Document:

EXHIBIT 4.8
                                    CONTRACT

Customer: FOCUS Enhancements, Inc.

Date: December 22, 1998

Term of Contract:  One Year

Contract Begins: January 1, 1999

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The undersigned,  acting on behalf of FOCUS Enhancements, Inc. ("the customer"),
hereby contracts with R. J. Falkner & Company, Inc., ("Falkner") for a period of
not less than one year, for the provision of consulting  services to include the
following:

(1) The preparation of at least two "Research  Profile"  reports during the next
twelve months, and one each six months thereafter;

(2)  Distribution  of such reports to the brokerage  community,  money managers,
mutual funds, and individual  investors,  upon request,  or as instructed by the
customer,  along  with  exposure  of  such  reports  on the  StreetNet  investor
information  site on the  Internet  and on the R. J.  Falkner  &  Company,  Inc.
website (www.rjfalkner.com);

(3)  Assistance in the writing and editing of  shareholder  communiques,  annual
reports,  etc.,  in order to  optimize  their  effectiveness  in  conveying  the
messages desired by management;

(4) The handling of all logistics involving the release of news to the financial
media and to the investment community, including "blast fax" exposure to brokers
and money managers;

(5)  Interfacing  with  Nasdaq  StockWatch  to  assure  that  new  releases  are
distributed  in  accordance  with  appropriate  regulations,  and that Nasdaq is
notified in advance of pending news releases;

(6) Distribution of such communiques to the brokerage  community,  institutional
and individual  investors,  and research analysts at over 5,000 firms throughout
the U. S., Europe, and Canada;

(7)  Telephone  and  personal   meetings  with   individual   investor   groups,
regional/national   brokerage  firms,  and/or  institutional   investors,   when
appropriate;

(8)  Arrangement of management  presentations  to stockbroker  groups,  research
analysts,  and/or  portfolio  managers,  on a selective basis, in various cities
around the U. S. and Canada; and

(9) Any other services involving investor relations,  upon request (at an hourly
rate, when appropriate).

A cash retainer fee for these services will be payable at the rate of $3,000 per
month, in advance.  In addition to such monthly  retainer,  the customer will be
invoiced for  reimbursement  of expenses  directly  incurred in the provision of
these  services  on a  monthly  basis.  Such  expenses  will  primarily  involve
publishing,  printing and postage costs

<PAGE>
related to the  distribution  of  "Research  Profile"  reports  and  shareholder
communiques;  telephone  calls  placed  on the  customer's  behalf;  and  travel
expenses  required  to visit the  customer  and/or for trips to visit  brokerage
firms/investor groups/institutions on behalf of the customer (such trip expenses
are pro-rated among several customers).  Documentation of these expenses will be
provided on each monthly  invoice,  and the  customer  agrees to reimburse R. J.
Falkner & Company,  Inc. for such expenses  within 30 days following  receipt of
such  invoices.  Such  reimbursable  expenses  shall not exceed  $500 per month,
unless pre-approved by an officer of FOCUS Enhancements, Inc.

In addition to the cash  compensation  outlined  above,  R. Jerry Falkner (as an
individual) and Richard W. West will each be granted a 5-year option to purchase
15,000  shares of FOCUS  Enhancements,  Inc.  common  stock  (after  taking into
account a planned  reverse stock split),  with such option to be issued no later
than January 15, 1999.  The exercise  price on the option will be  equivalent to
the market  price of the  common  stock on the  closing  transaction  price,  as
reported by Nasdaq, on December 31, 1998. Customer hereby agrees to register the
shares  underlying  this option  whenever any other option shares are registered
with the SEC,  or within  twelve  months of the "start  date" of this  contract,
whichever occurs sooner.

This contract may be cancelled by the Customer after twelve months, upon written
notice to be received by R. J.  Falkner & Company  prior to January 1, 2000.  If
such notice is not  forthcoming,  the services of R. J. Falkner & Company,  Inc.
will continue on a  month-to-month  basis.  At any time after  completion of the
initial one-year term of the contract's  starting date,  either party may cancel
the services of R. J. Falkner & Company,  Inc. upon 30 days' written notice.  If
the customer chooses to terminate the services of R. J. Falkner & Company,  Inc.
prior to January 1, 2000,  customer agrees to pay R. J. Falkner & Company,  Inc.
all advance retainer fees for the months  remaining in the initial  twelve-month
term of the contract, plus unreimbursed expenses.

Falkner  represents,  warrants,  and  covenants  that:  (i) all  work  performed
hereunder will be performed with care, skill, and diligence,  in accordance with
the  highest   applicable   professional   standards   recognized  by  Falkner's
profession;  (ii) it is  responsible  for the  professional  quality,  technical
accuracy,  completeness  and  coordination  of all reports,  designs,  drawings,
plans,  information,  specifications,  and other services  furnished  under this
Agreement;  (iii) it shall comply with all applicable  federal,  state and local
laws,  ordinances,  codes and regulations in performing its services;  (iv) that
all work shall be performed to Customer's  reasonable  satisfaction of Customer;
(v) that it has the right to disclose all  information  transmitted  to Customer
under this  Agreement and that it has all rights and title  necessary to provide
the services and deliverables  outlined herein;  (vi) that all work and services
hereunder  will  be  performed  by  fully  trained,  experienced  and  qualified
personnel;  (vii)  that it has not and will not  enter  into any  agreements  or
arrangements  which preclude  compliance  with the provisions of this Agreement;
and (ix)  that  its  invoice  charges  under  this  Agreement  will  not  exceed
comparable   rates  it  charges  other   customers  in   substantially   similar
transactions.

Falkner  will  keep  the  Proprietary  Information  of the  Customer  in  strict
confidence and shall not, without the prior written approval of the Customer (a)
disclose  any  Proprietary  Information  to a third party,  (b) use  Proprietary
Information  in any way for the  benefit  of any  third  party,  and/or  (c) use
Proprietary  Information  in any  way  other  than  for  the  purposes  of  this
Agreement.  The Falkner will limit  access to  Proprietary  Information  to only
those  employees  who  have  an  absolute  need  to  know  of  such  Proprietary
Information  in order to accomplish  the purposes of this  Agreement and who are
aware of and have agreed to respect the relevant  provisions of this  Agreement.
Third party access to Proprietary Information shall be restricted to those third
parties who have first executed a confidentiality  agreement  protecting against
disclosure of such Proprietary  Information and naming Customer as a third party
beneficiary  of the  confidentiality  agreement so that Customer can enforce the
provisions of the  confidentiality  agreement in Customer's  own name.  Further,
prior to entering a confidentiality  agreement with a third party, Falkner shall
obtain  approval to communicate or transfer  Proprietary  Information  under the
confidentiality  agreement,  such approval being given at the sole discretion of
Customer.  For the purposes of this Agreement,  "Proprietary  Information" means
technical and/or business information which is disclosed to Falkner by Customer,
whether  orally,  or in written or other tangible  form.  This Agreement and the
terms  hereof  shall  be   considered   Proprietary   Information.   Proprietary
Information does not include, and no obligation is imposed on, information which
(i) is already in or  subsequently  enters the public domain through no fault of
Falkner;  (ii) is  supplied  by  Customer  to  another  party  without a duty of
confidentiality  to  Customer;  (iii)  is  disclosed  pursuant  to the  order or
requirements of a governmental  administrative agency or other governmental body
provided that such disclosure is pursuant to a protective order and Customer has
been notified of such a disclosure  request in advance.
<PAGE>

Falkner agrees that for the term of this Agreement,  the terms and conditions of
this Confidentiality provision shall survive termination of this Agreement.

Falkner  shall,  at its  expense,  defend  any claim or action  brought  against
Customer,  and  Customer's  subsidiaries,   affiliates,   directors,   officers,
employees,  agents and independent contractors, to the extent it is based upon a
claim that the Falkner acted negligently,  willfully disseminated misinformation
or otherwise  acted with willful  misconduct.  Customer  shall have the right to
employ  separate  counsel and participate in the defense of any claim or action.
Falkner  shall  reimburse  Customer  upon demand for any  payments  made or loss
suffered  by it at any  time  after  the  date  hereof,  based  upon  the  final
adjudication  of of any  judgement  by a court  of  competent  jurisdiction,  or
pursuant to a bona fide compromise or settlement of claims, demands, or actions,
in respect to any damages related to any claim or action.  Falkner would only be
liable for  damages  which the court  determined  were the result of  negligence
and/or  misconduct  on the part of Falkner.  Falkner may not settle any claim or
action  under  this  Section  on  Customer's   behalf  without  first  obtaining
Customer's  written  permission,  which  permission  will  not  be  unreasonably
withheld.  In the event  Customer and Falkner agree to settle a claim or action,
Falkner  agrees  not  to  publicize  the  settlement   without  first  obtaining
Customer's  written  permission,  which  permission  will  not  be  unreasonably
withheld.

Falkner  agrees  that it is  strictly  an  independent  contractor  and shall so
represent  itself to all third parties.  Neither party has the right to bind the
other  in  any  manner  whatsoever  and  nothing  in  this  Agreement  shall  be
interpreted to make either party the agent or legal  representative of the other
or to make the parties joint  venturers.  In no event shall Falkner be deemed in
any way to be an employee of Customer. Falkner acknowledges and agrees that this
consulting  arrangement  shall not give or extend to  Falkner  any  rights  with
respect to  contributions  by the  Customer to any deferred  compensation  plan,
bonus plans,  or fringe  benefits  (including,  but in no way limited to holiday
pay,  medical or life insurance  benefits,  sick pay or paid vacation) except as
otherwise provided herein, and further agrees to hold the Customer harmless from
any employment, income or other taxes or any other damages which may be assessed
in connection  with payments to Falkner or which may be suffered by Customer due
to any breach of the foregoing warranties.

Falkner  convents  and agrees that it has,  in full force and  effect,  Workers'
Compensation,  Public Liability and Property Damage insurance,  and that Falkner
further  indemnifies  Customer  against  loss  resulting  from injury to Falkner
during the course of performance of service work under this  Agreement.  Falkner
further  assumes  full  responsibility  for any acts of damage  or  destruction,
including  personal injury,  caused directly or indirectly by the Falkner during
the course of such work.

All notices  under this  Agreement  shall be made in writing and shall be deemed
properly delivered when (i) delivered personally, or (ii) by the mailing of such
notice to the parties entitled  thereto,  registered or certified mail,  postage
prepaid to the  parties at the  addresses  set forth  above,  and in the case of
Customer,  to the  attention of Thomas  Massie,  Chief  Executive  Officer,  cc.
General Counsel.

Falkner shall not subcontract or assign the Agreement,  or otherwise  dispose of
its right,  title,  or interest  therein or any part thereof to any third party,
without  obtaining the prior written consent of the Customer.  The hiring or use
of outside services, subcontractors by Falkner in connection with this Agreement
shall not be permitted without the prior written approval of Customer.

This  Agreement  contains the entire  agreement  between the parties  hereto and
supersedes all prior and contemporaneous agreements, arrangements,  negotiations
and  understandings  between the parties hereto,  relating to the subject matter
hereof. There are no other understandings,  statements, promises or inducements,
oral or  otherwise,  contrary to the terms of this  Agreement.  No waiver of any
term,  provision,  or  condition  of  this  Agreement,  whether  by  conduct  or
otherwise,  in any one or more  instances,  shall  be  deemed  to be,  or  shall
constitute,  a waiver of any other provision hereof, whether or not similar, nor
shall such waiver constitute a continuing waiver, and no waiver shall be binding
unless executed in writing by the party making the waiver.

No supplement,  modification or amendment of any term, provision or condition of
this Agreement shall be binding or enforceable unless executed in writing by the
parties  hereto.   The  subject   headings  of  the  articles,   paragraphs  and
subparagraphs  of this Agreement are included solely for purposes of convenience
and reference only, and shall not be deemed to explain,  modify,  limit, amplify
or aid in the meaning,  construction or  interpretation of any of the
<PAGE>

provisions  of this  Agreement.  Should  any  part,  term or  provision  of this
Agreement or any document  required  herein to be executed be declared  invalid,
void or  unenforceable,  all remaining parts,  terms and provisions hereof shall
remain in full force and effect and shall in no way be invalidated,  impaired or
affected thereby.

The  parties  acknowledge  that this  contract  is entered  into in the state of
Colorado and that performance of the contract will be accomplished in the states
of Colorado and Massachusetts.

This contract cannot be assigned without the agreement of both parties.

Signed:

/s/ Thomas L. Massie
Thomas L. Massie
Chairman and Chief Executive Officer
FOCUS ENHANCEMENTS, INC.

/s/ R. Jerry Falkner, CFA
R. Jerry Falkner, CFA
President
R. J. Falkner & Company, Inc.

Date:

Note:  Please retain one original  copy of this  contract for your records,  and
return one original copy to R. J. Falkner & Company, Inc.EXHIBIT 4.9

         The  security  represented  hereby  has not been  registered  under the
Securities Act of 1933 or applicable  state securities laws and may not be sold,
assigned or  transferred  without an effective  registration  statement for such
security under the Securities Act of 1933 or applicable  state  securities laws,
unless the Company has received the written  opinion of counsel  satisfactory to
the Company that such counsel is of the opinion  that such sale,  assignment  or
transfer does not involve a transaction requiring  registration of such security
under the Securities Act of 1933 or applicable state securities laws.

Warrant No.:  W99/___                                Right to Purchase 15,000
                                                     Shares of Common Stock of
February 22, 1999                                    FOCUS Enhancements, Inc.

VOID UNLESS  EXERCISED  BEFORE 5:00 P.M.,  EASTERN STANDARD TIME ON FEBRUARY 22,
2004.

                            FOCUS Enhancements, Inc.

                          Common Stock Purchase Warrant

         FOCUS  Enhancements,  Inc.,  a Delaware  corporation  (the  "Company"),
hereby  certifies  that, for value  received,  _______________,  or assigns,  is
entitled,  subject to the terms set forth below,  to purchase  from the Company,
commencing February 22, 1999, at any time or from time to time before 5:00 p.m.,
Eastern  Daylight  Time, on or before  February 22, 2004,  15,000 fully paid and
nonassessable  shares of Common  Stock,  $.01 par value,  of the Company,  at an
exercise  price per share  equal to  $1.063.  Such  exercise  price per share as
adjusted  from  time to time as herein  provided  is  referred  to herein as the
"Exercise  Price." The number and  character  of such shares of Common Stock and
the Exercise Price are subject to adjustment as provided herein.

         As used  herein,  the  following  terms,  unless the context  otherwise
requires, have the following respective meanings:

         (a) The term  "Company"  shall  include  FOCUS  Enhancements,  Inc.,  a
         Delaware corporation, and any corporation which shall succeed or assume
         the obligations of the Company hereunder.

         (b) The term "Common  Stock"  includes (a) the Company's  Common Stock,
         $.01 par value per share, as authorized, (b) any other capital stock of
         any class or classes (however

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<PAGE>

         designated)  of the  Company,  authorized  on or after such  date,  the
         holders of which shall have the right, without limitation as to amount,
         either to all or to a share of the  balance  of current  dividends  and
         liquidating  dividends after the payment of dividends and distributions
         on any shares  entitled to  preference,  and the holders of which shall
         ordinarily,  in the absence of  contingencies,  be entitled to vote for
         the election of a majority of directors of the Company (even though the
         right  so to  vote  has  been  suspended  by the  happening  of  such a
         contingency),  (c) any other  securities into which or for which any of
         the  securities  described  in (a) or (b) may be converted or exchanged
         pursuant to a plan of recapitalization, reorganization, merger, sale of
         assets or otherwise,  or the  conversion  of promissory  notes or other
         obligations of the Company.

         (c) The term "Other  Securities" refers to any stock (other than Common
         Stock)  and  other  securities  of  the  Company  or any  other  person
         (corporate or  otherwise)  which the holder of this Warrant at any time
         shall be entitled to receive,  or shall have received,  on the exercise
         of the Warrant,  in lieu of or in addition to Common Stock, or which at
         any time shall be issuable or shall have been issued in exchange for or
         in  replacement  of Other  Securities  pursuant  to  Sections 3 or 4 or
         otherwise.

         1.       Exercise of Warrant.

                  1.1. Full  Exercise.  This Warrant may be exercised in full by
the holder hereof by surrender of this Warrant, with the form of subscription at
the end hereof duly  executed by such  holder,  to the Company at its  principal
office,  accompanied by payment,  in cash or by certified or official bank check
payable to the order of the Company,  in the amount  obtained by multiplying the
number of shares of Common Stock for which this Warrant is then  exercisable  by
the Exercise Price then in effect.

                  1.2 Partial Exercise. This Warrant may be exercised in part by
surrender of this Warrant in the manner and at the place provided in Section 1.1
except that the amount  payable by the holder on such partial  exercise shall be
the amount  obtained  by  multiplying  (a) the number of shares of Common  Stock
designated  by the  holder  in the  subscription  at the end  hereof  by (b) the
Exercise Price then in effect. On any such partial exercise,  the Company at its
expense  will  forthwith  issue and  deliver  to or upon the order of the holder
hereof a new Warrant or Warrants of like tenor, in the name of the holder hereof
or as such holder (upon payment by such holder of any applicable transfer taxes)
may  request,  calling in the  aggregate  on the face or faces  thereof  for the
number of shares of Common Stock for which such Warrant or Warrants may still be
exercised.

         2. Delivery of Stock  Certificates on Exercise.  As soon as practicable
after the exercise of this  Warrant in full or in part,  and in any event within
sixty (60) days thereafter, the Company at its expense (including the payment by
it of any  applicable  issue  taxes)  will cause to be issued in the name of and
delivered to the holder  hereof,  or as such holder (upon payment by such holder
of any applicable  transfer taxes) may direct, a certificate or certificates for
the  number of fully  paid and  nonassessable  shares of Common  Stock (or Other
Securities)  to which such holder shall be entitled

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<PAGE>

on such  exercise,  plus, in lieu of any  fractional  share to which such holder
would otherwise be entitled,  cash equal to such fraction multiplied by the then
current  market value of one full share,  together with any other stock or other
securities and property  (including cash, where applicable) to which such holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

         3.       Adjustment for Reorganization, Consolidation or Merger.

                  3.1  Reorganization,  Consolidation or Merger.  In case at any
time or from time to time,  the Company shall (a) effect a  reorganization,  (b)
consolidate  with or merge into any other person or entity,  or (c) transfer all
or  substantially  all of its properties or assets to any other person under any
plan or arrangement  contemplating the dissolution of the Company, then, in each
such case,  the holder of the  Warrant,  on the  exercise  hereof as provided in
Section  1  at  any  time  after  the   consummation  of  such   reorganization,
consolidation or merger or the effective date of such  dissolution,  as the case
may be,  shall  receive,  in lieu of the  Common  Stock  (or  Other  Securities)
issuable on such exercise prior to such consummation or such effective date, the
stock and other  securities and property  (including  cash) to which such holder
would have been  entitled  upon such  consummation  or in  connection  with such
dissolution,  as the case may be, if such holder had so exercised  this Warrant,
immediately  prior  thereto,  all subject to further  adjustment  thereafter  as
provided in Sections 4 and 5.

                  3.2   Continuation   of   Terms.   Upon  any   reorganization,
consolidation,  merger or transfer (and any dissolution  following any transfer)
referred to in this  Section 3, this  Warrant  shall  continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and Other
Securities  and property  receivable  on the  exercise of the Warrant  after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of dissolution  following any such transfer,  as the case may be, and shall
be binding upon the issuer of any such stock or other securities,  including, in
the case of any such transfer,  the person acquiring all or substantially all of
the  properties or assets of the Company,  whether or not such person shall have
expressly assumed the terms of this Warrant.

         4. Adjustments for Stock Dividends and Stock Splits.  In the event that
the Company shall (i) issue  additional  shares of Common Stock as a dividend or
other  distribution on outstanding  Common Stock, (ii) subdivide its outstanding
shares of Common Stock,  or (iii) combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted  by  multiplying  the then  prevailing  Exercise  Price by a
fraction,  the  numerator of which shall be the number of shares of Common Stock
outstanding  immediately prior to such event (calculated assuming the conversion
or exchange of all outstanding shares of convertible or exchangeable  securities
of the Company which are convertible or exchangeable  into, or exercisable  for,
shares of Common  Stock)  and the  denominator  of which  shall be the number of
shares of Common  Stock  outstanding  immediately  after such event  (calculated
assuming the conversion or exchange of all outstanding  shares of convertible or
exchangeable  securities of the Company which are  convertible  or  exchangeable
into, or exercisable  for, shares of Common Stock),  and the product

                                       3
<PAGE>

so obtained shall thereafter be the Exercise Price then in effect.  The Exercise
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein in this Section 4. The holder
of this Warrant shall thereafter,  on the exercise hereof as provided in Section
1, be entitled to receive  that number of shares of Common Stock  determined  by
multiplying  the number of shares of Common Stock which would otherwise (but for
the provisions of this Section 4) be issuable on such exercise, by a fraction of
which (i) the numerator is the Exercise Price which would otherwise (but for the
provisions  of this  Section 4) be in effect,  and (ii) the  denominator  is the
Exercise Price in effect on the date of such exercise.

         5.   Adjustment   for   Dividends   in  Other   Stock,   Property   and
Reclassifications.  In case at any time or from  time to time,  the  holders  of
Common  Stock (or Other  Securities)  shall have  received,  or (on or after the
record date fixed for the  determination  of  stockholders  eligible to receive)
shall have become entitled to receive, without payment therefor,

         (a) other or additional  stock or other  securities or property  (other
         than cash) by way of dividend, or

         (b)  other  or  additional   stock  or  other  securities  or  property
         (including  cash)  by  way  of  spin-off,  split-up,  reclassification,
         recapitalization,   combination   of   shares  or   similar   corporate
         rearrangement,

other than additional shares of Common Stock (or Other  Securities)  issued as a
stock dividend or in a stock-split (adjustments in respect of which, in the case
of Common Stock,  are provided for in Section 4), then and in each such case the
holder of this Warrant,  on the exercise  hereof as provided in Section 1, shall
be  entitled  to  receive  the  amount  of other or  additional  stock and other
securities and property  (including cash in the cases referred to in subdivision
(b) of this Section 5) which such holder would hold on the date of such exercise
if on the  date of  distribution  of such  other  or  additional  stock or other
securities  and  property,  or on the  record  date  fixed for  determining  the
shareholders  entitled  to  receive  such  other  or  additional  stock or other
securities and property, such holder had been the holder of record of the number
of  shares  of  Common  Stock  called  for on the face of this  Warrant  and had
thereafter, during the period from the date thereof to and including the date of
such exercise,  retained such shares and all such other or additional  stock and
other  securities  and  property  (including  cash in the cases  referred  to in
subdivision (b) of this Section 5) receivable by such holder as aforesaid during
such period,  giving effect to all adjustments  called for during such period by
Sections 3 and 4.

         6.       Notices of Record Date.  In the event of

         (a) any taking by the  Company of a record of the  holders of any class
         or securities  for the purpose of determining  the holders  thereof who
         are  entitled to receive any  dividend  or other  distribution,  or any
         right to subscribe  for,  purchase or  otherwise  acquire any shares of
         stock of any class or any other  securities or property,  or to receive
         any other right, or

                                       4
<PAGE>

         (b) any capital  reorganization of the Company, any reclassification or
         recapitalization of the capital stock of the Company or any transfer of
         all or substantially  all the assets of the Company to or consolidation
         or merger of the Company with or into any other person, or

         (c) any voluntary or involuntary dissolution, liquidation or winding-up
         of the Company,

then and in each such event the  Company  will mail or cause to be mailed to the
holder of this Warrant a notice specifying (i) the date on which any such record
is to be taken for the  purpose of such  dividend,  distribution  or right,  and
stating the amount and character of such dividend,  distribution  or right,  and
(ii)   the   date  on   which   any   such   reorganization,   reclassification,
recapitalization,  transfer, consolidation,  merger, dissolution, liquidation or
winding-up is to take place,  and the time,  if any is to be fixed,  as of which
the holders of record of Common Stock (or Other Securities) shall be entitled to
exchange  their shares of Common Stock (or Other  Securities)  for securities or
other   property   deliverable   on   such   reorganization,   reclassification,
recapitalization,  transfer, consolidation,  merger, dissolution, liquidation or
winding-up.  Such notice  shall be mailed at least twenty (20) days prior to the
date specified in such notice on which any such action is to be taken.

         7.  Reservation of Stock  Issuable on Exercise on Warrant.  The Company
will at all times reserve and keep  available,  solely for issuance and delivery
on the exercise of the Warrant, all shares of Common Stock (or Other Securities)
from time to time issuable on the exercise of the Warrant;  the shares of Common
Stock  which the holder of this  Warrant  shall  receive  upon  exercise  of the
Warrant will be duly authorized, validly issued, fully paid and non-assessable.

         8.  Exchange of Warrant.  On surrender  for  exchange of this  Warrant,
properly  endorsed,  to the  Company,  the Company at its expense will issue and
deliver to or on the order of the holder  thereof a new  Warrant or  Warrants of
like  tenor,  in the name of such  holder or as such  holder (on payment by such
holder of any applicable transfer taxes) may direct, calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant or Warrants so surrendered.

         9.   Replacement  of  Warrant.   On  receipt  of  evidence   reasonably
satisfactory  to the Company of the loss,  theft,  destruction  or mutilation of
this Warrant  and, in the case of any such loss,  theft or  destruction  of this
Warrant,   on  delivery  of  an  indemnity   agreement  or  security  reasonably
satisfactory  in form and  amount  to the  Company  or,  in the case of any such
mutilation,  on surrender and  cancellation of such Warrant,  the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

         10.  Warrantholder  Not Deemed  Stockholder;  Restrictions on Transfer.
This Warrant is issued upon the following  terms, to all of which each holder or
owner hereof by the taking hereof consents and agrees:

                                       5
<PAGE>

         (a) No holder of this Warrant  shall,  as such, be deemed the holder of
         Common  Stock that may at any time be  issuable  upon  exercise of this
         Warrant for any purpose whatsoever, nor shall anything contained herein
         be construed to confer upon such holder,  as such, any of the rights of
         a stockholder of the Company until such holder shall have exercised the
         Warrant and been issued shares of Common Stock in  accordance  with the
         provisions hereof.

         (b)  Neither  this  Warrant  nor any shares of Common  Stock  purchased
         pursuant to this Warrant shall be registered  under the  Securities Act
         of 1933 (the  "Securities  Act") and applicable  state securities laws.
         Therefore,  the Company may  require,  as a condition  of allowing  the
         transfer or exchange of this Warrant or such shares, that the holder or
         transferee of this Warrant or such shares,  as the case may be, furnish
         to the Company an opinion of counsel  acceptable  to the Company to the
         effect that such transfer or exchange may be made without  registration
         under the  Securities  Act and applicable  state  securities  laws. The
         certificates  evidencing  the  shares  of  Common  Stock  issued on the
         exercise  of the  Warrant  shall bear a legend to the  effect  that the
         shares  evidenced by such  certificates  have not been registered under
         the Securities Act and applicable state securities laws.

         (c) This Warrant is not transferable or assignable to any party without
         the prior  written  consent  of the  Company  and an opinion of counsel
         satisfactory  to the Company that such  transfer is  permissible  under
         applicable law.

         11. Notices.  All notices and other  communications from the Company to
the holder of this  Warrant  shall be mailed by (i) first  class  mail,  postage
prepaid,  (ii) electronic  facsimile  transmission,  or (iii) express  overnight
courier  service,  at such address as may have been  furnished to the Company in
writing by such  holder or,  until any such holder  furnishes  to the Company an
address, then to, and at the address of, the last holder of this Warrant who has
so furnished an address to the Company.

         12.  Registration  Rights.  The  Company  hereby  grants the  following
registration  rights  with  respect  to the  shares  of Common  Stock  issued or
issuable upon exercise of this Warrant (the "Warrant Shares").

                  12.1  "Piggy-Back  Registrations":  If at any time the Company
shall  determine  to register in a public  offering for its own account (and not
the account of selling  stockholders) under the Securities Act any of its Common
Stock, it shall send to the Warrantholder  written notice of such  determination
and, if within 15 days after receipt of such notice, the Warrantholder  shall so
request in writing,  the Company  shall use its best  efforts to include in such
registration  statement  all or any  part  of the  Warrant  Shares  such  holder
requests  to be  registered.  This right  shall not apply to a  registration  of
shares  of  Common  Stock on Form S-4 or Form S-8 (or  their  then  equivalents)
relating  to shares of Common  Stock to be issued by the  Company in  connection
with any  acquisition  of any  entity or  business,  or  shares of Common  Stock
issuable in connection  with any stock option or other  employee  benefits plan,
respectively.

                                       6
<PAGE>

         If, in connection with any offering involving an underwriting of Common
Stock to be issued by the Company for the account of the  Company,  the managing
underwriter  shall  impose a  limitation  on the number of shares of such Common
Stock which may be included in any such registration  statement because,  in its
judgment,  such limitation is necessary to effect an orderly public distribution
of the Common Stock and to maintain a stable  market for the  securities  of the
Company,  then the Company  shall be obligated  to include in such  registration
statement  only such limited  portion  (which may be none) of the Warrant Shares
with respect to which the Warrantholder and all other selling  stockholders have
requested inclusion thereunder.

                  12.2 Expenses.  In the case of a  registration  under Sections
12.1,  the  Company  shall  bear all costs and  expenses  of such  registration,
including,  but  not  limited  to,  printing,  legal  and  accounting  expenses,
Securities  and  Exchange  Commission  (the  "SEC") and NASD filing fees and all
related "Blue Sky" fees and expenses;  provided, however, that the Company shall
have no  obligation  to pay or otherwise  bear any portion of the  underwriters'
commissions  or discounts  attributable  to the Warrant Shares being offered and
sold by the  Warrantholder  or the  fees and  expenses  of any  counsel  for the
Warrantholder in connection with any registration of the Warrant Shares.

                  12.3 Lock-Up Agreement for Public Offering. In connection with
any public  offering of equity  securities  of the  Company,  the  Warrantholder
agrees not to sell,  pledge,  transfer  or  otherwise  dispose  of, or grant any
option or purchase right with respect to, any shares of capital stock then owned
by him and not otherwise offered in the public offering,  or engage in any short
sale, hedging transaction or other derivative security transaction involving the
Common  Stock,  or other  shares of Common Stock of the Company held by him, for
such period of time  commencing 30 days prior to the proposed  effective date of
such public  offering  until such period of time  following  the offering as the
Company and the managing  underwriter of such public  offering deem necessary in
order to ensure a stable and orderly trading market.

                  12.4 Expiration of Registration Rights. The obligations of the
Company  under this Section 12 to register  the Warrant  Shares shall expire and
terminate  at such  time as the  Warrantholder  shall be  entitled  to sell such
securities  without  restriction  and  without  a  need  for  the  filing  of  a
registration statement under the Securities Act, including,  without limitation,
for any  resales  of  "Restricted  Securities"  made  pursuant  to  Rule  144 as
promulgated  by the SEC, or a sale made  pursuant  to Sections  4(1) and/or 4(2)
under  the  Securities  Act.  If  the  Warrantholder  desires  to  exercise  the
registration rights provided in this Section 12, the Warrantholder must exercise
this  Warrant  for  cash  consideration   prior  to  the  effectiveness  of  any
registration.

         13.  Miscellaneous.  This  Warrant  and any term hereof may be changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  This Warrant and the shares of Common Stock  underlying this Warrant
shall be construed and enforced in  accordance  with and governed by the laws of
the  State of  Delaware.  The  headings  in this  Warrant  are for  purposes  of
reference only, and shall not limit or otherwise affect any of the terms hereof.
The  invalidity  or

                                       7
<PAGE>

unenforceability  of any provision hereof shall in no way affect the validity or
enforceability of any other provision.

         14. Expiration. The right to exercise this Warrant shall expire at 5:00
p.m., Eastern Daylight Saving Time, on February 22, 2004.

Dated:  February 22, 1999

ATTEST:                                     FOCUS ENHANCEMENTS, INC.

By:________________________________         By:________________________________

Title:_____________________________         Title:_____________________________

                                       8
<PAGE>

                              FORM OF SUBSCRIPTION
                   (To be signed only on exercise of Warrant)

TO FOCUS Enhancements, Inc.

         The undersigned,  the holder of the within Warrant,  hereby irrevocably
elects to exercise  this Warrant for, and to purchase  thereunder,  ____________
shares of Common Stock of FOCUS Enhancements,  Inc., a Delaware corporation, and
herewith  makes  payment  of  $____________  therefor,  and  requests  that  the
certificates  for  such  shares  be  issued  in the name of,  and  delivered  to
_________________________, whose address is _________________________.

Dated:                 _______________________________________________________
                       (Signature  must conform to name of holder as specified
                        on the face of the Warrant)

                       _______________________________________________________

                       _______________________________________________________
                                             (Address)

                                       9

<PAGE>

                               FORM OF ASSIGNMENT
                   (To be signed only on transfer of Warrant)

         For  value  received,   the  undersigned  hereby  sells,  assigns,  and
transfers  unto  _________________________  the right  represented by the within
Warrant to purchase  ____________  shares of Common Stock of FOCUS Enhancements,
Inc., a Delaware corporation,  to which the within Warrant relates, and appoints
_________________________  Attorney to transfer such right on the books of FOCUS
Enhancements,  Inc., a Delaware corporation,  with full power of substitution in
the premises.

Dated:                   _______________________________________________________
                         (Signature  must conform to name of holder as specified
                         on the face of  the Warrant)

                         _______________________________________________________

                         _______________________________________________________
                                                (Address)
Signed in the presence of:

Witness: __________________________________________

                                       10

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