ASSIGNMENT AND LICENSE AGREEMENT
This ASSIGNMENT AND LICENSE AGREEMENT is entered into effective as of
July 15___, 1999 (the "Effective Date") between Speaker Acquisition Sub, a
Cayman Island corporation ("Algo Sub"), and a wholly-owned subsidiary of Algo
Technology, Inc., a California corporation ("Algo"); Aura Systems, Inc., a
Delaware corporation ("Parent") and its wholly-owned subsidiary AuraSound, Inc.,
also a Delaware corporation ("Seller").
RECITALS
A. Algo, Algo Sub, Parent, and Seller intend to enter into an Asset
Purchase Agreement (the "Asset Purchase Agreement") pursuant to which Seller
agrees to sell to Algo Sub and Algo, and Algo Sub and Algo agree to purchase
from Seller, all of its assets and certain specific liabilities.
B. Parent and Seller wish to assign to Algo Sub certain Specific
Trademark Rights and grant to Algo Sub (i) a license to certain of Parent and
Seller's Speaker Technology for use in all fields; (ii) a license to all of
Parent and Seller's Intellectual Property Rights for use in the Specific Fields;
and (iii) an option to acquire all right, title and interest to certain Specific
Patent Rights.
C. Parent and Seller wish to grant to Algo Sub the licenses and option
described above, and Algo Sub wishes to acquire from Parent and Seller the
licenses and option described above, all on the terms and conditions set forth
in this Agreement.
Now, therefore, the parties agree as follows:
AGREEMENT
II. DEFINITIONS. As used in this Agreement:
(a) "Encumbrance" means any lien, pledge, hypothecation, charge, mortgage,
security interest, encumbrance, equity, trust, equitable interest, claim,
preference, right of possession, lease, tenancy, license, encroachment,
covenant, infringement, interference, order, proxy, option, right of first
refusal, preemptive right, community property interest, legend, defect,
impediment, exception, reservation, limitation, impairment, imperfection of
title, condition or restriction of any nature (including any restriction on the
transfer of any asset, any restriction on the receipt of any income derived from
any asset, any restriction on the use of any asset and any restriction on the
possession, exercise or transfer of any other attribute of ownership of any
asset).
(b) "Intellectual Property Rights" means all (a) Patent Rights, (b) copyrights,
mask work rights, and other rights associated with works of authorship embodied
or represented in such technology, (c) trade secret rights in such technology,
(d) all trademarks, trade dress, and other identifying marks and (e) other forms
of intellectual or industrial property rights and proprietary rights of any kind
or nature applicable to such technology, including but not limited to know-how,
processes, copyright, software programs, software source documents, models,
sketches, drawings, works of authorship, and formulae, in each case under the
laws of any jurisdiction in the universe, including rights under and with
respect to all applications, registrations, extensions, renewals, continuations,
combinations, divisions, and reissues of the foregoing if applicable.
A list of all trademarks owned by Parent and/or Seller that are subject
to the licenses and assignments of this Agreement, whether registered or
unregistered, is attached hereto as Schedule B.
(c) "Licensed Parent/Seller Technology" means all of Parent and Seller's
Intellectual Property Rights, and any goods and/or services incorporating the
Licensed Parent/Seller Technology, but not including the Specific Trademark
Rights assigned to Algo Sub pursuant to this Agreement.
(d) "Option" means the option described in Section IX.
(e) "Patent Rights" means all the patents and patent applications and
docketed/identified inventions (as of the effective date) of Parent and/or
Seller (including the unfiled patent application titled "Radial Magnet Speaker"
and having docket number 99-14), any "Patent Rights" means all the patents and
patent applications of Parent, any reissue, re-examination, renewal, or
extension thereof and any patent applications deriving from the parent case of
such patents, and all provisionals, substitutions, divisionals, continuations,
and continuations-in-part of the foregoing; and any patent corresponding to such
patents, any reissue, re-examination, renewal, or extension thereof and any
patent applications deriving from the parent case of such patents, and all
provisionals, substitutions, divisionals, continuations, and
continuations-in-part of the foregoing, including all foreign counterparts and
cases claiming priority.
(f) "Trademark Rights" means all trademarks of Parent and Seller listed in
Schedule B, including foreign counterparts and/or trademarks.
(g) "Speaker Technology" means all of Parent and Seller's Intellectual Property
Rights directly or indirectly related to the business of Seller, and any goods
and/or services incorporating the Speaker Technology.
(h) "Specific Fields" means the fields of toys, sound, and entertainment
applications.
(i) "Specific Patent Rights" means those Patent Rights listed on Schedule A.
(j) "Specific Trademark Rights" means all Trademark Rights designated in
Schedule B, along with the goodwill of the business of the Parent and Seller
related to those marks, as those which are assigned to Algo Sub pursuant to this
Agreement.
III. ASSIGNMENT OF SPECIFIC TRADEMARKS
Parent and Seller hereby assign to Algo Sub all right, title, goodwill,
and interest to the Specific Trademark Rights. To that end Parent and Seller
will execute, verify and deliver such documents and perform such other acts
(including appearances as a witness), including the document in the form set
forth in Exhibit B, or as Algo Sub may otherwise reasonably request for use in
applying for, obtaining, perfecting, evidencing, sustaining and enforcing such
Specific Trademark Rights and the assignment thereof throughout the world. Algo
Sub shall reimburse Parent for its reasonable expenses incurred to comply with
this provision.
IV. LICENSE IN THE SPECIFIC FIELDS
Except for those trademarks addressed in paragraph VI below, Parent and
Seller hereby grant to Algo Sub a non-exclusive, worldwide, perpetual and
irrevocable, fully-paid and royalty-free, license (with the right to sublicense
through one or more tiers of sublicensees but only in conjunction with Algo
Sub's sublicensing of the Specific Patent Rights), for any purpose whatsoever
(e.g., to use, sell, display, offer for sale, make, have made, import,
reproduce, distribute, modify, etc.) under all of the Licensed Parent/Seller
Technology in connection with any activity in the Specific Fields.
V. LICENSE REGARDING SPEAKER TECHNOLOGY
Except for those trademarks addressed in paragraph VI below, Parent and
Seller hereby grant to Algo Sub a non-exclusive, worldwide, perpetual and
irrevocable, fully-paid and royalty-free, license (with the right to sublicense
through one or more tiers of sublicensees but only in conjunction with Algo
Sub's sublicensing of the Specific Patent Rights), for any purpose whatsoever
(e.g., to use, sell, display, offer for sale, make, have made, import,
reproduce, distribute, modify, etc.) under all of the Speaker Technology.
VI. TRADEMARK LICENSE AND OBLIGATIONS.
With respect to the trademarks of Schedule B that are not included in
the Specific Trademark Rights, Parent and Seller hereby grant to Algo Sub a
non-exclusive (subject to the exception below), worldwide, perpetual and
irrevocable, fully-paid and royalty-free, license to use the Trademarks in
connection with any activity in the Specific Fields and any activity with
respect to the Speaker Technology. In addition, Algo Sub grants Parent the right
to inspect the products for which the Trademarks of Schedule B that are not
included in the Specific Trademark Rights are used and ensure commercially
acceptable quality. In the current form, the products of Seller are considered
to be of commercially acceptable quality. If Parent believes that future
products are not of commercially acceptable quality, Parent will notify Algo Sub
in writing, and Algo Sub will have the full opportunity for cure, and Algo Sub
will have the right to continue its business without interference until such
time that the quality meets the reasonable quality standards of Parent. In the
event that no agreement is reached, the Parties shall enter mediation until cure
is sustained.
Parent and Algo Sub agree that they are obligated to work to prevent
confusion of the Trademarks of this agreement. In addition, Parent hereby agrees
that Parent will not license or assign to any other party in the field of
Speaker Technology the Trademarks of Schedule B that are not part of the
Specific Trademark Rights without prior written consent of Algo Sub which may be
withheld for any reason
VII. TRANSFER OF MATERIAL INFORMATION.
Promptly (and in any event no later than ninety (90) days) after the
Effective Date, Parent or Seller will cause to be provided to Algo Sub all
materials and information relating to the Speaker Technology, and take all steps
reasonably requested in an effort to enable Algo Sub to exploit the Speaker
Technology. Parent or Seller will deliver these materials and information to
Algo Sub in accordance with Algo Sub's instructions.
VIII. ASSIGNMENT AND LICENSE FEES.
As full consideration for the assignment of the Specific Trademark
Rights, the Option (see paragraph IX below) and the granting of the licenses set
forth above, Algo Sub agrees to pay Parent the sum of One Million Five Hundred
Thousand U.S. Dollars ($1,500,000). Subject to Section XIV, said license fee
shall be payable by Algo Sub to Parent as follows:
(a) at the Closing, Algo shall pay to Parent a total of $500,000 in cash or by
cancellation of any outstanding promissory notes due Algo from Parent;
(b) on each of the first two (2) monthly anniversaries of the Closing Date,
Algo shall pay to the Parent, in cash, the sum of $250,000;
(c) subject to Section XIV, on each of the third (3rd) through seventh (7th)
monthly anniversaries of the Closing Date, Algo shall pay to the Parent, in
cash, the sum of $100,000;
(d) subject to Section XIV, on each annual anniversary of the Closing Date until
such time as the payment obligations of Sections 57(b) and (c) have been
completed, Algo shall pay to the Parent, in cash, interest that has accrued on
amounts unpaid under Sections 75(b) and (c). Interest shall accrue commencing on
the Closing Date at the rate of eight percent (8%) per annum.
IX. OPTION.
(e) For a period of thirty-six months (36) months from the Effective Date,
Parent further grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest in the Specific Patent Rights.
(f) During the thirty-six month period following the Effective Date, Parent
shall not license, exclusively, non-exclusively, or otherwise encumber in any
manner, any of the Specific Patent Rights to any third party without the prior
written consent of Algo Sub. Should Algo Sub fail to exercise the Option to
acquire the Specific Patent Rights prior to expiration of the option period,
nothing herein shall be construed to prevent Parent from subsequently licensing,
on a non-exclusive basis, any invention covered by the Specific Patent Rights
hereunder to any other for the purpose of practicing any such invention. In the
event Algo Sub elects not to exercise the Option, Algo Sub's non-exclusive
license shall continue on the terms set forth herein without modification.
(g) Algo may exercise the Option at any time prior to the third year anniversary
of the Effective Date by providing Parent written notice of its desire to
exercise such Option. As full consideration for the exercise of the Option, Algo
shall pay to Parent the sum of One Million Two Hundred Fifty Thousand Dollars
($1,250,000) payable as follows: (i) an initial payment of Eighty Thousand
Dollars ($80,000) upon the filing of the Patent Assignments (as defined below)
with the United States Patent and Trademark Office and (ii) subject to Section
XIV, eighteen monthly payments of Sixty Five Thousand Dollars ($65,000). After
Parent's receipt of the written notice and initial payment, Parent shall assist
Algo Sub in every proper way to obtain, and from time to time enforce the
Specific Patent Rights in any and all countries. To that end, Parent has
executed the patent assignment, in substantially the form attached hereto as
Exhibit A (the "Patent Assignment"), which Patent Assignment will be held in
trust by Blakely, Sokoloff, Xxxxxx, and Zafman and filed only following the
written notice and initial payment referred to above. Parent will execute,
verify and deliver such other documents and perform such other acts (including
appearances as a witness) as Algo Sub may reasonably request for use in applying
for, obtaining, perfecting, evidencing, sustaining and enforcing such Specific
Patent Rights and the assignment thereof. Algo Sub shall reimburse Parent for
its reasonable expenses incurred to comply with this provision.
(h) Parent has executed the attached documents in Exhibit C for filing as public
records to put third parties on notice of this Option.
X. PATENT PROSECUTION AND MAINTENANCE
Parent shall prosecute and maintain during the term of this Agreement
the Patent Rights (but not including the Specific Patent Rights following
exercise of the Option). The application filings, prosecution, maintenance and
payment of all fees and expenses, including legal fees, relating to such Patent
Rights shall be the responsibility of Parent; provided, however, that the
foregoing shall become the responsibility of Algo Sub upon the exercise of the
Option with respect to the Specific Patent Rights. Should Algo Sub determine or
otherwise become aware of the lapse or anticipated lapse of the maintenance of
any patent or patent applications within the Patent Rights, Algo Sub may elect
to prosecute, maintain, or extend such patent or patent application, as the case
may be, at Algo Sub's expense and such expenses shall be offset, at Algo and
Algo Sub's discretion, (i) from amounts otherwise payable to Parent under this
Agreement, (ii) from amounts payable to Parent under the Asset Purchase
Agreement, or (iii) from any other amounts payable to Parent. If and until the
Option is exercised or expires, Parent will provide to Algo Sub both quarterly
status reports regarding the Specific Patent Rights and written notice before
any of the Specific Patent Rights are abandoned.
XI. ENFORCEMENT OF RIGHTS IN THE LICENSED PARENT/SELLER TECHNOLOGY
(i) Filing of Claims. Parent will have the right, but not the obligation, to
enforce the Patent Rights, including the Specific Patent Rights (prior to such
time as Algo Sub exercises the Option). Algo Sub will cooperate with Parent, at
Parent's reasonable request, in connection with any claim, suit, or action (a
"Claim") filed by Parent against any such infringer. Each party will promptly
notify the other in writing upon becoming aware of any known or suspected
infringement of such patents; such notice will include the identity of the party
or parties known or suspected to have infringed the patents and any available
information that is relevant to such infringement. If Parent files a Claim,
Parent will diligently prosecute the Claim until a final, non-appealable
judgment has been rendered or the Claim has been settled; if Parent fails to
prosecute the Claim diligently, Algo Sub may assume control of the prosecution
of the Claim. Algo Sub's right to assume control of the prosecution of a Claim
will be Algo Sub's sole remedy for any failure by Parent to prosecute a Claim
diligently. If Parent fails to file a Claim within twenty-one (21) days after
receipt of such notice from Algo Sub, or if and when Parent notifies Algo Sub in
writing that Parent has decided not to file a Claim against any known or
suspected infringer, Algo Sub will have the right to file a Claim itself. Parent
will cooperate with Algo Sub, at Algo Sub's reasonable request, in connection
with any Claim filed by Algo Sub. In no event will Parent settle a Claim
relating to infringement of the Specific Patent Rights without the prior written
approval of Algo Sub.
(j) Costs and Damages. Algo Sub will be responsible for all costs, expenses, and
legal fees (collectively, "Costs") incurred by Algo Sub in connection with any
Claim (whether filed by Parent or Algo Sub), and Parent will be responsible for
all Costs, incurred by Parent in connection with any Claim (whether filed by
Parent or Algo Sub). Algo Sub will be entitled to all damages awarded as a
result of, or agreed to in a monetary settlement of, any Claim (regardless of
which party files or prosecutes the Claim) to the extent that such damages are
attributable to infringement of the Specific Patent Rights. Parent will be
entitled to all damages awarded as a result of, or agreed to in a monetary
settlement of, any Claim (regardless of which party files or prosecutes the
Claim) to the extent that such damages are attributable to infringement of the
non-Specific Patent Rights. All damages not attributable to infringement will be
shared between Algo Sub and Parent as follows: each party will be entitled to
recover the Costs it incurred in connection with the Claim in proportion to the
amount of Costs incurred, respectively, by Algo Sub and Parent (for example, if
Parent incurred $700,000 in Costs and Algo Sub incurred $300,000, Parent would
receive 70% of the damages and Algo Sub would receive 30%), and if and when all
such Costs have been recovered, Algo Sub and Parent will each receive fifty
percent (50%) of the remaining amount of damages.
XII. TERM. This Agreement will take effect on the Effective Date and will remain
in effect in perpetuity until and unless either Algo Sub or Parent dissolves and
ceases to conduct business and there is no successor to such party's business
that assumes such party's rights and obligations under this Agreement. All
licenses granted in this Agreement will survive in perpetuity notwithstanding
any termination of this Agreement.
XIII. REPRESENTATIONS, WARRANTIES, AND COVENANTS.
Parent represents and warrants that:
(a) it is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.
(b) the execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate action on the part of Parent.
(c) it has the corporate power and authority to execute and deliver this
Agreement and to perform its obligations under this Agreement.
(d) it is the owner of the entire right, title and interest in and to the Patent
Rights, that it has the sole right to grant licenses thereunder and that it has
not granted licenses thereunder to any other entity that would restrict rights,
including the Option, granted hereunder.
(e) it is the owner of the entire right, title and interest in and to the
Trademark Rights listed in Schedule B, that it has the full and sole right to
assign such rights and grant licenses thereunder and that it has not granted
licenses thereunder to any other entity that would restrict rights granted
hereunder
(f) all applicable maintenance fees pertaining to the Patent Rights due on or
before the Effective Date have been timely paid.
(g) the Intellectual Property Rights are owned by Parent free and clear of any
Encumbrance as of the date hereof, and Parent shall not create or permit any
Encumbrance with respect to the Specific Patent Rights or any Encumbrance with
respect to the Licensed Parent/Seller Technology that would conflict with the
rights granted hereunder.
(h) the execution and delivery of the Agreement, and the performance of the
obligations hereunder, will not contravene, conflict with or result in a
violation or breach of, or result in a default under, any provision of any
Contract.
to the best of its knowledge, no patent or patent application
within the Patent Rights is the subject of any pending interference, opposition,
cancellation or other protest proceeding. Parent further represents and warrants
to the best of its knowledge on the Effective Date, it has not received and is
not aware of any third party claims that the practice of the Patent Rights
infringes any proprietary right of such third party.
there are no in-bound licenses and only one out-bound license
(to Yoskikazu Masayoshi, Sadao Masayoshi, Sachie Masayoshi, and Kazauake
Masayoshi and pertaining to the Linaeum Loudspeaker Tweeters, but not the
intellectual properties concerning or related to neo radial technology)
regarding the Speaker Technology.
Algo Sub represents and warrants that:
(a) it is a corporation duly organized, validly existing and in good standing
under the laws of the Cayman Islands.
(b) the execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate action on the part of Algo Sub.
(c) it has the corporate power and authority to execute and deliver this
Agreement and to perform its obligations under this Agreement.
(d) it shall not file the Patent Assignment executed and delivered by Parent
with the United States Patent and Trademark Office or otherwise until such time
as written notice has been given and the initial payment has been made in
accordance with Section IX.
XIV. INDEMNIFICATION BY PARENT.
(k) Parent shall defend, hold harmless and indemnify each of Algo Sub and its
affiliates, and their directors, officers, employees, and agents ("Indemnitees")
from and against any and all claims, suits, losses, damages, costs, fees and
expenses ("Indemnity Claim(s)") resulting from or arising out of any breach of
any of the representations, warranties, or covenants made by Parent in this
Agreement (regardless whether or not such Indemnity Claims relate to any third
party claim).
(l) In addition to any rights of setoff or other rights that the Algo or Algo
Sub or any of the other Indemnitees may have at common law or otherwise, Algo
and Algo Sub shall have the right to withhold and deduct any sum that may be
owed to any Indemnitee under this Section XIV from any amount otherwise payable
by any Indemnitee, including amounts payable pursuant to Section VIII(c) and
(d), to Parent. The withholding and deduction of any such sum shall operate for
all purposes as a complete discharge (to the extent of such sum) of the
obligation to pay the amount from which such sum was withheld and deducted.
From time to time, Algo Sub may give notice (a "Notice") to Parent
specifying in reasonable detail the nature and dollar amount of any Indemnity
Claim it may have under this Agreement; Algo Sub may make more than one claim
with respect to any underlying state of facts. If Parent gives notice to Algo
Sub disputing any Indemnity Claim (a "Counter Notice") within 30 days following
receipt by Parent of the Notice regarding such Indemnity Claim, such Indemnity
Claim shall be resolved as provided below. If no Counter Notice is received by
Algo Sub within such 30-day period, then the dollar amount of damages claimed by
Algo Sub as set forth in its Notice shall be deemed established for purposes of
this Agreement and, at the end of such 30-day period, Algo or Algo Sub shall be
entitled to withhold and deduct from payments owed to Parent the dollar amount
claimed in the Notice.
If a Counter Notice is given with respect to an Indemnity Claim, Algo
or Algo Sub shall withhold and deduct from payment owed to Parent with respect
thereto only (i) upon the mutual agreement of the parties or (ii) a final
non-appealable order of a court of competent jurisdiction; provided, however,
until such Indemnity Claim is resolved pursuant to (i) or (ii) above, Algo and
Algo Sub's payment obligations under Sections 57(c) and (d) shall be suspended.
Algo and Algo Sub's payment obligations will only resume upon such time as the
Indemnity Claim is resolved.
XV. GENERAL
(m) Further Actions. From and after the Effective Date, each party will
cooperate with the other parties, and will execute and deliver such documents
and take such other actions as another party may reasonably request, for the
purpose of giving effect to the licenses granted in this Agreement.
(n) Notices. Any notice or other communication required or permitted to be
delivered to any party under this Agreement must be in writing and will be
deemed properly delivered, given and received (a) when delivered by hand, or (b)
two business days after delivered by courier or express delivery service or by
facsimile to the address or facsimile number set forth beneath the name of such
party below (or to such other address or facsimile number as such party may have
specified in a written notice to the other parties):
if to Parent or Seller : if to Algo Sub or Algo:
c/o Aura Systems, Inc. x/x Xxxx Technology, Inc.
0000 Xxxxxx Xxxxxx 00000 Xxxxxxx Xxxx.
Xx Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attention: Zvi Xxxxx Xxxxxxxx, CEO Attention: Xxxxxx Xxx, CEO
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
with a copy to:
Cooley Godward LLP
3000 El Camino Real
Five Xxxx Xxxx Xxxxxx
Xxxx Xxxx, XX 00000-0000
Attention: Xxxxx X. Xxxxxxx
Facsimile: (000) 000-0000
(o) Governing Law; Venue. This Agreement will be construed in accordance with,
and governed in all respects by, the internal laws of the State of California
(without giving effect to principles of conflicts of laws). Any legal action or
other legal proceeding relating to this Agreement or the enforcement of any
provision of this Agreement may be brought or otherwise commenced in any state
or federal court located in the County of Santa Clara, California. Each party to
this Agreement: (i) expressly and irrevocably consents and submits to the
jurisdiction of each state and federal court located in the County of Santa
Clara, California (and each appellate court located in the State of California)
in connection with any such legal proceeding; (ii) agrees that each state and
federal court located in the County of Santa Clara, California will be deemed to
be a convenient forum; and (iii) agrees not to assert (by way of motion, as a
defense or otherwise), in any such legal proceeding commenced in any state or
federal court located in the County of Santa Clara, California, any claim that
such party is not subject personally to the jurisdiction of such court, that
such legal proceeding has been brought in an inconvenient forum, that the venue
of such proceeding is improper or that this Agreement or the subject matter of
this Agreement may not be enforced in or by such court.
(p) Assignment. Algo Sub may freely assign any or all of the rights that it has
under this Agreement (including its rights under the licenses and sublicenses
granted to it herein), in whole or in part, to any other party without obtaining
the consent or approval of the other parties to this Agreement. Parent will not
be permitted to assign or transfer any of the rights that it has under this
Agreement or delegate any of its obligations under this Agreement without Algo
Sub's prior written consent not to be unreasonably withheld. None of the
provisions of this Agreement is intended to provide any rights or remedies to
any third party. This Agreement will be binding upon each party hereto and its
successors and assigns (if any).
(q) Cumulative Remedies. The rights and remedies of the parties hereto will
be cumulative (and not
alternative).
(r) Waiver. No failure on the part of any party to exercise any power, right,
privilege or remedy under this Agreement, and no delay on the part of any party
in exercising any power, right, privilege or remedy under this Agreement, will
operate as a waiver of such power, right, privilege or remedy; and no single or
partial exercise of any such power, right, privilege or remedy will preclude any
other or further exercise thereof or of any other power, right, privilege or
remedy. No party will be deemed to have waived any claim arising from this
Agreement, or any power, right, privilege or remedy under this Agreement, unless
the waiver of such claim, power, right, privilege or remedy is expressly set
forth in a written instrument duly executed and delivered on behalf of such
party; and any such waiver will not be applicable or have any effect except in
the specific instance in which it is given.
(s) Amendment. This Agreement may not be amended, modified, altered or
supplemented other than by means of a written instrument duly executed and
delivered on behalf of the parties sought to be bound by any such amendment,
modification, alteration or supplement.
(t) Severability. If any provision of this Agreement, or the application of any
such provision to any person or set of circumstances, is determined to be
invalid, unlawful, void or unenforceable to any extent, the remainder of this
Agreement, and the application of such provision to persons or circumstances
other than those as to which it is determined to be invalid, unlawful, void or
unenforceable, will not be impaired or otherwise affected, and will continue to
be valid and enforceable to the fullest extent permitted by law.
(u) Independent Contractors. Algo Sub and Parent are independent contractors and
neither will have the authority to act on behalf of the other or create any
binding obligation for the other. This Agreement is not intended to establish
any partnership, joint venture, employment, or other relationship between Algo
Sub and Parent except that of independent contractors.
(v) Construction. The section headings in this Agreement are for convenience of
reference only, will not be deemed to be a part of this Agreement, and will not
be referred to in connection with the construction or interpretation of this
Agreement. Any rule of construction to the effect that ambiguities are to be
resolved against the drafting party will not be applied in the construction or
interpretation of this Agreement. As used in this Agreement, the words "include"
and "including," and variations thereof, will not be deemed to be terms of
limitation, but rather will be deemed to be followed by the words "without
limitation." Except as otherwise expressly indicated, all references in this
Agreement to "Sections" and "Exhibits" are intended to refer to Sections of this
Agreement and Exhibits to this Agreement.
(w) Counterparts. This Agreement may be executed in several counterparts, each
of which will constitute an original and all of which, when taken together, will
constitute one agreement.
(x) Entire Agreement. This Agreement, along with the Asset Purchase Agreement,
and the Exhibits and Schedules attached hereto, sets forth the entire
understanding of the parties relating to the subject matter hereof and
supersedes all prior agreements and understandings between the parties relating
to the subject matter hereof.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered as of the Effective Date.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
SCHEDULE A
SPECIFIC PATENT RIGHTS
Docket # Title US Serial US Patent
Number Number
(if issued)
91-11 Voice Coil Actuator I 07/740,068 5,321,762
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
92-14 Voice Coil Actuator II 07/925,085
cip of
91-11
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-05D Teardrop Speaker Motor Case 29/005,828 D364,167
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-07 Voice Coil Excursion and Amplitude Gain Control Device 08/062,807 5,418,860
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-21 Electromagnetic Transducer 08/086,622 5,424,592
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-25 Apparatus and Method for Assembly 08/140,231 5,598,625
cip of of Radial Magnet Voice Coil
91-11 Actuators
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-46-D Amplifier Housing 29/018,102 D364,162
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
93-49 Axially Focused Radial Magnet 08/285,405 5,539,262
Voice Coil Actuator
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
94-08 Voice Coil Actuator 08/286,597 5,434,458
(FWC of
92-14)
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-01 Electromagnetic Transducer 08/374,939 5,624,155
(Div of
93-21)
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-08 Voice Coil Actuator 08/476,491 5,536,984
(Div of
94-08)
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-10 Dual Axial Magnet Speaker 08/491,250
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-19D Angled Speaker Enclosure 29/046,225 D394,063
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-20 Piezo Speaker 08/577,297 5,736,808
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
95-21 Polygon Magnet Structure for 08/576,801 5,786,741
Voice Coil Actuator
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-03D Speaker Basket 27/056,795
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-14 Audio Transducer With Controlled 07/154,945 4,903,308
Flexibility Diaphragm
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-15 Audio Transducer with Controlled 07/556,776 4,584,439
Flexibility Diaphragm
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-16 Audio Transducer with Controlled 07/436,914 5,198,624
Flexibility Diaphragm
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-17 Centering Device for Speaker 07/499,492 5,127,060
Diaphragm
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-19 Audio Transducer Improvements 07/708,924 5,249,237
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-20 Audio Transducer Improvements 07/730,172 5,230,021
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-21 Audio Transducer Improvements 07/882,144 5,450,497
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-26 Audio Transducer having Piezoelectric Device 08/236,209 5,727,076
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-27 Resonance Damper for Piezoelectric 08/286,625 5,652,801
Transducer
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-28 Single Magnet Audio Transducer and Method of 08/272,295 5,604,815
Manufacturing
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-29 Audio Transducer with Etched 08/322,108 5,446,797
Voice Coil
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
97-30 Audio Transducer with Flexible Foam Enclosure 08/384,380 5,570,429
---------------------------------------------------------------------------------------------
98-01D Speaker Basket 29/069,434 D396,723
Div of
97-03D
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
99-02 Piezoelectric Speaker 09/056,394
(CIP of
95-20)
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
99-06D Tiltable Loudspeaker Enclosure 29/090,939
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
99-07D Tiltable Loudspeaker Enclosure (woofer) 29/090,938
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
99-14 Radial Magnet Speaker
---------------------------------------------------------------------------------------------
SCHEDULE B
TRADEMARKS RIGHTS
The Specific Trademark Rights are denoted with an *.
Those items marked with NL (Not Licensed) are not to be included in Trademark
Rights. The Trademark Rights are denoted with an **.
------------------------------------------------------------------------------------------------
Docket Xxxx Serial Reg.
Number Number Number
------------------------------------------------------------------------------------------------
TM92-01 NL AuraFlux 74/322,660 293732
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM92-02 * AURASOUND 74/313,418
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM92-03 NL AuraScope 74/134,961
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM92-04 NL AuraScope 74/134,960
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-01 * Aurasound (w/logo) 74/349,974
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-02 ** Aura 74/369,064 2,196,818
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-03 NL Write your Congressman with a Phone Call 74/360,524
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-04 NL 21st Century Technologies 74/367,568
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-05 * Musical Chairs 74/385,179
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-06 * Vibrasonics 74/388,369
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-07 NL Power Tower 74/394,182
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-08 ** Radial Flux 74/408,601
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-09 ** Radial Mag 74/408,180
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-10 ** Radial Pole 74/408,209
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-11 * Radial Neo 74/408,445
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-12 ** Radial Power 74/408,205
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-13 ** Radial Ring 74/408,664
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-14 ** Radial Line 74/408,207
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-15 NL Linear Mag 74/408,619
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-16 NL Linear Flux 74/408,231
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-17 NL Linear Ring 74/408,211
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-18 ** Neo Flux 74/408,448
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-19 ** Neo Power 74/408,208
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-20 *** Neo Ring 74/408,671
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-21 ** Neo Mag 74,408,447
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-22 NL Linear Gap 74/408,446
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-23 ** Radial Gap 74/408,672
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-24 NL High Gap 74/408,244
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-25 NL Tall Gap 74/408,003
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-26 ** Neo Gap 74/408,206
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-27 ** Radial Stroke 74/408,178
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-28 NL Linear Stroke 74/408,243
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-29 ** Neo Stroke 74/408,179
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-30 NL High Stroke 74/408,232
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-31 * Pillow Sonics 74/408,242
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-32 * Theatre Sonics 74/408,210
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-33 * Aura Sonics 74/410,206
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-34 * Auto Sonics 74/417,408
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-35 * Interactor 74/425,395 1,920,753
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-36 NL Technologies of the 21st Century 74/431,065
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-37 NL Thunderbolt 74/437,049
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 00-00 XX XXXXXXX (xxxxx letters) 74/439,107 1,970,336
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-39 NL Rainbow (w/logo) 74/446,644 2,044,009
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-40 NL Rainbow (stylized) 74/446,645 2,040,868
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM-93-41 NL Aurascope 74/466,053
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-42 ** Aura (stylized) 74/472,095 1,991,593
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-43 * Interactor (stylized) 74/472,097
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-01 * Virtual Reality Gamewear
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-02 * Soundplay 74/528,416
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-03. * Mag Force 74/528,276
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-04 XX Xxxxxx (stylized) 75/033,934 2,030,034
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-05 NL Newtalk 74/618,797
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-01 ** Auraphile 74/639,340
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-02 * Bass Shaker 74/679,644 2,072,412
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-03 * NRT 74/706,754 2,144,980
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-04 * Neo-Radial Technology 74/706,753 2,067,789
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-05 * Neo-Radial 74/720,723 2,063,972
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-06 NL Net Talk 75/021,446
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-07 NL Net Fax 75/021,447
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-08 XX XxxXxx (Block Letters) 75/033,935 2,030,035
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-01 * Mobile Reference (Stylized) 75/123,840
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-02 * Neo-Radial Technology (Stylized) 75/123,841 2,111,403
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-03 * Mobile Reference 75/131,644
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-04 NL Aurapower 75/141,344
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-05 NL Auragen 75/141,345 443325
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-01 * Aspect 75/225,690 2,128,907
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-02 * Force 75/225,287
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-03 NL Radiance (NEVER FILED)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-04 NL EVA 75/225,341 2,181,910
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-05 NL FAS 75/225,289
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-06 NL Ferrodisk 75/225,288
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-07 NL FAR 75/225,280
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-08 * Force 150 75/229,617
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-09 * Force 250 75/229,616
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-10 * Force 340 75/229,720
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-11 * Force 560 75/229,719
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-12 * Force 400q 75/229,718
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-13 * Force 42 75/225,286
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-14 * Force 52 75/225,285
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-15 * Force 62 75/225,284
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-16 * Force 426 75/225,283
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-17 * Force 527 75/225,282
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-18 * Force 629 75/225,281
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-19 * Force 639 75/225,295
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-20 * Force 10 75/225,296
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-21 * Force 12 75/225,297
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-22 * Force 15 75/225,298
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-23 * Aura Virtual Sound 75/235,513
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-24 * AVS 75/235,817
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-25 * Do More Than Listen 75/235,512
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-26 NL Auragen of Power 75/237,652
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-27 NL Atlas Peripherals 75/256,929 2,179,587
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-28 * MR 75/252,086
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-29 * MR 52 75/252,087
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-30 * MR 62 75/252,088 2,170,440
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-31 * MR 5.1 75/252,089 2,219,543
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-32 * MR 6.1 75/252,090 2,188,518
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-33 * MR 629 75/252,091
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-34 * MR 1 75/252,085 2,170,439
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-01 NL Webpal 75/267,533
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-02 NL Navpal 75/267,532
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-03 NL Newpal 75/267,531
-------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-04 * Linaeum 74/132,488
------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
TM98-05 * Line Source 75/291,967
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-06 * Force (stylized) 75/291,968
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-07 * Line Source (design) 75/330,407
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-08 NL Dash 3D 75/376,536
(XxxXxx)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-09 NL Simplified Technology For 75/382,016
All Walks of Life
(XxxXxx)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-10 NL CINEMA II 75/425,789
(XxxXxx)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-11 NL EXTREME CINEMA 75/425,790
(XxxXxx)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 98-12 NL Aura (B&W)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 98-13 NL AURAGEN 75/977693 2,202,313
(div'l of
TM96-05)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-01 NL AMA
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-02 NL AURA (Merchant & Xxxxx) 75/559,987
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-03 NL RPM 75/579,192
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-04 *** Beyond Red Line 75/579,642
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-05 NL The Ultimate Upgrade 75/579,641
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-06 * Mobile Reference Platinum 75/579,640
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-07 NL HOME ACCESS (XxxXxx) 75/584,002
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM99-08 NL Auragen 75/594,235
Power. On The Go. (Stylized)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM99-09 NL The Compatibility Company 75/607,594
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM99-10 NL Thin Pal
------------------------------------------------------------------------------------------------
EXHIBIT A
PATENT ASSIGNMENT
FORM OF PATENT ASSIGNMENT
Attorney Docket No: PATENT
I hereby certify that this correspondence is being deposited with the United
States Postal Service with sufficient postage as first class mail in an envelope
addressed to the Assistant Commissioner for Patents, Xxxxxxxxxx, X.X. 00000 on
__________________, _____.
By:______________________________
ASSIGNMENT OF PATENT RIGHTS
Aura Systems, Inc., a corporation organized and existing under the laws of the
state of Delaware, having a place of business at _______________________________
(hereinafter called "Assignor"), hereby assigns certain patent rights to Speaker
Acquisition Sub, a corporation organized and existing under the laws of the
Cayman Islands having a place of business at ___________________________________
(hereinafter called the "Assignee"):
WHEREAS Assignor is the owner of the Letters Patents and Applications
Listed on Schedule I attached hereto,
AND WHEREAS Assignor has agreed with Assignee for the transfer to it of the
whole right, title and interest in and to said Applications and to said Letters
Patent, and inventions therein,
NOW THIS ASSIGNMENT WITNESSETH that in pursuance of the said agreement and in
consideration of the sum of One U.S. Dollar ($1.00) and such other good and
valuable consideration paid by Assignee to Assignor (the receipt of which
Assignor hereby acknowledges), Assignor, as beneficial owner, hereby assigns and
transfers to Assignee said inventions, said Applications and said Letters
Patent, and any and all Letters Patent or Patents in the United States of
America and all foreign countries which may be granted therefor and thereon, and
in and to any and all divisions, continuations, and continuations-in-part of
said applications, or reissues or extensions of said Letters Patent, and all
rights under the International Convention for the Protection of Industrial
Property, and the full exclusive benefits thereof, and all rights, privileges
and advantages appertaining thereto, including any and all rights to damages,
profits or recoveries of any nature for past infringement of said Letters
Patent, and the payment of any and all maintenance fees, taxes, and the like, TO
HOLD the same unto and to the use of Assignee, its successors and assigns
absolutely during the residue of the respective terms for which the said Letters
Patent were granted and during any such terms, and for any and all rights
extending from said applications and reissues.
ASSIGNOR hereby covenants that Assignor has full right to convey the entire
interest herein being assigned and represents that Assignor has not executed and
will not execute any agreements inconsistent with this Assignment or to the
detriment of the patents, applications, and inventions being assigned hereby.
AND for the same consideration, Assignor hereby covenants and agrees to and with
Assignee, its successor, legal representatives and assigns that, at the time of
execution and delivery of these presents, Assignor is the sole and lawful owner
of the entire right, title and interest in and to the said inventions and the
application for Letters Patent above-mentioned, that the same are unencumbered,
and that assignor has good and full right and lawful authority to sell and
convey the same in the manner herein set forth.
AND for the same consideration, Assignor hereby covenants and agrees to and with
Assignee, its successors, legal representatives and assigns that Assignor will,
whenever counsel of Assignee, or the counsel of its successors, legal
representatives and assigns, shall advise that any proceeding in connection with
said inventions, or that any division, continuation or continuation-in-part of
any Letters Patent to be obtained therein, is lawful and desirable, sign all
papers and documents, take all lawful oaths, and do all acts necessary or
required to be done for the procurement, maintenance, enforcement and defense of
Letters Patent for said inventions, without charge to Assignor, its successors,
legal representatives and assigns, but at the cost and expense of the Assignee,
its successors, legal representatives and assigns.
Executed at __________________this __________ day of ______________,19__
Assignor:
Signature:
Printed Name:
Title:
State of _____________)
Country of ______________) SS:
Before me personally appeared said _______________________
And acknowledged the foregoing instrument to be his fee act and deed this
__________, 1999.
Seal __________________________
(Notary Public)
SCHEDULE I
Patents:
5,321,762 5,539,262 5,786,741 5,230,021
D364,167 5,434,458 4,903,308 5,450,497
5,418,860 5,624,155 4,584,439 5,727,076
5,424,592 5,536,984 5,198,624 5,652,801
5,598,625 D394,063 5,127,060 5,604,815
D364,162 5,736,808 5,249,237 5,446,797
D396,723
Patent Applications:
08/491,250
27/056,795
09/056,394
29/090,939
29/090,938
--------------
EXHIBIT B
TRADEMARK ASSIGNMENT
ASSIGNMENT OF TRADEMARKS
THIS ASSIGNMENT OF TRADEMARKS is made July ___, 1999 by and
between Speaker Acquisition Sub, a Cayman Island corporation having a principal
place of business located at ________________________ ("Algo Sub"), and Aura
Systems, Inc., a Delaware corporation having its principal place of business at
0000 Xxxxxx Xxxxxx, Xx Xxxxxxx, Xxxxxxxxxx 00000 ("Aura Systems"), and Aura
Systems' wholly-owned subsidiary AuraSound, Inc., also a Delaware corporation
("Seller").
WHEREAS, Algo Sub, Aura Systems, and Seller are parties to an
Assignment and License Agreement of even date herewith (the "License
Agreement"), under the terms of which Aura Systems and Seller will sell and
transfer, and Algo Sub will purchase certain trademarks; and
WHEREAS, Aura Systems and/or Seller are the owner of the trademarks set
forth in Schedule 1 (as well as various foreign counterparts and trademarks)
hereto (the "Trademarks"); and
WHEREAS, pursuant to the License Agreement, Algo Sub desires to obtain
all of Aura Systems' and Seller's right, title and interest in, to and under
said Trademarks;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by Aura Systems and Seller, Aura
Systems and Seller hereby sell, convey, assign, transfer and deliver to Algo
Sub, its successors and assigns, all of their right, title and interest
throughout the world in and to the Trademarks, together with the goodwill of the
business symbolized by the Trademarks, and the registrations thereof, together
with the right to xxx and recover damages for future infringements thereof and
to stand in the place of Aura Systems and/or Seller in all matters related
thereto. Aura Systems and Seller agree to take such further action and to
execute such additional documents as may be necessary to perfect Algo Sub's
title in and to the Trademarks.
IN WITNESS WHEREOF, the parties hereto have caused this Assignment of
Trademarks to be executed as of the day and year first written above.
SPEAKER ACQUISITION SUB, a Cayman corporation
By: ________________________________
Name:_______________________________
Title: ________________________________
AURA SYSTEMS, INC., a Delaware corporation AURASOUND, INC., a Delaware Corp.
By: _________________________________ By: ________________________________
Name: _______________________________ Name: _____________________________
Title:__________________________________ Title:_______________________________
SCHEDULE 1 TO
ASSIGNMENT OF TRADEMARKS
By Aura Systems, Inc. and AuraSound, Inc.
To
Speaker Acquisition Sub
------------------------------------------------------------------------------------------------
Docket Xxxx Serial Reg.
Number Number Number
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM92-02 * AURASOUND 74/313,418
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-01 * Aurasound (w/logo) 74/349,974
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-05 * Musical Chairs 74/385,179
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-06 * Vibrasonics 74/388,369
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-08 * Radial Flux 74/408,601
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-09 * Radial Mag 74/408,180
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-10 * Radial Pole 74/408,209
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-11 * Radial Neo 74/408,445
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-12 * Radial Power 74/408,205
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-13 * Radial Ring 74/408,664
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-14 * Radial Line 74/408,207
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-18 * Neo Flux 74/408,448
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-19 * Neo Power 74/408,208
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-20 * Neo Ring 74/408,671
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-21 * Neo Mag 74,408,447
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-23 * Radial Gap 74/408,672
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-26 * Neo Gap 74/408,206
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-27 * Radial Stroke 74/408,178
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-29 * Neo Stroke 74/408,179
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-31 * Pillow Sonics 74/408,242
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-32 * Theatre Sonics 74/408,210
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM93-33 * Aura Sonics 74/410,206
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-34 * Auto Sonics 74/417,408
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-35 * Interactor 74/425,395 1,920,753
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 93-43 * Interactor (stylized) 74/472,097
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-01 * Virtual Reality Gamewear
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-02 * Soundplay 74/528,416
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 94-03. * Mag Force 74/528,276
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-02 * Bass Shaker 74/679,644 2,072,412
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-03 * NRT 74/706,754 2,144,980
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-04 * Neo-Radial Technology 74/706,753 2,067,789
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM95-05 * Neo-Radial 74/720,723 2,063,972
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-01 * Mobile Reference (Stylized) 75/123,840
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-02 * Neo-Radial Technology (Stylized) 75/123,841 2,111,403
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM96-03 * Mobile Reference 75/131,644
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-01 * Aspect 75/225,690 2,128,907
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-02 * Force 75/225,287
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-08 * Force 150 75/229,617
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-09 * Force 250 75/229,616
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-10 * Force 340 75/229,720
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-11 * Force 560 75/229,719
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-12 * Force 400q 75/229,718
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-13 * Force 42 75/225,286
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-14 * Force 52 75/225,285
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-15 * Force 62 75/225,284
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-16 * Force 426 75/225,283
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-17 * Force 527 75/225,282
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-18 * Force 629 75/225,281
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-19 * Force 639 75/225,295
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-20 * Force 10 75/225,296
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-21 * Force 12 75/225,297
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-22 * Force 15 75/225,298
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-23 * Aura Virtual Sound 75/235,513
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-24 * AVS 75/235,817
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-25 * Do More Than Listen 75/235,512
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-28 * MR 75/252,086
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-29 * MR 52 75/252,087
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-30 * MR 62 75/252,088 2,170,440
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-31 * MR 5.1 75/252,089 2,219,543
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-32 * MR 6.1 75/252,090 2,188,518
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-33 * MR 629 75/252,091
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM97-34 * MR 1 75/252,085 2,170,439
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-04 * Linaeum 74/132,488
------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
TM98-05 * Line Source 75/291,967
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-06 * Force (stylized) 75/291,968
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM98-07 * Line Source (design) 75/330,407
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-04 * Beyond Red Line 75/579,642
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TM 99-06 * Mobile Reference Platinum 75/579,640
------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Xxxx US Serial US Reg.
Number Number
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
AURASOUND 74/313,418
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Aurasound (w/logo) 74/349,974
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Flux 74/408,601
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Mag 74/408,180
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Pole 74/408,209
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Neo 74/408,445
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Power 74/408,205
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Ring 74/408,664
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Line 74/408,207
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Flux 74/408,448
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Power 74/408,208
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Ring 74/408,671
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Mag 74,408,447
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Gap 74/408,672
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Gap 74/408,206
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Radial Stroke 74/408,178
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo Stroke 74/408,179
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Interactor 74/425,395 1,920,753
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Aura (stylized) 74/472,095 1,991,593
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Interactor (stylized) 74/472,097
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Bass Shaker 74/679,644 2,072,412
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NRT 74/706,754 2,144,980
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo-Radial Technology 74/706,753 2,067,789
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo-Radial 74/720,723 2,063,972
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mobile Reference (Stylized) 75/123,840
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Neo-Radial Technology (Stylized) 75/123,841 2,111,403
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mobile Reference 75/131,644
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Aspect 75/225,690 2,128,907
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Aura Virtual Sound 75/235,513
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
AVS 75/235,817
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 75/252,086
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 52 75/252,087
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 62 75/252,088 2,170,440
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 5.1 75/252,089 2,219,543
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 6.1 75/252,090 2,188,518
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 629 75/252,091
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MR 1 75/252,085 2,170,439
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Linaeum 74/132,488
-------------------------------------------------------------------------------
--------------------------------------------------------------------
Line Source 75/291,967
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Line Source (design) 75/330,407
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Mobile Reference Platinum 75/579,640
-------------------------------------------------------------------------------
EXHIBIT C
DOCUMENTS REGARDING OPTION TO BE RECORDED
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patents listed below (as well as
any foreign counterparts or cases that claim priority from the US patents listed
below):
5,321,762 5,539,262 5,786,741 5,230,021
D364,167 5,434,458 4,903,308 5,450,497
5,418,860 5,624,155 4,584,439 5,727,076
5,424,592 5,536,984 5,198,624 5,652,801
5,598,625 D394,063 5,127,060 5,604,815
D364,162 5,736,808 5,249,237 5,446,797
5,570,429
D396,723
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patent application listed below
(as well as any foreign counterparts or cases that claim priority from the US
patent application listed below):
08/491,250
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patent application listed below
(as well as any foreign counterparts or cases that claim priority from the US
patent application listed below):
27/056,795
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patent application listed below
(as well as any foreign counterparts or cases that claim priority from the US
patent application listed below):
09/056,394
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patent application listed below
(as well as any foreign counterparts or cases that claim priority from the US
patent application listed below):
29/090,939
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
OPTION
This option is entered into effective as of July ___, 1999 (the
"Effective Date") between Speaker Acquisition Sub, a Cayman Island corporation
("Algo Sub"), and a wholly-owned subsidiary of Algo Technology, Inc., a
California corporation ("Algo"); and Aura Systems, Inc., a Delaware corporation
("Parent"), and its wholly-owned subsidiary AuraSound, Inc., also a Delaware
corporation ("Seller").
(a) For a period of thirty-six months (36) months from the Effective
Date, Parent hereby grants to Algo Sub the irrevocable option (the "Option") to
acquire all right, title and interest to the US patent application listed below
(as well as any foreign counterparts or cases that claim priority from the US
patent application listed below):
29/090,938
(b) During the thirty-six month period following the Effective Date,
Parent shall not license, exclusively, non-exclusively, or otherwise encumber in
any manner, any of the above to any third party without the prior written
consent of Algo Sub. Should Algo Sub fail to exercise the Option, nothing herein
shall be construed to prevent Parent from subsequently licensing, on s
non-exclusive basis, any invention covered by the above hereunder to any other
for the purpose of practicing any such invention. In the event Algo Sub elects
not to exercise the Option, Algo Sub's non-exclusive license shall continue on
the terms set forth herein without modification.
SPEAKER ACQUISITION SUB AURA SYSTEMS, INC.
By: _______________________________ By: ______________________________
Name: ____________________________ Name: ____________________________
Title: _____________________________ Title: _____________________________
ALGO TECHNOLOGY, INC. AURASOUND, INC.
By: By:
Name: Name:
Title: Title:
