0001104659-05-000547 Sample Contracts

EMPLOYMENT AGREEMENT
Employment Agreement • January 6th, 2005 • Digital Theater Systems Inc • Household audio & video equipment

This Employment Agreement (this “Agreement”) is entered into as of January 3, 2005, by and between DTS Digital Images, Inc. (the “Company”), an indirect wholly owned subsidiary of Digital Theater Systems, Inc., a Delaware corporation (“DTS”), and Michael Inchalik (“you” or “Employee”) with reference to the following facts:

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AGREEMENT AND PLAN OF MERGER Dated as of January 3, 2005 by and among
Merger Agreement • January 6th, 2005 • Digital Theater Systems Inc • Household audio & video equipment • California

This AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of January 3, 2005 (the “Execution Date”), is by and among Digital Theater Systems, Inc., a Delaware corporation (“DTS”), LIVE Acquisition Corp., a California corporation wholly owned by DTS (“Merger Sub”), Lowry Digital Images, Inc., a California corporation (the “Company”), the stockholders of the Company indicated on the attached Schedule 2.4 (the “Stockholders”), and John Lowry, in his capacity as representative of the Stockholders (the “Stockholder Representative”).

REGISTRATION RIGHTS AGREEMENT
Registration Rights Agreement • January 6th, 2005 • Digital Theater Systems Inc • Household audio & video equipment • California

This Registration Rights Agreement (this “Agreement”), dated as of January 3, 2005, by and between Digital Theater Systems, Inc., a Delaware corporation (the “Corporation”), and John Lowry, as Stockholder Representative (the “Stockholder Representative”) of the former stockholders (the “Holders”) of Lowry Digital Images, Inc., a California corporation (the “Company”).

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