UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 1, 2006

SRS LABS, INC.

(Exact Name of registrant as specified in its charter)

Delaware	0-21123	33-0714264
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
2909 Daimler Street Santa Ana, California		92705
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (949) 442-1070

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01  Entry into a Material Definitive Agreement.

Annual Base Salary Adjustments

On November 1, 2006, the Compensation Committee ratified and approved an increase in the annual base salary for Ulrich E. Gottschling, Chief Financial Officer, Secretary and Treasurer of the Company, from $200,000 to $225,000 per year, effective as of November 1, 2006.

Discretionary Merit Bonus Payment

On November 1, 2006, the Compensation Committee awarded to Ulrich E. Gottschling, a discretionary merit bonus in the total amount of $20,000 for his efforts during the past year.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		SRS LABS, INC.,
		a Delaware corporation
Date: November 1, 2006	By:	/S/ Thomas C.K. Yuen
		Thomas C.K. Yuen
		Chairman and Chief Executive Officer

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