/or exclude the
         Executive from any premises of the Company or of any Group Company but
         his salary and other benefits will not cease to be receivable by reason
         only of such suspension or exclusion of the Executive.

5.       PLACE OF WORK

5.1      The Executive will perform his duties at the premises of the Company in
         Bangor Northern Ireland or such other place within the United Kingdom
         or the Republic or Ireland as the Company requires from time to time
         and the Executive shall undertake such travel (including overseas) as
         may be required for the proper performance of his duties.

6.       HOURS OF WORK

6.1      Without prejudice to CLAUSE 4 the Executive will work such hours as are
         necessary to meet the requirements of the business and for the proper
         performance of his duties.

6.2      The parties agree that the Executive's working time is unmeasured and
         that the Executive falls within Regulation 20 of the Working Time
         Regulations 1998 ("the Regulations") such that the maximum average
         weekly working time limit, limit on night work, limit on work involving
         special hazards and provisions regarding daily rest, weekly rest and
         rest breaks set out in the Regulations do not apply to the Executive.

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6.3      In the event that by law the Executive does not fall within regulation
         20 of the Regulations as stated in CLAUSE 6.2 above the Executive
         agrees that the limit of 48 hours working time on average per week over
         a 17 week reference period set out in regulation 4(1) of the
         Regulations ("the Limit") shall not apply to the Executive and that the
         Executive shall be able to work in excess of this Limit in accordance
         with and subject to the terms of this Agreement. Subject to CLAUSE 6.1
         above the Executive may terminate the Service agreement under CLAUSE
         6.3 giving to the Company not less than 3 months notice in writing that
         he wishes the Limit to apply to him with effect from the end of the 3
         month notice period.

7.       REMUNERATION

7.1      The Company will pay the Executive a salary at the rate of
         (pound)106,000 gross per annum with effect from the Commencement Date
         (or at such higher rate as may from time to time be notified to him by
         the Company) which salary will accrue from day to day and be payable by
         equal monthly instalments.

7.2      The Executive's salary under CLAUSE 7.1 shall be reviewed from time to
         time by the Company but the Executive shall not have any entitlement to
         an increase.

8.       EXPENSES

8.1      The Executive will be reimbursed all out of pocket expenses reasonably
         and properly incurred by him in the performance of his duties under
         this Agreement on hotel, travelling, entertainment and other similar
         items provided that the Executive complies with the Company's then
         current guidelines/regulations relating to expenses and produces to the
         Company all relevant vouchers in respect of such expenses.

9.       PENSION AND OTHER BENEFITS

9.1      During his employment the Executive will be entitled to participate in
         the Company's Group Personal Pension Plan ("the Plan"). The Company is
         not obliged to make any contribution to the Plan. There is no
         contracting out certificate (under the Pension Schemes Act 1993) in
         force relevant to the Executive's employment.

9.2      During the Executive's employment the Executive will be entitled to
         participate at the Company's expense in the Company's:

         9.2.1    life insurance scheme up to four times the Executive's salary
                  under CLAUSE 7.1 from time to time, subject to any earnings
                  cap imposed on his salary for this purpose pursuant to clause
                  590C of the Income & Corporation Taxes Act 1988;

         9.2.2    private medical expenses insurance for the benefit of the
                  Executive; and

         9.2.3    subject to CLAUSES 16.6 AND 16.7 permanent health insurance
                  scheme (the "PHI Scheme") subject to the rules of the said
                  schemes from time to time [and any replacement schemes
                  provided by the Company].

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10.      HOLIDAYS

10.1     In addition to normal public holidays the Executive will be entitled to
         26 working days' paid holiday per holiday year. All holiday to be taken
         at such time or times as may be approved in advance by the President
         and Chief Executive Officer of the Company.

10.2     For the purposes of this CLAUSE 10 "holiday year" means the period from
         1 January to 31 December in each year. Any holiday entitlement not
         taken in one holiday year entitlement may not be carried forward to the
         subsequent holiday year. If on the termination of the Executive's
         employment he has exceeded the Executive's entitlement to holidays the
         overpayment will be deducted from his final salary payment. If the
         Executive has not taken all of his holiday entitlement on the
         termination of his employment he is entitled to payment in lieu of that
         unused entitlement.

11.      CONFLICT OF INTERESTS

11.1     The Executive will disclose promptly to the Company in writing all his
         interests in any business other than that of the Company and any Group
         Company and will notify the Company immediately of any change in his
         external interests.

11.2     Except with the prior written consent of the Company the Executive will
         not during his employment under this Agreement be directly or
         indirectly engaged, concerned or interested whether as principal,
         servant or agent (on his own behalf or on behalf of or in association
         with any other Person) in any other trade, business or occupation other
         than the business of the Company or any Group Company provided that
         nothing in this Agreement (including CLAUSE 13.2) shall preclude the
         Executive from being interested for investment purposes only as a
         member, debenture holder or beneficial owner of any stock, shares or
         debentures which are listed or dealt in on a Recognised Investment
         Exchange and which do not represent more than 3 per cent of the total
         share or loan capital from time to time in issue in such company.

12.      SHARE DEALINGS

12.1     The Executive will comply (where relevant) with every rule of law,
         every regulation of the London Stock Exchange or other Recognised
         Investment Exchange and every requirement, recommendation or regulation
         of the Company or any Group Company from time to time in force
         (including any such company's dealing rules) in relation to dealings
         (whether direct or indirect and whether for himself or for or on behalf
         of or by any other Person) with shares, debentures or other securities
         of the Company or any Group Company and unpublished price-sensitive
         information affecting the shares, debentures or other securities of any
         such company.

12.2     The Executive will not (and will procure so far as he is able that his
         spouse and children do not) deal or become or cease to be interested
         (within the meaning of Part I of Schedule 13 to the Companies Act 1985)
         in any securities of the Company or any Group Company except in
         accordance with such company's dealing rules/the Model Code of the
         London Stock Exchange (from time to time in force) for transactions in
         securities by directors and

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         others and any legislation, regulations or rules for securities
         transactions applicable from time to time.

13.      RESTRICTIVE COVENANTS

13.1     In this CLAUSE 13 and in CLAUSE 14 the following expressions have the
         following meanings:

         "CUSTOMER"                 (i)      any Person for whom or on whose
                                               behalf the Company or any
                                               Relevant Group Company has in the
                                               Relevant Period provided goods
                                               and/or services in relation to
                                               the Prohibited Business and/or

                                    (ii)     any Person to whom or on whose
                                               behalf the Company or any
                                               Relevant Group Company has in the
                                               Relevant Period provided goods or
                                               services in respect of Prohibited
                                               Business

         "PROHIBITED                research, development, licensing or sale of
         BUSINESS"                  multi-channel (surround sound) digital audio
                                    encoding technology for consumer
                                    applications, or the research, development,
                                    licensing, manufacture or sale of
                                    multi-channel (surround sound) digital audio
                                    coding equipment for theatrical applications

         "RELEVANT GROUP            any Group Company for which the Executive
         COMPANY"                   has performed services to a material degree
                                    or for which he has had management
                                    responsibility at any time during the
                                    Relevant Period

         "RELEVANT PERIOD"          the period of 12 months immediately before
                                    the Termination Date

         "RESTRICTED PERIOD"        the period of 6 months immediately following
                                    the Termination Date

13.2     The Executive shall not without the prior written consent of the Board
         (which shall not be unreasonably withheld):

         13.2.1   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor, partner,
                  employee, consultant, or howsoever otherwise) carry on or be
                  engaged concerned or interested in the carrying on, within THE
                  UNITED KINGDOM or any other country in which the Executive has
                  performed his duties under this Agreement to a material degree
                  of any business in competition in respect of the Prohibited
                  Business with the Company or with any Relevant Group Company;

         13.2.2   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor,

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                  partner, employee, consultant or howsoever otherwise) canvass
                  or solicit or entice or endeavour to canvass or solicit or
                  entice the custom (in relation to goods or services provided
                  by the Company or any Relevant Group Company during the
                  Relevant Period) of any Customer with whom the Executive had
                  direct dealings (in relation to goods or services provided by
                  the Company or any Relevant Group Company during the Relevant
                  period the nature of which goods or services the Executive was
                  concerned) during the Relevant Period;

         13.2.3   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor, partner,
                  employee, consultant or howsoever otherwise) canvass or
                  solicit or entice or endeavour to canvass or solicit or entice
                  the custom (in relation to goods or services provided by the
                  Company or any Relevant Group Company during the Relevant
                  Period the nature of which goods or services the Executive was
                  concerned) of any Customer who came under the Executive's
                  management responsibility during the Relevant Period;

         13.2.4   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor, partner,
                  employee, consultant or howsoever otherwise) deal (in relation
                  to goods or services provided by the Company or any Relevant
                  Group Company during the Relevant Period) with any Customer
                  with whom the Executive had direct dealings (in relation to
                  goods or services provided by the Company or any Relevant
                  Group Company during the Relevant period with which goods or
                  services the Executive was concerned) during the Relevant
                  Period;

         13.2.5   During the Restricted Period either on his own account or
                  jointly with or as an agent for any other Person, directly or
                  indirectly, (whether as a director, proprietor, partner,
                  employee, consultant or howsoever otherwise) deal (in relation
                  to goods or services provided by the Company of any Relevant
                  Group Company during the Relevant Period the nature of which
                  goods or services the Executive was concerned) with any
                  Customer who came under the Executive's management
                  responsibility during the Relevant Period;

         13.2.6   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor, partner,
                  employee, consultant or howsoever otherwise) interfere or seek
                  to interfere or take such steps as may interfere with the
                  continuance of any business or trading relationship (or the
                  material terms of such business or trading relationship)
                  between the Company or any Relevant Group Company and any
                  business which has to the Executive's knowledge at any time in
                  the Relevant Period been engaged in active business or trading
                  relationship with the Company or any Relevant Group Company
                  and with which the Executive had direct dealings or personal
                  contact in the course of his employment during the Relevant
                  Period;

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         13.2.7   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as director, proprietor, partner,
                  employee, consultant or howsoever otherwise) entice, induce,
                  solicit or encourage

                  (i)      any director of the Company or of any Relevant Group
                           Company; or

                  (ii)     any employee who is employed by the Company or any
                           Relevant Group Company on the Termination Date in a
                           senior or key technical capacity,

                  with whom the Executive had direct dealings during the
                  Relevant Period to leave the employment of the Company or of
                  any Relevant Group Company;

         13.2.8   During the Restricted Period either on his own account or
                  jointly with or as agent for any other Person, directly or
                  indirectly, (whether as a director, proprietor, partner,
                  employee, consultant, or howsoever otherwise) employ or engage
                  in as a consultant

                  (i)      any director of the Company or of any Relevant Group
                           Company; or

                  (ii)     any employee who is employed by the Company or any
                           Relevant Group Company on the Termination Date in a
                           senior or key technical capacity.

13.3     The Executive agrees that he will not at any time after the Termination
         Date either personally or by an agent, directly or indirectly,
         represent himself as being in any way connected with or interested in
         the business of the Company or any Group Company (including but not
         limited to any Relevant Group Company).

13.4     The Executive will not at any time use in connection with any business
         any name which includes the name of the Company, or the name of any
         Relevant Group Company, or the words "Digital" and "Theater", or
         "Digital" and "System", or "Theater" and "System", or the letters
         "DTS", or any imitation of the same.

13.5     The restrictions in this CLAUSE 13 are regarded by the parties as fair
         and reasonable, and the parties hereby expressly confirm and declare
         and represent to each other that they are so regarded by the parties.
         However, it is hereby declared that each of the restrictions (including
         those restrictions grouped within one clause or sub-clause) in this
         CLAUSE 13 is intended to be separate and severable. If any restriction
         is held to be unreasonably wide but would be valid if part of the
         wording (including but not limited to the defined expressions in CLAUSE
         13.1) were deleted, such restriction will apply with so much of the
         wording deleted as may be necessary to make it valid.

13.6     For the purposes of CLAUSES 13 AND 14 the Company has entered into this
         Agreement as agent for and trustee of all Relevant Group Companies.

13.7     If the Executive is offered employment, appointment or engagement by a
         third party, before entering into any related contract the Executive
         will bring the terms of this

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         Agreement including CLAUSE 13 to the attention of a third party
         proposing directly or indirectly to employ, appoint or engage the him.

14.      CONFIDENTIALITY

14.1     The Executive acknowledges that the business of the Company and the
         Group Companies is a specialised and competitive business and that
         during the course of his employment with the Company he will have
         access to and have an intimate knowledge of the Company's and the Group
         Companies' trade secrets and confidential information (which
         confidential information shall be taken to include but not be limited
         to all information made available to the Company by third parties
         subject to any express or implied duty to keep the same confidential).
         The Executive further acknowledges that the unauthorised disclosure of
         any trade secrets or confidential information would place the Company
         and/or the Group at a serious competitive and commercial disadvantage
         and would do serious damage, financial and/or otherwise to its business
         and business development and would cause immeasurable harm.

14.2     For the purposes of this CLAUSE 14, "confidential information" shall
         (subject to CLAUSE 14.4 below) include but not be limited to the
         following (whether recorded in writing, on computer disc, or in any
         other manner):- internal management accounts; investment and pricing
         policies; individual customer and supplier account information; product
         and component design specifications; manufacturing processes;
         information relating to the research and development projects and
         strategies of the Company and the Group Companies; documents disclosing
         names and addresses of customers and suppliers of the Company and/or
         the Group; the person at such customer or supplier to contact; the
         requirements of such customer or supplier; discounts offered by the
         Company and/or the Group and computer passwords.

14.3     By reason of CLAUSES 14.1 and 14.2, the Executive agrees that without
         prejudice to any other duty implied by law or equity he shall not
         without the prior written consent of the Company (or Relevant Group
         Company) during his employment or at any time thereafter communicate or
         disclose to any Person or use for his own purposes any trade secrets or
         confidential information relating to the Company and/or its customers
         or relating to any Relevant Group Company and/or its or their customers
         in any manner whatsoever save as shall be reasonably necessary in the
         performance of his duties under this Agreement.

14.4     The restrictions contained in CLAUSES 14.1, 14.2 and 14.3 above shall
         cease to apply to any confidential information which has come into the
         public domain otherwise than as a result of any breach of this
         Agreement by the Executive. However, confidential information shall not
         be deemed to be in the public domain merely because individual elements
         thereof are separately found in the public domain.

14.5     The termination of this Agreement or of the appointment under it shall
         not operate to terminate the provisions of this clause, which, after
         such termination, shall remain in full force and effect and binding on
         the Executive.

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15.      PATENTS AND COPYRIGHT

15.1     The Executive must immediately disclose and deliver to the Company full
         details of any discovery or invention or process or formula or
         improvement or modification in any product or procedure made or
         discovered by the Executive alone or with one or more others during his
         employment in connection with or in any way affecting or relating to
         the business of the Company or any Group Company or capable of being
         used or adapted for use in or in connection with any such company
         ("Inventions") which Inventions will belong to and be the absolute
         property of the Company or such other Person as the Company may
         require.

15.2     If requested by the Company (whether during or after the termination of
         his employment) the Executive will at the expense of the Company,
         assist in the preparation and apply or join in applying for letters
         patent or other similar protection in the United Kingdom or any other
         part of the world for all Inventions and will do everything necessary
         (including executing documents) for obtaining letters patent or other
         similar protection and vesting such protection when obtained and all
         right and title to and interest in all Inventions in the Company
         absolutely and as sole beneficial owner or in such other Person as the
         Company may require.

15.3     The Executive will (both during and after the termination of his
         employment) at the Company's expense anywhere in the world and at any
         time promptly do everything (including executing documents) that may be
         required by the Company to defend or protect for the benefit of the
         Company all Inventions and the right and title of the Company to them.

15.4     The provisions of CLAUSES 15.1 to 15.3 (inclusive) are without
         prejudice to the provisions of the Patents Act 1977.

15.5     The entire copyright and all similar rights (including but not limited
         to future copyright, database right, future database right, the right
         to register trade marks or service marks and the right to register
         designs and design rights and future design rights) throughout the
         world in works of any description produced by the Executive in the
         course of or in connection with his employment ("Works") will vest in
         and belong to the Company absolutely throughout the world for the full
         periods of protection available in law including all renewals and
         extensions thereof.

15.6     The Executive will (both during and after the termination of his
         employment) at the Company's request and expense anywhere in the world
         and at any time promptly do everything (including executing documents)
         that may be required by the Board to confirm vesting of all right and
         title to the copyright and all similar rights in all Works in the
         Company and to assure, defend or protect the rights of the Company in
         all Works.

15.7     For the purposes of this CLAUSE 15, the Executive hereby irrevocably
         and unconditionally waives in favour of the Company the moral rights
         conferred on him by Chapter IV Part 1 of the Copyright Designs and
         Patents Act 1988 in respect of any Inventions or Works in which the
         copyright is vested in the Company under this CLAUSE 15, or otherwise.

<PAGE>

15.8     The Executive will do nothing (whether by omission or commission)
         during his employment or at any times thereafter to affect or imperil
         the validity of any rights in Inventions or Works obtained, applied for
         or to be applied for by the Company or its nominee. In particular
         without limitation the Executive shall not disclose the subject matter
         of any Inventions which may be patentable before the Company has had
         the opportunity to apply for any patent or patents. The Executive will
         at the direction and expense of the Company promptly render all
         assistance within his power to obtain and maintain such rights or any
         application for any extension thereof.

15.9     Nothing in this Agreement shall oblige the Company or any Group Company
         to seek patent or other protection for any Invention or to exploit any
         Invention.

15.10    The Executive hereby irrevocably authorises the Company to appoint a
         Person to execute any documents and to do everything necessary to
         effect his obligations under this CLAUSE 15 on his behalf.

16.      INCAPACITY

16.1     If the Executive is absent from his duties as a result of illness or
         injury he will notify the Company as soon as possible and complete any
         self-certification forms which are required by the Company. If the
         incapacity continues for a period of seven days or more he will be
         required to produce to the Company a medical certificate to cover the
         duration of such absence. In the event of that the Executive exceeds 10
         self-certified sick days, in any 12 month period, the Company reserves
         the right to take such action as it considers appropriate.

16.2     Subject to the rest of CLAUSE 16 and to CLAUSE 17.2 and subject to the
         prompt receipt of the appropriate and completed certificates in
         accordance with CLAUSE 16.1, if the Executive is absent from his duties
         as a result of a continuous illness or injury he will be entitled to
         payment of his basic salary at the full rate in respect of such illness
         or injury for a period (in total) of no more than 1 month in any period
         of 12 months (whether the absence is intermittent or continuous) and
         thereafter at half rate for any further period of absence up to a
         maximum of 5 months in any period of up to 12 months (whether the
         absence is intermittent or continuous). Thereafter the Executive will
         not be entitled to any further payment in the event of absence due to
         sickness or injury (other than any Statutory Sick Pay) from the Company
         until the Executive has returned to work and completed 6 months'
         continuous service with no absences from work other than agreed
         holidays.

16.3     The remuneration paid under CLAUSE 16.2 will include any Statutory Sick
         Pay payable and when this is exhausted will be reduced by the amount of
         any Incapacity Benefit or other benefits recoverable by the Executive
         (whether or not recovered) and will also include any benefits
         recoverable by the Executive (whether or not recovered) under the PHI
         Scheme.

16.4     Whether or not the Executive is absent by reason of sickness, injury or
         other incapacity the Executive will at the request of the Company agree
         to have a medical examination performed by a doctor appointed and paid
         for by the Company and the Executive hereby

<PAGE>

         authorises the Company to have unconditional access to any report or
         reports (including copies) produced as a result of any such examination
         as the Company may from time to time require and payment under CLAUSE
         16.2 will be conditional on the Executive complying with the terms of
         this CLAUSE 16.4.

16.5     CLAUSES 16.6 TO 16.7 (inclusive) shall apply only in the event that the
         Company provides the Executive with the PHI Scheme pursuant to CLAUSE
         9.3.3.

16.6     During any period where the Executive is eligible to receive benefits
         under or funded by the PHI Scheme:

         16.6.1   The Executive shall continue to be employed by the Company but
                  the obligation of the Company shall be limited to paying him
                  such sums as it shall actually have received (as opposed to
                  any sums that it may be entitled to receive) under the terms
                  of the PHI Scheme in respect of the Executive until his
                  retirement pursuant to CLAUSE 3.5 or the termination of his
                  employment pursuant to CLAUSE 17.1 or, if earlier, until the
                  Executive ceases to be eligible to receive benefits under the
                  PHI Scheme;

         16.6.2   The Executive shall continue to be bound by his obligations
                  under this Agreement and at common law;

         16.6.3   The Company may appoint a permanent or temporary successor to
                  his position.

16.7     The provisions of this CLAUSE 16 and any right or prospective right the
         Executive has or may have to receive any benefits under the PHI Scheme
         pursuant to CLAUSE 9.3.3 will not prejudice or limit in any way the
         Company's right to terminate this Agreement pursuant to its terms.

17.      TERMINATION

17.1     The Company may terminate the Executive's employment immediately by
         summary notice in writing (notwithstanding that the Company may have
         allowed any time to elapse or on a former occasion may have waived its
         rights under this CLAUSE 1) if he:

         17.1.1   commits any serious or persistent breach of any part of this
                  Agreement or his obligations under it;

         17.1.2   in the performance of his duties under this Agreement or
                  otherwise commits any act of gross misconduct or serious/gross
                  incompetence or does or omits to do anything else which is
                  materially prejudicial to the interests of the Company or any
                  Group Company;

         17.1.3   is convicted of any criminal offence (other than a motoring
                  offence which does not in the opinion of the Board affect his
                  position under this Agreement).

17.2     Without prejudice to the Company's right to give earlier notice of
         termination pursuant to CLAUSE 3.3 or CLAUSE 17.1 or the provisions of
         CLAUSE 3.5 if the Executive becomes

<PAGE>

         incapacitated from performing all or any of his duties under this
         Agreement by illness, injury or otherwise for a period exceeding (in
         total) 6 months (whether such absence is intermittent or continuous)
         (or such longer period as the Company may agree) in any period of 12
         months the Company may terminate his employment on giving the minimum
         period of notice required by the ERA.

17.3     Without prejudice to CLAUSE 4 at any time during the currency of this
         Agreement or after notice of termination has been given by the
         Executive pursuant to CLAUSE 3.2 or if the Executive seeks to or
         indicates an intention to terminate his employment, provided that the
         Executive continues to be paid and enjoys his full contractual benefits
         but excluding any payment relating to any bonus or incentive
         arrangements, any entitlement whatsoever to which shall cease on the
         date the Company exercises its rights under this CLAUSE 17.3, until his
         employment terminates, the Company may in its absolute discretion
         without breaking the terms of this Agreement or giving rise to any
         claim against the Company or any Group Company for all or part of the
         notice period:

         17.3.1   exclude the Executive from the premises of the Company or any
                  Group Company;

         17.3.2   require him to carry out specified duties (consistent with the
                  Executive's status, role and experience) for the Company or
                  any Group Company or to carry out no duties;

         17.3.3   announce to employees, suppliers, customers and others that he
                  has been given notice of termination or has resigned and/or is
                  on "garden leave" (as the case may be);

         17.3.4   require the Executive not to communicate orally or in writing
                  with suppliers, customers, employees, agents or
                  representatives of the Company or any Group Company until his
                  employment has terminated;

         For the avoidance of doubt during any period where the Company
         exercises any of its rights under CLAUSE 17.3 the Executive shall
         remain an employee of the Company and continue to be bound by the terms
         of this Agreement save to the extent that the Company shall have waived
         in advance the performance of certain of the Executive's obligations.

17.4     During any period of exclusion pursuant to CLAUSE 17.3 the Executive
         will immediately if so requested by the Company deliver up to the
         Company in accordance with CLAUSE 19 all property belonging to the
         Company or any Group Company;

17.5     During any period of exclusion pursuant to CLAUSE 17.3 the Executive
         will not be entitled to accrue holiday nor be eligible for any sick pay
         under CLAUSE 16.2 (without prejudice to any entitlement to Statutory
         Sick Pay). Any untaken holiday entitlement accrued up to the date of
         commencement of leave should be taken during the leave period. The
         Executive agrees to notify the Company of any day or days during the
         exclusion period when he will be unavailable due to holiday and will
         endeavour to agree convenient holiday dates in advance with the
         Company.

<PAGE>

18.      DEDUCTIONS

         The Executive hereby authorises the Company to deduct from his
         remuneration (which for this purpose includes salary, notice monies,
         holiday pay and sick pay) all debts owed by the Executive to the
         Company or any Group Company, including but without limitation the
         balance outstanding of any loans (and interest where appropriate)
         advanced by the Company to the Executive.

19.      DELIVERY OF DOCUMENTS AND PROPERTY

         On termination of his employment for any reason (or earlier if
         requested) the Executive will immediately deliver up to the Company all
         property (including but not limited to documents and software, credit
         cards, keys and security passes) belonging to it or any Group Company,
         in the Executive's possession or under his control. Documents and
         software include (but are not limited to) correspondence, diaries,
         address books, databases, files, reports, minutes, plans, records,
         documentation or any other medium for storing information. The
         Executive's obligations under this CLAUSE 19 include the return of all
         copies, drafts, reproductions, notes, extracts or summaries (however
         stored or made) of all documents and software and shall not be
         permitted to retain any copies thereof.

20.      DISCIPLINARY AND GRIEVANCE PROCEDURES

         The Company does not have a formal disciplinary procedure which is
         applicable to the Executive. Any disciplinary decision (including
         suspension or dismissal) relating to the Executive may be taken by the
         President and Chief Executive Officer of the Company and any of the
         Company's rights under CLAUSE 17.3 may be exercisable by the President
         and Chief Executive Officer. If the Executive is dissatisfied with any
         disciplinary decision he may appeal to the Chairman of the Company
         ("the Chairman") within 5 days of receiving such decision. The decision
         of the Chairman on appeal shall be final. If the Executive has any
         other grievance in relation to his employment he may apply in writing
         to the President and Chief Executive Officer whose decision will be
         final.

21.      SALE OR RECONSTRUCTION OF THE COMPANY

         The Executive will have no claim against the Company or any Group
         Company in respect of termination (by operation of law or otherwise) of
         the employment under this Agreement on or in connection with the sale
         of the whole of a substantial part of the business or undertaking of
         the Company or on or in connection with the sale by the Company or any
         Group Company or on or by reason of the liquidation of the Company for
         the purposes of amalgamation or reconstruction (whether or not by
         reason of insolvency) if he is offered employment on no less favourable
         terms than those contained in this Agreement (apart from the identity
         of the employer) with any person, firm, company or organisation which
         acquires such Group Company or which acquires the whole or a
         substantial part of the undertaking or business of the Company as a
         result of such sale or of such amalgamation or reconstruction.

<PAGE>

22.      MISCELLANEOUS

22.1     Notice under this Agreement by the Executive to the Company should be
         addressed to the Company and left at its registered office or sent by
         first class post to its registered office or provided by facsimile with
         confirmation sent by first class post and notices given by the Company
         to the Executive should be served personally or sent by first class
         post to his usual or last known place of residence in Northern Ireland
         or provided by facsimile with confirmation sent by first class post. In
         case of service by post the day of service will (unless sooner receipt
         is established) be 48 hours after posting, and in the case of service
         by facsimile, the day of service will be the date of posting of the
         confirmation notice.

22.2     If any provision or part of any provision of this Agreement is found by
         a court or other competent authority to be void or unenforceable such
         provision or part of a provision shall be deleted from this Agreement
         and the remaining provisions or parts of the provision shall continue
         in full force and effect.

22.3     This Agreement shall be governed by and interpreted in accordance with
         the laws of Northern Ireland.

22.4     The parties to this Agreement submit to the exclusive jurisdiction of
         the Courts of Northern Ireland in relation to any claim, dispute or
         matter arising out of or in relation to this Agreement.

22.5     Any delay by the Company in exercising any of its rights under this
         Agreement will not constitute a waiver of such rights.

22.6     There are no collective agreements which directly affect the
         Executive's terms and conditions of employment.

THIS DOCUMENT is executed as a deed and delivered by the Executive on the date
stated at the beginning of this Deed.

EXECUTED AS A DEED by DIGITAL THEATER SYSTEMS INC. acting by its duly authorised
President and Chief Executive Officer:

/s/ John Kirchner

EXECUTED AS A DEED by William Paul Smith

Signature: /s/ William Smith

in the presence of:
Witness signature: /s/ Zoran Fejzo
Name: Zoran Fejzo
Address:12206 Tweed Lane, Los Angles, CA 90049
Occupation Engineer<PAGE>
                            PURCHASE-SALES AGREEMENT

                                    BETWEEN

                     DIGITAL THEATER SYSTEMS, INCORPORATED

                                      AND

                              INFOCUS CORPORATION

This Purchase-Sales Agreement (hereinafter called "AGREEMENT") is made and
entered into by and between Digital Theater Systems, Incorporated, having an
office for the transaction of business at 5171 Clareton Drive, Agoura hills, CA
91301 (hereinafter called "DTS") and InFocus Corporation, having an office for
the transaction of business at 27700B SW Parkway Avenue, Wilsonville, Oregon
97070 U.S.A. (hereinafter called "INFOCUS").

Whereas, DTS desires to purchase projection products and accessories, components
and replacement parts therefor (hereinafter defined and collectively called
"PRODUCT") and INFOCUS desires to sell such PRODUCT to DTS; and

Whereas, the parties desire by means of this AGREEMENT to establish the terms
and conditions which shall govern INFOCUS' sale and DTS' purchase of such
PRODUCT; Now, therefore, the parties agree as follows:

SECTION 1.0  AGREEMENT FOR DEVELOPMENT, PURCHASE and TERM.
1.1  INFOCUS agrees to sell to DTS the PRODUCT as specified in ATTACHMENT-1 in
     accordance with the terms and conditions stated in this AGREEMENT and the
     ATTACHMENTS that are incorporated herein.
1.2  The term of the AGREEMENT shall commence upon the date of the last party to
     sign hereto (the "Effective Date") and shall be in effect for a period of
     two (2) years thereafter, unless it is renewed or terminated sooner under
     SECTION 17.0 TERMINATION.
1.3  The parties shall meet periodically to discuss new products, and such new
     products may be incorporated into this AGREEMENT by the mutual agreement of
     the parties.
1.4  PRODUCT introduction schedules for DTS shall be as agreed upon by the
     parties and set forth in ATTACHMENT-2 hereof.
1.5  Expenses incurred by INFOCUS for customization of the PRODUCTS shall be
     paid by DTS in accordance with ATTACHMENT-2 hereof.

SECTION 2.0  DEFINITIONS.
2.1  Field Replaceable Unit ("FRUs") are PRODUCT components that are not END
     USER- replaceable parts.
2.2  The "Parts" mean all INFOCUS replacement parts, spare parts and accessories
     to the PRODUCTs.

DTS-InFocus Agreement
October 2001
Page 1

<PAGE>
2.3  The "Specifications" for the PRODUCTs shall be defined as in ATTACHMENT-1.
     The Specifications may be amended only according to "Engineering Change"
     SECTION 22 hereof.

SECTION 3.0  AGENCY CERTIFICATION OF PRODUCTS.
3.1  Agency Certifications.
     1.   INFOCUS shall provide PRODUCT which meets the regulatory requirements
          of listed regulatory agencies as set forth in Section 3.1.2, which
          list may be amended from time to time as required by such regulatory
          agencies and DTS and as agreed to by INFOCUS.
     2.   INFOCUS shall at its expense apply for and maintain listing of the
          PRODUCTS by the UL, TUV, IRAM, GOST, VCCI, C-Tick, FCC(Class A),
          ICES-003, CB/UL, NOM, CCIB and CE regulatory agencies.

SECTION 4.0  PRICES.
4.1  Price.  The price ("PRICE") payable by DTS to INFOCUS for the PRODUCT shall
     be set forth in ATTACHMENT-3, and service parts and FRUs as provided in
     ATTACHMENT-5.

SECTION 5.0  BRANDING and MARKETING.
5.1  DTS will use reasonable efforts to provide an InFocus branding credit where
     end credits are provided, if any.  If provided, the credit shall be plainly
     visible to members of the viewing audience and will generally conform to
     cinema industry standards.  Inadvertent omission by DTS or failure by a
     third party to comply with this obligation shall not be deemed to be a
     breach of this Agreement.

SECTION 6.0  PURCHASE ORDERS and FORECASTS.
6.1  DTS shall provide a four-month rolling forecast of PRODUCT demand on a
     monthly basis.
6.2  Purchase orders must be placed at least *** days prior to the FOB date.
     DTS shall issue an initial binding purchase order to cover the first ***
     days of Product deliveries.
6.3  DTS shall, issue purchase orders in accordance with this AGREEMENT.
     Purchase orders issued to INFOCUS shall include the following:
     a)   description of PRODUCT;
     b)   quantity of PRODUCT being ordered;
     c)   unit Price; and
     d)   requested delivery dates and shipping destination if applicable.
6.4  Terms and conditions of any purchase orders issued pursuant to this
     AGREEMENT are superseded by and subject to the terms and conditions of the
     AGREEMENT, unless specifically agreed to in advance by both INFOCUS and DTS
     in writing.
6.5  All orders must be received by INFOCUS at least thirty (30) days prior to
     the expiration of this AGREEMENT, and specify delivery dates no later than
     sixty (60) days after the expiration of this AGREEMENT.

***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

DTS-InFocus Agreement
October 2001
Page 2
<PAGE>
SECTION 7.0  RESCHEDULING AND CANCELLATION.
7.1  Rescheduling.
     DTS may at any time upon thirty (30) days or more prior written notice to
     INFOCUS, reschedule the delivery of any ordered PRODUCT for up to sixty
     (60) days later than the original scheduled delivery date.  This
     rescheduling shall be at no charge to DTS.  Rescheduling within 30 days of
     scheduled delivery date is not allowed.

     It the event that DTS request rescheduling to pull in delivery dates,
     INFOCUS shall use commercially reasonable efforts to accommodate such
     requests.

7.2  Cancellation.  DTS liability for cancellation shall be as follows: For
     ordered PRODUCT, scheduled for delivery in the next 30 days, DTS agrees to
     purchase 100% of such ordered quantity.

     In addition to the foregoing, DTS shall be liable for 100% of any DTS
     custom components, so long as INFOCUS had reasonably procured such custom
     components/assemblies based on leadtime requirements as a result of DTS
     orders and forecasts.  A listing of DTS custom components and leadtimes is
     provided in ATTACHMENT-4 hereto.  DTS liability for such custom parts shall
     be INFOCUS cost plus a reasonable handling charge.  INFOCUS shall use best
     commercially reasonable efforts to mitigate such cancellation costs by,
     where possible immediately terminating the production or orders for such
     custom components, or by using such custom components with other customers
     (where possible) or returning such custom components to vendors. However,
     for clarification nothing in the foregoing shall eliminate or reduce DTS'
     minimum purchase obligations of this Agreement.

SECTION 8.0  DELIVERY.
8.1  Shipment Terms.
     a.   For all shipment destinations, PRODUCT shipment shall be F.O.B. at
          INFOCUS' point of shipment in Wilsonville, Oregon, U.S.A. Delivery
          shall occur at INFOCUS' dock upon delivery to DTS' carrier in
          Wilsonville, Oregon, U.S.A.
     b.   The parties understand that shipment terms shall be renegotiated in
          good faith in the event that INFOCUS changes its manufacturing and/or
          shipment locations.
8.2  DTS' carrier for international flight/vessel shall be arranged by DTS at
     DTS' expense unless otherwise agreed by both parties in writing.
8.3  DTS shall make all arrangements and pay all transportation charges and any
     desired attendant insurance.
8.4  Delivery.  INFOCUS shall use commercially reasonable efforts to meet all
     requested PRODUCT shipment dates.
8.5  Acceptance.  PRODUCT units shall meet all of DTS' incoming inspection tests
     as mutually agreed by the parties and shall comply with the specifications
     for the PRODUCT as specified in ATTACHMENT-1, which testing may be
     performed by DTS at DTS' option.  The incoming inspection, if any, shall
     occur within ten (10) business days after receipt by DTS of the PRODUCT,
     and DTS shall be declined to have accepted the PRODUCT unless written
     notice of rejection for material failure to meet incoming

DTS-InFocus Agreement
October 2001
Page 3

<PAGE>
inspection is provided to INFOCUS within such 10 day period.  DTS shall have the
right to reject all product units in a lot if 10% or more of the PRODUCT units
in a lot materially fail to pass the inspection tests. DTS agrees to contact
INFOCUS to discuss the problem(s) with the lot of PRODUCTS prior to rejecting
the entire lot.  However, the decision to reject an entire lot shall be in DTS
sole discretion. Such rejected PRODUCT shall be returned to INFOCUS at INFOCUS'
expense for warranty repair or replacement, including all freight costs by
INFOCUS, or INFOCUS shall refund the purchase price of such rejected PRODUCT if
INFOCUS can not repair or replace such PRODUCT within  ten (10) business days of
INFOCUS' receipt of such rejected PRODUCT.  In the event that INFOCUS and DTS
disagree about test procedures or test results that formed the basis of a
rejection by DTS, at the request of one party, the parties shall meet within one
(1) week of notice of the request to meet for good faith discussions on
resolution of the disagreement.

SECTION 9.0   TITLE AND RISK OF LOSS.
9.1  Title and risk of loss to PRODUCT shall pass to DTS upon delivery to DTS'
     designated carrier in Wilsonville.

SECTION 10.0  INVOICING, PAYMENT TERMS.
10.1 INFOCUS shall invoice DTS for all units of PRODUCT upon delivery to DTS.
     Payment shall be due and payable in US dollars. Payment terms shall be net
     *** days from receipt of above invoice at DTS.

SECTION 11.0  LIMITED WARRANTY and SERVICE.
11.1 INFOCUS warrants that Product delivered to DTS hereunder shall conform to
     the Specifications as provided in ATTACHMENT-1 and shall be free from
     defects in material and workmanship for a period of fifteen (15) months
     from the date delivery to DTS.  Notwithstanding the foregoing, the warranty
     on Product lamps shall be five (5) months from delivery to DTS or 500 hours
     of use, whichever comes first.  Warranty on parts or repairs made by
     INFOCUS shall be ninety (90) days from the date of repair or the remaining
     life of the Product warranty, whichever is longer.
11.2 Details of the return and warranty service process shall be provided in
     SERVICE ATTACHMENT-5 hereof.
11.3 The warranty hereunder does not include damage or malfunction resulting
     from abuse, misuse, accident, disaster, negligence, unauthorized
     alterations, installation of non INFOCUS attachments or accessories,
     installation or improper connection to equipment, or failure to provide a
     suitable installation environment as specified in ATTACHMENT-1.
11.4 The warranty as described in this section is granted to DTS and is
     transferable by DTS to an end user or any third party.  However, DTS shall
     manage all PRODUCT warranty claims an behalf of the end user or other third
     party.
11.5 EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, THE FOREGOING ARE IN LIEU
     OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
     THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
     PURPOSE, WHICH ARE ALL EXPRESSLY DISCLAIMED.

***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

DTS-InFocus Agreement
October 2001
Page 4
<PAGE>
Section 12.0  PRODUCT END-OF-LIFE and ADDITIONAL PRODUCTS.
12.1 For the Bogart Product, nine months prior to the expiration of this
     Agreement, both parties shall enter into good faith negotiations to
     determine transition and end-of-life ("EOL") plans for the Bogart Product.
     If within six months prior to the expiration of this Agreement, the parties
     have not agreed on a transition/EOL plan, then DTS shall be free to seek
     another supplier, however, the minimum purchase obligations of this
     Agreement shall continue in force unless INFOCUS is unable to continue to
     provide DTS the Bogart Product or other PRODUCT of comparable performance,
     as set forth in Attachment 1. INFOCUS shall notify DTS of PRODUCT
     end-of-life ("EOL") as soon as INFOCUS has determined the PRODUCTS EOL and
     in no event shall this be less than four (4) months prior to the PRODUCTS
     planned EOL date. DTS shall have the right to issue a last-time
     non-cancelable purchase order no later than sixty (60) days before the
     PRODUCT EOL date, for final delivery within ninety (90) days after the EOL
     date. DTS understands and agrees that such last-time purchase must be
     forecasted within thirty (30) days of INFOCUS' notification to DTS of EOL,
     and that all components will become "custom" to DTS after the EOL date
     (however, notwithstanding the foregoing INFOCUS agrees to stock engines,
     ECAs and power supplies for three (3) years after Bogart Product EOL).
     Purchase orders for end-of-life quantities shall be governed by the terms
     of this AGREEMENT. DTS shall purchase from INFOCUS all DTS custom
     components which are not incorporated in PRODUCT to be sold to DTS under
     DTS purchase order, so long as INFOCUS had reasonably procured such custom
     components based on lead time requirements provided in ATTACHMENT-4 in
     order to meet DTS purchase orders and forecasts. The final buying price of
     such custom components shall be based upon component Part cost to INFOCUS
     plus a reasonable handling charge, not to exceed   ***     of the wholesale
     price of such component Part, to be negotiated between INFOCUS and DTS.
12.2 INFOCUS agrees to provide DTS with end-of-life support for two (2) years on
     PRODUCT documentation; and, for three (3) years an service and other
     replacement Parts for the PRODUCT, (including without limitation electrical
     Parts), from the last date of PRODUCT production. DTS shall also have an
     opportunity for a last-time buy at the end of the foregoing support
     periods. Notwithstanding the foregoing, with respect to DTS custom
     components required for service, DTS shall make a last-time buy of such DTS
     custom components at PRODUCT EOL. INFOCUS shall work in good faith with DTS
     at time of EOL to mitigate impact of custom inventory to DTS.
12.3 In planning for future product, INFOCUS will in good faith discuss and
     reasonably consider incorporating DTS' requirements, as set forth in this
     AGREEMENT, in such future products in order to provide a replacement for
     the PRODUCT at the PRODUCT'S EOL.

Section 13.0  PRODUCT USER and SERVICE GUIDES.
13.1 INFOCUS shall provide DTS English-language electronic versions of Service
     guides, and User guides for the PRODUCT as available substantially at or
     before the initial

***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

DTS-InFocus Agreement
October 2001
Page 5

<PAGE>
     production/delivery of INFOCUS' version of the PRODUCT.  In addition,
     INFOCUS shall also provide DTS with generic versions of the guides in other
     major languages as are routinely prepared by INFOCUS for other INFOCUS
     product.  DTS shall be responsible for customizing and publishing Service
     and additional User guides for the PRODUCT.  INFOCUS grants to DTS a
     royalty-free right to publish Service guides based on the description of
     the PRODUCT from INFOCUS for internal use and to distribute them to
     authorized service providers under confidentiality terms where appropriate.
13.2 INFOCUS shall provide DTS with electronic copies of User guides for DTS'
     modification.  INFOCUS grants to DTS a royalty-free right and license to
     publish and provide the User guides to PRODUCT users and to authorized
     service providers.
13.3 Copyrights held by INFOCUS on the Service and User guides shall not be
     transferred to DTS.
13.4 INFOCUS grants to DTS the royalty-free rights to use the INFOCUS trademark
     and/or logo for the purpose of branding and marketing of the PRODUCT only
     as set forth in this AGREEMENT.  DTS shall be permitted to sublicense these
     rights to third parties to meet the requirements of SECTION 5.0 as set
     forth above.

Section 14.0  CONFIDENTIAL INFORMATION, NO LICENSE.
14.1 All information conveyed between the parties shall be governed by the
     Mutual Non-Disclosure Agreement signed by the parties and dated April 30th,
     1999 ("NDA").
14.2 Notwithstanding my termination date referenced in the NDA, the NDA shall
     continue in full force and effect until the termination or expiration of
     this Agreement.  However, such extension or continuation shall not effect
     any information which is not considered Confidential Information as set
     forth in Section 1 of the NDA.
14.3 Except with the express written permission of the other party, each party
     shall not disclose the terms and conditions of this AGREEMENT during the
     terms of the AGREEMENT and for a period of three (3) years thereafter to
     any third party except as required by law or by governmental regulations,
     requirements or orders, or as may be necessary to establish or assert its
     rights hereunder.
14.4 Except for the specific purposes set out in this AGREEMENT, exchange of
     information under this AGREEMENT, whether Confidential Information or not,
     does not convey a license, implied or otherwise, under any patent,
     copyright, trademark or trade secret in which either party has an interest.
14.5 Each party may publicly announce and promote the fact that it has entered
     into this AGREEMENT with the other.  Neither party shall at any time
     publicly state or imply that the relationships between the parties are in
     any way different from those specifically set forth herein.  If requested
     by one party, the other party shall promptly supply the other with copies
     of all public statements and of all publicity and promotional material
     relating to this AGREEMENT  and to the PRODUCT.  However, irrespective of
     the foregoing, with respect to Press Releases that reference this
     relationship or AGREEMENT, each party shall seek and obtain prior approval
     from the other party before publication of such Press Release.

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Section 15.0  PATENTS AND COPYRIGHTS.
15.1 INFOCUS will, at its expense, defend, indemnify and hold harmless DTS from
     and against any claim that PRODUCT supplied hereunder infringes any United
     States patent, copyright, trade secret, maskwork right or any other
     intellectual property right of a third party, and shall assume the defense
     of such claim, lawsuit or other action by reputable counsel retained at
     INFOCUS' own expense.  INFOCUS will pay resulting costs, damages,
     liabilities and attorneys fees arising out of such claim, lawsuit or other
     action, and/or shall pay all costs and expenses of any settlement with such
     third party.  Notwithstanding the above, DTS may participate in any such
     claim, lawsuit or other action at its own expense and by its own counsel.
15.2 To qualify for such defense and payment, DTS must:
     a)   give INFOCUS prompt written notice of any such claim; and
     b)   allow INFOCUS to control the defense, and reasonably cooperate with
          INFOCUS in the defense and all related settlement negotiations, with
          INFOCUS being responsible for all associated out-of-pocket costs.
15.3 INFOCUS' obligation under this section is conditioned on DTS' agreement
     that if PRODUCT in the inventory of DTS, or the operation thereof while in
     DTS' inventory, become, or in INFOCUS' opinion are likely to become, the
     subject of such a claim, DTS will permit INFOCUS, at INFOCUS' option and
     expense, either to procure the right for DTS to continue marketing and
     using PRODUCT or to replace with an equivalent PRODUCT with no loss in
     functionality or delay over 30 days to DTS schedule or modify the PRODUCT
     so that it becomes non-infringing with no loss in functionality or delay
     over 30 days to DTS schedule; and, if neither of the foregoing alternatives
     are available on terms which are commercially reasonable for INFOCUS, upon
     written request by DTS, DTS will return such PRODUCT to INFOCUS and INFOCUS
     shall refund to DTS the unit Price paid to INFOCUS by DTS for each returned
     PRODUCT and all direct costs incurred by DTS with respect to such PRODUCTS,
     capped by NRE expenses provided in Attachment 2 hereof actually paid by
     DTS.  Furthermore, upon DTS written request for refund, the exclusivity
     provision of Section 32 shall cease to be in effect.
15.4 INFOCUS shall have no obligation with respect to any claim based upon DTS'
     modification of PRODUCT or the combination, operation or use of PRODUCT
     with equipment, data or programs not furnished by INFOCUS , or with respect
     to any claim based upon attributes of cosmetic, technical or software
     change of PRODUCT made by INFOCUS in accordance with DTS' specifications,
     provided that such claim would not have occurred but for such modification,
     combination/operation/use, or cosmetic/technical/software change by DTS. In
     the event that DTS is responsible for such a claim, then the requirements
     and obligations of SECTIONS 15.1 and 15.2 shall reciprocally apply to the
     parties and DTS shall indemnify and defend INFOCUS for such claim provided
     that INFOCUS meets its reciprocal obligations as set forth in these
     sections. Furthermore, the above obligations are contingent on both parties
     representation that to the best of their knowledge, no infringement claims
     against the Product are ongoing, threatened or likely as of the effective
     date of this Agreement
15.5 Sections 15.1 - 15.4 states INFOCUS and DTS' entire obligations to the
     other regarding intellectual property infringement claims under this
     Agreement.

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Section 16.0  EXPORT OF PRODUCT.
16.1 U.S. Export Administration Regulations.
     If any items to be supplied under this AGREEMENT should become subject to
     U.S. Export Administration Regulations, then INFOCUS shall at the time
     provide to DTS sufficient information to enable DTS to assign the proper
     Export Commodity Control Number to the item, or else provide to DTS the
     Export Commodity Control Number.  INFOCUS represents and warrants that to
     the best of its knowledge that none of the items supplied under this
     AGREEMENT are subject to U.S. Export Administration Regulations.

16.2 Restrictions on Technology Export.
     DTS hereby agrees that it will not knowingly export, directly or
     indirectly, any United States source technical data acquired from INFOCUS,
     or any direct product of that technical data, to any country for which the
     United States Government or any agency of that government at the time of
     export requires an export license or other governmental approval without
     first obtaining that license or approval, when required by applicable
     United States law.  INFOCUS represents and warrants that to the best of its
     knowledge that any/all information provided to DTS hereunder is not subject
     to United States or other countries export control restrictions.

16.3    Restrictions on PRODUCT Export.
     DTS agrees that it will not export, directly or indirectly, any PRODUCTS or
     Parts obtained under this AGREEMENT to any country for which the U.S.
     Government or any agency thereof at the time of export requires an export
     license or other governmental approval, without first obtaining the written
     consent to do so.  INFOCUS represents and warrants that to the best of its
     knowledge that any/all PRODUCT provided to DTS hereunder is not subject to
     United States or other countries export control restrictions.

16.4    Foreign Corrupt Practices Act.
     The parties shall at all times comply with all applicable laws of the
     United States concerning foreign corrupt practices or which in any manner
     prohibits the giving of anything of value to any official, agents or
     employee of any government, governmental agency, political party to any
     officer, employee, or agent thereof.

Section 17.0  TERMINATION.
17.1 This AGREEMENT shall continue in effect for two (2) years from the
     Effective Date.
17.2 Either party may terminate the AGREEMENT without prior written notice to
     the other party, in the event that the other party shall:
     a)   become insolvent or have an uncontested petition in bankruptcy,
          reorganization or similar action filed by or against it;
     b)   have all or a substantial portion of its capital stock or assets
          expropriated or attached by any government entity;
     c)   be dissolved or liquidated or have an uncontested petition for
          dissolution or liquidation filed with respect to it; or
     d)   be subject to promptly attachment, court injunction, or court order
          materially affecting its operations under the AGREEMENT.

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17.3 DTS may terminate the AGREEMENT in part or in whole, with or without cause,
     with a one-hundred eighty (180) day prior written notice, In the event of
     such termination, INFOCUS shall accept DTS purchase orders in normal course
     up to the effective date of termination, and neither party shall be liable
     to the other party on account of the termination unless otherwise provided
     under this AGREEMENT.  Notwithstanding the above, DTS shall be bound by any
     minimum purchase requirements provided herein or in other written
     documentation agreed to by the parties.
17.4 The following terms apply in the event of a termination for default:
     a)   Provisions in this Paragraph 17.4 shall not apply to failure to
          perform caused by an excusable delay, as defined in SECTION 23.0 FORCE
          MAJEURE.
     b)   Either party's fail to perform any of its material obligations under
          the AGREEMENT, including INFOCUS' obligations to provide PRODUCT
          according to the specifications shall be a default.  If either party
          defaults, the other party may termination the AGREEMENT by giving the
          defaulting party written notice of such termination after the
          expiration of thirty (30) days from the defaulting party's receipt of
          notice from the other party of the occurrence of any default, if such
          event of default is then still uncured.  An uncured default by INFOCUS
          shall relieve DTS of any minimum purchase requirements herein.
     c)   If INFOCUS terminates the AGREEMENT for default by DTS, INFOCUS shall
          complete any PRODUCT on order and shall deliver such PRODUCT to DTS in
          accordance with Section 8 and DTS shall pay INFOCUS all payments due
          for PRODUCT and components in inventory or on order in accordance with
          Section 10.  INFOCUS will make all reasonable efforts to reduce DTS'
          liability to INFOCUS by canceling commitments for materials; reselling
          or diverting materials received; and stopping work-in-process,
          including and without limitation, performing the mitigation efforts
          set forth in Section 7.2 (Cancellation) of this Agreement.

Section 18.0  SERVICE, SPARE PARTS and FRU PRICING.
18.1 Service provisions between the parties, and Spare Parts and FRU pricing
     shall be as provided in Service ATTACHMENT-5 incorporated herein.
18.2 INFOCUS shall supply spare/FRU pricing for each new PRODUCT model as soon
     as available.
18.3 Additional terms and conditions relating to service shall be the subject of
     a separate Service Agreement to be negotiated and agreed in good faith by
     the parties.

Section 19.0  PRODUCT LIABILITY.
19.1 INFOCUS shall assume any and all liability and responsibility for the lost,
     or damage to property or the injury or death of a person arising out of or
     resulting from the PRODUCT manufactured by or for INFOCUS and shall defend,
     indemnify and hold harmless DTS, its shareholder, directors, officers,
     employees, agents, assigns affiliates and any customer of the PRODUCT from
     any claim to have arisen out of or connected with such PRODUCT as a result
     of any INFOCUS negligence or willful act.  InFocus shall assume the defense
     of such claim, action or suit by reputable counsel, retained at INFOCUS'
     expense and shall pay all damages assessed or settlement reached as a
     result of such action, suit or threat thereof.  DTS shall tender all
     reasonable assistance to INFOCUS in defense of the same, Notwithstanding
     the foregoing,

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DTS may participate in any such claim at its own expense and by its own counsel.
Furthermore, for clarification, DTS shall be liable for its actions, including
installment and mounting, performed within DTS' control.

19.2 INFOCUS shall, during the term of this AGREEMENT, insure and keep insured
     INFOCUS and shall name DTS as an additional insured with an insurance
     company acceptable to DTS, against such loss or damage to property or the
     injury or death of a person as set forth in the above SECTION 19.1, and
     shall submit to DTS a certificate of insurance of such coverage.

Section 20.0  LIMITATION OF REMEDIES.
20.1 Unless otherwise expressly provided under this Agreement, INFOCUS' entire
     liability and DTS' exclusive remedy are set forth in this SECTION.
     a)   In all situations involving performance or non-performance of PRODUCT
          furnished under the AGREEMENT, DTS' sole remedy during the warranty
          period is supply of the spare parts or replacement of the PRODUCT by
          INFOCUS, or at INFOCUS' discretion, a refund of the price paid for the
          PRODUCT provided that INFOCUS is unable to ship within fifteen (15)
          business days of receipt, replacement PRODUCT conforming to
          Specifications as warranted.
     b)   Epidemic Failure.  In the event that more than more than *** of
          PRODUCT fail with less than *** hours of lamp life (as shown by
          reasonable evidence using internal lamp hours counter), then DTS shall
          promptly notify INFOCUS and INFOCUS shall take expedited corrective
          action.  If InFocus does not repair or replace Product to lower such
          failure rate below *** within *** days of DTS' notice, then DTS shall
          be free from any minimum purchase requirements provided herein.
     c)   IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT,
          INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES, OR FOR CONSEQUENTIAL DAMAGES
          OF ANY KIND INCLUDING WITHOUT LIMITATION LOST PROFITS, LOST REVENUES,
          LOST SAVINGS OR LOST BUSINESS, REGARDLESS OF THE FORM OF ACTION, EVEN
          IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
20.2 No actions, regardless of form, arising out of the AGREEMENT, may be
     brought by either party more than two (2) years after the cause of action
     has arisen.

Section 21.0  TRADEMARKS.
21.1 The parties acknowledge and agree that company trademarks and trade names
     are paramount to the identification of products being sold in the
     marketplace.  Each party agrees that it shall have no right, claim or
     interest in any trademark, brand or trade name, which is owned by the other
     party to this AGREEMENT.
21.2 A DTS trademark shall be applied to each PRODUCT unit in a mutually
     agreeable location, size and manner.  DTS warrants and represents that it
     is the sole and exclusive owner and/or licensee of its DTS brand as applied
     to the PRODUCT and that the use of such brand does not constitute any known
     infringement of any rights of any third party.

***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

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<PAGE>
21.3 DTS agrees to indemnify and hold harmless INFOCUS from and against any
     claim of trademark infringement by reason of the use of DTS' brands on or
     in connection with the PRODUCT hereunder, and DTS shall assume the defense
     of any action or suit against INFOCUS relating thereto, by reputable
     counsel retained at DTS' expense, and shall pay any damages assessed
     against or otherwise payable by INFOCUS as a result of any such action or
     suit, or threats thereof.  INFOCUS shall give DTS the cooperation it
     reasonably requires, in connection with any such action or suit.
     Notwithstanding the foregoing, INFOCUS may participate in any such action
     or suit at its own expense and counsel.

Section 22.0  ENGINEERING CHANGES.
22.1 "Safety Changes" are those Engineering Changes defined by INFOCUS as
     changes to protect its customers, INFOCUS reserves the right, prior to
     delivery to DTS, to make any Safety Changes deemed necessary by INFOCUS.
     However, with respect to PRODUCT in DTS' inventory and installed with DTS'
     end users, DTS agrees to install such Safety Changes in a manner specified
     by INFOCUS and within reasonable period specified by INFOCUS.  INFOCUS
     shall provide DTS without charge all hardware, software or other components
     that constitute the Safety Change and will reimburse DTS for the reasonable
     direct costs associated with the installation of such Safety Changes by DTS
     or its representative.  INFOCUS and DTS shall meet in the event of such
     Safety change to discuss and minimize expense and disruption associated
     with such Safety Change.
22.2 Specifications may be changed only in accordance with the requirements set
     forth in Engineering Change Procedure set forth herein. After the effective
     change date, all PRODUCT and Parts shipped shall conform to the changed
     specification. However, INFOCUS shall continue, until INFOCUS' obligation
     shall expire, to furnish Parts under all previous specifications unless the
     change is interchangeable with PRODUCTS or Parts as previously
     manufactured. In the event of a Part change in which interchangeability is
     affected, such Part will have a new part number assigned and PRODUCTS and
     Parts manufactured thereafter will be documented so as to reflect that
     condition.
22.3 Change Notification and Procedure.  INFOCUS shall notify DTS as soon as is
     reasonably possible regarding any change which obsoletes field inventory or
     creates a need to stock new items, provided such changed PRODUCT adheres to
     Specification.  Changes to the PRODUCT's configuration shall be classified
     as described in INFOCUS' Change Control Document.  INFOCUS shall use best
     commercially reasonable efforts to mitigate the impact of any change on DTS
     and the PRODUCT.  This shall include, but not be limited to: (i) reasonable
     consideration as to the cost and performance impact on the PRODUCT of the
     change versus the necessity for the change; and (ii) mitigating or
     eliminating the cost to DTS associated with any change including, but not
     limited to, immediately terminating the production or orders for any
     obsolete custom components or long lead-time item required to fulfill DTS
     purchase order or forecast or by using such obsoleted custom components or
     long lead-time items with other customers (where possible) or returning
     such obsoleted custom components and long lead-time items to vendors for
     credit.  In the event that DTS does not agree with an ECO, the parties
     shall meet to discuss the issue in good faith and attempt to find a
     mutually acceptable resolution to the issue.

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<PAGE>
22.4 ECO Control.  While INFOCUS may notify DTS according to the requirements of
     this Section 22 and discuss such ECO's as may be requested by DTS,
     authority for ECO's shall remain in INFOCUS' sole control.

Section 23.0  FORCE MAJEURE and ALLOCATION.
23.1 Neither party shall be in default or liable to the other for failure to
     perform any provision of the AGREEMENT if such failure is caused directly
     or indirectly by events beyond that party's control, such as acts of
     nature, fire, riots, wars, insurrections, acts of governments, embargoes or
     unusually severe weather.  Such an event is an "Excusable Delay."  The
     party affected by an Excusable Delay shall take all reasonable steps to
     perform despite the delay including the timely payment for delivered
     PRODUCT in any possible ways. However, in the event that INFOCUS is unable
     to deliver conforming PRODUCT to DTS for a ninety (90) day period, DTS may
     terminate this Agreement, in writing, without further obligation.
     Fulfillment of payment obligations may be reasonably delayed according to
     the foregoing, but not extinguished.  In the event that PRODUCT ownership
     and/or risk of loss is disputed in regard to payment obligations, the
     parties shall meet in good faith to resolve the issue.
23.2    Allocation.
     If INFOCUS is unable to fulfill DTS' orders for PRODUCT or Parts due to an
     event of force majeure or any other cause beyond INFOCUS' control, such as
     lack or shortage of components or raw materials, INFOCUS may reasonably
     allocate its available supply of PRODUCT or Parts (and products reasonably
     similar to PRODUCT or Parts) without such allocation constituting a default
     event; provided, however, that in my such allocation, INFOCUS and DTS shall
     discuss the allocation situation and work together in good faith to provide
     DTS with an equitable share of the PRODUCT.

Section 24.0  NOTICES.
24.1 All notices, requests, consents and other communications under the
     AGREEMENT shall be in writing, which may be sent via e-mail, and sent to
     the following:

     IN FOCUS:                           DTS.
     InFocus Corporation                 Digital Theater Systems, Incorporated
     Attn: Legal Department              Attn: General Counsel
     27700B SW Parkway Avenue            5171 Clareton Drive
     Wilsonville, OR 97070 U.S.A.        Agoura Hills, CA 91301
     Fax: 503-685-8838                   Fax: (819) 706-8355

Section 25.0 ARBITRATION and LAW.
25.1 All disputes, controversies, claims or differences, including related tort
     claims which may arise between the parties, out of, in relation to, or in
     connection with this AGREEMENT, or for the breach thereof, shall be
     referred to and settled by arbitration without being submitted to a court
     in the United States.  The arbitration shall take place at the American
     Arbitration Association in Portland, Oregon in accordance with the rules of
     procedure of the said American Arbitration Association.  All provisions of
     this AGREEMENT shall be construed and governed under Oregon law.  The award
     to be rendered shall be final and

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<PAGE>
     binding upon both parties hereto, and judgment upon the award rendered may
     be entered in any court having jurisdiction thereof.  In the event of
     arbitration the panel shall consist of three arbitrators, one of whom shall
     be chosen by DTS, one of whom shall be chosen by INFOCUS, and one of whom
     shall be chosen by the two arbitrators chosen by DTS and INFOCUS.

Section 26.0  SEVERABILITY.
26.1 If any section or subsection of the AGREEMENT is found by competent
     authority to be invalid, illegal or unenforceable in any respect for any
     reason, the validity, legality and enforceability of any such section or
     subsection in every other respect and the remainder of the AGREEMENT shall
     continue in effect.

Section 27.0  AMENDMENTS TO THE AGREEMENT.
27.1 The AGREEMENT may be modified only by a written amendment duly signed by
     persons authorized to sign AGREEMENTS on behalf of DTS and INFOCUS and
     shall not be supplemented or modified by any course of dealing or trade
     usage.  Variance from or additions to the terms and conditions of the
     AGREEMENT in any purchase order, acknowledgement or other written
     notification from either party will be of no effect.

Section 28.0  SURVIVAL OF TERMS.
28.1 The rights and obligations of SECTIONS 11.0 WARRANTY AND SERVICE, 12.2 END
     OF LIFE SUPPORT, 13.0 PRODUCT USER AND SERVICE GUIDES, 14.0 CONFIDENTIAL
     INFORMATION, 15.0 PATENTS AND COPYRIGHTS, 19.0 PRODUCT LIABILITY, ___20.0
     LIMITATION OF REMEDIES, 21.0 TRADEMARKS, AND 25.0 ARBITRATION and LAW,
     SECTION 28.0 SURVIVAL OF TERMS, SECTION 30.1 EFFECT OF TITLE AND HEADINGS,
     and SECTION 31.0 COMPLETE AGREEMENT shall survive and continue after
     cancellation, termination or expiration of the AGREEMENT and shall bind the
     parties and their legal representatives, successors, heirs, and assigns.
28.2 In addition, all obligations and duties that by their nature extend beyond
     the expiration or termination of the AGREEMENT shall survive and remain in
     effect beyond any expiration or termination.

Section 29.0  WAIVER.
29.1 The waiver by either party of any instance of the other party's
     noncompliance with any obligation or responsibility herein shall not be
     deemed a waiver of subsequent instances and either party's remedies for
     such noncompliance as described herein.

Section 30.0  EFFECT OF TITLE AND HEADINGS.
30.1 The title of the AGREEMENT and the headings of its sections are included
     for convenience, and shall not affect its meaning.

Section 31.0  COMPLETE AGREEMENT.
31.1 THE AGREEMENT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT
     BETWEEN THE PARTIES, WHICH SUPERSEDES ALL PROPOSALS OR ALL PRIOR
     AGREEMENTS, ORAL OR WRITTEN, AND ALL

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<PAGE>
     OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER
     HEREOF.

Section 32.0  EXCLUSIVITY.
32.1 Subject to Section 12.1, or as otherwise set forth in this Agreement,
     during the term of this Agreement, each party shall not work with any third
     party to develop, sell, or buy a projector system for cinema subtitling
     captioning system that is similar to the Bogart PRODUCT.

Section 33.0  ASSIGNMENT.
33.1 Neither this Agreement nor any rights granted hereunder may be sold,
     leased, assigned, or otherwise transferred, in whole or in part, by either
     party, and any such attempted assignment shall be void and of no effect
     without the advance written consent of the other party, such consent not to
     be unreasonably withheld or delayed.  However, either party may transfer
     its rights, duties and privileges under this AGREEMENT in connection with a
     merger or consolidation with another company or the sale of its entire
     business to another person or firm, provided that such person or firm,
     shall first have agreed with the other party to perform the transferring
     party's obligations and duties hereunder.
Agreed to:

Digital Theater Systems, Inc. (DTS):           InFocus Corporation (INFOCUS):

By:     /s/ Jon Kirchner                       By: /s/ Scott Hix
    -------------------------------            ---------------------------

-----------------------------------

Name: Jon Kirchner                             Name:  SCOTT HIX

Title: President & Chief Executive             Title: VP & GM, Business
       Officer                                        Development

Date: /s/ March 13, 2002                       Date Feb.  15, 2002
      -----------------------------                 ----------------------

-----------------------------------

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<PAGE>
ATTACHMENT-1.   PRODUCT Specifications and Incoming Test Criteria

InFocus(R)          RESEARCH & DEVELOPMENT

                      BOGART
                    (DTS BELUGA)

                    Customer

                    Specification

<Table>
<Caption>
                               Revision History
Revision PCR # Date      Initiator/Doc Control    Pages     Description
<S>      <C>   <C>       <C>                      <C>       <C>
00                              Steve Stark                 Initial Release
01       5/11/01                Steve Stark       All
02       8/27/01                Steve Stark       All       Major Update
03       9/21/01                Kent Nielson      All       Major Update
04       9/26/01                Kent Nielson     4,6,10     Minor modifications
05       2/14/02                Kent Nielson     4,5,7      Updated long throw lens information
</Table>

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<PAGE>
Organization and Scope of Specification

     This specification applies to the Bogart product as installed and used in
the following configuration:

o    Base projector with display resolution of 1024 x 768 masked to displayed
     image of 1000 x 720

o    Mounting hardware to invert projector for downward projection angle

o    Serial part controlled shutter over output of projection lens.

o    Connection to DTS subtitle display system via analog XGA graphics cable and
     RS232 control.

     Product functionality, control, connection, and use will be specified
assuming the above configuration.  Notes in the specifications indicate that
specific parameters refer to either:

o    Base projector only, or

o    System (including mounting hardware and shutter).

Product Description

     The Bogart product is a self-contained, DLP(R) based graphics projector
optimized for use in the exhibition theater environment.  The product is based
on the Beluga XGA projector platform with modifications to provide an image
optimized for overlaid projection of textual subtitles on to projected film
based movies.  These modifications include:

o    Monochromatic text display with 8 levels of gay scaling for font smoothing.
     This is accomplished by removing the color wheel from the Beluga platform.

o    The 1024 x 768 display is masked to produce an on screen image of 1000 x
     720 pixels.

o    Increased brightness to an average 3000 lumens (over the full image area)
     with Beluga uniformity.

o    Enhanced thermal management to accommodate the increased light density
     through the optics.

o    Removal of digital graphics and video signal paths.  Removal of remote and
     on board keypad control functions.

     As a fixed subtitle projection device, this projector is optimized for
display brightness and contrast at the expense of acoustical noise and cosmetic
considerations.  Source compatibility is limited to the DTS subtitle processing
system which produces analog XGA text output, as well as providing RS232
projector control functions.  Display formatting and scaling will be implemented
as follows:

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<PAGE>
     o    Graphics consist of 8 bit gray scale analog signal on the RGB
          channels, overlaid on to full blue background to facilitate image
          framing.  Text will appear in center 1/3 of XGA frame.

     o    No image scaling is required. The 3 MSB's of digitized green data will
          be the input to the DLP display formatting subsystem, and will be
          output from color lookups truncating the 5 LSB's of digitized data.

     o    The image will be processed in ceiling mount" mode due to the inverted
          mounting scheme with attendant downward projection angle.

Physical Appearance.

[Diamond] Industrial Design Approach: Base projector.

To compress development time, Bogart will leverage off of the Beluga industrial
design for the base projector.  External hardware to mount the projector to a
wall in an inverted position will be fastened outboard of the projector case
with appropriate mechanical mounts for the external image shutter.
Additionally, a mask occluding the upper and lower thirds, or left and right
thirds, of the projector output will be mounted in front of the projection lens.

[PICTURE]

Operation, Connection, and Function

[Diamond] Base projector operation.

  The projector provides a user interface via a RS232 serial interface.  Beluga
  keypad and remote control interfaces are disabled.  The I/O connectors will be
  as follows:

     [DIAGRAM]               [DIAGRAM]             [DIAGRAM]
     XGA Input           RS232 Control Input      USB for SW
(15 pin HD15 Female)      (9 pin DB9 Male)         Upgrades

     Additional operational features:

     o    Standard zoom lens

     o    Long throw zoom lens (optional)

     o    Lens compatibility with standard photographic filters

Operating Environment and Conditions

  This product will be used in exhibitor projection booth environments.  It must
  withstand warm ambient environment and comply with all necessary regulatory
  requirements for commercial use.

DTS-InFocus Agreement
October 2001
Page 17

<PAGE>

Accessories and Options

<TABLE>
<CAPTION>
                         Table 0-1: Optional Accessories
ITEM                      DESCRIPTION                   PHYSICAL CHARACTERISTICS
----                      -----------                   ------------------------
<S>                   <C>                               <C>
2.4.1                 Long throw zoom lens               Full-field projection
</TABLE>

References, Related Specifications

      The following functional and component specifications are applicable and
supplemental to the engineering specification

      -     IFS Environmental Specifications (008-0031-XX)

      -     TI Image quality Specification.

Specifications:  Physical Elements

Physical dimensions - size, weight, volume, add-ons, etc.

<TABLE>
<CAPTION>
                                      Table 0-1: Physical Dimensions
  NO.              PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
  ---              ---------                     ----------                ---        -------       ---        ----
<S>       <C>                          <C>                                 <C>        <C>           <C>        <C>
4.1.1     Product height               Nominal is mean height, max                      90                      mm
                                       includes bump, Base projector
                                       only
4.1.2     Product width                Base projector only                              250                     mm
4.1.3     Product length               Base projector only                              280                     mm
4.1.4     Product weight - bare        Base projector only                             <3.4                     Kg
4.1.5     Product weight - full        System                                          <6.5                     Kg
4.1.6     Product volume - bare        Base projector only                              377                     in(3)
4.1.7     Product volume - full        System                                          <990                     in(3)
</TABLE>

Physical environmental impact - visual, thermal, acoustical, stray light
emissions

<TABLE>
<CAPTION>
                                    Table 0-2: Physical Environmental Impact
  NO.              PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
  ---              ---------                     ----------                ---        -------       ---        ----
<S>       <C>                          <C>                                 <C>        <C>           <C>        <C>
4.2.1     Overall noise                At 22 degrees C, 0 feet altitude                 45           48         dB
                                       - in system
4.2.2     Pure tones                                                                                 0
4.2.3     Case touch temperature -     Nominal is mean across                           81           90         degrees C
          front                        surface, max is hottest spot,
                                       Base projector only.  Ambient
                                       20 degrees C
</TABLE>

Operating orientation - mounting, adjustments, accessibility, loads

<TABLE>
<CAPTION>
                                          Table 0-3: Operating Orientation
  NO.              PARAMETER                     CONDITIONS               MIN        NOMINAL        MAX        UNIT
  ---              ---------                     ----------               ---        -------        ---        ----
<S>       <C>                          <C>                                <C>       <C>            <C>         <C>
4.3.1     Inverted position - roll     Limit of operating                 -15           0            15        degrees
          limit                        orientation to maintain
                                       thermal and

</TABLE>

DTS-InFocus Agreement
October 2001
Page 18

<PAGE>

<TABLE>
                                          Table 0-3: Operating Orientation
<S>       <C>                          <C>                                <C>       <C>            <C>         <C>
                                       illumination stability
4.3.2     Inverted position - pitch    Limit of operating                 -90           0            90        (0)
          limit                        orientation to maintain
                                       thermal and illumination
                                       stability
4.3.3     Roll adjust range - Mounted  System                              -3           0            3         (0)
4.3.4     Roll adjust increment        System                                       Continuous                 (0)
4.3.5     Pitch adjust range           System                             -15           0           +15        (0)
4.3.6     Pitch adjust increment       System                                       Continuous                 (0)
</TABLE>

Specifications:  Image Elements

Primary image characteristics

<TABLE>
<CAPTION>
                                      Table 0-1: Primary Image Characteristics
   NO.             PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
   ---             ---------                     ----------                ---        -------       ---        ----
<S>        <C>                        <C>                                 <C>         <C>           <C>       <C>
5.1.1      Resolution - Vertical                                            -            -          720       Pixels
5.1.2      Resolution - Horizontal                                                       -          1024      Pixels
5.1.3      Brightness                 Measure 3 horizontally centered      3000          -           -        Lumens
                                      ANSI points and average I:
                                      Brightness=(I)*(12/25)*(d*Rp)(2)
                                      where:
                                      I=luminous intensity (lux)
                                      d=distance lens to screen (m)
                                      Rp=projection ratio
5.1.4      Brightness Uniformity (+)  Measure 3 horizontally centered       -           +30         +50         %
                                      ANSI points and average I:
                                      U[PLUS] = (I[BRIGHTEST] - I) / I
                                      where:
                                      I=average luminous intensity
                                      (lux)
                                      I[BRIGHTEST]=max luminous
                                      intensity point (lux)
5.1.5      Brightness Uniformity      Measure 3 horizontally centered      -50          -45          -          %
           (-)                        ANSI points and average I:
                                      U[MINUS]=(I[DIMMEST] - I)/I where:
                                      I=average luminous intensity
                                      (lux)
                                      I[DIMMEST] =min luminous
                                      intensity point (lux)
5.1.6      Contrast - Sequential      Measure 3 horizontally centered     300:1        400:1         -          -
                                      ANSI points and average I with
                                      first a white image, followed
                                      by black:
                                      C.R.=I[WHITE]/I[BLACK] where:
                                      I[WHITE]=average luminous
                                      intensity of white image (lux)
                                      I[BLACK]=average luminous
                                      intensity of black image (lux)
5.1.7      Focus Range, Short Throw   Front of projection lens to           5                        21         m
                                      screen
5.1.8      Focus Range, Long Throw    Front of projection lens to           4                        40         m
</TABLE>

DTS-InFocus Agreement
October 2001
Page 19

<PAGE>

<TABLE>
                                      Table 0-1: Primary Image Characteristics
<S>        <C>                        <C>                                 <C>         <C>           <C>      <C>
                                      screen (likely to be a
                                      projected field limit)
5.1.9      Projection Ratio - Wide    = (Throw distance/Horiz screen)                  1.67
5.1.10     Projection Ratio - Tele    = (Throw distance/Horiz screen)                  2.05
5.1.11     Zoom Ratio                                                                  1.2:1                    -
5.1.12     Projection Offset          =Image height below axis/image                   113.7                    %
                                      height

5.1.13     Distortion - Keystone -                                                       6           8        Pixels
           Wide
5.1.14     Distortion - Keystone -                                                       2           8        Pixels
           Tele
5.1.15     Distortion - Barrel -                                                         -           2        Pixels
           Wide
5.1.16     Distortion - Barrel -                                                         2           2        Pixels
           Tele
5.1.17     Distortion - Pincushion                                                       1           4        Pixels
           - Wide
5.1.18     Distortion - Pincushion                                                       -           4        Pixels
           - Tele
5.1.19     White Point                Correlated Color temperature         6500        7200         7500     degrees K
                                      w/out SW adjustments

5.1.20     Color Uniformity- White    ANSI, Digital                        0.01          -          0.01     (delta)x,y
5.1.21     Displayed grayscale depth                                                     4                     bits
5.1.22     Display refresh rate                                             58          60           62         Hz
5.1.23     Projection ratio - Wide    = (Throw distance/Horiz screen)                  3.57
           (long throw lens)
5.1.24     Projection ratio - Tele    = (Throw distance/Horiz screen)                   5.0
           (long throw lens)
5.1.25     Zoom Ratio (long throw                                                      1.4:1
           lens)
</TABLE>

Image artifacts and quality elements

<TABLE>
<CAPTION>
                                   Table 0-2: Image Artifacts and Quality Elements
  NO.              PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
  ---              ---------                     ----------                ---        -------       ---        ----
<S>       <C>                          <C>                                 <C>        <C>           <C>        <C>
5.2.4     Thermal distortions in                                                         0
          image
5.2.5     Lamp Flicker                 With single line text image                                   5          %
5.2.6     Pixel defects - stuck        Per DMD image quality spec                                    0
          bright
</TABLE>

Specifications:  Functional Elements

Input connector definitions

<TABLE>
<CAPTION>
                                             Table 0-1: Input Connectors
  NO.            PARAMETER         PIN NO.    I/O            SIGNAL          PIN NO.   I/O            SIGNAL
  ---            ---------         -------    ---            ------          -------   ---            ------
<S>       <C>                      <C>        <C>      <C>                   <C>       <C>       <C>
6.1.1     Projector VESA input        1        I        Red Analog Input        9       I           +5V Supply
</TABLE>

DTS-InFocus Agreement
October 2001
Page 20

<PAGE>

<TABLE>
                                             Table 0-1: Input Connectors
<S>       <C>                      <C>        <C>      <C>                   <C>       <C>       <C>
                                      2        I       Green Analog Input      10                   Sync Return
                                      3        I       Blue Analog Input       11       O        Monitor ID Bit 0
                                      4        O        Monitor ID Bit 2       12       O             DDC-SDA
                                      5                      Ground            13       I              Hsync
                                      6                    Red Return          14       I              Vsync
                                      7                   Green Return         15      I/O            DDC-SCL
                                      8                   Blue Return         Shell                   Ground
6.1.2     Projector RS232 Input       1                       N/C               6                       N/C
                                      2        I               Rx               7                       N/C
                                      3        O               Tx               8                       N/C
                                      4                       N/C               9                       N/C
                                      5                       Gnd             Shell                     Gnd
</TABLE>

Input Signal Specifications

<TABLE>
<CAPTION>
                                       Table 0-2: Input Signal Specifications
   NO.             PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
   ---             ---------                     ----------                ---        -------       ---        ----
<S>        <C>                         <C>                                <C>         <C>          <C>        <C>
6.2.1      RGB Analog Inputs - R,G,B   Into internal termination of        0.5         0.76         1.0       V[p-p]
           level                       75(Omega)
6.2.2      RGB Analog Inputs - Sync    Into internal termination of                    0.24                   V[p-p]
           on video level              75(Omega)
6.2.3      H, V Sync low level         Separate syncs                       0                       0.8         V
6.2.4      H, V Sync high level        Separate syncs                      2.1                      5.0
6.2.5      RGB Analog Inputs, full                                                      65          140        MHz
           sampling - Pixel clock
           range

6.2.6      RGB Inputs - Vsync range    Blanking >%                          50                       85         Hz
6.2.7      RGB Inputs - Input active                                       768                      768       Lines
           line count -
           non-interlaced
6.2.8      RGB Inputs - Input active                                       1024                     1024      Pixels
           column count
6.2.9      RS232 Input - Tx, Rx                                            -12                       12         V
6.2.10     RS232 Input Baud Rate                                          19200        19200       19200       Baud
</TABLE>

Compatibility and User Control

<TABLE>
<CAPTION>
                                      Table 0-3: Compatibility and User Control
  NO.              PARAMETER                     CONDITIONS                MIN        NOMINAL       MAX        UNIT
  ---              ---------                     ----------                ---        -------       ---        ----
<S>       <C>                                    <C>                       <C>        <C>           <C>        <C>
6.3.1     New analog RGB source -                                                        7           10         S
          time to stable display
</TABLE>

Data, control, and communication definitions

<TABLE>
<CAPTION>
                                        Table 0-4: Control and Communications
   NO.               PARAMETER                     CONDITIONS              MIN       NOMINAL/       MAX        UNIT
                                                                                     COMMAND
   ---               ---------                     ----------              ---       --------       ---        ----
<S>        <C>                             <C>                             <C>       <C>           <C>         <C>
6.4.1      Power up - time to lamp strike                                                            8          S
6.4.2      Power up - time to full         Cold strike on lamp - time                                90         S
</TABLE>

DTS-InFocus Agreement
October 2001
Page 21

<PAGE>

<TABLE>
                                        Table 0-4: Control and Communications
<S>        <C>                             <C>                             <C>       <C>           <C>         <C>
           brightness                      to 90% of full output
6.4.3      Power up - time to stable                                                                 15         S
           display
6.4.4      RS232 Power                                                      0           PWR          1
6.4.5      RS232 Standby Enable                                             0           STB          1
6.4.6      RS232 Brightness                                                 0           BRT         255
6.4.7      RS232 Contrast                                                   64          CON         192
6.4.8      RS232 Auto Color Gain                                            0           ACG          1
6.4.9      RS232 Blue Color Gain                                            1           BCG          63
6.4.10     RS232 Green Color Gain                                           1           GCG          63
6.4.11     RS232 Red Color Gain                                             1           RCG          63
6.4.12     RS232 Gamma Table                                                0           GTB          2
6.4.13     RS232 Digital Keystone                                           2           DKC         254
           Correction
6.4.14     RS232 Reset All                                                  0           RST          1
6.4.15     RS232 Auto Image                                                 0           AIM          1
6.4.16     RS232 Resize                                                     0           ARZ          3
6.4.17     RS232 Low Power Enable                                           0           LPE          1
6.4.18     RS232 Manual Sync Setting                                        0           MSS          31
6.4.19     RS232 Manual Tracking Setting                                   1294         MTS         1394
6.4.20     RS232 Horizontal Position                                       107          HPS         375
           Setting
6.4.21     RS232 Vertical Position                                          0           VPS          28
           Setting
6.4.22     RS232 Image Locked and                                           0           ILK          1
           Displayable
6.4.23     RS232 Language                                                   0           LAN          7
6.4.24     RS232 Menu Navigation Key                                        0           NAV          4
6.4.25     RS232 Standby Time                                               0           SBT          6
6.4.26     RS232 Internal Shutter Control                                   0           SHT          1
6.4.27     RS232 Menu Select Key                                            0           MNU          1
6.4.28     RS232 UI Message Enable                                          0           DMG          1
6.4.29     RS232 Ceiling Project                                            0           CEL          1
6.4.30     RS232 Rear Project                                               0           REA          1
6.4.31     RS232 Time (in hours) last      Read only                        0           LB1        32767
           Bulb 1 lasted
6.4.32     RS232 Time (in hours) last      Read only                        0           LB2        32767
           Bulb 2 lasted
6.4.33     RS232 Time (in hours) last      Read only                        0           LB3        32767
           Bulb 3 lasted
6.4.34     RS232 Lamp Lit                  Read only                        0           LML          1
6.4.35     RS232 Lamp Hours                Read only                        0           LMP        32767
6.4.36     RS232 Number of Lamp Resets     Read only                        0           LMR        32767
6.4.37     RS232 Lamp Total On Time (All   Read only                        0           LMT        214748
           Bulbs)                                                                                   3647
6.4.38     RS232 Unit Total Time On        Read only                        0           ONL        214748
                                                                                                   36647
</TABLE>

DTS-InFocus Agreement
October 2001
Page 22
<PAGE>
Specifications: Environmental Elements
Operating Conditions, Quality, and Reliability

                 Table 0-1: Operating Conditions and Reliabilty

<TABLE>
<CAPTION>
  NO.           PARAMETER                     CONDITIONS               MIN    NOMINAL     MAX    UNIT
  ---           ---------                     ----------               ---    -------     ---    ----
<S>      <C>                         <C>                               <C>    <C>       <C>     <C>
7.1.1    Low line voltage range                                         85    100/120     135     V

7.1.2    High line voltage range                                       200    220/240     270     V

7.1.3    Line frequency              Low line = 60 / High line = 50     47     60/50       63     Hz

7.1.4    Input cooling airflow       Spec is blower free delivery      3.5                       CFM
                                     rating. Blower output must be
                                     directed at DMD heatsink
                                     intake vent. Blower output
                                     must be no less than 10mm, nor
                                     more than 30mm, from intake
                                     vent.

7.1.5    Operating ambient           At 0 ft. elevation                 0                 40     (0)C
         temperature range

7.1.6    Operating ambient           At 30(0)C                          0               10,000    ft
         elevation range

7.1.7    Storage temperature range                                     -20               +70     (0)C

7.1.8    Operating humidity range    Non-condensing                   10/10             95/70   %/(0)C

7.1.9    Storage elevation range     2000 ft/min max rate of climb      0                 20     kft

7.1.10   Lamp: Combined Life Data    a) Survival > __% @1000 hrs      99,50                      %,%
                                     with __% original lumens.

                                     b)  survival > __% @2000 hrs     50,50                      %,%
                                     with ___ % original lumens.

7.1.11   Lamp: Burst Failures (in    <___% at <1000 hours.              5                         %
         field)                      <___% at <2000 hours               40                        %

7.1.12   Lamp: End of Life, ANSI     Point when lamps luminous flux    1500                      hrs
                                     has decreased to 50% of its
                                     original value

7.1.13   Lamp output maintenance     @1500 hours                        70                        %
</TABLE>

Regulatory - Safety, Emissions, and Susceptibility

                      Table 0-2: Regulatory Specifications

<TABLE>
<CAPTION>
 NO.                PARAMETER                         AGENCY SPECIFICATION AND CALLOUT
 ---                ---------                         --------------------------------
<S>      <C>                                <C>
72.1     Safety - Base projector only.      UL950 (USA)
         External EMA certification is      CSA 22.2 NO.950-95 3rd edition (USA)
         the responsibility of the          c-UL (Canada)
         customer                           TUV (Europe):  EN60950:  1992+A1+A2; 1993+A3; 1995 +A4; 1997
                                            (includes proof of low voltage directive) (EC)
                                            NOM (Mexico):  NOM-001-SCFI-1993

7.2.2    Radiated and Conducted Emissions   FCC part 15, subpart B, (USA) Class A limits
                                            EN 55022 (1998) (EU)
                                            ICES-003 (Canada)
                                            C-Tick Mark (Australia)
                                            GOST (Russia)
                                            CCIB (China)
</TABLE>

DTS-InFocus Agreement
October 2001
Page 23
<PAGE>
                      Table 0-2: Regulatory Specifications

<TABLE>
<S>      <C>                                <C>
7.2.3    Harmonic Current Emissions         EN 61000-3-2

7.2.4    Voltage Flicker                    EN 61000-3-3

7.2.5    Power Factor Correction            Ref. IEC 1000-3-2

7.2.6    Required regulatory marks -        FCC - Class A
         Base projector only.  External     CE
         EMA certification is the           ICES-003
         responsibility of the customer     C-Tick
                                            NOM
                                            TUV GS
                                            UL & CUL
                                            CSA
                                            CB
                                            IRAM
                                            GOST
                                            CCIB
</TABLE>

DTS-InFocus Agreement
October 2001
Page 24
<PAGE>
ATTACHMENT-2          SCHEDULE and CUSTOMIZATION EXPENSES

SCHEDULE for Bogart PRODUCT:

      -     Bogart Prototype units shipped to DTS   ***   June, 2001.

      -     Sign-off on product specification as execution of this Agreement.

      -     A1 Engineering build units shipped to DTS  ***  July 25, 2001 target
            (assumes no required design changes). These are not "sellable"
            units.

CUSTOMIZATION EXPENSES for Bogart PRODUCT:

To be paid by DTS to INFOCUS:

      -     Initial payment of *** to cover past hard development costs has been
            paid by DTS.

      -     Pre-production unit pricing = ***

      -     Estimated Tooling Expense Breakdown:

            -     Long Throw Lens        ***

            -     I/O Panel/Shield       ***

            -     Tooling Total          ***

      Note: These are estimated expenses. DTS will only be charged for those
            tooling expenses actually incurred by InFocus.

The total Non-Recoverable Engineering (NRE) costs solely related to the
modification of the PRODUCT for DTS is *** . It is understood that INFOCUS has
the right to sell products incorporating such modifications into markets that
are non-competitive with DTS without payment to DTS. INFOCUS shall have the
right to sell products incorporating the modifications to any party in the event
that DTS is relieved of the minimum purchase requirements hereunder, or at
termination of this Agreement. The parties shall always employ good faith and
fair dealing in matters governed by this Agreement.

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

DTS-InFocus Agreement
October 2001
Page 25
<PAGE>
ATTACHMENT-3          PRODUCT PRICE

Unit Pricing:

The pricing plan is volume based with a minimum commitment from DTS of ***
PRODUCT units over the first two years of this Agreement. However,
notwithstanding the foregoing *** unit minimum, in the event that DTS fails to
purchase at least *** PRODUCT units in such two year period, then DTS shall pay
to INFOCUS US *** in order to help offset INFOCUS development expenses for the
PRODUCT.

Cumulative Standard Pricing/unit:

***                  ***
***                  ***
***                  ***

Replacement Lamps:   ***

Pricing Assumptions:

      -     Shutter, mounting hardware, cables and external fan shall be sourced
            by DTS

      -     Standard warranty as set forth in Section 11.1 of the Agreement

Cumulative Long-Throw Pricing/unit:

Initial shipment expected Feb/Mar 2002 shall be priced at *** per unit.
Following this initial shipment, per unit pricing will commence as follows:
***                  ***
***                  ***
***                  ***

Standard and Long-Throw PRODUCT volumes shall be cumulative with regards to
minimum commitment volumes.

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

DTS-InFocus Agreement
October 2001
Page 26
<PAGE>
ATTACHMENT-4         DTS CUSTOM COMPONENTS

<TABLE>
<CAPTION>
                      LEAD
                      TIME          LEAD
   PIN #             (NORM)      TIME (MAX)          PART DESCRIPTION                COST
   -----             ------      ----------          ----------------                ----
<S>                  <C>         <C>          <C>                                    <C>
110-0447-00            30           120       SHIP BOX, BOGART                        ***
020-1250-00            45           120       Cert Label                              ***
020-1251-00            45           120       Logo Label, Top                         ***
020-1267-00            45           120       Speaker cover label                     ***
505-1048-00            45            90       S/A, Upper Enclosure                    ***
505-1049-00            45            90       S/A, Lower Enclosure                    ***
525-0040-00            90            90       Core Optic Assembly, Short Throw        ***
550-0086-00            45           120       DMD Kit                                 ***
530-0132-00            30            90       Engines, Short Throw                    ***
510-1586-00            45            90       Controller Board                        ***
510-1532-70            45            90       ECA, DTS POWER SUPPLY                   ***
330-0740-00            45           120       I/O Shield                              ***
505-1047-00            45            90       I/O Panel                               ***
505-1064-00            45           120       S/A, Module, Lamp                       ***
526-0113-00            30            60       S/A, BLOWER, 30MM, DTS                  ***
526-0114-00            30            60       S/A, BLOWER, 50MM, DTS                  ***
330-0800-00            45            90       BRACKET, 30MM BLOWER                    ***
110-0511-00            30           120       SHIP BOX, DTS LONG THROW                ***
525-0049-00            90           120       CORE OPTICS, DTS LONG THROW             ***
530-0141-00            30            90       Engines, Long Throw                     ***
020-1463-00            45           120       LABEL, CERT., DTS LONG THROW            ***
505-1253-00            45            90       S/A, FOCUS RING, BLACK, DTS-LT          ***
505-1254-00            45            90       S/A, ZOOM RING, BLACK, DTS-LT           ***
505-1255-00            45            90       S/A, BEZEL, FRONT, DTS-LT               ***
</TABLE>

These prices are effective as of Agreement signature date and are subject to
change.

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

InFocus - DTS Sales Agreement         27
October 2001                      CONFIDENTIAL
<PAGE>
ATTACHMENT-5         SERVICE

      -     First Call (technical phone support) is DTS Service Providers'
            responsibility

      -     Second Call (replacement of "Field Replaceable Units") is DTS
            Service Providers' responsibility

      -     Sustaining technical support and factory repair RMA processing will
            be supported by InFocus Geographical Factory Repair Centers.

      -     InFocus will host in Wilsonville (Oregon), Hilversum (the
            Netherlands), and Singapore (free of charge) initial training
            sessions for the DTS and its service providers and annual retraining
            sessions. Additional "train the trainer" training sessions will be
            delivered (for reimbursed travel and expenses) at mutually agreed
            upon locations and dates.

DTS DTS-CSP FRU PARTS PRICE LIST

<TABLE>
<CAPTION>
PART NUMBER               DESCRIPTION                     FSC PRICE (USD)     US LIST PRICE (USD)     RETURN CREDIT PRICE
-----------               -----------                     ---------------     -------------------     -------------------
<S>              <C>                                      <C>                 <C>                     <C>
020-1250-00      LABEL, CERT, DTS                               ***                   ***

020-1251-00      LABEL, TOP, DTS                                ***                   ***

020-1267-00      LABEL, SPEAKER COVER                           ***                   ***

206-0032-00      Connector, Heat Sink Clip                      ***                   ***

211-0161-00      Cable PS                                       ***                   ***

211-0162-01      Cable PS-interlock                             ***                   ***

321-0107-00      Spring, Lever (elevator)                       ***                   ***

329-0251-00      PSA, 30MM BLOWER                               ***                   ***

329-0268-01      PS, Insulator                                  ***                   ***

329-0299-01      Gasket, Blower Bracket                         ***                   ***

329-0301-00      Gap pad 1 PS to diode                          ***                   ***

329-0302-00      Gap pad 2 PS to diode                          ***                   ***

329-0306-00      SHIELD, FAN, THERMAL                           ***                   ***

329-0337-00      SHIELD, BLOWER                                 ***                   ***

330-0702-03      Chasis, system                                 ***                   ***

330-0724-02      Ground clip heat sink                          ***                   ***

330-0740-00      SHIELD, I/O, DTS                               ***                   ***

330-0742-00      Diode, heat sink bracket                       ***                   ***
</TABLE>

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

InFocus - DTS Sales Agreement         28
October 2001                      CONFIDENTIAL
<PAGE>
<TABLE>
<S>              <C>                                      <C>                 <C>                     <C>
340-0822-01      Lever, Elevator                                ***                   ***

340-0837-01      SPACER, MOUNT, ENGINE                          ***                   ***

505-0837-00      I/O panel cover, plastic (rear bezel)          ***                   ***

505-0878-01      Shaft, elevator                                ***                   ***

505-0973-00      S/A, FOCUS RING, BLACK                         ***                   ***

505-0975-00      S/A, ZOOM RINK, BLACK                          ***                   ***

505-1047-00      S/A, PANEL, I/O, DTS                           ***                   ***

505-1048-03      S/A, ENCLOSURE, UPPER, DTS                     ***                   ***

505-1049-02      S/A, ENCL., LWR, DTS                           ***                   ***

505-1050-01      S/A, BEZEL, FRONT, DTS                         ***                   ***

505-1051-00      S/A, VENT, BEZEL, DTS                          ***                   ***

505-1179-01      S/A, ENCLOSURE, LAMP                           ***                   ***

510-1532-12      ECA, Power Supply                              ***                   ***                     ***

510-1586-05      ECA, CONTROLLER CARD, BOGART                   ***                   ***                     ***

526-0078-00      S/A, BLOWER                                    ***                   ***

526-0079-00      S/A, Fan, 60x10                                ***                   ***

526-0080-04      S/A, Cable, Thermal Switch                     ***                   ***

526-0098-00      S/A, Fan, 40x10                                ***                   ***

526-0100-01      S/A, KEYPAD, BLACK W/LT, GREY PP               ***                   ***

526-0113-00      S/A, BLOWER, 30MM, DTS                         ***                   ***

530-0132-03      ENGINE, OPTICAL, DTS                           ***                   ***                     ***

749-0026-02      Fuse IEC, 127-3/2, ALFB 7.0                    ***                   ***

802-0027-00      Fastener Kit                                   ***                   ***
</TABLE>

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

InFocus - DTS Sales Agreement         29
October 2001                      CONFIDENTIAL
<PAGE>
DTS DTS-CSP URP PARTS PRICE LIST

<TABLE>
<CAPTION>
                                                                         US LIST PRICE       RETURN CREDIT
PART NUMBER                DESCRIPTION              FSC PRICE (USD)          (USD)               PRICE
-----------                -----------              ---------------      -------------       -------------
<S>                  <C>                            <C>                  <C>                 <C>
009-0613-01          SAFETY CARD, DTS                    ***                  ***

110-0346-00          Bag, Poly                           ***                  ***

110-0419-00          PKG, FOAM, BELUGA                   ***                  ***

110-0447-00          SHIP BOX, DTS                       ***                  ***

505-0841-00          S/A, CAP, LENS                      ***                  ***

505-1067-00          S/A, DOOR, LAMP, DTS                ***                  ***
</TABLE>

*** Portions of this page have been omitted pursuant to a request for
    Confidential Treatment and filed separately with the Commission.

InFocus - DTS Sales Agreement         30
October 2001                      CONFIDENTIAL

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