1
EXHIBIT 10.7
PURCHASE AGREEMENT
THIS AGREEMENT is entered into on the 1st day of March, 1994 by and between
Radio Systems Corporation ("RSC") and Concorde Microsytems, Inc. ("CMI"), the
successor in interest of RKN, INC.
WHEREAS, RSC AND RKN had entered into a Purchase Agreement in 1993 for the
development and purchase of VLSI chips (the "chip" or "chips"); and
WHEREAS, RSC and CMI desire to restate said Purchase Agreement;
WHEREAS, RSC paid CMI $225,000 in 1993 to develop the chip, which included the
right to purchase, without additional consideration to CMI, up to 200,000 chips.
NOW THEREFORE, the parties hereto agree as follows:
1. All previous agreements, oral or written, entered into by and between RSC,
RKN, CMI and/or Xxxxxx Xxxx regarding the design, development, manufacture and
purchase of the chips used in the RSC RF250 receiver are hereby rescinded.
2. The $225,000 paid by RSC to CMI in 1993 for development of the chip and
rights to 200,000 chips without additional consideration has not been altered.
3. RSC shall pay CMI a royalty of one dollar ($1.00) per chip for every unit
sold containing the chip after the initial 200,000 chips, not to exceed an
additional 125,000 chips.
4. RSC shall reimburse CMI $62,000 for the masking and die development costs.
5. The sum of paragraphs 3 and 4 is $187,000. CMI hereby acknowledges payment in
full of said sum by RSC.
6. CMI for itself and on behalf of RKN, INC., and by the signature of its
President to this Agreement, hereby transfers, assigns and otherwise grants to
RSC all Rights, title and interest in and to the chip, its design and the dies
used to manufacture the chip.
THIS AGREEMENT has been signed by the parties hereto on the date first stated
above.
RADIO SYSTEMS CORPORATION
By: /s/ Xxxxx Xxxx
-----------------------
Xxxxx Xxxx, President
CONCORDE MICROSYSTEMS, INC.
By: /s/ Xxxxxx Xxxx
-----------------------
Xxxxxx Xxxx, President
