Document:

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                                                                    EXHIBIT 10.6

                                    ALLONGE
                                      TO
                            SECURED PROMISSORY NOTE

     Reference is hereby made to that certain Secured Promissory Note, dated
November 12, 1999, in the original principal amount of Seven Hundred Thousand
Dollars ($700,000), made by the undersigned to the order of InternetStudios.com,
Inc., a Nevada corporation (the "Note"), to which this Allonge is attached. All
capitalized terms used herein but not otherwise defined herein shall have the
meanings ascribed to them in the Note.

     The Note is hereby amended by changing the original principal amount
thereof from Seven Hundred Thousand Dollars ($700,000) to One Million Five
Hundred Thousand Dollars ($1,500,000.00), and accordingly all references therein
to "Seven Hundred Thousand Dollars ($700,000.00)" are hereby deleted, and "One
Million Five Hundred Thousand Dollars ($1,500,000.00)" shall be inserted in lieu
thereof.

     The undersigned acknowledges that all amounts payable by the undersigned to
Lender under the Note, as increased by this Allonge, are secured by a first
priority security interest of Lender in the Collateral.

   IN WITNESS WHEREOF, the undersigned has executed this Allonge, effective as
of February 1, 2000.

                                               MEDIACHASE LTD., a Delaware
                                               Corporation

                                               By: /s/ Melanie Lutz
                                                  ---------------------------
                                                  Name:  Melanie Lutz
                                                  Title: TreasurerEXHIBIT 4.12
                                 GENERAL RELEASE

         This General Release  Agreement  effective as of November 19, 1999 (the
"Release"), is between the Asia ITN LTD., a corporation with its principal place
of business at No. 508,  16F-2,  Chung Hsiao E. Rd.  Section 5, Taipei,  Taiwan,
R.O.C.  ("Creditor"),  and FOCUS  Enhancements,  Inc.,  a Delaware  corporation,
having  a  principal  address  of  600  Research  Drive,  Wilmington,  MA  01887
("Focus").

         WHEREAS,  Focus  has trade  payables  which  for the  purposes  of this
Release are agreed to be due and owing to Creditor and Creditor having a balance
of at least $323,259.56 ("Payables Balance");

         WHEREAS,  Creditor is currently holding inventory of Focus and/or parts
to manufacture Focus products at its warehouse;

         WHEREAS, Company and the Creditor desire, upon terms and subject to the
conditions  hereinafter set forth, to settle all outstanding  Claims (as defined
later herein) relating to the foregoing;

         NOW,  THEREFORE,  in  consideration  of the mutual  promises  contained
herein and other valuable  consideration,  the receipt and  sufficiency of which
are hereby  acknowledged,  the parties  hereto,  intending  to be legally  bound
hereby, agree as follows:

                                   ARTICLE I

                               Certain Definitions

Section 1.1.  "Balance" shall mean all outstanding  balances Focus may have with
the Creditor including, but not limited to, the Payables Balance.

Section 1.2.  "Capital Shares" shall mean the Common Stock and any shares of any
other class of common  stock  whether now or  hereafter  authorized,  having the
right to participate in the distribution of earnings and assets of Focus.

Section 1.3. "Common Stock" shall mean Focus's common stock, $0.01 par value per
share.

Section  1.4.  "Effective  Date"  shall  mean the date on  which  the SEC  first
declares  effective  a  Registration  Statement  registering  the  resale of the
Registrable Securities as set forth in the Registration Rights Agreement.

Section 1.5.  "Exchange Act" shall mean the Securities  Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.
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                                     - 2 -

Section 1.6. "Legend" shall mean the legend set forth in Section 9.1.

Section 1.7.  "Average Market Price" shall mean the average of the closing price
(as reported by Bloomberg L.P.) of the Common Stock on the Principal  Market for
the five trading days preceding the Effective Date.

Section 1.8.  "Material  Adverse  Effect" shall mean any effect on the business,
operations,  properties,  stock Creditor or financial condition of Focus that is
material and adverse to Focus and its  subsidiaries  and affiliates,  taken as a
whole, and/or any condition,  circumstance,  or situation that would prohibit or
otherwise  interfere  with the ability of Focus to enter into and perform any of
its obligations under this Agreement or the Registration  Rights  Agreement,  in
any material respect.

Section 1.9. "Outstanding" when used with reference to shares of Common Stock or
Capital Shares (collectively the "Shares"),  shall mean, at any date as of which
the  number of such  Shares is to be  determined,  all  issued  and  outstanding
Shares,  and shall  include all such Shares  issuable in respect of  outstanding
scrip or any  certificates  representing  fractional  interests  in such Shares;
provided,  however,  that  "Outstanding"  shall  not mean any such  Shares  then
directly or indirectly owned or held by or for the account of Focus.

Section 1.10. "Person" shall mean an individual,  a corporation,  a partnership,
an association, a trust or other entity or organization,  including a government
or political subdivision or an agency or instrumentality thereof.

Section 1.11. "Principal Market" shall mean the American Stock Exchange, the New
York Stock Exchange,  the NASDAQ National Market, or the NASDAQ SmallCap Market,
whichever is at the time the principal trading exchange or market for the Common
Stock, based upon share volume.

Section  1.12.  "Registrable  Securities"  shall mean the  Shares  until (i) the
Registration  Statement has been  declared  effective by the SEC, and all Shares
have been disposed of pursuant to the  Registration  Statement,  (ii) all Shares
have been sold under circumstances under which all of the applicable  conditions
of Rule 144 (or any similar  provision  then in force) under the  Securities Act
("Rule  144") are met,  (iii) all  Shares  have been  otherwise  transferred  to
holders who may trade such shares without  restriction under the Securities Act,
and Focus has  delivered a new  certificate  or other  evidence of ownership for
such  securities  not bearing a restrictive  legend or (iv) such time as, in the
opinion of counsel to Focus, all Shares may be sold without any time,  volume or
manner  limitations  pursuant to Rule 144(k) (or any similar  provision  then in
effect) under the Securities Act.
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                                     - 3 -

Section 1.13. "Registration Rights Agreement" shall mean the agreement regarding
the  filing of the  Registration  Statement  for the  resale of the  Registrable
Securities,  entered into between Focus and Creditor in the form annexed  hereto
as Exhibit A.

Section 1.14.  "Registration  Statement" shall mean a registration  statement on
Form S-3 (if use of such form is then  available to Focus  pursuant to the rules
of the SEC and,  if not,  on such  other form  promulgated  by the SEC for which
Focus then  qualifies  and which counsel for Focus shall deem  appropriate,  and
which form shall be  available  for the resale by  Creditor  of the  Registrable
Securities to be registered thereunder in accordance with the provisions of this
Agreement, the Registration Rights Agreement and in accordance with the intended
method of distribution of such  securities),  for the registration of the resale
by Creditor of the Registrable Securities under the Securities Act.

Section 1.15. "SEC" shall mean the Securities and Exchange Commission.

Section 1.16. "SEC Documents"  shall mean Focus's Annual Report on Form 10-K for
the fiscal year ended  December  31, 1998 and each  report,  proxy  statement or
registration  statement filed by Focus with the SEC pursuant to the Exchange Act
since the filing of such Annual Report through the date hereof.

Section 1.17.  "Shares" shall mean the shares of Common Stock received  pursuant
to this Agreement.

                                   ARTICLE II

                                  Consideration

Section 2.1. Consideration.

         (a) On or before  December  31,  1999 and upon the terms and subject to
the conditions set forth herein, each party agrees as follows:

                  (i)      Stock.  Focus agrees to transfer to Creditor  100,000
                           shares of Common Stock.

                  (ii)     Creditor  Release.   Creditor,  for  itself  and  its
                           respective   parents,    subsidiaries,    affiliates,
                           officers,  directors,  employees,  agents,  trustees,
                           beneficiaries,   successors   and   assigns,   hereby
                           release,  remise and  forever  discharge  Focus,  its
                           respective   parents,    subsidiaries,    affiliates,
                           officers,  directors,  employees,  agents,  trustees,
                           beneficiaries,  successors and assigns  (collectively
                           referred to hereinafter as "Focus Released  Parties")
                           of and  from  the  Balance  and any  and all  claims,
                           suits, demands, liabilities,  sums, dues, actions and
                           causes of action that such Creditor has had, now has,
                           or can,  shall or may  have  against  Focus  Released
                           Parties,  or any of them,  from the  beginning of the
                           world until
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                                     - 4 -

                           this    date     (collectively,     the    "Claims").
                           Notwithstanding  the  foregoing,  both parties  agree
                           that the release contained in this Section 2.1(a)(ii)
                           shall only become effective on the Effective Date.

                  (iii)    Security  Interest.  The  Creditor  agrees  that  all
                           security  interests  relating to the  above-described
                           Claims shall be released immediately upon delivery of
                           the stock described above.

         (b) This  Agreement  is subject to the  satisfaction  of the  following
conditions:

                  (i)      delivery  of  original  fully-executed  Common  Stock
                           certificates to Creditor;

                  (ii)     delivery  of  all  excess   materials   purchased  by
                           Creditor for the  manufacture  of Focus  products and
                           held by the Creditor to any destination designated by
                           Focus within Taiwan; and

                  (iii)    delivery  to  Creditor  of  the  Registration  Rights
                           Agreement; and

Section 2.2. Risk of Claim Expanding.

Creditor hereby acknowledge and assume all risk, chance,  hazard,  likelihood or
possibility,  however large or remote,  that the Claims may be or become greater
or more extensive than is now known, anticipated or expected, that no promise or
inducement  has been  made to the  Creditor  except  the  consideration  recited
herein,  and that in executing this General  Release the Creditor do not rely on
and will not claim  reliance on any  statement  or  representation  of the Focus
Released  Parties or any of them  concerning the nature or extent of any Claims.
Focus hereby  acknowledges and assumes all risk, chance,  hazard,  likelihood or
possibility,  however large or remote, that the Claims may be or become small or
less  extensive than is now known,  anticipated or expected,  that no promise or
inducement has been made to the Focus Related  Parties except the  consideration
recited  herein,  and that in executing this General Release Focus does not rely
on and will  not  claim  reliance  on any  statement  or  representation  of the
Creditor  Released Parties or any of them concerning the nature or extent of any
Claims.

Section 2.3. Claims Doubtful.  Creditor understands that this General Release is
given in connection  with the settlement and compromise of disputed and doubtful
claims and that any payment or  consideration  given in  connection  herewith is
not, and may not be construed or taken as, an admission of liability on the part
of any of the Focus Released  Parties,  each of whom  expressly  denies any such
liability.
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                                     - 5 -

                                  ARTICLE III

                   Representations and Warranties of Creditor

Creditor, severally and not jointly, represents and warrants to Focus that:

Section  3.1.  Intent.  Creditor is  entering  into this  Agreement  for his own
account and not with a view to or for sale in connection  with any  distribution
of the Common Stock, except in accordance with federal and state securities laws
applicable to any such disposition. Creditor has no present arrangement (whether
or not legally binding) at any time to sell the Shares or Additional  Shares (as
defined  later  herein) to or through any person or entity;  provided,  however,
that by making the representations  herein, Creditor does not agree to hold such
securities  for any minimum or other  specific  term and  reserves  the right to
dispose of the  Shares  and  Additional  Shares at any time in  accordance  with
federal and state securities laws applicable to such disposition.

Section 3.2. Authority. This Agreement and each agreement attached as an Exhibit
hereto which is required to be executed by the Creditor has been duly authorized
and validly  executed  and  delivered by the Creditor and is a valid and binding
agreement of the Creditor  enforceable  against it in accordance with its terms,
subject to applicable  bankruptcy,  insolvency,  or similar laws relating to, or
affecting  generally the  enforcement  of,  Creditor'  rights and remedies or by
other equitable principles of general application.

Section 3.3. Sophisticated Investor.

Creditor is a  sophisticated  investor (as  described in Rule  506(b)(2)(ii)  of
Regulation D) and an  accredited  investor (as defined in Rule 501 of Regulation
D), and Creditor has such  experience in business and financial  matters that he
has  the  capacity  to  protect  his  own  interests  in  connection  with  this
transaction  and is capable of evaluating  the merits and risks of an investment
in the Common  Stock.  Creditor  acknowledges  that an  investment in the Common
Stock is  speculative  and  involves a high degree of risk.

Section  3.4.  Not  an  Affiliate.  Creditor  is  not an  officer,  director  or
"affiliate"  (as that  term is  defined  in Rule 405 of the  Securities  Act) of
Focus.

Section 3.5. Absence of Conflicts.  The execution and delivery of this Agreement
and each  agreement  which is attached as an Exhibit  hereto and executed by the
Creditor  in  connection  herewith,  and the  consummation  of the  transactions
contemplated hereby and thereby, and compliance with the requirements hereof and
thereof by the  Creditor,  will not violate any law,  rule,  regulation,  order,
writ,  judgment,  injunction,  decree or award  binding on the  Creditor  or (a)
violate any  provision of any  indenture,  instrument  or agreement to which the
Creditor  are a party or is  subject,  or by which  the  Creditor  or any of its
assets is bound; (b) conflict with or constitute a material default  thereunder;
(c) result in the creation or  imposition  of any lien  pursuant to the terms of
any such  indenture,  instrument  or  agreement,  or  constitute a breach of any
fiduciary  duty owed by the  Creditor  to any third  party;  or (d)  require the
approval  of any  third-party  (which  has not been  obtained)  pursuant  to any
material contract,  agreement,  instrument,  relationship or legal obligation to
which the  Creditor  are  subject or to which any of its assets,  operations  or
management may be
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                                     - 6 -

subject.  The Creditor further agrees that to the extent that this Agreement and
each  agreement  which is  attached  as an Exhibit  hereto and  executed  by the
Creditor in connection  herewith  conflicts  with or requires the consent of the
Creditor due to previous  agreements  with Focus,  consummation  hereof shall be
deemed to waive such  conflicts  and be an express  consent to execution of this
Agreement.

Section 3.6. Enforceable

This Agreement and the Registration  Rights Agreement have been duly and validly
authorized,  executed and delivered on behalf of Focus and are valid and binding
agreements of Focus  enforceable  in accordance  with their terms.

Section  3.7.  Disclosure;  Access to  Information.  Creditor  has  received all
documents, records, books and other publicly available information pertaining to
Creditor's  investment in Focus that have been  requested by Creditor.  Focus is
subject to the periodic reporting requirements of the Exchange Act, and Creditor
has reviewed copies of all SEC Documents deemed relevant by Creditor.

Section 3.8. Manner of Sale. At no time was Creditor presented with or solicited
by or through any leaflet, public promotional meeting,  television advertisement
or any other form of general solicitation or advertising.

                                   ARTICLE IV

                     Representations and Warranties of Focus

Focus  represents and warrants to the Creditor that,  except as set forth on the
Disclosure Schedule prepared by Focus and attached hereto:

Section 4.1.  Organization of Focus.Focus is a corporation duly incorporated and
existing in good  standing  under the laws of the State of Delaware  and has all
requisite corporate authority to own its properties and to carry on its business
as now being  conducted.  Focus does not have any  subsidiaries and does not own
more that fifty percent (50%) of or control any other business  entity except as
set forth in the SEC Documents.  Focus is duly qualified and is in good standing
as a foreign  corporation  to do  business  in every  jurisdiction  in which the
nature  of  the  business   conducted  or  property   owned  by  it  makes  such
qualification  necessary,  other than  those in which the  failure so to qualify
would not have a Material Adverse Effect.

Section  4.2.  Authority.  (i)  Focus  has the  requisite  corporate  power  and
corporate  authority  to enter  into and  perform  its  obligations  under  this
Agreement and the Registration  Rights Agreement,  and to issue the Shares,  and
the Additional  Shares pursuant to their respective  terms,  (ii) the execution,
issuance and delivery of this Agreement,  the Registration Rights Agreement, the
Common  Stock   certificates  by  Focus  and  the  consummation  by  it  of  the
transactions  contemplated  hereby have been duly  authorized  by all  necessary
corporate  action and no further consent or  authorization of Focus or its Board
of  Directors  or  stockholders  is  required,  and (iii)  this  Agreement,  the
Registration  Rights Agreement,  the Common Stock certificates  representing the
Shares have been duly executed and delivered by Focus and shall constitute valid
and binding obligations of Focus enforceable against
<PAGE>
                                     - 7 -

Focus in  accordance  with their  terms,  except as such  enforceability  may be
limited by applicable  bankruptcy,  insolvency,  or similar laws relating to, or
affecting  generally the  enforcement  of,  Creditor'  rights and remedies or by
other equitable principles of general application.

Section 4.3.  Capitalization.  The authorized capital stock of Focus consists of
30,000,000  shares  of  Common  Stock,  $0.01  par  value  per  share,  of which
21,012,701  shares  are issued  and  outstanding  as of  November  19,  1999 and
3,000,000 shares of preferred  stock,  par value $0.01 per share,  none of which
shares are issued and outstanding. All of the outstanding shares of Common Stock
of Focus have been duly and validly authorized and issued and are fully paid and
non-assessable.  The Shares, when issued in accordance with this Agreement, will
be duly and validly authorized and issued and are fully paid and non-assessable.

Section 4.4.  Common  Stock Focus has  registered  its Common Stock  pursuant to
Section  12(b) or (g) of the  Exchange  Act and is in full  compliance  with all
reporting  requirements of the Exchange Act, and Focus is in compliance with all
requirements  for the continued  listing or quotation of its Common  Stock,  and
such Common Stock is currently listed or quoted on, the Principal  Market. As of
the date hereof,  the Principal  Market is the Nasdaq  SmallCap Market and Focus
has not received any notice regarding,  and to its knowledge there is no threat,
of the termination or  discontinuance of the eligibility of the Common Stock for
such listing.

Section  4.5.  SEC  Documents.  Focus has made  available  to Creditor  true and
complete  copies of the SEC  Documents.  Focus has not  provided to Creditor any
information that,  according to applicable law, rule or regulation,  should have
been  disclosed  publicly  prior to the date hereof by Focus,  but which has not
been so disclosed.  As of their respective dates, the SEC Documents  complied in
all material  respects with the  requirements of the Exchange Act, and rules and
regulations  of the SEC  promulgated  thereunder  and the SEC  Documents did not
contain any untrue statement of a material fact or omit to state a material fact
required  to be stated  therein  or  necessary  in order to make the  statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.  The  financial  statements  of Focus  included in the SEC Documents
complied in all material  respects with applicable  accounting  requirements and
the published  rules and  regulations of the SEC or other  applicable  rules and
regulations  with respect thereto at the time of such inclusion.  Such financial
statements have been prepared in accordance with generally  accepted  accounting
principles applied on a consistent basis during the periods involved (except (i)
as may be otherwise indicated in such financial  statements or the notes thereto
or (ii) in the case of unaudited interim statements,  to the extent they exclude
footnotes or may be condensed or summary  statements)  and fairly present in all
material  respects the  financial  position of Focus as of the dates thereof and
the results of operations and cash flows for the periods then ended (subject, in
the case of unaudited interim statements, to normal year-end audit adjustments).
Neither  Focus  nor  any of its  subsidiaries  has  any  material  indebtedness,
obligations or liabilities of any kind (whether accrued, absolute, contingent or
otherwise, and whether due or to become due) that would have been required to be
reflected  in,  reserved  against  or  otherwise   described  in  the  financial
statements or in the notes thereto in accordance with GAAP,  which was not fully
reflected  in,  reserved  against  or  otherwise   described  in  the  financial
statements  or the  notes  thereto  included  in the  SEC  Documents  or was not
incurred  in the  ordinary  course of  business  consistent  with  Focus's  past
practices since the last date of such financial statements.
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                                     - 8 -

Section  4.6.  Exemption  from  Registration;  Valid  Issuances.  Subject to the
accuracy of  Creditor's  representations  in Article III, the sale of the Shares
will not require  registration  under the  Securities  Act and/or any applicable
state securities law. When issued and paid for in accordance with the Additional
Shares will be duly and validly issued, fully paid, and non-assessable.  Neither
the sales of the  Shares or the  Additional  Shares  pursuant  to,  nor  Focus's
performance of its obligations  under, this Agreement,  the Registration  Rights
Agreement  will (i) result in the creation or  imposition by Focus of any liens,
charges,  claims or other encumbrances upon the Shares, or the Additional Shares
or, except as contemplated  herein,  any of the assets of Focus, or (ii) entitle
the holders of  Outstanding  Capital  Shares to  preemptive  or other  rights to
subscribe for or acquire the Capital  Shares or other  securities of Focus.  The
Shares or the Additional Shares shall not subject Creditor to personal liability
to Focus or its Creditor by reason of the possession thereof.

Section  4.7.  No  General   Solicitation  or  Advertising  in  Regard  to  this
Transaction.  Neither Focus nor any of its  affiliates  nor, to the knowledge of
Focus,  any  person  acting on its or their  behalf  (i) has  conducted  or will
conduct  any  general  solicitation  (as  that  term is used in Rule  502(c)  of
Regulation D) or general  advertising  with respect to the sale of the Shares or
(ii) made any offers or sales of any security or solicited any offers to buy any
security under any circumstances  that would require  registration of the Shares
or the Additional Shares under the Securities Act.

Section 4.8. No  Conflicts.  The  execution,  delivery and  performance  of this
Agreement  by  Focus  and  the   consummation  by  Focus  of  the   transactions
contemplated hereby, including without limitation the issuance of the Shares and
the Additional  Shares, do not and will not (i) result in a violation of Focus's
Certificate of  Incorporation  or By-Laws or (ii) conflict with, or constitute a
material  default  (or an event that with  notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment,
acceleration  or  cancellation   of,  any  material   agreement,   indenture  or
instrument, or any "lock-up" or similar provision of any underwriting or similar
agreement  to which  Focus is a party,  or (iii)  result in a  violation  of any
federal,  state or local  law,  rule,  regulation,  order,  judgment  or  decree
(including  federal and state  securities  laws and  regulations)  applicable to
Focus or by which any material  property or asset of Focus is bound or affected,
nor is Focus  otherwise in violation  of,  conflict with or default under any of
the foregoing (except in each case for such conflicts,  defaults,  terminations,
amendments,  accelerations,  cancellations  and  violations  as would  not have,
individually or in the aggregate,  a Material Adverse  Effect).  The business of
Focus is not being conducted in violation of any law, ordinance or regulation of
any governmental entity, except for possible violations that either singly or in
the aggregate would not have a Material  Adverse  Effect.  Focus is not required
under any Federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency in order for it to  execute,  deliver or perform any of its
obligations under this Agreement or issue and sell the Shares in accordance with
the terms  hereof  (other  than any SEC,  Principal  Market or state  securities
filings that may be required to be made by Focus subsequent hereto (all of which
will be made on a timely basis),  any  registration  statement that may be filed
pursuant hereto,  and any shareholder  approval required by the rules applicable
to companies whose common stock trades on the Principal Market);  provided that,
for purposes of the representation made in this sentence,  Focus is assuming and
relying upon the  accuracy of the relevant  representations  and  agreements  of
Creditor herein.
<PAGE>
                                     - 9 -

Section 4.9. No Material  Adverse Change.  Since September 30, 1999, no Material
Adverse Effect has occurred or exists with respect to Focus, except as disclosed
in the SEC Documents.

Section 4.10. No Undisclosed Events or Circumstances.  Since September 30, 1999,
no event or  circumstance  has  occurred or exists with  respect to Focus or its
businesses,  properties,  prospects,  operations or financial  condition,  that,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  prior  to the  date  hereof  by Focus  but  which  has not been so
publicly announced or disclosed in the SEC Documents.

Section  4.11.  No  Integrated  Offering.  Other than  pursuant to an  effective
registration  statement under the Securities Act, or pursuant to the issuance or
exercise of employee  stock  options,  or  pursuant to its  discussion  with the
Creditor in connection with the transactions  contemplated hereby, Focus has not
issued,  offered or sold its Common Stock, or any securities convertible into or
exchangeable  or exercisable  for Common Stock within the six-month  period next
preceding  the date  hereof,  and Focus  shall not permit any of its  directors,
officers or affiliates  directly or indirectly to take,  any action  (including,
without  limitation,  any  offering  or  sale to any  Person  of the  Shares  or
Additional  Shares), so as to make unavailable the exemption from Securities Act
registration  being  relied  upon by Focus for the offer and sale to Creditor of
the Shares (and the Additional Shares) as contemplated by this Agreement.

Section 4.12. No Misleading or Untrue Communication. Focus and, to the knowledge
of Focus, any person  representing Focus or any other person selling or offering
to sell the  Shares in  connection  with the  transaction  contemplated  by this
Agreement, have not made, at any time, any oral communication in connection with
the offer or sale of the same which contained any untrue statement of a material
fact or  omitted  to state  any  material  fact  necessary  in order to make the
statements,  in the light of the  circumstances  under which they were made, not
misleading.

Section  4.13.  Insurance.  Focus and each  subsidiary  maintains  property  and
casualty,  general  liability,  workers'  compensation,   environmental  hazard,
personal injury and other similar types of insurance with financially  sound and
reputable  insurers that is adequate,  consistent  with  industry  standards and
Focus's  historical claims  experience.  Focus has not received notice from, and
has no  knowledge of any threat by, any insurer  (that has issued any  insurance
policy to Focus) that such  insurer  intends to deny  coverage  under or cancel,
discontinue or not renew any insurance policy presently in force.

Section 4.14. Tax Matters.

(a) Focus and each  subsidiary has filed all Tax Returns which it is required to
file under  applicable  laws; all such Tax Returns are true and accurate and has
been prepared in compliance with all applicable  laws;  Focus has paid all Taxes
due and owing by it or any subsidiary (whether or not such Taxes are required to
be shown on a Tax Return)  and have  withheld  and paid over to the  appropriate
taxing  authorities all Taxes which it is required to withhold from amounts paid
or owing to any  employee,  stockholder,  creditor or other third  parties;  and
since  December  31,  1998,  the  charges,  accruals and reserves for Taxes with
respect to Focus  (including any provisions for deferred
<PAGE>
                                     - 10 -

income  taxes)  reflected  on the books of Focus are  adequate  to cover any Tax
liabilities  of Focus if its current tax year were treated as ending on the date
hereof.

         (b) No claim  has been  made by a taxing  authority  in a  jurisdiction
where Focus does not file tax returns that Focus or any  subsidiary is or may be
subject to taxation by that jurisdiction.  There are no foreign,  federal, state
or local tax audits or administrative or judicial  proceedings  pending or being
conducted with respect to Focus or any subsidiary; no information related to Tax
matters  has been  requested  by any  foreign,  federal,  state or local  taxing
authority;  and,  except as disclosed  above,  no written  notice  indicating an
intent  to open an audit  or other  review  has  been  received  by Focus or any
subsidiary from any foreign, federal, state or local taxing authority. There are
no material  unresolved  questions or claims  concerning  Focus's Tax liability.
Focus (A) has not executed or entered into a closing  agreement  pursuant to ss.
7121 of the Internal  Revenue Code or any predecessor  provision  thereof or any
similar provision of state, local or foreign law; or (B) has not agreed to or is
required to make any adjustments  pursuant to ss. 481(a) of the Internal Revenue
Code or any  similar  provision  of state,  local or foreign  law by reason of a
change in accounting method initiated by Focus or any of its subsidiaries or has
any  knowledge  that the IRS has  proposed  any such  adjustment  or  change  in
accounting  method,  or has any  application  pending with any taxing  authority
requesting  permission for any changes in accounting  methods that relate to the
business  or  operations  of  Focus.  Focus  has not been a United  States  real
property holding corporation within the meaning of ss. 897(c)(2) of the Internal
Revenue Code during the applicable period specified in ss.  897(c)(1)(A)(ii)  of
the Internal Revenue Code.

         (c) Focus has not made an  election  under ss.  341(f) of the  Internal
Revenue Code.  Focus is not liable for the Taxes of another person that is not a
subsidiary of Focus under (A) Treas. Reg. ss. 1.1502-6 (or comparable provisions
of state,  local or foreign  law),  (B) as a  transferee  or  successor,  (C) by
contract or indemnity or (D) otherwise.  Focus is not a party to any tax sharing
agreement.  Focus has not made any payments, is obligated to make payments or is
a party to an agreement  that could  obligate it to make any payments that would
not be deductible under ss. 280G of the Internal Revenue Code.

         (d) For purposes of this Section 4.16:

                  "IRS" means the United States Internal Revenue Service.

                  "Tax" or "Taxes" means federal, state, county, local, foreign,
                  or  other  income,  gross  receipts,  ad  valorem,  franchise,
                  profits,  sales  or  use,  transfer,   registration,   excise,
                  utility,  environmental,   communications,  real  or  personal
                  property,  capital  stock,  license,  payroll,  wage or  other
                  withholding,  employment,  social security,  severance, stamp,
                  occupation, alternative or add-on minimum, estimated and other
                  taxes of any kind whatsoever  (including,  without limitation,
                  deficiencies,   penalties,  additions  to  tax,  and  interest
                  attributable thereto) whether disputed or not.

                  "Tax Return"  means any return,  information  report or filing
                  with  respect  to  Taxes,  including  any  schedules  attached
                  thereto and including any amendment thereof.
<PAGE>
                                     - 11 -

Section 4.15. Property.  Neither Focus nor any of its subsidiaries owns any real
property.  Each of Focus and its  subsidiaries  has good and marketable title to
all personal property owned by it, free and clear of all liens, encumbrances and
defects except such as do not  materially  affect the value of such property and
do not  materially  interfere  with the use made and proposed to be made of such
property by Focus; and to Focus's knowledge any real property,  mineral or water
rights,  and buildings  held under lease by Focus as tenant are held by it under
valid,  subsisting  and  enforceable  leases  with  such  exceptions  as are not
material and do not interfere  with the use made and intended to be made of such
property, mineral or water rights, and buildings by Focus.

Section 4.16.  Intellectual Property. Each of Focus and its subsidiaries owns or
possesses   adequate  and  enforceable   rights  to  use  all  patents,   patent
applications,  trademarks,  trademark applications,  trade names, service marks,
copyrights, copyright applications,  licenses, know-how (including trade secrets
and  other   unpatented   and/or   unpatentable   proprietary  or   confidential
information,  systems or procedures)  and other similar  rights and  proprietary
knowledge  (collectively,  "Intangibles")  necessary  for  the  conduct  of  its
business as now being conducted.  To Focus's  knowledge,  except as disclosed in
the  SEC  Documents  and  except  as  to  counterclaims  asserted  in  a  patent
infringement litigation between Focus and AVerMedia Technologies,  Inc., neither
Focus nor any of its  subsidiaries  is  infringing  upon or in conflict with any
right of any other person with respect to any  Intangibles.  Except as disclosed
in the SEC Documents,  no adverse claims have been asserted by any person to the
ownership or use of any  Intangibles and Focus has no knowledge of any basis for
such claim.

Section  4.17.  Internal  Controls and  Procedures.  Focus  maintains  books and
records and internal accounting controls which provide reasonable assurance that
(i) all transactions to which Focus or any subsidiary is a party or by which its
properties  are bound are executed  with  management's  authorization;  (ii) the
recorded  accounting  of Focus's  consolidated  assets is compared with existing
assets at regular  intervals;  (iii)  access to Focus's  consolidated  assets is
permitted  only in  accordance  with  management's  authorization;  and (iv) all
transactions  to which  Focus  or any  subsidiary  is a party  or by  which  its
properties  are bound are  recorded as necessary  to permit  preparation  of the
financial  statements  of Focus  in  accordance  with  U.S.  generally  accepted
accounting principles.

Section 4.18. Payments and Contributions. Neither Focus, any subsidiary, nor any
of its directors,  officers or, to its knowledge,  other  employees has (i) used
any Focus funds for any unlawful contribution,  endorsement, gift, entertainment
or other unlawful expense relating to political  activity;  (ii) made any direct
or  indirect  unlawful  payment  of  Focus  funds  to any  foreign  or  domestic
government  official  or  employee;  (iii)  violated or is in  violation  of any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) made
any bribe, rebate, payoff, influence payment,  kickback or other similar payment
to  any   person   with   respect   to   Focus   matters.   Section   4.19.   No
Misrepresentation.The  representations and warranties of Focus contained in this
Agreement, any schedule,  annex or exhibit hereto and any agreement,  instrument
or certificate furnished by Focus to the Creditor pursuant to this Agreement, do
not contain any untrue  statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements  therein,
in light of the  circumstances  under  which  they were  made,  not  misleading.
<PAGE>
                                     - 12 -

                                   ARTICLE V

                            Covenants of the Creditor

         Creditor, severally and not jointly, covenants with Focus that:

Section 5.1.  Compliance with Law. Creditor's trading activities with respect to
shares of Focus's Common Stock will be in compliance  with all applicable  state
and federal  securities laws, rules and regulations and rules and regulations of
the  Principal  Market on which  Focus's  Common  Stock is listed.  Section 5.2.
Security  Interests.Creditor  hereby  covenant and agree that each will,  at any
time  upon  request,   without   further  cost  to  Focus  and  without  further
compensation,  execute and deliver any and all papers or instruments that may be
necessary or customary to release and/or  terminate any security  interests that
the Creditor may have in any assets of Focus.

                                   ARTICLE VI

                               Covenants of Focus

Section 6.1.  Registration  Rights.  Focus shall cause the  Registration  Rights
Agreement  to remain in full  force and  effect  and Focus  shall  comply in all
material respects with the terms thereof.

Section 6.2.  Reservation  of Common  Stock.  As of the date  hereof,  Focus has
reserved  and Focus shall  continue to reserve and keep  available at all times,
free of  preemptive  rights,  shares of Common Stock for the purpose of enabling
Focus to issue the Shares.

Section  6.3.  Listing  of  Common  Stock.   Focus  hereby  agrees  to  use  all
commercially  reasonable  efforts to  maintain  the  listing  and trading of the
Common Stock on a Principal  Market,  and as soon as reasonably  practicable  to
list the Shares on the Principal Market.  Focus further agrees, if Focus applies
to have the Common Stock traded on any other Principal  Market,  it will include
in such application the Shares,  and will take such other action as is necessary
or desirable in the opinion of Creditor to cause the Shares to be listed on such
other  Principal  Market as  promptly  as  possible.  Focus  will  comply in all
respects with Focus's  reporting,  filing and other obligations under the bylaws
or rules of the Principal  Market and shall provide  Creditor with copies of any
correspondence  to or from such  Principal  Market which  questions or threatens
delisting of the Common Stock,
<PAGE>
                                     - 13 -

within three (3) Trading Days of Focus's  receipt  thereof,  until  Creditor has
disposed of all of his Registrable Securities.

Section  6.4.  Exchange Act  Registration.  Focus will cause its Common Stock to
continue to be  registered  under Section 12(b) or (g) of the Exchange Act, will
use all  commercially  reasonable  efforts  to comply in all  respects  with its
reporting and filing  obligations  under the Exchange Act, and will not take any
action or file any document (whether or not permitted by the Exchange Act or the
rules  thereunder) to terminate or suspend such  registration or to terminate or
suspend its reporting and filing  obligations  under said Act until Creditor has
disposed of all of his Registrable Securities.

Section 6.5.  Legends.  The certificates  evidencing the Registrable  Securities
shall be free of legends, except as set forth in Article IX.

Section 6.6. Corporate Existence;  Conflicting  Agreements.  Focus will take all
steps necessary to preserve and continue the corporate existence of Focus. Focus
shall not enter into any agreement,  the terms of which agreement would restrict
or impair the right or ability of Focus to perform any of its obligations  under
this Agreement or any of the other agreements attached as exhibits hereto.

Section 6.7. Consolidation;  Merger. Focus shall not, at any time after the date
hereof,  effect any merger or consolidation of Focus with or into, or a transfer
of all or  substantially  all of the  assets  of Focus  to,  another  entity  (a
"Consolidation  Event") unless the resulting  successor or acquiring  entity (if
not Focus)  assumes by written  instrument or by operation of law the obligation
to deliver to Creditor  such shares of stock  and/or  securities  as Creditor is
entitled to receive pursuant to this Agreement.

Section 6.8.  Additional  Shares.  Except as provided by this paragraph 6.8, the
Creditor  shall not receive any  additional  Shares of Common Stock beyond those
contemplated by Section  2.1(a)(i) herein above. The foregoing  notwithstanding,
if, the Average Market Price is less than three dollars and  twenty-three  cents
($3.23) per share then  Creditor  shall  receive  and Focus shall issue  thereto
within five business days of the  determination  of the Average  Market Price, a
certificate  bearing a restrictive  legend for additional Shares of Common Stock
("Additional  Shares") up to a maximum of an additional 100,000 shares where the
amount of such additional shares is calculated as follows (rounded to the lowest
whole number):

         Additional  Shares =  [Balance  - [Average  Market  Price]*[Shares]]  /
Average Market Price

                                  ARTICLE VII

                            Survival; Indemnification

Section 7.1.  Survival.  The  representations,  warranties and covenants made by
each of Focus  and  Creditor  in this  Agreement,  the  annexes,  schedules  and
exhibits hereto and in each instrument,  agreement and certificate  entered into
and delivered by them pursuant to this Agreement, shall survive the consummation
of the transactions contemplated hereby for a period of six (6) months.
<PAGE>
                                     - 14 -

                                  ARTICLE VIII

         Due Diligence Review; Non-Disclosure of Non-Public Information.

Section  8.1. Due  Diligence  Review.  Subject to Section 8.2,  Focus shall make
available for inspection and review by Creditor, advisors to and representatives
of  Creditor  (who  may or may  not be  affiliated  with  Creditor  and  who are
reasonably  acceptable  to  Focus),  and any  underwriter  participating  in any
disposition of the Registrable  Securities on behalf of Creditor pursuant to the
Registration  Statement,  any amendment or  supplement  thereto or any Nasdaq or
other  filing,  all SEC  Documents and other filings with the SEC, and all other
publicly  available  corporate  documents  and  properties  of  Focus  as may be
reasonably necessary for the purpose of such review, and cause Focus's officers,
directors  and  employees  to supply  all such  publicly  available  information
reasonably  requested  by  Creditor  or  any  such  representative,  advisor  or
underwriter in connection with the Registration  Statement  (including,  without
limitation,  in response to all questions and other inquiries reasonably made or
submitted  by any of them),  prior to and from time to time after the filing and
effectiveness  of the  Registration  Statement  for the sole purpose of enabling
Creditor  and  such   representatives,   advisors  and  underwriters  and  their
respective  accountants  and  attorneys  to  conduct  initial  and  ongoing  due
diligence with respect to Focus and the accuracy of the Registration Statement.

Section 8.2. Non-Disclosure of Non-Public Information.

         (a)  Focus  shall  not  disclose  material  non-public  information  to
Creditor,  advisors to or representatives of Creditor unless prior to disclosure
of such  information  Focus  identifies  such  information  as being  non-public
information and provides Creditor,  such advisors and  representatives  with the
opportunity  to  accept or refuse to  accept  such  non-public  information  for
review. Other than disclosure of any comment letters received from the SEC staff
with  respect to the  Registration  Statement,  Focus  may,  as a  condition  to
disclosing any non-public information hereunder, require Creditor's advisors and
representatives  to enter into a  confidentiality  agreement in form and content
reasonably satisfactory to Focus and Creditor.

         (b) Nothing herein shall require Focus to disclose material  non-public
information  to  Creditor  or  their  advisors  or  representatives,  and  Focus
represents that it does not disseminate  material non-public  information to any
Creditor who purchase stock in Focus in a public offering,  to money managers or
to securities analysts,  provided, however, that notwithstanding anything herein
to the  contrary,  Focus will,  as  hereinabove  provided,  promptly  notify the
advisors and representatives of Creditor and, if any, underwriters, of any event
or the  existence of any  circumstance  (without any  obligation to disclose the
specific event or circumstance) of which it becomes aware, constituting material
non-public  information  (whether  or not  requested  of Focus  specifically  or
generally  during  the course of due  diligence  by such  persons or  entities),
which, if not disclosed in the prospectus included in the Registration Statement
would  cause such  prospectus  to
<PAGE>
                                     - 15 -

include a material misstatement or to omit a material fact required to be stated
therein in order to make the statements  therein,  in light of the circumstances
in which they were made, not misleading.  Nothing  contained in this Section 8.2
shall be  construed to mean that such  persons or entities  other than  Creditor
(without the written consent of Focus prior to disclosure of such information as
set forth in Section 8.2(a)) may not obtain non-public information in the course
of conducting  due diligence in accordance  with the terms of this Agreement and
nothing herein shall prevent any such persons or entities from  notifying  Focus
of their  opinion that based on such due  diligence by such persons or entities,
that the Registration  Statement contains an untrue statement of a material fact
or omits a material fact required to be stated in the Registration  Statement or
necessary  to  make  the  statements   contained   therein,   in  light  of  the
circumstances in which they were made, not misleading.

                                   ARTICLE IX

                      Legends; Transfer Agent Instructions

Section  9.1.  Legends.   Unless  otherwise  provided  below,  each  certificate
representing Registrable Securities will bear the following legend or equivalent
(the "Legend"):

THE SECURITIES  EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
U.S.  SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT"),  OR ANY OTHER
APPLICABLE  SECURITIES  LAWS AND HAVE BEEN ISSUED IN RELIANCE  UPON AN EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT  AND  SUCH  OTHER
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION  HEREIN
MAY BE SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
OF, EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT FROM SUCH REGISTRATION.

Section 9.2. No Other  Legend or Stock  Transfer  Restrictions.  No legend other
than the one  specified  in Section 9.1 has been or shall be placed on the share
certificates  representing  the  Registrable  Securities and no  instructions or
"stop transfer  orders," "stock transfer  restrictions,"  or other  restrictions
have been or shall be given to Focus's transfer agent with respect thereto other
than as expressly set forth in this Article IX.

Section 9.3. Creditor's Compliance.  Nothing in this Article shall affect in any
way Creditor's  obligations to comply with all applicable  securities  laws upon
resale of the Common Stock.
<PAGE>
                                     - 16 -

                                   ARTICLE X

                           Choice of Law; Arbitration

Section 10.1. Governing Law/Arbitration. This Agreement shall be governed by and
construed in accordance with the laws of the State of  Massachusetts  applicable
to contracts made in  Massachusetts  by persons  domiciled in Boston and without
regard to its  principles of conflicts of laws. Any dispute under this Agreement
shall be submitted to  arbitration  under the American  Arbitration  Association
(the  "AAA") in Boston,  Massachusetts,  and shall be finally  and  conclusively
determined  by the decision of a board of  arbitration  consisting  of three (3)
members  (hereinafter  referred  to as  the  "Board  of  Arbitration")  selected
according to the rules governing the AAA. The Board of Arbitration shall meet on
consecutive business days in Boston, Massachusetts, and shall reach and render a
decision in writing  (concurred  in by a majority of the members of the Board of
Arbitration)  with  respect to the  amount,  if any,  which the losing  party is
required to pay to the other party in respect of a claim  filed.  In  connection
with  rendering its decisions,  the Board of Arbitration  shall adopt and follow
the  laws of the  State  of  Massachusetts  unless  the  matter  at issue is the
corporation  law  of  Focus's  state  of  incorporation,   in  which  event  the
corporation  law of such  jurisdiction  shall  govern such issue.  To the extent
practical,  decisions of the Board of Arbitration shall be rendered no more than
thirty (30) calendar days following  commencement  of  proceedings  with respect
thereto.  The Board of  Arbitration  shall  cause  its  written  decision  to be
delivered to all parties involved in the dispute. Any decision made by the Board
of  Arbitration  (either  prior to or after the  expiration  of such thirty (30)
calendar day period)  shall be final,  binding and  conclusive on the parties to
the dispute,  and entitled to be enforced to the fullest extent permitted by law
and entered in any court of  competent  jurisdiction.  The Board of  Arbitration
shall be authorized and is hereby directed to enter a default  judgment  against
any party failing to  participate in any  proceeding  hereunder  within the time
periods set forth in the AAA rules. The non-prevailing  party to any arbitration
(as  determined  by the  Board of  Arbitration)  shall pay the  expenses  of the
prevailing party,  including reasonable attorney's fees, in connection with such
arbitration.  Any party  shall be entitled  to obtain  injunctive  relief from a
court in any case where such relief is available and the prevailing  party shall
likewise be entitled to be paid their expenses,  including reasonable attorney's
fees.

                                   ARTICLE XI

                                   Assignment

Section 11.1. Assignment.  Neither this Agreement nor any rights of the Creditor
or  Focus  hereunder  may be  assigned  by  either  party to any  other  person.
Notwithstanding the foregoing,  (a) the provisions of this Agreement shall inure
to the benefit of, and be enforceable by, any permitted transferee of any of the
Shares  purchased or acquired by Creditor  hereunder  with respect to the Shares
held by such  person,  and (b) upon the prior  written  consent of Focus,  which
consent shall not  unreasonably be withheld or delayed,  Creditor's  interest in
this  Agreement  may be assigned at any time,  in whole or in part, to any other
person or entity (including any Affiliate of a Creditor) who

<PAGE>
                                     - 17 -

agrees to make the representations  and warranties  contained in Article III and
who agrees to be bound by the terms of this Agreement.

                                  ARTICLE XII

                                     Notices

Section 12.1. Notices. All notices, demands, requests, consents,  approvals, and
other  communications  required or permitted  hereunder shall be in writing and,
unless otherwise specified herein,  shall be (i) hand delivered,  (ii) deposited
in the mail, registered or certified, return receipt requested, postage prepaid,
(iii) delivered by reputable air courier service with charges  prepaid,  or (iv)
transmitted by facsimile,  addressed as set forth below or to such other address
as such party shall have specified most recently by written  notice.  Any notice
or other  communication  required or  permitted to be given  hereunder  shall be
deemed effective (a) upon hand delivery or delivery by facsimile,  with accurate
confirmation  generated by the transmitting facsimile machine, at the address or
number  designated  below (if delivered on a business day during normal business
hours where such notice is to be received),  or the first business day following
such delivery (if delivered  other than on a business day during normal business
hours  where such notice is to be  received)  or (b) on the first  business  day
following  the date of sending by  reputable  courier  service,  fully  prepaid,
addressed  to such  address,  or (c) upon  actual  receipt of such  mailing,  if
mailed. The addresses for such communications shall be:

If to Focus:                    600 Research Drive
                                Wilmington, MA  01887
                                Attention: Chris Ricci
                                Telephone: (978) 988-5888
                                Facsimile: (978) 661-0160

if to the Creditor:             As set forth on the signature pages hereto

                                Asia ITN LTD.
                                No. 508, 16F-2 Chung Hsiao E. Rd.
                                Section 5, Taipei, Taiwan, ROC
                                Telephone: 886-2-2759-3515
                                FAX: 886-2-2759-3513

With a copy to:                 Steven L. Cantor, Esq.
                                Steven L. Cantor, P.A.
                                777 Brickell Avenue Suite 500
                                Miami, FL 33131
                                Tel: (305) 374-3886
                                Fax: (305) 371-4564

Either party hereto may from time to time change its address or facsimile number
for notices  under
<PAGE>
                                     - 18 -

this Section 12.1 by giving written notice of such changed  address or facsimile
number to the other party hereto as provided in this Section 12.1.

                                  ARTICLE XIII

                                  Miscellaneous

Section 13.1. Counterparts/Facsimile/Amendments.  This Agreement may be executed
in multiple counterparts,  each of which may be executed by less than all of the
parties  and  shall  be  deemed  to be an  original  instrument  which  shall be
enforceable  against the parties actually executing such counterparts and all of
which together shall constitute one and the same instrument. Except as otherwise
stated herein, in lieu of the original  documents,  a facsimile  transmission or
copy of the original  documents  shall be as effective  and  enforceable  as the
original.  This  Agreement  may be  amended  only by a writing  executed  by all
parties.

Section 13.2.  Entire  Agreement.  This  Agreement,  the agreements  attached as
Exhibits hereto,  which include,  but are not limited to the Registration Rights
Agreement,  set forth the entire  agreement  and  understanding  of the  parties
relating  to  the  subject   matter   hereof  and   supersedes   all  prior  and
contemporaneous agreements, negotiations and understandings between the parties,
both oral and  written  relating  to the subject  matter  hereof.  The terms and
conditions  of all Exhibits to this  Agreement are  incorporated  herein by this
reference  and shall  constitute  part of this  Agreement  as is fully set forth
herein.

Section 13.3.  Severability.  In the event that any provision of this  Agreement
becomes or is  declared  by a court of  competent  jurisdiction  to be  illegal,
unenforceable  or void,  this Agreement  shall continue in full force and effect
without said provision;  provided that such severability shall be ineffective if
it materially changes the economic benefit of this Agreement to any party.

Section  13.4.  Headings.  The  headings  used in this  Agreement  are  used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

Section 13.5.  Number and Gender.  There may be one or more Creditor  parties to
this  Agreement,  which  Creditor  may  be  natural  persons  or  entities.  All
references to plural  Creditor shall apply equally to a single Creditor if there
is only one  Creditor,  and all  references  to a Creditor  as "it" shall  apply
equally to a natural person.

Section 13.6. Reporting Entity for the Common Stock. The reporting entity relied
upon for the  determination  of the trading  Creditor  or trading  volume of the
Common Stock on any given Trading Day for the purposes of this  Agreement  shall
be  Bloomberg,  L.P. or any successor  thereto.  The written  mutual  consent of
Creditor and Focus shall be required to employ any other reporting entity.

Section  13.7.  Replacement  of  Certificates.  Upon  (i)  receipt  of  evidence
reasonably  satisfactory to Focus of the loss, theft,  destruction or mutilation
of a certificate  representing the Shares and (ii) in the case of any such loss,
theft  or  destruction  of  such  certificate,  upon  delivery  of an  indemnity

<PAGE>
                                     - 19 -

agreement or security reasonably  satisfactory in form to Focus (which shall not
include the posting of any bond) or (iii) in the case of any such mutilation, on
surrender  and  cancellation  of such  certificate,  Focus at its  expense  will
execute and deliver, in lieu thereof, a new certificate of like tenor.

Section 13.8.  Fees and Expenses.  Each of Focus and the Creditor  agrees to pay
its  own  expenses  incident  to all  negotiations  related  to  this  agreement
(including,  but  not  limited  to,  legal  fees)  and  the  performance  of its
obligations hereunder.

         The Creditor and Focus each acknowledges that by the signing hereof the
Creditor and Focus each admit to reading and  understanding  each and every line
and the contents and effect of this General Release, that the Creditor and Focus
are each  represented  by an attorney who has reviewed this General  Release and
given  Creditor  legal advice  pertaining  to this General  Release prior to the
Creditor or Focus signing this General  Release,  and that the signing hereof is
the  free  act  and  deed of the  Creditor  and  Focus  or its  duly  authorized
representative.

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

FOCUS ENHANCEMENTS, INC.                          ASIA ITN LTD.

By: /s/ Christopher P. Ricci                      By: /s/ Eiran Ben Dashan
    Christopher P. Ricci,                             Eiran Ben Dashan,
    Sr. Vice President & General Counsel              President
<PAGE>
                                    AMENDMENT

         This  Amendment  (this  "Amendment")  is entered into as of February 4,
2000,  modifies  certain  terms and  conditions of the  below-described  General
Release Agreement (the "Original  Agreement") between Focus  Enhancements,  Inc.
("Focus") and Asia ITN LTD. ("Creditor") and shall be deemed for all purposes to
be  effective  as of the  effective  date  of  the  Original  Agreement.  Unless
specifically  noted  herein,  all other terms of the  Original  Agreement  shall
remain in full force and effect, including any terms that survive termination of
the Original Agreement.

         WHEREAS,  Focus and Creditor have heretofore  entered into the Original
Agreement,  more  particularly  described  as  the  General  Release  Agreement,
effective as of November 19, 1999;

         WHEREAS,  Focus and  Creditor  desire,  upon  terms and  subject to the
conditions  hereinafter  set forth,  to amend the Original  Agreement in certain
respects for the purpose of clarifying the understanding of the parties;

         NOW,  THEREFORE,  in  consideration  of the mutual  promises  contained
herein and other valuable  consideration,  the receipt and  sufficiency of which
are hereby  acknowledged,  the parties  hereto,  intending  to be legally  bound
hereby, agree as follows:

Section 1.1       Defined Terms

         Except as otherwise  specified herein, the terms used in this Amendment
and defined in the  Original  Agreement  as amended  hereby (as so amended,  the
"Amended Agreement") shall have the meanings provided in the Original Agreement.

Section 1.2       Amendment

         Effective upon the execution of this  Amendment,  the provisions of the
Original Agreement referred to below are hereby amended as follows:

     1.   The third  paragraph  of the  Preamble of the  Original  Agreement  is
          restated in its entirety to read as follows:

          "WHEREAS,  Company and Creditor  agree,  upon execution  hereof,  that
          Focus  shall be  discharged  of all Claims (as defined  later  herein)
          relating to the foregoing;"

     2.   Section 1.4 of the  Original  Agreement is restated in its entirety to
          read as follows:

          "`Registration  Date'  shall  mean  the date on  which  the SEC  first
          declares effective a Registration  Statement registering the resale of
          the  Registrable  Securities as set forth in the  Registration  Rights
          Agreement."

     3.   Section 1.7 of the  Original  Agreement is restated in its entirety to
          read as follows:

          "`Average  Market  Price' shall mean the average of the closing  price
          (as reported by Bloomberg  L.P.) of the Common Stock on the  Principal
          Market for the five trading days preceding the Registration Date."

     4.   The introductory  clause of Section 2.1(a) is restated in its entirety
          to read as follows:

          "Each party hereby agrees as follows:"

     5.   The final  sentence of Section  2.1(a)(ii)  of the Original  Agreement
          shall be deleted.
                                      -1-
<PAGE>

     6.   Section  2.1(b) of the Original  Agreement is restated in its entirety
          to read as follows:

          "This Agreement provides Creditor a fully-vested and enforceable right
          to receive original fully-executed Common Stock certificates."

     7.   Section 2.1(c) shall be added to the Original  Agreement and is stated
          to read as follows:

          "Creditor shall deliver of all excess materials  purchased by Creditor
          for the  manufacture of Focus products and held by the Creditor to any
          destination designated by Focus within Taiwan."

Section 1.3     General Provisions

         Except as expressly modified herein, all of the terms and conditions of
the Original Agreement will remain in full force and effect. In the event of any
conflict between the provisions of the Original  Agreement and the provisions of
this Amendment,  the provisions of this Amendment shall control.  This Amendment
may be  executed  in several  counterparts  all of which  taken  together  shall
constitute one single agreement between the parties.

         IN WITNESS  WHEREOF,  the parties have caused the  signatures  of their
duly authorized officers to be hereunto affixed.

Focus Enhancements, Inc.                  Asia ITN LTD.

By:     /s/ Thomas L. Massie              By:     /s/ Eiran Ben Dashan
        (Signature-Authorized Officer)            (Signature-Authorized Officer)
Name:   Thomas L. Massie                  Name:   Eiran Ben Dashan
Title:  President & CEO                   Title:  President

                                      -2-
<PAGE>

                                                                       EXHIBIT A

                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION  RIGHTS AGREEMENT,  dated as of November 19,
1999  between  Asia ITN LTD.  ("Creditor"),  and  FOCUS  Enhancements,  Inc.,  a
Delaware corporation (the "Focus").

                  WHEREAS,  simultaneously  with the  execution  and delivery of
this Agreement,  Creditor is receiving from Focus, pursuant to a General Release
Agreement  dated the date hereof (the "Release  Agreement"),  100,000  shares of
Common Stock (terms not defined herein shall have the meanings  ascribed to them
in the Release Agreement); and

                  WHEREAS,  Focus desires to grant to Creditor the  registration
rights set forth herein with respect to the Shares  transferred  pursuant to the
Release  Agreement  (hereinafter  referred to as the "Stock" or  "Securities" of
Focus).

                  NOW, THEREFORE, the parties hereto mutually agree as follows:

                  Section 1.  Registrable  Securities.  As used  herein the term
"Registrable Security" means the Securities until (i) the Registration Statement
has been declared  effective by the  Commission,  and all  Securities  have been
disposed of pursuant to the  Registration  Statement,  (ii) all Securities  have
been sold under  circumstances  under which all of the applicable  conditions of
Rule 144 (or any  similar  provision  then in force)  under the  Securities  Act
("Rule 144") are met,  (iii) all Securities  have been otherwise  transferred to
holders who may trade such Securities  without  restriction under the Securities
Act, and Focus has delivered a new  certificate  or other  evidence of ownership
for such  Securities  not bearing a restrictive  legend or (iv) such time as, in
the opinion of counsel to Focus,  all  Securities  may be sold without any time,
volume or manner  limitations  pursuant to Rule 144(k) (or any similar provision
then in effect)  under the  Securities  Act. The term  "Registrable  Securities"
means any and/or all of the securities  falling within the foregoing  definition
of a  "Registrable  Security."  In  the  event  of any  merger,  reorganization,
consolidation, recapitalization or other change in corporate structure affecting
the Common Stock,  such adjustment  shall be deemed to be made in the definition
of "Registrable  Security" as is appropriate in order to prevent any dilution or
enlargement of the rights granted pursuant to this Agreement.

                  Section 2. Restrictions on Transfer. Creditor acknowledges and
understands that prior to the registration of the Securities as provided herein,
the Securities are  "restricted  securities" as defined in Rule 144  promulgated
under the Act.  Creditor  understands  that no  disposition  or  transfer of the
Securities  may be made by  Creditor in the absence of (i) an opinion of counsel
to Creditor,  in form and substance reasonably  satisfactory to Focus, that such
transfer may be made without  registration under the Securities Act or (ii) such
registration.

                  With a view to making  available  to Creditor  the benefits of
Rule 144 under the Securities Act or any other similar rule or regulation of the
Commission that
may at

<PAGE>

any time  permit  Creditor  to sell  securities  of Focus to the public  without
registration ("Rule 144"), Focus agrees to:

                  (a) comply with the  provisions  of  paragraph  (c)(1) of Rule
144; and

                  (b) file with the  Commission  in a timely  manner all reports
and other documents required to be filed with the Commission pursuant to Section
13 or 15(d)  under  the  Exchange  Act by  companies  subject  to either of such
sections,  irrespective  of  whether  Focus is then  subject  to such  reporting
requirements.

                  Section 3. Registration Rights With Respect to the Securities.

                  (a)  Focus  agrees  that it will  prepare  and  file  with the
Securities and Exchange  Commission  ("Commission"),  within ten (10) days after
the date of the Release  Agreement  a  registration  statement  (on Form S-3, or
other  appropriate  registration  statement  form) under the Securities Act (the
"Registration  Statement"),  at the sole expense and discretion of Focus (except
as provided in Section 3(c) hereof),  in respect of Creditor,  so as to permit a
public offering and resale of all of the Securities under the Act by Creditor as
a selling stockholder and not as an underwriter.  Focus further agrees to notify
Creditor in writing promptly once such filing is made.

                  Focus  shall  its  best  efforts  to cause  such  Registration
Statement  to  become  effective  within  sixty  (60)  days from the date of the
Release  Agreement (or, if the Registration  Statement  receives a "full review"
from the  Commission,  150 days from the date of the Release  Agreement)  or, if
earlier,  within  five (5) days of SEC  clearance  to  request  acceleration  of
effectiveness.   Focus  will  notify  Creditor  of  the   effectiveness  of  the
Registration  Statement  within one Trading Day of such event. In the event that
the number of shares so registered shall for any reason prove to be insufficient
to register the resale of all of the  Securities,  then Focus shall be obligated
to file, within thirty (30) days of notice from Creditor, a further Registration
Statement  registering  such  remaining  shares  and shall use all  commercially
reasonable  efforts to  prosecute  such  additional  Registration  Statement  to
effectiveness within sixty (60) days (or, if the Registration Statement receives
a "full review" from the Commission, 150 days) of the date of such notice.

                  (b)  Focus  will  maintain  the   Registration   Statement  or
post-effective  amendment  filed  under  this  Section  3  effective  under  the
Securities  Act until the  earlier  of (i) the date that none of the  Securities
covered by such Registration Statement are or may become issued and outstanding,
(ii) the  date  that all of the  Securities  have  been  sold  pursuant  to such
Registration Statement, (iii) the date Creditor receive an opinion of counsel to
Focus,  which  counsel  shall be  reasonably  acceptable  to Creditor,  that the
Securities may be sold under the provisions of Rule 144 without limitation as to
volume,  (iv) all Securities have been otherwise  transferred to persons who may
trade such shares without  restriction  under the Securities  Act, and Focus has
delivered a new  certificate or other evidence of ownership for such  securities
not bearing a restrictive  legend, or (v) all Securities may be sold without any
time,  volume or  manner  limitations  pursuant  to Rule  144(k) or any  similar
provision  then in effect under the  Securities

                                       2
<PAGE>

Act in the  opinion of  counsel  to Focus,  which  counsel  shall be  reasonably
acceptable to Creditor (the "Effectiveness Period").

                  (c) All fees,  disbursements  and  out-of-pocket  expenses and
costs  incurred by Focus in connection  with the  preparation  and filing of the
Registration  Statement under subparagraph 3(a) and in complying with applicable
securities and Blue Sky laws (including, without limitation, all attorneys' fees
of Focus) shall be borne by Focus.  Creditor shall bear the cost of underwriting
and/or  brokerage  discounts,  fees and commissions,  if any,  applicable to the
Securities being  registered and the fees and expenses of his counsel.  Focus at
its expense  will supply  Creditor  with copies of the  applicable  Registration
Statement and the  prospectus  included  therein and other related  documents in
such quantities as may be reasonably requested by Creditor.

                  (d) Focus shall not be  required by this  Section 3 to include
any of Creditor's Securities in any Registration  Statement which is to be filed
if, in the opinion of counsel for both  Creditor and Focus (or,  should they not
agree, in the opinion of another  counsel  experienced in securities law matters
acceptable  to counsel for Creditor  and Focus) the  proposed  offering or other
transfer as to which such  registration  is requested is exempt from  applicable
federal  and  state  securities  laws and  would  result  in all  purchasers  or
transferees  obtaining  securities  which are not  "restricted  securities",  as
defined in Rule 144 under the Securities Act.

                  (e) No provision  contained  herein shall  preclude Focus from
selling  securities  pursuant  to any  Registration  Statement  in  which  it is
required to include Securities pursuant to this Section 3.

                  (f) If at any time or from time to time  after  the  effective
date of any Registration  Statement,  Focus notifies  Creditor in writing of the
existence  of a Potential  Material  Event (as defined in Section  3(h)  below),
Creditor  shall  not  offer  or sell  any  Securities  or  engage  in any  other
transaction involving or relating to Securities,  from the time of the giving of
notice with respect to a Potential Material Event until Creditor receive written
notice from Focus that such  Potential  Material Event either has been disclosed
to the public or no longer  constitutes a Potential  Material  Event;  provided,
however,  that Focus may not so suspend the right to such holders of  Securities
for more than thirty (30) days in the  aggregate  during any twelve month period
during the period the Registration Statement is required to be in effect, and if
such  period is  exceeded,  such event  shall be a  Registration  Default.  If a
Potential Material Event shall occur prior to the date a Registration  Statement
is required  to be filed,  then  Focus's  obligation  to file such  Registration
Statement  shall be delayed  without penalty for not more than twenty (20) days,
and such delay or delays shall not  constitute  a  Registration  Default.  Focus
must, if lawful,  give Creditor  notice in writing at least two (2) Trading Days
prior to the first day of the blackout period.

                  (g) "Potential Material Event" means any of the following: (a)
the  possession by Focus of material  information  not ripe for  disclosure in a
registration  statement,  as  determined  in good  faith by the Chief  Executive
Officer or the Board of Directors of Focus that  disclosure of such  information
in a Registration  Statement would be detrimental to the business and affairs of
Focus;  or (b) any material  engagement or activity by Focus which would, in the

                                       3
<PAGE>

good  faith  determination  of the  Chief  Executive  Officer  or the  Board  of
Directors  of Focus,  be  adversely  affected by  disclosure  in a  registration
statement at such time, which determination shall be accompanied by a good faith
determination by the Chief Executive  Officer or the Board of Directors of Focus
that the applicable Registration Statement would be materially misleading absent
the inclusion of such information.

                  (h) With  respect  to the  Additional  Shares,  if at any time
Focus shall  determine to register in a public offering for its own account (and
not the account of Creditor)  under the  Securities Act any of its Common Stock,
it shall send to the  Creditor  written  notice of such  determination  and,  if
within 15 days after  receipt of such notice,  the Creditor  shall so request in
writing,  Focus  shall use its best  efforts  to  include  in such  registration
statement all or any part of the  Additional  Shares such holder  requests to be
registered.  This right  shall not apply to a  registration  of shares of Common
Stock on S-4 or Form S-8 (or  their  then  equivalents)  relating  to  shares of
Common Stock to be issued by Focus 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.

                  If, in connection with any offering  involving an underwriting
of Common  Stock to be issued by Focus for the  account of Focus,  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 Focus,
then Focus shall be obligated  to include in such  registration  statement  only
such limited  portion (which may be none) of the Additional  Shares with respect
to  which  the  Creditor  and all  other  selling  stockholders  have  requested
inclusion thereunder.

                  Section 4.  Cooperation  with Focus.  Creditor will  cooperate
with Focus in all respects in connection with this Agreement,  including  timely
supplying all information reasonably requested by Focus (which shall include all
information  regarding  Creditor and proposed  manner of sale of the Registrable
Securities required to be disclosed in any Registration Statement) and executing
and  returning  all  documents  reasonably  requested  in  connection  with  the
registration  and  sale of the  Registrable  Securities  and  entering  into and
performing his obligations under any underwriting  agreement, if the offering is
an  underwritten  offering,  in usual  and  customary  form,  with the  managing
underwriter  or  underwriters  of such  underwritten  offering.  Nothing in this
Agreement  shall  obligate  Creditor to consent to be named as an underwriter in
any Registration Statement.  The obligation of Focus to register the Registrable
Securities shall be absolute and  unconditional as and to the extent provided in
this Agreement as to those  Securities  which the  Commission  will permit to be
registered without naming Creditor as an underwriter. Any delay or delays caused
by Creditor by failure to cooperate as required hereunder shall not constitute a
Registration Default.

                  Section 5. Registration  Procedures.  If and whenever Focus is
required by any of the provisions of this  Agreement to effect the  registration
of any of the  Registrable  Securities  under the Act,  Focus  shall  (except as
otherwise provided in this Agreement), as expeditiously as possible,  subject to
Creditor's  assistance and  cooperation  as reasonably  required with respect to
each Registration Statement:

                                       4
<PAGE>

                  (a) (i) prepare and file with the Commission  such  amendments
and  supplements  to the  Registration  Statement  and  the  prospectus  used in
connection  therewith as may be necessary  to keep such  Registration  Statement
effective and to comply with the  provisions of the Act with respect to the sale
or other disposition of all securities  covered by such  registration  statement
whenever  Creditor  shall  desire  to  sell or  otherwise  dispose  of the  same
(including  prospectus  supplements with respect to the sales of securities from
time to time in connection  with a registration  statement  pursuant to Rule 415
promulgated under the Act) and (ii) take all lawful action such that each of (A)
the Registration  Statement and any amendment  thereto does not, when it becomes
effective,  contain an untrue  statement  of a material  fact or omit to state a
material fact required to be stated  therein or necessary to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading and (B) the prospectus  forming part of the  Registration  Statement,
and any  amendment  or  supplement  thereto,  does  not at any time  during  the
Registration  Period  include an untrue  statement of a material fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not misleading;

                  (b)  (i)  prior  to the  filing  with  the  Commission  of any
Registration  Statement  (including any amendments thereto) and the distribution
or delivery of any prospectus (including any supplements thereto), provide draft
copies  thereof to  Creditor  as  required  by Section  3(c) and reflect in such
documents all such comments as Creditor (and his counsel) reasonably may propose
respecting  the  Selling  Shareholders  and Plan of  Distribution  sections  (or
equivalents) and (ii) furnish to Creditor such numbers of copies of a prospectus
including  a  preliminary  prospectus  or any  amendment  or  supplement  to any
prospectus,  as applicable,  in conformity with the requirements of the Act, and
such  other  documents,  as such  Creditor  may  reasonably  request in order to
facilitate  the public  sale or other  disposition  of the  securities  owned by
Creditor;

                  (c) register and qualify the Registrable Securities covered by
the Registration  Statement under such other securities or blue sky laws of such
jurisdictions as Creditor shall  reasonably  request (subject to the limitations
set forth in Section 3(c) above), and do any and all other acts and things which
may be necessary or advisable to enable  Creditor to consummate  the public sale
or other disposition in such jurisdiction of the securities owned by Creditor;

                  (d) list such Registrable  Securities on the Principal Market,
if the listing of such Registrable  Securities is then permitted under the rules
of such Principal Market;

                  (e) notify  Creditor  at any time when a  prospectus  relating
thereto covered by the Registration  Statement is required to be delivered under
the Act, of the  happening of any event of which it has knowledge as a result of
which the prospectus included in the Registration  Statement, as then in effect,
includes  an untrue  statement  of a material  fact or omits to state a material
fact required to be stated therein or necessary to make the  statements  therein
not misleading in the light of the circumstances then existing,  and Focus shall
prepare  and  file a  curative  amendment  under  Section  5(a)  as  quickly  as
commercially possible;

                                       5
<PAGE>

                  (f) as promptly as  practicable  after  becoming aware of such
event,  notify Creditor who holds Registrable  Securities being sold (or, in the
event of an underwritten offering, the managing underwriters) of the issuance by
the Commission of any stop order or other suspension of the effectiveness of the
Registration  Statement at the earliest possible time and take all lawful action
to effect  the  withdrawal,  recession  or  removal  of such stop order or other
suspension;

                  (g)  cooperate   with   Creditor  to  facilitate   the  timely
preparation  and delivery of certificates  for the Registrable  Securities to be
offered pursuant to the Registration  Statement and enable such certificates for
the Registrable  Securities to be in such denominations or amounts,  as the case
may be, as  Creditor  reasonably  may request  and  registered  in such names as
Creditor may request;  and,  within three (3) Trading Days after a  Registration
Statement  which includes  Registrable  Securities is declared  effective by the
Commission,  deliver and cause legal counsel selected by Focus to deliver to the
transfer  agent for the  Registrable  Securities  (with  copies to  Creditor) an
appropriate  instruction  and,  to the  extent  necessary,  an  opinion  of such
counsel;

                  (h) take all such other lawful actions reasonably necessary to
expedite  and  facilitate  the   disposition  by  Creditor  of  his  Registrable
Securities  in accordance  with the intended  methods  therefor  provided in the
prospectus which are customary for issuers to perform under the circumstances;

                  (i) in the event of an underwritten offering, promptly include
or incorporate  in a prospectus  supplement or  post-effective  amendment to the
Registration  Statement such information as the managers reasonably agree should
be included  therein and to which Focus does not reasonably  object and make all
required filings of such prospectus  supplement or  post-effective  amendment as
soon as  practicable  after it is  notified  of the  matters to be  included  or
incorporated in such Prospectus supplement or post-effective amendment; and

                  (j)  maintain a transfer  agent and  registrar  for its Common
Stock.

                  Section 6.  Indemnification.

                  (a) To the maximum  extent  permitted by law,  Focus agrees to
indemnify  and hold  harmless  Creditor  and each  person,  if any, who controls
Creditor  within  the  meaning  of the  Securities  Act  (each  a  "Distributing
Releasor") against any losses, claims, damages or liabilities,  joint or several
(which shall,  for all purposes of this Agreement,  include,  but not be limited
to,  all  reasonable  costs of  defense  and  investigation  and all  reasonable
attorneys'  fees and expenses),  to which the  Distributing  Releasor may become
subject, under the Securities Act or otherwise,  insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue  statement or alleged  untrue  statement  of any  material  fact
contained in any  Registration  Statement,  or any related  final  prospectus or
amendment or supplement  thereto, or arise out of or are based upon the omission
or alleged  omission  to state  therein a material  fact  required  to be stated
therein or necessary to make the statements  therein not  misleading;  provided,
however,  that Focus will not be liable in any such case to the extent, and only
to the extent, that any such loss, claim, damage or liability arises out of

                                       6
<PAGE>

or is based upon an untrue  statement or alleged untrue statement or omission or
alleged omission made in such Registration  Statement,  preliminary  prospectus,
final  prospectus or amendment or supplement  thereto in reliance  upon,  and in
conformity  with,  written  information  furnished to Focus by the  Distributing
Releasor,  its counsel,  affiliates or any underwriter,  specifically for use in
the  preparation  thereof.  This indemnity  agreement will be in addition to any
liability which Focus may otherwise have.

                  (b) To the maximum extent permitted by law, each  Distributing
Releasor agrees that it will indemnify and hold harmless Focus, and each officer
and director of Focus or person,  if any, who controls  Focus within the meaning
of the Securities Act, against any losses, claims, damages or liabilities (which
shall, for all purposes of this Agreement,  include,  but not be limited to, all
reasonable costs of defense and investigation and all reasonable attorneys' fees
and expenses) to which Focus or any such officer, director or controlling person
may  become  subject  under the  Securities  Act or  otherwise,  insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue  statement  or alleged  untrue  statement of any
material  fact  contained in any  Registration  Statement,  or any related final
prospectus or amendment or supplement thereto, or arise out of or are based upon
the omission or the alleged  omission to state  therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
but in each case only to the extent that such untrue statement or alleged untrue
statement  or  omission  or  alleged  omission  was  made in  such  Registration
Statement, final prospectus or amendment or supplement thereto in reliance upon,
and  in  conformity  with,  written  information  furnished  to  Focus  by  such
Distributing Releasor, its counsel, affiliates or any underwriter,  specifically
for use in the preparation thereof. This indemnity agreement will be in addition
to any liability which the Distributing Releasor may otherwise have.

                  (c) Promptly after receipt by an indemnified  party under this
Section 6 of notice of the  commencement of any action against such  indemnified
party,  such indemnified party will, if a claim in respect thereof is to be made
against the  indemnifying  party under this  Section 6, notify the  indemnifying
party in writing of the commencement  thereof; but the omission so to notify the
indemnifying  party will not relieve the  indemnifying  party from any liability
which it may have to any  indemnified  party except to the extent the failure of
the indemnified party to provide such written  notification  actually prejudices
the ability of the  indemnifying  party to defend such action.  In case any such
action  is  brought  against  any  indemnified   party,   and  it  notifies  the
indemnifying party of the commencement  thereof,  the indemnifying party will be
entitled to  participate  in, and, to the extent that it may wish,  jointly with
any other  indemnifying  party similarly  notified,  assume the defense thereof,
subject to the provisions  herein stated and after notice from the  indemnifying
party to such  indemnified  party  of its  election  so to  assume  the  defense
thereof,  the indemnifying  party will not be liable to such  indemnified  party
under this Section 6 for any legal or other  expenses  subsequently  incurred by
such  indemnified  party in  connection  with the  defense  thereof  other  than
reasonable  costs of  investigation,  unless the  indemnifying  party  shall not
pursue the action to its final  conclusion.  The indemnified  parties as a group
shall have the right to employ one  separate  counsel in any such  action and to
participate  in the defense  thereof,  but the fees and expenses of such counsel
shall not be at the expense of the indemnifying  party if the indemnifying party
has assumed the defense of the action with counsel  reasonably  satisfactory  to
the indemnified party unless (i) the

                                       7
<PAGE>

employment  of such counsel has been  specifically  authorized in writing by the
indemnifying  party, or (ii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying party
and the indemnified  party shall have been advised by its counsel that there may
be one or more legal defenses available to the indemnifying party different from
or in conflict with any legal defenses which may be available to the indemnified
party or any other indemnified party (in which case the indemnifying party shall
not have the  right to  assume  the  defense  of such  action  on behalf of such
indemnified  party, it being understood,  however,  that the indemnifying  party
shall,  in  connection  with any one such action or separate  but  substantially
similar or  related  actions in the same  jurisdiction  arising  out of the same
general allegations or circumstances, be liable only for the reasonable fees and
expenses of one separate firm of attorneys for the indemnified party, which firm
shall be designated in writing by the indemnified  party).  No settlement of any
action  against an  indemnified  party shall be made  without the prior  written
consent  of the  indemnified  party,  which  consent  shall not be  unreasonably
withheld so long as such  settlement  includes a full release of claims  against
the indemnified party.

                  Section  7.  Contribution.  In order to  provide  for just and
equitable  contribution  under the  Securities  Act in any case in which (i) the
indemnified party makes a claim for indemnification pursuant to Section 6 hereof
but is judicially  determined  (by the entry of a final  judgment or decree by a
court of  competent  jurisdiction  and the  expiration  of time to appeal or the
denial  of the last  right  of  appeal)  that  such  indemnification  may not be
enforced in such case  notwithstanding  the fact that the express  provisions of
Section 6 hereof provide for  indemnification in such case, or (ii) contribution
under the Securities Act may be required on the part of any  indemnified  party,
then Focus and the  applicable  Distributing  Releasor  shall  contribute to the
aggregate  losses,  claims,  damages or liabilities to which they may be subject
(which shall,  for all purposes of this Agreement,  include,  but not be limited
to,  all  reasonable  costs of  defense  and  investigation  and all  reasonable
attorneys'  fees and  expenses),  in either such case (after  contribution  from
others) on the basis of relative fault as well as any other  relevant  equitable
considerations.  The relative  fault shall be  determined by reference to, among
other things,  whether the untrue or alleged untrue statement of a material fact
or the  omission  or  alleged  omission  to state a  material  fact  relates  to
information  supplied  by Focus on the one hand or the  applicable  Distributing
Releasor on the other hand, and the parties' relative intent, knowledge,  access
to information and opportunity to correct or prevent such statement or omission.
Focus  and the  Distributing  Releasor  agree  that  it  would  not be just  and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of  allocation  which does not take account of
the equitable  considerations  referred to in this Section 7. The amount paid or
payable by an indemnified  party as a result of the losses,  claims,  damages or
liabilities (or actions in respect thereof)  referred to above in this Section 7
shall be deemed to include any legal or other  expenses  reasonably  incurred by
such  indemnified  party in connection with  investigating or defending any such
action or claim.  No person guilty of fraudulent  misrepresentation  (within the
meaning  of  Section  11(f)  of  the  Securities   Act)  shall  be  entitled  to
contribution   from  any  person   who  was  not   guilty  of  such   fraudulent
misrepresentation.

Notwithstanding  any other provision of Section 6 or this Section 7, in no event
shall any (i)  Distributing  Releasor be required to undertake  liability to any
person  under this  Section 7 for any amounts in excess of the dollar  amount of
the  proceeds  received  by such  Distributing  Releasor

                                       8
<PAGE>

from the sale of such  Distributing  Releasor's  Registrable  Securities  (after
deducting any fees,  discounts and commissions  applicable  thereto) pursuant to
any  Registration   Statement  under  which  such  Registrable   Securities  are
registered  under  the  Securities  Act and  (ii)  underwriter  be  required  to
undertake  liability  to any person  hereunder  for any amounts in excess of the
aggregate discount, commission or other compensation payable to such underwriter
with respect to the  Registrable  Securities  underwritten by it and distributed
pursuant to such Registration Statement.

                  Section 8. Notices. All notices, demands, requests,  consents,
approvals,  and other communications required or permitted hereunder shall be in
writing and, unless  otherwise  specified  herein,  shall be (i) hand delivered,
(ii) deposited in the mail,  registered or certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by facsimile, addressed as set forth in the Release
Agreement  or to such  other  address as such party  shall have  specified  most
recently  by written  notice.  Any  notice or other  communication  required  or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the first  business day  following the date of sending
by reputable courier service,  fully prepaid,  addressed to such address, or (c)
upon actual  receipt of such  mailing,  if mailed.  Either party hereto may from
time to time  change its  address or  facsimile  number for  notices  under this
Section 8 by giving at least ten (10) days' prior written notice of such changed
address or facsimile number to the other party hereto.

                  Section 9.  Assignment.  This  Agreement  is binding  upon and
inures  to the  benefit  of the  parties  hereto  and  their  respective  heirs,
successors  and  permitted  assigns.  The  rights  granted  Creditor  under this
Agreement  may  be  assigned  to  any  purchaser  of  substantially  all  of the
Registrable  Securities  (or the rights  thereto)  from  Creditor,  as otherwise
permitted by the Release Agreement.

                  Section 10. Additional  Covenants of Focus.  Focus agrees that
at such time as it otherwise  meets the  requirements  for the use of Securities
Act  Registration  Statement  on Form S-3 for the  purpose  of  registering  the
Registrable Securities, it shall file all reports and information required to be
filed  by it with the  Commission  in a timely  manner  and take all such  other
action within its reasonable  control so as to maintain such eligibility for the
use of such form.

                  Section  11.  Counterparts/Facsimile.  This  Agreement  may be
executed  in two or  more  counterparts,  each  of  which  shall  constitute  an
original,  but all of which, when together shall constitute but one and the same
instrument,  and shall become effective when one or more  counterparts have been
signed by each party hereto and delivered to the other  parties.  In lieu of the
original, a facsimile transmission or copy of the original shall be as effective
and enforceable as the original.

                                       9
<PAGE>

                  Section 12. Remedies.  The remedies provided in this Agreement
are cumulative  and not exclusive of any remedies  provided by law. If any term,
provision,  covenant  or  restriction  of this  Agreement  is held by a court of
competent  jurisdiction  to be  invalid,  illegal,  void or  unenforceable,  the
remainder of the terms, provisions,  covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected,  impaired
or invalidated,  and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction.

                  Section 13. Conflicting Agreements. Focus shall not enter into
any  agreement  with respect to its  securities  that is  inconsistent  with the
rights  granted to the holders of  Registrable  Securities in this  Agreement or
otherwise prevents Focus from complying with all of its obligations hereunder.

                  Section 14.  Headings.  The headings in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

                  Section 15. Governing Law,  Arbitration.  This Agreement shall
be governed by and construed in accordance with the laws of the  Commonwealth of
Massachusetts applicable to contracts made in Massachusetts by persons domiciled
in Boston,  Massachusetts  and without  regard to its principles of conflicts of
laws. Any dispute under this Agreement  shall be submitted to arbitration  under
the American Arbitration Association (the "AAA") in Boston,  Massachusetts,  and
shall be finally  and  conclusively  determined  by the  decision  of a board of
arbitration  consisting  of three (3)  members  (hereinafter  referred to as the
"Board of  Arbitration")  selected as according to the rules  governing the AAA.
The Board of  Arbitration  shall meet on  consecutive  business  days in Boston,
Massachusetts, and shall reach and render a decision in writing (concurred in by
a majority  of the  members  of the Board of  Arbitration)  with  respect to the
amount,  if any, which the losing party is required to pay to the other party in
respect of a claim filed. In connection with rendering its decisions,  the Board
of Arbitration shall adopt and follow the laws of the State of Massachusetts. To
the extent practical, decisions of the Board of Arbitration shall be rendered no
more than thirty (30) calendar days following  commencement of proceedings  with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. Any decision made by the Board
of  Arbitration  (either  prior to or after the  expiration  of such thirty (30)
calendar day period)  shall be final,  binding and  conclusive on the parties to
the dispute,  and entitled to be enforced to the fullest extent permitted by law
and entered in any court of  competent  jurisdiction.  The Board of  Arbitration
shall be authorized and is hereby directed to enter a default  judgment  against
any party failing to  participate in any  proceeding  hereunder  within the time
periods set forth in the AAA rules. The non-prevailing  party to any arbitration
(as  determined  by the  Board of  Arbitration)  shall pay the  expenses  of the
prevailing party,  including reasonable attorneys' fees, in connection with such
arbitration.  Any party  shall be entitled  to obtain  injunctive  relief from a
court in any case where such relief is available and the prevailing  party shall
likewise be entitled to be paid their expenses,  including reasonable attorney's
fees.

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement to be duly executed, on the day and year first above written.

                                       10
<PAGE>

FOCUS ENHANCEMENTS, INC.                             ASIA ITN LTD.

By:
    Christopher P. Ricci,                                Eiran Ben Dashan,
    Sr. Vice President & General Counsel                 President

                                       11

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