[LOGO OF DOLBY LABORATORIES LICENSING CORPORATION APPEARS HERE]

L3D-SCE

DIGITAL AUDIO SYSTEM LICENSE AGREEMENT
PROFESSIONAL ENCODERS

HARDWARE, SOURCE CODE, COPYRIGHT, TRADEMARK AND KNOW-HOW LICENSE

AN AGREEMENT

BY AND BETWEEN

Facsimile telephone number of LICENSOR for transmission of quarterly royalty reports (Section 4.05): (415) 863-1373

LICENSOR's bank and account number for wire transfer of royalty payments (Section 4.05):

Bank: Wells Fargo Bank

Address: 464 California Street, San Francisco, CA 94104 U. S. A.

Account Name: Dolby Laboratories Licensing Corporation

Account Number: 4001-191451 ABA Number: 121000248

Identification of bank with respect to whose prime rate interest is calculated on overdue royalties (Section 4.06): Wells Fargo Bank

Address of LICENSEE for communications not otherwise specified (Section 8.04):

SIGNATURES:

On behalf of LICENSOR On behalf of LICENSEE

DIGITAL AUDIO SYSTEM LICENSE AGREEMENT
PROFESSIONAL ENCODERS

INDEX

Preamble

ARTICLE I  DEFINITIONS

Section 1.01 - "LICENSOR"

Section 1.02 - "LICENSEE"

Section 1.03 - "Dolby Digital AC-3 Audio System Specification"

Section 1.04 - "Licensed Trademark"

Section 1.05 - "Licensed Device"

Section 1.06 - "Licensed Product"

Section 1.07 - "Licensed Copyrighted Works"

Section 1.08 - "Derivative Works"

Section 1.09 - "LICENSOR Deliverables"

Section 1.10 - "Know-How"

Section 1.11 - "Sensitive Information"

Section 1.12 - Section Deleted

Section 1.13 - "LICENSEE's Trade Name and Trademarks"

Section 1.14 - "Other-Trademark Purchaser"

Section 1.15 - the "Consumer Price Index"

Section 1.16 - the "Effective Date"

ARTICLE II  LICENSES GRANTED

Section 2.01 - Licenses Granted to LICENSEE

Section 2.02 - Limitation of Licenses Granted

ARTICLE III  OTHER OBLIGATIONS OF THE LICENSOR AND LICENSEE

Section 3.01 - Use of Licensed Trademarks

Section 3.02 - Ownership of the Licensed Trademarks

Section 3.03 - Maintenance of Trademark Rights

Section 3.04 - Trademark Enforcement

Section 3.05 - Other-Trademark Purchasers

Section 3.06 - Section Deleted

Section 3.07 - Copyright Notice

Section 3.08 - Furnishing of Licensed Copyrighted Works

Section 3.09 - License Notice

Section 3.10 - Furnishing of Licensor Deliverables and Know-How

Section 3.11 - Use of Know-How and Sensitive Information

Section 3.12 - Confidential Material

ARTICLE IV  PAYMENTS

Section 4.01 - Initial Payment

Section 4.02 - Royalties

Section 4.03 - Section Deleted

Section 4.04 - Royalty Applicability

Section 4.05 - Royalty Payments and Statements

Section 4.06 - Section Deleted

Section 4.07 - Books and Records

Section 4.08 - Rights of Inspecting Books and Records

ARTICLE V  STANDARDS OF MANUFACTURE AND QUALITY

Section 5.01 - Standardization and Quality

Section 5.02 - Right to Inspect Quality

ARTICLE VI  TERMINATION AND EFFECT OF TERMINATION

Section 6.01 - Expiration of Agreement

Section 6.02 - Termination for Cause

Section 6.03 - Section Deleted

Section 6.04 - Effect of Termination

ARTICLE VII  LIMITATIONS OF RIGHTS AND AUTHORITY

Section 7.01 - Limitation of Rights

Section 7.02 - Limitation of Authority

Section 7.03 - Disclaimer of Warranties and Liability: Hold Harmless

Section 7.04 - Limitation of Assignment by LICENSEE

Section 7.05 - Compliance with U. S. Export Control Regulations

ARTICLE VIII  MISCELLANEOUS PROVISIONS

Section 8.01 - Language of Agreement: Language of Notices

Section 8.02 - Stability of Agreement

Section 8.03 - Public Announcements

Section 8.04 - Address of LICENSOR and LICENSEE for all Other Communications

Section 8.05 - Applicable Law

Section 8.06 - Choice of Forum; Attorneys' Fees

Section 8.07 - Construction of Agreement

Section 8.08 - Captions

Section 8.09 - Singular and Plural

Section 8.10 - Complete Agreement

Section 8.11 - Severability

Section 8.12 - Company Representation and Warranty

Section 8.13 - Execution

APPENDIX A - APPENDIX DELETED

APPENDIX B - "DOLBY DIGITAL AC-3 AUDIO SYSTEM"

APPENDIX C - PRELIMINARY SPECIFICATIONS FOR DOLBY DIGITAL AC-3 ENCODERS

APPENDIX D - DOLBY DIGITAL LICENSEE INFORMATION MANUAL

APPENDIX E - ROYALTY SCHEDULE

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