Document:

<PAGE>

                                                                     EXHIBIT 4.9

                                     EGTRRA
                                AMENDMENT TO THE

             COTT BEVERAGES SAN BERNARDINO SAVINGS & RETIREMENT PLAN

<PAGE>

                                                               EGTRRA - EMPLOYER

                                    ARTICLE I
                                    PREAMBLE

1.1      Adoption and effective date of amendment. This amendment of the plan is
         adopted to reflect certain provisions of the Economic Growth and Tax
         Relief Reconciliation Act of 2001 ("EGTRRA"). This amendment is
         intended as good faith compliance with the requirements of EGTRRA and
         is to be construed in accordance with EGTRRA and guidance issued
         thereunder. Except as otherwise provided, this amendment shall be
         effective as of the first day of the first plan year beginning after
         December 31, 2001.

1.2      Supersession of inconsistent provisions. This amendment shall supersede
         the provisions of the plan to the extent those provisions are
         inconsistent with the provisions of this amendment.

                                   ARTICLE II
                          ADOPTION AGREEMENT ELECTIONS

         THE QUESTIONS IN THIS ARTICLE II ONLY NEED TO BE COMPLETED IN ORDER TO
         OVERRIDE THE DEFAULT PROVISIONS SET FORTH BELOW. IF ALL OF THE DEFAULT
         PROVISIONS WILL APPLY, THEN THESE QUESTIONS SHOULD BE SKIPPED.

         UNLESS THE EMPLOYER ELECTS OTHERWISE IN THIS ARTICLE II, THE FOLLOWING
         DEFAULTS APPLY:

         1) THE VESTING SCHEDULE FOR MATCHING CONTRIBUTIONS WILL BE A 6 YEAR
            GRADED SCHEDULE (IF THE PLAN CURRENTLY HAS A GRADED SCHEDULE THAT
            DOES NOT SATISFY EGTRRA) OR A 3 YEAR CLIFF SCHEDULE (IF THE PLAN
            CURRENTLY HAS A CLIFF SCHEDULE THAT DOES NOT SATISFY EGTRRA), AND
            SUCH SCHEDULE WILL APPLY TO ALL MATCHING CONTRIBUTIONS (EVEN THOSE
            MADE PRIOR TO 2002).

         2) ROLLOVERS ARE AUTOMATICALLY EXCLUDED IN DETERMINING WHETHER THE
            $5,000 THRESHOLD HAS BEEN EXCEEDED FOR AUTOMATIC CASH-OUTS (IF THE
            PLAN IS NOT SUBJECT TO THE QUALIFIED JOINT AND SURVIVOR ANNUITY
            RULES AND PROVIDES FOR AUTOMATIC CASH-OUTS). THIS IS APPLIED TO ALL
            PARTICIPANTS REGARDLESS OF WHEN THE DISTRIBUTABLE EVENT OCCURRED.

         3) THE SUSPENSION PERIOD AFTER A HARDSHIP DISTRIBUTION IS MADE WILL BE
            6 MONTHS AND THIS WILL ONLY APPLY TO HARDSHIP DISTRIBUTIONS MADE
            AFTER 2001.

         4) CATCH-UP CONTRIBUTIONS WILL BE ALLOWED.

         5) FOR TARGET BENEFIT PLANS, THE INCREASED COMPENSATION LIMIT OF
            $200,000 WILL BE APPLIED RETROACTIVELY (i.e., TO YEARS PRIOR TO
            2002).

2.1      VESTING SCHEDULE FOR MATCHING CONTRIBUTIONS

         If there are matching contributions subject to a vesting schedule that
         does not satisfy EGTRRA, then unless otherwise elected below, for
         participants who complete an hour of service in a plan year beginning
         after December 31, 2001, the following vesting schedule will apply to
         all matching contributions subject to a vesting schedule:

         If the plan has a graded vesting schedule (i.e., the vesting schedule
         includes a vested percentage that is more than 0% and less than 100%)
         the following will apply:

<TABLE>
<CAPTION>
Years of vesting service          Nonforfeitable percentage
<S>                               <C>
           2                                  20%
           3                                  40%
           4                                  60%
           5                                  80%
           6                                 100%
</TABLE>

         If the plan does not have a graded vesting schedule, then matching
         contributions will be nonforfeitable upon the completion of 3 years of
         vesting service.

         In lieu of the above vesting schedule, the employer elects the
         following schedule:

         a.   [ ]  3 year cliff (a participant's accrued benefit derived from
                   employer matching contributions shall be nonforfeitable upon
                   the participant's completion of three years of vesting
                   service).

         b.   [ ]  6 year graded schedule (20% after 2 years of vesting service
                   and an additional 20% for each year thereafter).

         c.   [ ]  Other (must be at least as liberal as a. or the b. above):

(C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        1

<PAGE>

EGTRRA - EMPLOYER

<TABLE>
<CAPTION>
Years of vesting service          Nonforfeitable percentage
<S>                               <C>
       _________                          _________%
       _________                          _________%
       _________                          _________%
       _________                          _________%
       _________                          _________%
</TABLE>

         The vesting schedule set forth herein shall only apply to participants
         who complete an hour of service in a plan year beginning after December
         31, 2001, and, unless the option below is elected, shall apply to ALL
         matching contributions subject to a vesting schedule.

         d.  [ ]  The vesting schedule will only apply to matching contributions
                  made in plan years beginning after December 31, 2001 (the
                  prior schedule will apply to matching contributions made in
                  prior plan years).

2.2      EXCLUSION OF ROLLOVERS IN APPLICATION OF INVOLUNTARY CASH-OUT
         PROVISIONS (FOR PROFIT SHARING AND 401(k) PLANS ONLY). If the plan is
         not subject to the qualified joint and survivor annuity rules and
         includes involuntary cash-out provisions, then unless one of the
         options below is elected, effective for distributions made after
         December 31, 2001, rollover contributions will be excluded in
         determining the value of the participant's nonforfeitable account
         balance for purposes of the plan's involuntary cash-out rules.

         a.  [X]  Rollover contributions will not be excluded.

         b.  [ ]  Rollover contributions will be excluded only with respect to
                  distributions made after ______. (Enter a date no earlier than
                  December 31, 2001.)

         c.  [ ]  Rollover contributions will only be excluded with respect to
                  participants who separated from service after ______. (Enter a
                  date. The date may be earlier than December 31, 2001.)

2.3      SUSPENSION PERIOD OF HARDSHIP DISTRIBUTIONS. If the plan provides for
         hardship distributions upon satisfaction of the safe harbor (deemed)
         standards as set forth in Treas. Reg. Section 1.401(k)-l(d)(2)(iv),
         then, unless the option below is elected, the suspension period
         following a hardship distribution shall only apply to hardship
         distributions made after December 31,2001.

             [ ]  With regard to hardship distributions made during 2001, a
                  participant shall be prohibited from making elective deferrals
                  and employee contributions under this and all other plans
                  until the later of January 1, 2002, or 6 months after receipt
                  of the distribution.

2.4      CATCH-UP CONTRIBUTIONS (FOR 401 (k) PROFIT SHARING PLANS ONLY): The
         plan permits catch-up contributions (Article VI) unless the option
         below is elected.

             [ ]  The plan does not permit catch-up contributions to be made.

2.5      FOR TARGET BENEFIT PLANS ONLY: The increased compensation limit
         ($200,000 limit) shall apply to years prior to 2002 unless the option
         below is elected.

             [ ]  The increased compensation limit will not apply to years prior
                  to 2002.

                                   ARTICLE III
                        VESTING OF MATCHING CONTRIBUTIONS

3.1      Applicability. This Article shall apply to participants who complete an
         Hour of Service after December 31, 2001, with respect to accrued
         benefits derived from employer matching contributions made in plan
         years beginning after December 31, 2001. Unless otherwise elected by
         the employer in Section 2.1 above, this Article shall also apply to all
         such participants with respect to accrued benefits derived from
         employer matching contributions made in plan years beginning prior to
         January 1, 2002.

3.2      Vesting schedule. A participant's accrued benefit derived from employer
         matching contributions shall vest as provided in Section 2.1 of this
         amendment.

                                   ARTICLE IV
                              INVOLUNTARY CASH-OUTS

4.1      Applicability and effective date. If the plan provides for involuntary
         cash-outs of amounts less than $5,000, then unless otherwise elected in
         Section 2.2 of this amendment, this Article shall apply for
         distributions made after December 31, 2001, and shall apply to all
         participants. However, regardless of the preceding, this Article shall
         not apply if the plan is subject to the qualified joint and survivor
         annuity requirements of Sections 401(a)(11) and 417 of the Code.

4.2      Rollovers disregarded in determining value of account balance for
         involuntary distributions. For purposes of the Sections of the plan
         that provide for the involuntary distribution of vested accrued
         benefits of $5,000 or less, the value of a participant's nonforfeitable
         account balance shall be determined without regard to that portion of
         the account

                                    (C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        2

<PAGE>

                                                               EGTRRA - EMPLOYER

         balance that is attributable to rollover contributions (and earnings
         allocable thereto) within the meaning of Sections 402(c), 403(a)(4),
         403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value
         of the participant's nonforfeitable account balance as so determined is
         $5,000 or less, then the plan shall immediately distribute the
         participant's entire nonforfeitable account balance.

                                    ARTICLE V
                             HARDSHIP DISTRIBUTIONS

5.1      Applicability and effective date. If the plan provides for hardship
         distributions upon satisfaction of the safe harbor (deemed) standards
         as set forth in Treas. Reg. Section 1.401(k)-l(d)(2)(iv), then this
         Article shall apply for calendar years beginning after 2001.

5.2      Suspension period following hardship distribution. A participant who
         receives a distribution of elective deferrals after December 31, 2001,
         on account of hardship shall be prohibited from making elective
         deferrals and employee contributions under this and all other plans of
         the employer for 6 months after receipt of the distribution.
         Furthermore, if elected by the employer in Section 2.3 of this
         amendment, a participant who receives a distribution of elective
         deferrals in calendar year 2001 on account of hardship shall be
         prohibited from making elective deferrals and employee contributions
         under this and all other plans until the later of January 1, 2002, or 6
         months after receipt of the distribution.

                                   ARTICLE VI
                             CATCH-UP CONTRIBUTIONS

Catch-up Contributions. Unless otherwise elected in Section 2.4 of this
amendment, all employees who are eligible to make elective deferrals under this
plan and who have attained age 50 before the close of the plan year shall be
eligible to make catch-up contributions in accordance with, and subject to the
limitations of, Section 414(v) of the Code. Such catch-up contributions shall
not be taken into account for purposes of the provisions of the plan
implementing the required limitations of Sections 402(g) and 415 of the Code.
The plan shall not be treated as failing to satisfy the provisions of the plan
implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12),
410(b), or 416 of the Code, as applicable, by reason of the making of such
catch-up contributions.

                                   ARTICLE VII
                         INCREASE IN COMPENSATION LIMIT

Increase in Compensation Limit. The annual compensation of each participant
taken into account in determining allocations for any plan year beginning after
December 31, 2001, shall not exceed $200,000, as adjusted for cost-of-living
increases in accordance with Section 401(a)(17)(B) of the Code. Annual
compensation means compensation during the plan year or such other consecutive
12-month period over which compensation is otherwise determined under the plan
(the determination period). If this is a target benefit plan, then except as
otherwise elected in Section 2.5 of this amendment, for purposes of determining
benefit accruals in a plan year beginning after December 31, 2001, compensation
for any prior determination period shall be limited to $200,000. The
cost-of-living adjustment in effect for a calendar year applies to annual
compensation for the determination period that begins with or within such
calendar year.

                                  ARTICLE VIII
                                   PLAN LOANS

Plan loans for owner-employees or shareholder-employees. If the plan permits
loans to be made to participants, then effective for plan loans made after
December 31, 2001, plan provisions prohibiting loans to any owner-employee or
shareholder-employee shall cease to apply.

                                   ARTICLE IX
              LIMITATIONS ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)

9.1      Effective date. This Section shall be effective for limitation years
         beginning after December 31, 2001.

9.2      Maximum annual addition. Except to the extent permitted under Article
         VI of this amendment and Section 414(v) of the Code, if applicable, the
         annual addition that may be contributed or allocated to a participant's
         account under the plan for any limitation year shall not exceed the
         lesser of:

         a.       $40,000, as adjusted for increases in the cost-of-living under
                  Section 415(d) of the Code, or

         b.       100 percent of the participant's compensation, within the
                  meaning of Section 415(c)(3) of the Code, for the limitation
                  year.

(C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        3

<PAGE>

EGTRRA - EMPLOYER

         The compensation limit referred to in b. shall not apply to any
         contribution for medical benefits after separation from service (within
         the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which
         is otherwise treated as an annual addition.

                                    ARTICLE X
                         MODIFICATION OF TOP-HEAVY RULES

10.1     Effective date. This Article shall apply for purposes of determining
         whether the plan is a top-heavy plan under Section 416(g) of the Code
         for plan years beginning after December 31, 2001, and whether the plan
         satisfies the minimum benefits requirements of Section 416(c) of the
         Code for such years. This Article amends the top-heavy provisions of
         the plan.

10.2     Determination of top-heavy status.

10.2.1   Key employee. Key employee means any employee or former employee
         (including any deceased employee) who at any time during the plan year
         that includes the determination date was an officer of the employer
         having annual compensation greater than $130,000 (as adjusted under
         Section 416(i)(1) of the Code for plan years beginning after December
         31, 2002), a 5-percent owner of the employer, or a 1-percent owner of
         the employer having annual compensation of more than $150,000. For this
         purpose, annual compensation means compensation within the meaning of
         Section 415(c)(3) of the Code. The determination of who is a key
         employee will be made in accordance with Section 416(i)(1) of the Code
         and the applicable regulations and other guidance of general
         applicability issued thereunder.

10.2.2   Determination of present values and amounts. This Section 10.2.2 shall
         apply for purposes of determining the present values of accrued
         benefits and the amounts of account balances of employees as of the
         determination date.

         a.       Distributions during year ending on the determination date.
                  The present values of accrued benefits and the amounts of
                  account balances of an employee as of the determination date
                  shall be increased by the distributions made with respect to
                  the employee under the plan and any plan aggregated with the
                  plan under Section 416(g)(2) of the Code during the 1-year
                  period ending on the determination date. The preceding
                  sentence shall also apply to distributions under a terminated
                  plan which, had it not been terminated, would have been
                  aggregated with the plan under Section 416(g)(2)(A)(i) of the
                  Code. In the case of a distribution made for a reason other
                  than separation from service, death, or disability, this
                  provision shall be applied by substituting "5-year period" for
                  "1-year period."

         b.       Employees not performing services during year ending on the
                  determination date. The accrued benefits and accounts of any
                  individual who has not performed services for the employer
                  during the 1-year period ending on the determination date
                  shall not be taken into account.

10.3     Minimum benefits.

10.3.1   Matching contributions. Employer matching contributions shall be taken
         into account for purposes of satisfying the minimum contribution
         requirements of Section 416(c)(2) of the Code and the plan. The
         preceding sentence shall apply with respect to matching contributions
         under the plan or, if the plan provides that the minimum contribution
         requirement shall be met in another plan, such other plan. Employer
         matching contributions that are used to satisfy the minimum
         contribution requirements shall be treated as matching contributions
         for purposes of the actual contribution percentage test and other
         requirements of Section 401(m) of the Code.

10.3.2   Contributions under other plans. The employer may provide, in an
         addendum to this amendment, that the minimum benefit requirement shall
         be met in another plan (including another plan that consists solely of
         a cash or deferred arrangement which meets the requirements of Section
         401(k)(12) of the Code and matching contributions with respect to which
         the requirements of Section 401(m)(11) of the Code are met). The
         addendum should include the name of the other plan, the minimum
         benefit that will be provided under such other plan, and the employees
         who will receive the minimum benefit under such other plan.

                                   ARTICLE XI
                                DIRECT ROLLOVERS

11.1     Effective date. This Article shall apply to distributions made after
         December 31, 2001.

11.2     Modification of definition of eligible retirement plan. For purposes of
         the direct rollover provisions of the plan, an eligible retirement plan
         shall also mean an annuity contract described in Section 403(b) of the
         Code and an eligible plan under Section 457(b) of the Code which is
         maintained by a state, political subdivision of a state, or any agency
         or instrumentality of a state or political subdivision of a state and
         which agrees to separately account for amounts transferred into such
         plan from this plan. The definition of eligible retirement plan shall
         also apply in the case of a distribution to a surviving spouse, or to a
         spouse or former spouse who is the alternate payee under a qualified
         domestic

                                    (C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        4

<PAGE>

                                                               EGTRRA - EMPLOYER

         relation order, as defined in Section 414(p) of the Code.

11.3     Modification of definition of eligible rollover distribution to exclude
         hardship distributions. For purposes of the direct rollover provisions
         of the plan, any amount that is distributed on account of hardship
         shall not be an eligible rollover distribution and the distributee may
         not elect to have any portion of such a distribution paid directly to
         an eligible retirement plan.

11.4     Modification of definition of eligible rollover distribution to include
         after-tax employee contributions. For purposes of the direct rollover
         provisions in the plan, a portion of a distribution shall not fail to
         be an eligible rollover distribution merely because the portion
         consists of after-tax employee contributions which are not includible
         in gross income. However, such portion may be transferred only to an
         individual retirement account or annuity described in Section 408(a) or
         (b) of the Code, or to a qualified defined contribution plan described
         in Section 401 (a) or 403(a) of the Code that agrees to separately
         account for amounts so transferred, including separately accounting for
         the portion of such distribution which is includible in gross income
         and the portion of such distribution which is not so includible.

                                   ARTICLE XII
                           ROLLOVERS FROM OTHER PLANS

Rollovers from other plans. The employer, operationally and on a
nondiscriminatory basis, may limit the source of rollover contributions that may
be accepted by this plan.

                                  ARTICLE XIII
                           REPEAL OF MULTIPLE USE TEST

Repeal of Multiple Use Test. The multiple use test described in Treasury
Regulation Section 1.401(m)-2 and the plan shall not apply for plan years
beginning after December 31, 2001.

                                   ARTICLE XIV
                               ELECTIVE DEFERRALS

14.1     Elective Deferrals - Contribution Limitation. No participant shall be
         permitted to have elective deferrals made under this plan, or any other
         qualified plan maintained by the employer during any taxable year, in
         excess of the dollar limitation contained in Section 402(g) of the Code
         in effect for such taxable year, except to the extent permitted under
         Article VI of this amendment and Section 414(v) of the Code, if
         applicable.

14.2     Maximum Salary Reduction Contributions for SIMPLE plans. If this is a
         SIMPLE 401(k) plan, then except to the extent permitted under Article
         VI of this amendment and Section 414(v) of the Code, if applicable, the
         maximum salary reduction contribution that can be made to this plan is
         the amount determined under Section 408(p)(2)(A)(ii) of the Code for
         the calendar year.

                                   ARTICLE XV
                           SAFE HARBOR PLAN PROVISIONS

Modification of Top-Heavy Rules. The top-heavy requirements of Section 416 of
the Code and the plan shall not apply in any year beginning after December 31,
2001, in which the plan consists solely of a cash or deferred arrangement which
meets the requirements of Section 401(k)(12) of the Code and matching
contributions with respect to which the requirements of Section 401(m)(11) of
the Code are met

                                   ARTICLE XVI
                    DISTRIBUTION UPON SEVERANCE OF EMPLOYMENT

16.1     Effective date. This Article shall apply for distributions and
         transactions made after December 31, 2001, regardless of when the
         severance of employment occurred.

16.2     New distributable event. A participant's elective deferrals, qualified
         nonelective contributions, qualified matching contributions, and
         earnings attributable to these contributions shall be distributed on
         account of the participant's severance from employment. However, such a
         distribution shall be subject to the other provisions of the plan
         regarding distributions, other than provisions that require a
         separation from service before such amounts may be distributed.

(C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        5

<PAGE>

EGTRRA - EMPLOYER

This amendment has been executed this 21st day of August, 2003.

Name of Employer: Cott Beverages Inc.

By: /s/ Colin D. Walker
   ____________________________________________
                  EMPLOYER

Name of Plan: Cott Beverages San Bernardino Savings & Retirement Plan

                                    (C) Copyright 2001 Wachovia Bank, N.A. 08/03

                                        6

<PAGE>

                                                           DEEMED IRA - EMPLOYER

                                    ARTICLE I
                                    PREAMBLE

1.1      Adoption and effective date of amendment. This amendment, effective as
         of the date specified in Section 2.1 below, is adopted to implement
         Code Section 408(q) as added by the Economic Growth and Tax Relief
         Reconciliation Act of 2001 ("EGTRRA"). This amendment is intended as
         good faith compliance with such provisions and is to be construed in
         accordance with EGTRRA and guidance issued thereunder.

1.2      Supersession of inconsistent provisions. This amendment shall supersede
         the provisions of the plan to the extent those provisions are
         inconsistent with the provisions of this amendment.

(C) Copyright 2003 Wachovia Bank, N.A. 08/03

                                        1Exhibit 4.11

         THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF
         1933, AS AMENDED,  OR THE  SECURITIES  LAWS OF ANY STATE AND MAY NOT BE
         SOLD OR OFFERED  FOR SALE IN THE ABSENCE OF AN  EFFECTIVE  REGISTRATION
         STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE
         ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                            FOCUS ENHANCEMENTS, INC.

                      FORM OF COMMON STOCK PURCHASE WARRANT

         1. Issuance; Certain Definitions. In consideration of good and valuable
consideration,   the   receipt  of  which  is  hereby   acknowledged   by  FOCUS
ENHANCEMENTS,  INC., a Delaware  corporation  (the  "Company"),  * or registered
assigns (the "Holder") is hereby granted the right to purchase at any time until
5:00 P.M., New York City time, on July 1, 2006 (the "Expiration  Date"), * fully
paid and nonassessable shares of the Company's Common Stock, $0.01 par value per
share  (the  "Common  Stock"),  at an  initial  exercise  price per  share  (the
"Exercise Price") of $1.44 per share, subject to further adjustment as set forth
herein.

         2. Exercise of Warrants.

                  (a) This  Warrant  is  exercisable  in whole or in part at any
time and from time to time.  Such exercise shall be effectuated by submitting to
the Company  (either by delivery to the Company or by facsimile  transmission as
provided in Section 8 hereof) a completed and duly  executed  Notice of Exercise
(substantially  in the  form  attached  to this  Warrant)  as  provided  in this
paragraph. The date such Notice of Exercise is faxed to the Company shall be the
"Exercise  Date,"  provided that the Holder of this Warrant tenders this Warrant
Certificate to the Company within five (5) business days thereafter.  The Notice
of Exercise  shall be executed by the Holder of this Warrant and shall  indicate
the number of shares  then  being  purchased  pursuant  to such  exercise.  Upon
surrender of this Warrant Certificate,  together with appropriate payment of the
Exercise  Price for the shares of Common  Stock  purchased,  the Holder shall be
entitled to receive a certificate or certificates for the shares of Common Stock
so purchased.

                  (b) The  Exercise  Price  per  share of  Common  Stock for the
shares then being exercised shall be payable in cash or by certified or official
bank check.

                  (c) In no event shall Holder  exercise  Warrants for less than
one thousand  (1,000) Warrant  Shares.  In the event the Holder has Warrants for
less than one  thousand  (1,000)  Warrant  Shares,  Holder  shall be required to
exercise Warrants for all remaining Warrant Shares on the Exercise Date.

                  (d) The Holder  shall be deemed to be the holder of the shares
issuable  to it in  accordance  with the  provisions  of this  Section  2 on the
Exercise Date.

<PAGE>

         3.  Reservation of Shares.  The Company hereby agrees that at all times
during the term of this  Warrant  there  shall be  reserved  for  issuance  upon
exercise of this  Warrant  such number of shares of its Common Stock as shall be
required for issuance upon exercise of this Warrant (the "Warrant Shares").

         4.  Mutilation  or Loss of  Warrant.  Upon  receipt  by the  Company of
evidence  satisfactory  to it of the loss,  theft,  destruction or mutilation of
this  Warrant,  and (in the  case of  loss,  theft or  destruction)  receipt  of
reasonably  satisfactory  indemnification,  and (in the case of mutilation) upon
surrender and cancellation of this Warrant, the Company will execute and deliver
a new  Warrant of like tenor and date and any such lost,  stolen,  destroyed  or
mutilated Warrant shall thereupon become void.

         5. Rights of the Holder.  The Holder  shall not, by virtue  hereof,  be
entitled to any rights of a stockholder in the Company, either at law or equity,
and the rights of the Holder are limited to those  expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

         6. Protection Against Dilution and Other Adjustments.

                  6.1  Adjustment  Mechanism.  If an  adjustment of the Exercise
Price is required  pursuant to this  Section 6, the Holder  shall be entitled to
purchase such number of additional  shares of Common Stock as will cause (i) the
total number of shares of Common  Stock Holder is entitled to purchase  pursuant
to this Warrant,  multiplied by (ii) the adjusted  Exercise Price per share,  to
equal  (iii) the  dollar  amount of the total  number of shares of Common  Stock
Holder  is  entitled  to  purchase  before  adjustment  multiplied  by the total
Exercise Price immediately before adjustment.

                  6.2 Capital Adjustments. In case of any stock split or reverse
stock   split,   stock   dividend,   reclassification   of  the  Common   Stock,
recapitalization,  merger or consolidation, or like capital adjustment affecting
the Common  Stock of the Company  prior to the  exercise of this  Warrant or its
applicable portion, the provisions of this Section 6 shall be applied as if such
capital adjustment event had occurred  immediately prior to the exercise date of
this Warrant and the original  Exercise  Price had been fairly  allocated to the
stock  resulting  from  such  capital  adjustment;  and in  other  respects  the
provisions of this Section shall be applied in a fair,  equitable and reasonable
manner so as to give effect, as nearly as may be, to the purposes hereof.

                  6.3 Spin Off.  If, for any  reason,  prior to the  exercise of
this Warrant in full,  the Company  spins off or otherwise  divests  itself of a
part of its business or operations or disposes all or of a part of its assets in
a  transaction   (the  "Spin  Off")  in  which  the  Company  does  not  receive
compensation for such business,  operations or assets,  but causes securities of
another entity to be issued to security holders of the Company, then the Company
shall  notify the Holder at least thirty (30) days prior to the record date with
respect to such Spin-Off.

         7. Transfer to Comply with the Securities Act; Registration Rights.

                  7.1 Transfer.  This Warrant has not been registered  under the
Securities  Act of 1933,  as  amended,  (the  "Act") and has been  issued to the
Holder  for  investment

                                       2
<PAGE>

and not with a view to the  distribution  of either the  Warrant or the  Warrant
Shares.  Except for  transfers  to officers,  employees  and  affiliates  of the
Holder, neither this Warrant nor any of the Warrant Shares or any other security
issued or  issuable  upon  exercise of this  Warrant  may be sold,  transferred,
pledged or  hypothecated in the absence of an effective  registration  statement
under the Act relating to such security or an opinion of counsel satisfactory to
the Company that  registration  is not required under the Act. Each  certificate
for the Warrant,  the Warrant Shares and any other  security  issued or issuable
upon exercise of this Warrant  shall  contain a legend on the face  thereof,  in
form and substance  satisfactory  to counsel for the Company,  setting forth the
restrictions on transfer contained in this Section.

                  7.2  Registration   Rights.  (a)  Reference  is  made  to  the
Registration Rights Agreement.  The Company's obligations under the Registration
Rights Agreement and the other terms and conditions  thereof with respect to the
Warrant  Shares,  including,  but not  necessarily  limited  to,  the  Company's
commitment to file a registration  statement  including the Warrant  Shares,  to
have the  registration  of the Warrant Shares  completed and  effective,  and to
maintain such registration, are incorporated herein by reference.

                  (b) In addition to the registration  rights referred to in the
preceding  provisions of Section  7.2(a),  effective after the expiration of the
effectiveness of the Registration  Statement as contemplated by the Registration
Rights  Agreement,  the Holder shall have  piggy-back  registration  rights with
respect  to the  Warrant  Shares  then  held by the  Holder or then  subject  to
issuance upon exercise of this Warrant  (collectively,  the  "Remaining  Warrant
Shares"),  subject to the conditions set forth below.  If, at any time after the
Registration  Statement  has ceased to be  effective,  the Company  participates
(whether  voluntarily  or by reason of an  obligation  to a third  party) in the
registration  of any shares of the Company's stock (other than a registration on
Form S-8 or on Form S-4),  the Company shall give written  notice thereof to the
Holder and the Holder shall have the right, exercisable within ten (10) business
days after  receipt of such notice,  to demand  inclusion of all or a portion of
the Holder's  Remaining  Warrant Shares in such registration  statement.  If the
Holder exercises such election, the Remaining Warrant Shares so designated shall
be included in the  registration  statement  at no cost or expense to the Holder
(other than any costs or  commissions  which would be borne by the Holder  under
the terms of the Registration  Rights  Agreement);  provided,  however,  that if
there is a managing  underwriter  of the  offering of shares  referred to in the
registration  statement  and such  managing  underwriter  advises the Company in
writing that the number of shares  proposed to be included in the offering  will
have an adverse effect on its ability to successfully conclude the offering and,
as a  result,  the  number of shares to be  included  in the  offering  is to be
reduced,  the number of Remaining  Warrant Shares of the Holder which were to be
included in the  registration  (before such  reduction) will be reduced pro rata
with the number of shares  included for all other parties whose shares are being
registered.  The Holder's  rights under this Section 7 shall expire at such time
as the  Holder  can sell all of the  Remaining  Warrant  Shares  under  Rule 144
without volume or other restrictions or limit.

         8.  Notices.  Any notice or other  communication  required or permitted
hereunder  shall be in writing and shall be delivered  personally,  telegraphed,
sent by facsimile transmission or sent by certified, registered or express mail,
postage  pre-paid.  Any such  notice  shall be deemed  given  when so  delivered
personally, telegraphed, telexed or sent by facsimile

                                       3
<PAGE>

transmission,  or, if mailed,  four days after the date of deposit in the United
States mails, as follows:

                  (i)     if to the Company, to:

                          FOCUS ENHANCEMENTS, INC.
                          1370 Dell Avenue
                          Campbell, California 95008
                          ATTN: Brett Moyer, President & Chief Executive Officer
                          Telephone No.: (408) 866-8300
                          Facsimile No.:  (408) 866-1748

                          with a copy to:

                          Manatt, Phelps & Phillips, LLP
                          1001 Page Mill Road, Bldg. 2
                          Palo Alto, California 94304
                          Attn: Jerrold F. Petruzzelli, Esq.
                          Telephone No.: (650) 812-1335
                          Telecopier No.: (650) 213-0260

                          if to the Holder, to:

                          *

Any party may give notice in  accordance  with this Section to the other parties
designate to another address or person for receipt of notices hereunder.

         9.  Supplements and Amendments;  Whole  Agreement.  This Warrant may be
amended or  supplemented  only by an instrument in writing signed by the parties
hereto. This Warrant contains the full understanding of the parties with respect
to the  subject  matter  hereof and  thereof  and there are no  representations,
warranties,  agreements or understandings  other than expressly contained herein
and therein.

         10.  Governing  Law. This Warrant shall be deemed to be a contract made
under the laws of the State of Delaware for contracts to be wholly  performed in
such State and without  giving effect to the  principles  thereof  regarding the
conflict  of laws.  Each of the  parties  consents  to the  jurisdiction  of the
federal  courts whose  districts  encompass any part of the State of California,
Santa Clara County in connection with any dispute arising under this Warrant and
hereby waives, to the maximum extent permitted by law, any objection,  including
any  objection  based on  forum  non  conveniens,  to the  bringing  of any such
proceeding in such jurisdictions.

         11. Jury Trial Waiver.  The Company and the Holder hereby waive a trial
by jury in any  action,  proceeding  or  counterclaim  brought  by either of the
parties  hereto  against  the other in respect of any matter  arising  out or in
connection with this Warrant.

                                       4
<PAGE>

         12.  Counterparts.  This  Warrant  may be  executed  in any  number  of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and all such counterparts shall together constitute but one and
the same instrument.

         13. Descriptive Headings.  Descriptive headings of the several Sections
of this  Warrant  are  inserted  for  convenience  only and shall not control or
affect the meaning or construction of any of the provisions hereof.

         IN WITNESS WHEREOF, the Company has executed this Warrant as of the 1st
day of July 2003.

                                           FOCUS ENHANCEMENTS, INC.

                                           By: /s/ Gary L. Williams
                                               ---------------------------------
                                               Gary L. Williams
                                               VP of Finance and CFO

----------------
*                    Name                      Number of Warrants
                     ----                      ------------------
       White Investments                            220,000
       SF Capital Partners, Ltd.                    220,000
       TN Capital Equities, Ltd.                     27,500

                                       5
<PAGE>

                          NOTICE OF EXERCISE OF WARRANT

         The  undersigned  hereby  irrevocably  elects to  exercise  the  right,
represented by the Warrant Certificate dated as of , , to purchase shares of the
Common Stock, $0.01 par value, of FOCUS ENHANCEMENTS, INC., and tenders herewith
payment in accordance with Section 1 of said Common Stock Purchase Warrant.

                  CASH:      $ ___________ =  (Exercise Price x Exercise Shares)

                  Payment is being made by:

                  _______     enclosed check

                  _______     wire transfer

                  _______     other

         Please deliver the stock certificate to:

Dated:

[Name of Holder]

By:

                                       1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]