SECOND AMENDMENT TO SERVICE AGREEMENT

EXHIBIT 10.50

SECOND AMENDMENT TO SERVICE AGREEMENT BETWEEN

DTS, INC. AND MR. WILLIAM PAUL SMITH

This Second amendment (“Second Amendment”), effective 20 May 2005, is made and entered into by and between DTS Inc, having a principal place of business at 5171 Clareton Drive, Agoura Hills, California 91301 U.S.A. (hereinafter referred to as “DTS”) and Mr. William Paul Smith (“Employee”), having a permanent residence at 6 Raglan Road, Bangor, Co. Down, Northern Ireland, BT20 3TL.

WHEREAS, DTS and Employee have previously entered into a Service Employment Agreement effective 1 November 2002 (hereinafter referred to as the “Agreement”); and

WHEREAS, effective 1 November 2002 the parties amended such Agreement (hereinafter referred to as the “Amendment”), and

WHEREAS, the parties now wish to amend and restate Sections 7.1 and 10 of the Agreement.

NOW, THEREFORE, in consideration of the respective covenants contained herein, the parties agree as follows:

1.      &