Document:

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                                                                    Exhibit 10.8

                AMENDED AND RESTATED LICENSE AGREEMENT BETWEEN

             BRIGHAM YOUNG UNIVERSITY AND SONIC INNOVATIONS, INC.

<TABLE>
<CAPTION>

<S>                                                                   <C>
 1     Definitions.................................................    1
 2     BYU Grant...................................................    3
 3     Sharing of all Improvements.................................    4
 4     Alternate Technology........................................    4
 5     Performance Requirements....................................    4
 6     License Fees and Royalties..................................    5
 7     Reports, Records, Penalties and Interest....................    6
 8     Confidentiality.............................................    7
 9     Separate Service Agreement..................................    8
10     Export Controls.............................................    8
11     Patent Marking and Copyright Notice.........................    8
12     Patent Prosecution and Maintenance..........................    8
13     Infringement................................................    9
14     Warranty and Limitation of Remedy...........................   10
15     Product Liability and General Indemnification...............   10
16     Term and Termination........................................   11
17     Negotiations, Mediation and Arbitration.....................   12
18     Licensee Assignment.........................................   13
19     Non Use of BYU Name.........................................   13
20     Publication.................................................   13
21     Payment, Notices and Other Communications...................   14
22     Miscellaneous Provisions....................................   14
</TABLE>

                                                                             -i-
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                     AMENDED AND RESTATED LICENSE AGREEMENT
                            BRIGHAM YOUNG UNIVERSITY

     This Amended and Restated License Agreement (the "Agreement"), effective
March 21, 2000 is entered into between Brigham Young University, a Utah non-
profit corporation and educational institution, with its principal campus and
place of business located at Provo, Utah 84602 (referred to in this Agreement as
"BYU") and Sonic Innovations, Inc., a Utah corporation with its principal place
of business located at 2795 E. Cottonwood Parkway, Suite 660, Salt Lake City,
Utah 84121 (referred to in this Agreement as "LICENSEE").

                                   RECITALS
                                   --------

     1.   BYU is the sole owner of certain intellectual property rights known as
"Noise Suppression" and has the right to grant licenses with respect to these
rights.

          A.   BYU is an institution of higher education and is not in the
business of commercially developing ideas, inventions, or other types of
intellectual property, but it does desire to have Noise Suppression available to
the public and is willing to grant a license for this purpose.

          B.   LICENSEE has represented to BYU that LICENSEE has the technical
and commercial ability, and the technical, financial and other resources
necessary to develop and sell products or services based upon Noise Suppression.

          C.   LICENSEE desires to obtain a license to Noise Suppression upon
the terms and conditions of this Agreement.

          D.   LICENSEE (or its predecessor entity) and BYU have previously
entered into that certain License Agreement in 1997 (the "Old 1997 Agreement")
and now desire to terminate the Old 1997 Agreement and amend and restate it in
its entirety in this Agreement.

     In consideration of the promises and mutual covenants contained in this
Agreement the parties agree as follows:

                              TERMS OF AGREEMENT

1    Definitions

     For the purposes of this Agreement, the following terms, words and phrases
shall have the meaning ascribed to them in this Section.

     1.1  "ADJUSTED GROSS SALES" shall mean LICENSEE's gross sales price or the
           --------------------
fair market monetary equivalent value of consideration received for LICENSED
PRODUCTS or PROCESSES, including product or process IMPROVEMENTS, sold, leased,
licensed or otherwise transferred by LICENSEE or a SUBLICENSEE to a third party,
including fees separately billed and specifically identified as consideration
for support, maintenance, service or subscriptions which include providing
upgrades or improvements, less qualifying costs directly attributable to such
sale, lease, license or transfer actually allowed and borne by LICENSEE or a
SUBLICENSEE. Such qualifying costs shall be limited to the costs of the
following:
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          A.   Trade or quantity discounts actually allowed and taken in such
               amounts as are customary in the trade;

          B.   Sales, import and export duties and/or use and excise taxes
               imposed with reference to particular sales;

          C.   Outbound transportation expenses prepaid or allowed;

          D.   Amounts allowed or credited by reason of timely rejections or
               returns; and

          E.   Fees separately billed and specifically identified as
               "installation fees," which are consistent with those normally
               charged in the trade.

     No deductions shall be made for commissions paid to individuals, whether
they be regularly employed by LICENSEE or by independent sales agents, or for
the cost of collections. For purposes of calculating "ADJUSTED GROSS SALES" a
LICENSED PRODUCT or PROCESS shall be considered sold, leased, licensed or
transferred when billed, invoiced, shipped, paid for or transferred, whichever
event occurs first.

     1.2  "AFFILIATE" shall mean any person or entity owned or controlled
           ---------
directly or indirectly by LICENSEE or any person or other entity controlled by,
controlling, or under common control with LICENSEE. The term "control" means
possession, direct or indirect, of the powers to direct or cause the direction
of the management and policies of a person or entity; whether through ownership,
voting securities, beneficial interests; by contract; by agreement; or
otherwise.

     1.3  "END USER" means any person or entity to which LICENSED PRODUCTS or
           --------
LICENSED PROCESSES are sold or licensed for personal or business use and not for
the purpose of licensing or selling to other persons or entities.

     1.4  "IMPROVEMENT(S)" means any invention, idea, trade secret, know-how or
           --------------
derivative work which is directly related to or which includes any portion of or
utilizes any portion of the LICENSED TECHNOLOGY, LICENSED PRODUCTS or LICENSED
PROCESSES, whether or not patentable, copyrightable, or otherwise protectable as
intellectual property which is subsequently acquired or developed by LICENSEE
during the term of this Agreement.

     1.5  "LICENSED PROCESS(ES)" means and includes any process, procedure,
           --------------------
technique, method or service the use or practice of which incorporates or makes
use of any part of the LICENSED TECHNOLOGY or IMPROVEMENTS.

     1.6  "LICENSED PRODUCT(S)" means and includes any product, apparatus, or
           -------------------
IMPROVEMENTS which are developed, or enhanced in whole or in part by LICENSEE,
the production, manufacture, sale, lease, license, transfer or use of which
incorporates or makes use of any part of the LICENSED TECHNOLOGY or
IMPROVEMENTS. In the event such a product or apparatus forms an integral part
or component of a larger product, such larger product shall be considered a
"LICENSED PRODUCT," for purposes of this Agreement.

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     1.7  "LICENSED TECHNOLOGY" means and includes all of BYU's technology and
           -------------------
intellectual property referred to in this Agreement as Noise Suppression and
related enhancements generated at BYU as specifically identified and limited on
Exhibit "A", which is attached to this Agreement and by reference is
incorporated and made part of this Agreement.

     1.8  "LICENSEE" is Licensee, and its AFFILIATES.
           --------

     1.9  "SUBLICENSEE" is any person or entity including value added retailers
           -----------
or other individuals or entities, which are licensed pursuant to this Agreement
by LICENSEE with rights to the LICENSED TECHNOLOGY to market to END USERS
LICENSED PRODUCTS or LICENSED PROCESSES which are developed, enhanced, improved
or manufactured by said person or entity.

2    BYU Grant

     2.1  BYU hereby grants LICENSEE an exclusive, worldwide, right and license
to utilize the LICENSED TECHNOLOGY, to develop LICENSED PRODUCTS and LICENSED
PROCESSES to manufacture, sell, lease and otherwise transfer LICENSED PRODUCTS
and to practice LICENSED PROCESSES within the field of auditory assistance to
the hearing impaired and hearing protection as authorized in this Agreement
until such time as this Agreement is terminated. This grant will extend to the
manufacture, sale, lease, transfer or other disposition of LICENSED PRODUCTS or
LICENSED PROCESSES through an AFFILIATE or through LICENSEE's use of any retail
outlet or distributor and shall authorize any END USERS' use of the LICENSED
PRODUCTS and LICENSED PROCESSES sold or transferred by LICENSEE or its
AFFILIATES, retail outlets or distributors.

     2.2  BYU hereby grants LICENSEE a non-exclusive, worldwide right and
license to utilize the LICENSED TECHNOLOGY, to develop LICENSED PRODUCTS and
LICENSED PROCESSES to manufacture, sell, lease and otherwise transfer LICENSED
PRODUCTS and to practice LICENSED PROCESSES for all applications of the LICENSED
TECHNOLOGY outside the field of auditory assistance to the hearing impaired and
hearing protection as authorized in this Agreement until such time as this
Agreement is terminated. This grant will extend to the manufacture, sale, lease,
transfer or other disposition of LICENSED PRODUCTS or LICENSED PROCESSES through
an AFFILIATE or through LICENSEE's use of any retail outlet or distributor and
shall authorize any END USERS' use of the LICENSED PRODUCTS and LICENSED
PROCESSES sold or transferred by LICENSEE or its AFFILIATES, retail outlets or
distributors.

     2.3  The grants provided under this Agreement shall specifically include
the right for LICENSEE to grant sublicenses to the LICENSED TECHNOLOGY to
SUBLICENSEES. All sublicenses granted by LICENSEE shall be subject to the terms
and conditions of this Agreement and the sublicense agreement shall have an
express provision to this effect. No sublicense shall relieve LICENSEE of any of
its obligations under this Agreement. LICENSEE agrees to forward to BYU a fully
executed copy of each sublicense agreement within thirty (30) days upon written
request from BYU, and to act as a fiduciary to protect BYU's interests in the
sublicense and to collect and transmit to BYU all royalties due.

     2.4  Nothing in this Agreement shall be considered as granting any rights,
express or implied, in BYU's patents, patent applications, inventions, methods,
technical, confidential or

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proprietary information, expertise, know-how, trade secrets or knowledge not
specifically licensed in this Agreement, and all rights not expressly granted by
this Agreement to LICENSEE are expressly reserved by BYU. The license granted
by this Agreement shall not be construed to confer any rights upon LICENSEE by
implication, estoppel or otherwise as to any existing, new or derivative
technology not specifically licensed by this Agreement. The reservation of
rights described in this Section is intended to be broadly construed and not to
be limited by the definitions set forth in this Agreement.

     2.5  Notwithstanding the exclusive license granted pursuant to this
Agreement, BYU, The Church of Jesus Christ of Latter-day Saints and the Church
Education System shall have the right to make, have made or use the LICENSED
TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES and IMPROVEMENTS for
continuing research and non-commercial, academic and ecclesiastical uses without
cost. LICENSEE agrees that any time during the term of this Agreement, it will
sell to current or retired full-time faculty, administrative and staff personnel
of BYU and the full-time permanent employees of The Church of Jesus Christ of
Latter-day Saints covered by their respective health and welfare benefits
programs as then in effect for such personnel (similar to the current DMBA
coverage, but in no case applicable due to temporary or part-time employment,
including employment of students), LICENSED PRODUCTS or PROCESSES at the pricing
offered under LICENSEE'S Friends and Family program (or any successor or similar
program). LICENSEE may take reasonable steps to verify qualification by such
retired personnel and may employ a third-party to administer this program.

3    Sharing of all Improvements

     For the purpose of facilitating BYU's exercise of its rights regarding
IMPROVEMENTS pursuant to the first sentence of Section 2.5 hereof, LICENSEE
agrees to share information regarding IMPROVEMENTS with BYU on a prompt and
reasonable basis and BYU agrees to maintain the confidentiality of such
information on the basis set forth in Section 8 of the Agreement.

4    Alternate Technology

     In the event that LICENSEE chooses to use alternate technology to replace
the LICENSED TECHNOLOGY, representatives of BYU and LICENSEE shall meet and
confer regarding such alternate technology. If BYU agrees that the alternate
technology is superior to the LICENSED TECHNOLOGY and is not derived from the
LICENSED TECHNOLOGY, then LICENSEE shall have no royalty obligations under this
Agreement with respect to its products containing such alternate technology. If
BYU, acting in good faith, does not believe that such alternate technology is
superior to the LICENSED TECHNOLOGY, then LICENSEE shall continue to pay
royalties as provided for in this Agreement with respect to sales of products
containing such alternate technology. Promptly following the meeting(s) of BYU
and LICENSEE to consider the alternate technology, BYU shall give written notice
to LICENSEE of its opinion pursuant to this paragraph.

5    Performance Requirements

     5.1  LICENSEE shall, during the term of this Agreement, use its best
efforts to bring one or more LICENSED PRODUCTS or LICENSED PROCESSES to market
in order to

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maximize the ADJUSTED GROSS SALES through a thorough, vigorous and diligent
commercial program.

     5.2  LICENSEE's failure to perform in accordance with this Section of the
Agreement to the reasonable satisfaction of BYU may be considered by BYU to be a
material breach of this Agreement. (See Section 17 for termination procedure.)

6    License Fees and Royalties

     In consideration of the license granted under this Agreement, LICENSEE
shall pay to BYU, in the manner designated below until the Agreement shall be
terminated, as follows:

     6.1  License Issue Fees: A license issue fee in the amount of Fifty
Thousand Dollars ($50,000.00) shall be paid upon the execution of this
Agreement. This license issue fee shall be non-refundable and may not be
credited toward the payment of any royalties or other consideration required by
this Agreement.

     6.2  Earned Royalties: An earned royalty shall be paid in the amount equal
to one-half of one percent (0.50%) of the ADJUSTED GROSS SALES of the LICENSED
PRODUCTS, LICENSED PROCESSES or IMPROVEMENTS subject of this Agreement used,
leased, licensed, sold or otherwise transferred to an END USER by or for
LICENSEE or its AFFILIATES.

     6.3  Minimum Royalties: An annual minimum royalty of fifty thousand dollars
($50,000.00) for each calendar year shall be paid in two installments of twenty-
five thousand dollars ($25,000) at the conclusion of each six month period
commencing with the 1998 calendar year. In the event that LICENSEE's earned
royalty payment to BYU during any particular six-month period shall fall below
twenty-five thousand dollars, then LICENSEE shall pay a minimum royalty to BYU
with its report of the second or fourth quarter respectively of twenty-five
thousand dollars less any earned royalties paid for that six-month period. All
earned royalties for any given calendar year can be credited against all minimum
royalties for that calendar year, but earned royalties for any given calendar
year shall only be credited against minimum royalties for that same calendar
year.

     6.4  Pass Through Royalties: A "pass through royalty" to be levied on all
license fees and any and all other consideration of any kind or description
received by LICENSEE or any AFFILIATE from any third party which is not an
AFFILIATE, distributor, retail outlet or END USER, but which is granted a
sublicense, is assigned rights or receives rights from LICENSEE with respect to
the LICENSED TECHNOLOGY to make, use, sell, lease or otherwise transfer LICENSED
PRODUCTS or PROCESSES made or developed by the SUBLICENSEE, assignee or
transferee and which is not otherwise subject to the earned and minimum royalty
provisions of this Agreement. The pass through royalty shall be paid on all
such license fees or consideration, which shall specifically include, but not be
limited to, license issue fees, minimum royalties, equity interests or other
consideration in excess of earned royalties to which BYU is entitled pursuant to
Sections 2.2 and 6.2 of this Agreement.

          A.   The "pass through royalty" shall be fifty percent (50%) of all
               applicable consideration subject to the pass through royalty.

                                       5
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          B.   Pass through royalty payments shall be payable to BYU quarterly
               in addition to and contemporaneously with earned royalty
               payments. Such pass through royalty payments shall be based on
               all consideration paid during the applicable three months.
               Reporting of such consideration shall be made following the same
               criteria set forth for earned royalty payments in this Agreement.
               In no event shall BYU be entitled to receive both an "earned
               royalty" and a "pass through royalty" on the same transaction,
               and if multiple licensed technologies are involved in the same
               transaction, the total "pass through royalty" shall not exceed
               50%.

     6.5  Any royalty amount due to BYU arising out of this Agreement shall
accrue at the time of use, sale, lease, license or transfer of the LICENSED
PRODUCT or LICENSED PROCESS and shall be deemed to be held in trust for the
benefit of BYU until actual payment of such amounts is made pursuant to this
Agreement.

7    Reports, Records, Penalties and Interest

     7.1  LICENSEE shall keep and shall require all SUBLICENSEES, AFFILIATES,
and any other party responsible by the terms of this Agreement to make payments
to BYU to keep, at their own expense, accurate books of account, using generally
accepted accounting principles and practices, detailing all data necessary to
calculate and easily audit any payments due to BYU under this Agreement. These
books of account shall be kept at LICENSEE's, AFFILIATE's or SUBLICENSEE's
principal place of business. These books and supporting data shall be open at
all reasonable times, upon ten (10) calendar days written notice, for a period
of five (5) years following the end of the calendar year to which they pertain,
to the inspection by BYU or its agents for the purpose of verifying LICENSEE's
royalty statements or other compliance with this Agreement.

     7.2  LICENSEE, within forty-five (45) days after the last day of each full
calendar quarter subsequent to the effective date of this Agreement, shall
deliver to BYU an accurate written report summarizing in sufficient detail to
allow BYU to verify all payment amounts, the data used during the preceding
three-month period under this Agreement to calculate the payments due to BYU
during the applicable accounting period. These records and reports shall
include at least the following information for the accounting period:

          A.   Calculation of ADJUSTED GROSS SALES itemized as to the number and
               the identity of the LICENSED PRODUCTS or PROCESSES sold.

          B.   All qualifying deductible costs claimed as offsets as applicable.

          C.   Total royalties due broken down by applicable category.

          D.   Minimum royalty amounts in excess of earned royalty amounts.
               (Fourth quarter report only.)

          E.   Pass through royalty amounts.

          F.   Names and address of all AFFILIATES and SUBLICENSEES and full
               reports from them complying with the reporting requirements of
               Section 8.2 A-E.

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<PAGE>

     7.3  With each such report submitted, LICENSEE shall pay to BYU all fees,
royalties and all other amounts due, payable and arising pursuant to this
Agreement. If no amounts shall be due, LICENSEE shall so report.

     7.4  A penalty will be assessed in an amount equal to three percent (3%) of
any payment due to BYU arising out of this Agreement if the payment is made more
than thirty (30) days late. Interest will accrue from the thirtieth day after
the payment was due at a rate of eighteen percent (18%) per annum and the
interest payment shall be due and payable every thirty (30) days thereafter. It
is the intention of the parties to this Agreement that any unpaid interest or
penalty shall be subject to monthly compounded interest at the rate of eighteen
percent (18%) per annum. Accordingly, the parties expressly agree that any
unpaid interest or penalty shall be added on a monthly basis to the unpaid
principle and such total amount shall accrue interest at the rate of eighteen
percent (18%) per annum.

     7.5  LICENSEE shall cause an independent auditor to deliver to BYU a
certified report which shall verify the accuracy of the quarterly reports
required in Section 8 on or before ninety (90) days after end of each fiscal
year.

8    Confidentiality

     8.1  LICENSEE agrees, that as LICENSEE receives material provided by BYU
which is marked as confidential, or is verbally so designated and confirmed in
writing by BYU within thirty (30) days of the receipt of the materials by
LICENSEE, or which LICENSEE would at the time of disclosure reasonably
understand under the circumstances to be considered by BYU to be confidential,
LICENSEE shall take reasonable precautions to protect such material and to
preserve its confidential, proprietary or trade secret status during the term of
this Agreement and for a period of five (5) years after termination of this
Agreement.

     8.2  In determining whether or not information is confidential, the burden
of proof shall be upon LICENSEE to establish by competent proof and by
preponderance of the evidence that such information to be nonconfidential was:

          A.   Already known to LICENSEE at the time of disclosure by BYU, or

          B.   Was generally available to the public or otherwise part of the
               public domain at the time of its disclosure to LICENSEE, or

          C.   Became generally available to the public or otherwise part of the
               public domain after its disclosure and other than through any act
               or omission of LICENSEE in breach of this Agreement, or

          D.   Was subsequently, lawfully disclosed to LICENSEE by a third
               party.

     8.3  LICENSEE may disclose BYU's confidential information only to the
extent it is authorized in writing to do so by BYU and such disclosure is
reasonably necessary to further the objectives of this Agreement.

     8.4  All of LICENSEE's and SUBLICENSEE's employees and independent
contractors with access to BYU's confidential information shall be bound in
writing, copies of

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which shall be retained by LICENSEE and submitted to BYU upon request of BYU, to
make no unauthorized use or disclosure of the confidential information.

     8.5  LICENSEE agrees that a breach of its obligation to protect BYU's
confidential information shall cause immediate and irreparable harm to BYU which
cannot be adequately compensated by monetary damages. Accordingly, any breach or
threatened breach of confidentiality shall entitle BYU to preliminary and
permanent injunctive relief in addition to such remedies as may be otherwise
available to BYU.

9    Separate Service Agreement

     If BYU shall agree to supply technical and engineering services required to
effectively transfer to LICENSEE the LICENSED TECHNOLOGY licensed herein,
LICENSEE shall reimburse BYU for its expenses incurred in furnishing such
technical and engineering services pursuant to the terms and conditions of a
separate written agreement.

10   Export Controls

     It is understood that the LICENSED TECHNOLOGY may be subject to United
States laws and regulations controlling the export of technical data, computer
software, laboratory prototypes and other commodities (including the Arms Export
Control Act, as amended, and the Export Administration Act of 1979), and
LICENSEE's obligations under this Agreement may be contingent upon compliance
with applicable United States export laws and regulations. The transfer of
certain technical data and commodities may require a license from the cognizant
agent of the United States Government and/or written assurances by LICENSEE that
LICENSEE shall not export data or commodities to certain foreign countries
without prior approval of such agency. BYU neither represents that a license
shall not be required nor that, if required, it shall be issued. LICENSEE shall
observe and obey all export laws in countries in which it shall do business.

11   Patent Marking and Copyright Notice

     LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United States
with all applicable United States patent numbers and copyright notices. All
LICENSED PRODUCTS shipped to or sold in other countries shall be marked in such
a manner as to conform with the patent and/or copyright laws and practice of the
country of manufacture or sale.

12   Patent Prosecution and Maintenance

     12.1 LICENSEE shall apply for, seek prompt issuance of, and maintain during
the term of this Agreement any patent and/or copyrights to properly patentable
or copyrightable intellectual property set forth in Exhibit A or to any
residuals, derivatives, enhancements and modifications. LICENSEE shall
diligently prosecute, file, perfect and maintain all such patent or copyright
rights, patents or applications utilizing legal counsel of its choice. All
resulting patents, copyrights and accompanying rights shall be assigned by
LICENSEE to BYU. BYU shall cooperate with LICENSEE in such prosecution, filing
and maintenance.

     12.2 LICENSEE shall be solely responsible for the payment of all fees and
costs relating to the filing, prosecution, perfection and maintenance of the
patent and copyright rights,

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both domestic and foreign, whether such fees and costs were incurred before or
after the date of this Agreement.

     12.3 LICENSEE expressly represents and warrants that it will timely and
faithfully perform its obligations pursuant to Section 3 of this Agreement.
LICENSEE's failure to so perform shall constitute a material breach of this
Agreement entitling BYU to terminate this Agreement and recover from LICENSEE
BYU's actual, incidental and consequential damages resulting from such breach.

13   Infringement

     13.1 LICENSEE shall inform BYU promptly in writing of any alleged
infringement or misuse of the intellectual property rights subject of this
Agreement by a third party and of any available evidence of such infringement or
misuse.

     13.2 During the term of this Agreement, BYU shall have the right, but shall
not be obligated, to prosecute at its own expense any infringements or misuse
and, in furtherance of such right, LICENSEE agrees that BYU may require LICENSEE
to participate as a party plaintiff in any such suit, without expense to
LICENSEE. The total cost of any such infringement action commenced solely by BYU
shall be paid by BYU and BYU shall be entitled to retain any recovery or damages
arising from the infringement or misuse.

     13.3 If within sixty (60) days after having been notified of any alleged
misuse or infringement, BYU does not intend on prosecuting an infringement
action, BYU shall notify LICENSEE of its intention not to bring suit. In such
event only, LICENSEE shall have the right, at its own expense, to prosecute a
suit to remedy the infringement or misuse of the intellectual property rights
subject of this Agreement. LICENSEE may, for such purposes, use the name of BYU
as party plaintiff. However, the right to bring an infringement action shall
remain only for so long as this Agreement remains in effect. No settlement,
consent judgment or other voluntary final disposition of the suit may be entered
into without the express written consent of BYU, which consent shall not be
unreasonably withheld. LICENSEE shall indemnify BYU against any order or
settlement for costs or attorneys' fees that may be made against BYU in such
proceedings prosecuted by LICENSEE.

     13.4 In the event that LICENSEE shall undertake the enforcement of
intellectual property rights by litigation, LICENSEE may withhold up to 50% of
any royalty payment otherwise due BYU and apply the same toward reimbursement of
a cumulative maximum of fifty percent (50%) of its reasonable and paid outside
attorneys fees, court costs and fees of expert witnesses. Any recovery of
damages by LICENSEE for such suit shall be applied first to satisfaction of any
unreimbursed litigation expenses and legal fees of LICENSEE relating to the suit
and next toward reimbursement of BYU for any royalties withheld. The balance
remaining from any such recovery shall be divided equally between LICENSEE and
BYU.

     13.5 In the event that a declaratory judgment or other action alleging
unlawful infringement of any intellectual property rights of a third party is
brought against LICENSEE, BYU, at its sole option, shall have the right within
thirty (30) days after the commencement of such action to intervene and assume
the sole defense of the action at its own expense. Should BYU elect not to
defend, LICENSEE shall have the right to defend the suit at its sole expense.

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     13.6 If a third party is successful in prevailing against LICENSEE in an
adjudicated lawsuit demonstrating that the LICENSED TECHNOLOGY as delivered to
LICENSEE by BYU unlawfully infringed upon such third party's intellectual
property rights, LICENSEE shall be entitled to offset against future earned
royalties the full amount of LICENSEE's court costs, attorney fees and damages
awarded.

     13.7 In any infringement suit, the other party shall, at the request and
expense of the party initiating the suit, cooperate in all respects and, to the
extent possible, make its employees reasonably available to testify when
requested and make available relevant records, papers, information, samples,
specimens, and the like.

14   Warranty and Limitation of Remedy

     14.1 BYU represents and warrants that to the best of its knowledge it is
the owner of the entire right, title, and interest in and to and has the sole
right to grant licenses under this Agreement to the LICENSED TECHNOLOGY as
described on Exhibit "A. ". BYU makes no warranty or representation with
respect to the application of the LICENSED TECHNOLOGY to any particular purpose.

     14.2 BYU makes no representation that the manufacture, use, lease, or sale
of the LICENSED TECHNOLOGY will not infringe a copyright or patent granted to
others, other than to state that it knows of no such copyright, patent or other
proprietary interests which would be so infringed.

     14.3 Each party represents and warrants to the other that it has all of the
requisite power and authority to enter into this Agreement and to perform each
and every term, provision and obligation of this Agreement and that neither the
execution nor delivery of this Agreement will conflict with or result in a
breach of the terms, provisions or obligations of, or constitute a default
pursuant to any other Agreement or instrument under which each party is
obligated.

     14.4 ALL WARRANTIES MADE IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL
OTHER WARRANTIES EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER
WARRANTY WHETHER EXPRESS OR IMPLIED.

     14.5 BYU will not be liable for any loss of profits or for any claim or
demand against LICENSEE by any other party. BYU's liability, if any, for any
damages to LICENSEE shall not exceed in any event the total earned royalties
which have been paid by LICENSEE to BYU during the term of this Agreement. IN NO
EVENT WILL BYU BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES EVEN IF BYU HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. No action, regardless of form,
arising out of the transaction subject of this Agreement may be brought against
BYU more than one year after the cause of action is discovered.

15   Product Liability and General Indemnification

     15.1 BYU does not warrant the effectiveness or operation of any of the
LICENSED PRODUCTS or LICENSED PROCESSES and the parties to this Agreement agree
and understand that BYU shall have no liability to an END USER. LICENSEE,
therefore, agrees to

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hold BYU harmless and indemnify BYU, its trustees, officers, employees and
agents from and against any and all litigation, claims, damages or actions
(including reasonable attorneys' fees) that may be instituted against BYU
arising out of LICENSEE's marketing, distribution, sale, production,
manufacture, lease, consumption or advertisement of the LICENSED TECHNOLOGY,
LICENSED PRODUCTS or LICENSED PROCESSES or arising from any obligation of
LICENSEE under this Agreement, including, but not limited to, claims resulting
from any alleged type of defect in the LICENSED PRODUCTS or LICENSED PROCESSES
or damages allegedly caused by any breach of contract by LICENSEE, its
AFFILIATES or SUBLICENSEES or the use or misuse of the LICENSED PRODUCTS and
LICENSED PROCESSES, notwithstanding any third-party allegation that their
claims, injuries or damages were proximately caused in part or wholly by BYU's
negligence. In the event BYU is sued as a party defendant or otherwise pursuant
to claims identified in this Section as being subject to indemnification,
LICENSEE agrees to defend BYU at LICENSEE's sole expense in such action. Should
any award or decree be made against BYU, it shall be the obligation of LICENSEE
to (a) appeal the decision and pay if the appeal is lost or (b) pay such award
or make any settlement as may be warranted before or after the decision on
appeal. BYU may, at its own option, conduct its own defense in such actions and
all expenses and attorneys' fees for such defense shall be paid by LICENSEE.

     15.2 LICENSEE shall immediately notify BYU of any litigation in which it,
its officers or its directors, agents or employees may be involved if there is a
reasonable possibility that this Agreement or BYU will be affected and afford
BYU reasonable cooperation should BYU elect to make its own defense.

16   Term and Termination

     This Agreement shall remain in force until properly terminated as provided
in this Section.

     16.1 The Agreement may be terminated automatically without prior notice by
BYU at its election in the event of the occurrence of any one of the following
circumstances:

          A.   In the event LICENSEE is placed in the hands of a receiver or
               makes a general assignment for the benefit of creditors; or

          B.   In the event that substantial assets of LICENSEE or its
               successor-in-interest are seized or attached in conjunction with
               any action brought against it by a third party creditor.

     16.2 This Agreement may be terminated effective upon fifteen (15) days
written notice from BYU and the failure of LICENSEE to cure any breach or
default prior to the expiration of the fifteen-day notice period in any of the
following circumstances:

          A.   In the event LICENSEE becomes insolvent or shall cease to carry
               on its business in the normal course; or

          B.   In the event there is a transfer or sale of LICENSEE's business
               purporting to transfer or assign this Agreement or LICENSED
               TECHNOLOGY without the prior express written consent of BYU,
               except in connection

                                       11
<PAGE>

               with a merger, sale or transfer of substantially the LICENSEE'S
               entire business, in which case no consent shall be required; or

          C.   Disclosure of confidential information in violation of the
               confidentiality provisions of this agreement; or

          D.   In the event that BYU reasonably determines that LICENSEE does
               not have the financial ability to perform the terms of this
               Agreement.

     16.3 In the case of breach or default arising from LICENSEE's failure to
pay BYU royalties or other costs or expenses pursuant to the Agreement when due
and payable, failure to complete the performance requirements of Section 5 of
this Agreement or from any other material breach or default of this Agreement
other than those described in Section 16.3 and Section 16.2, BYU shall have
the right to terminate this Agreement upon thirty (30) days notice to LICENSEE.
Termination shall become effective upon the failure of LICENSEE to cure such
breach or default.

     16.4 Upon termination of this Agreement, for any reason, the parties shall
not be released from any obligation that has matured prior to the effective date
of the termination. LICENSEE may, however, after the effective date of such
termination, sell all LICENSED PRODUCTS and complete LICENSED PROCESSES in its
inventory or in process as of the time of such termination, provided that
LICENSEE shall pay to BYU the royalties and other consideration on these
products as required by this Agreement and shall submit the reports as required.

     16.5 Upon the termination of this Agreement, any SUBLICENSEE that has not
breached in any material way its sublicense agreement shall continue to maintain
its license on substantially unchanged terms, except that such license shall be
deemed to be a license from BYU.

     16.6 Upon the termination of this Agreement for breach by LICENSEE,
LICENSEE shall return to BYU all equipment, enhancements and all other
materials, documents and information as may have been provided by BYU pursuant
to this Agreement, which contain information which is confidential or
proprietary to BYU and shall grant back to BYU all of LICENSEE's right, title
and interest to all IMPROVEMENTS, with applicable documentation, made by
LICENSEE in relation to the LICENSED TECHNOLOGY.

     16.7 Nothing herein shall be construed to limit BYU's legal or equitable
remedies in the event of a default by LICENSEE and subsequent termination of
this Agreement by BYU.

17   Negotiations, Mediation and Arbitration

     17.1 With respect to any and all claims, disputes or controversies arising
out of the performance of or in connection with this Agreement, except with
respect to enforcement of the LICENSEE's obligations specified in Sections 6, 8
and 13, hereof for which BYU may seek any legal or equitable remedy available
through a court of competent jurisdiction, the parties agree to attempt in good
faith to resolve those claims, disputes or controversies by negotiations between
the parties. In the event either party believes the negotiation discussions are
likely not to result in settlement, the parties must, in good faith, participate
in mediation sessions with a professional mediator to be mutually selected by
the parties and the expense of which is to be paid fifty

                                       12
<PAGE>

percent (50%) by each party. In the event, after one or more mediation sessions,
either party believes the mediation process is not likely to resolve the dispute
by mutual agreement, the dispute shall be resolved by final and binding
arbitration in Provo, Utah. Each party shall choose one arbitrator and these two
arbitrators shall in turn select a third arbitrator, which three arbitrators
shall constitute the arbitration panel. The arbitrators shall have no power to
add to, subtract from or modify any of the terms or conditions of this
Agreement. Any award rendered in such arbitration may be enforced by either
party in either the courts of the State of Utah or in the United States District
Court for the District of Utah in which jurisdiction for such purposes BYU and
LICENSEE hereby irrevocably consent and submit. The arbitration proceedings
shall be conducted in all matters not specifically identified in this Agreement
pursuant to the rules of the American Arbitration Association, unless otherwise
expressly agreed in writing by the parties. Each party shall bear its own costs.

     17.2 Claims, disputes or controversies concerning the validity,
construction or effect of any patent subject of this License Agreement shall be
resolved in any court having competent jurisdiction.

     17.3 In the event in any arbitration proceeding any issue shall arise
concerning the validity, construction or effect of any patent licensed, the
arbitrator shall assume the validity of all claims as set forth in the patent.
Except with reference to a prior determination by a court of competent
jurisdiction, neither party shall raise any issue concerning the validity,
construction or effect of any patent licensed under this Agreement in any
arbitration proceeding, in any proceeding to enforce the arbitration award or in
any proceeding arising out of such arbitration award.

     17.4 Nothing in this Section shall be construed to waive any rights of
timely performance of any obligation existing under the Agreement.

18   Licensee Assignment

     Neither this Agreement nor the LICENSED TECHNOLOGY is assignable by
LICENSEE without the express written consent of BYU, which shall not be
unreasonably withheld, and any attempt to do so without such written consent
shall be void.

19   Non Use of BYU Name

     LICENSEE shall not use the name of Brigham Young University nor of any of
its employees, nor any adaptation thereof, in any advertisement, promotion or
sales literature without the express prior written consent from BYU in each
case, except that LICENSEE may state that it is licensed by BYU.

20   Publication

     BYU shall have the right to publish any academic paper, article or learned
treatise and make public disclosure at professional meetings or seminars
regarding any portion of the LICENSED TECHNOLOGY which has been or may be
invented, conceived or developed by BYU.

                                       13
<PAGE>

21   Payment, Notices and Other Communications

     Any payment, notice or other communication pursuant to this Agreement shall
be sufficiently made or given on the date of mailing if sent by certified first-
class mail, postage prepaid, addressed to the receiving party at its address
designated below or such address as shall be designated by written notice given
to the other party.

     BYU:           Technology Transfer Office
                    A-268 ASB
                    Brigham Young University
                    P.O. Box 21231
                    Provo, Utah 84602-1231
                    (801) 378-6266

     LICENSEE:      Sonic Innovations, Inc.
                    2795 E. Cottonwood Parkway
                    Suite 660
                    Salt Lake City, Utah 84121
                    (801) 365-2800

     22   Miscellaneous Provisions

     22.1 Independence of Parties. BYU and LICENSEE are independent parties
engaged in independent business and neither party nor any respective agent or
employee of either party shall be regarded as an agent or an employee of the
other. Nothing in this Agreement shall be construed as reserving to either party
the right to control the other in the conduct of its business, nor shall either
party have the authority to make any promise, guarantee, warranty or reservation
which will create any obligation or liability whether express or implied on
behalf of the other.

     22.2 Attorneys' Fees. In the event a suit or an arbitration proceeding is
commenced to construe or enforce any provision of this Agreement, the prevailing
party, in addition to all other amounts to which such party may be entitled,
shall be paid by the other party a reasonable sum for attorneys' fees and
reasonable costs related to the dispute resolution.

     22.3 Waiver. No waiver by either party, whether express or implied, of any
provisions of this Agreement or of any breach or default of either party, shall
constitute a continuing waiver of such provision or a wavier of any other
provisions of this Agreement.

     22.4 Governing Law. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Utah. Venue for any legal disputes
shall be in Utah County, Utah.

     22.5 Partial Invalidity. Should any Section or any part of a Section of
this Agreement be held unenforceable or in conflict with the law of any
jurisdiction, the validity of the remaining Sections and Subsections shall not
be affected by the invalidity of any other part of the Agreement.

     22.6 Force Majeure. Neither party to this Agreement shall be in default
because of a delay or failure to perform which is not the result of the
defaulting party's intentional or

                                       14
<PAGE>

negligent acts or omissions, but results from causes beyond the reasonable
control of such party such as acts of God, civil disobedience and war.

     22.7  Entire Agreement. This Agreement constitutes the entire Agreement and
understanding between the parties and supersedes all prior agreements and
understandings with respect to the LICENSED TECHNOLOGY, whether written or oral.
No modification or claimed waiver of any of the provisions of this Agreement
shall be valid unless in writing and signed by authorized representatives of the
party against whom such modification or wavier was sought to be enforced.

     22.8  Binding Effect. This License Agreement shall be binding upon and
shall inure to the benefit of the successors, assigns and legal representatives
of the parties.

     22.9  Headings. The paragraph and subparagraph headings contained in this
Agreement are for convenience and reference only. They are not intended to
define and limit the scope of the provisions of this Agreement.

     22.10 Old 1997 Agreement. The Old 1997 Agreement is hereby terminated and
made of no force or effect.

                                       15
<PAGE>

     IN WITNESS WHEREOF, the parties have entered into this Agreement and it is
effective this 21/st/ day of March, 2000.

BRIGHAM YOUNG UNIVERSITY

   /s/ Gary R. Hooper                           3/21/00
-------------------------------------         ----------
By: Gary R. Hooper                               Date
    Associate Academic Vice President

LICENSEE

   /s/ Steve Wilson                             3/21/00
-------------------------------------         ----------
 By: Steve Wilson                                Date
     Chief Financial Officer

                                       16
<PAGE>

                                   EXHIBIT A

                              LICENSED TECHNOLOGY

     The LICENSED TECHNOLOGY includes the U.S. patent application(s) (in
preparation on the effective date of this agreement)  based upon the Technical
Description below, and any U.S. patent issuing therefrom, any foreign
counterparts thereof, as well as all continuations, continuations-in-part,
divisions and renewals thereof, all patents which may be granted thereon, and
all reissues, reexaminations, extensions, patents of addition, improvement
patents and patents of importation thereof;  trade secrets; and know-how which
trade secrets and know-how are associated with the Technical Description and are
in existence upon the effective date of the Agreement.

                             TECHNICAL DESCRIPTION

                          (See attached description.)<PAGE>

                                                                    EXHIBIT 10.9

           AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT BETWEEN
           --------------------------------------------------------

                         BRIGHAM YOUNG UNIVERSITY AND
                         ----------------------------

                            SONIC INNOVATIONS, INC.
                            -----------------------

                               Table of Contents

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
1   Definitions..........................................................      2

2   Grant................................................................      2

3   Performance Criteria.................................................      4

4   Consideration........................................................      4

5   BYU's Equity Ownership of SONIC......................................      5

6   Reports and Records..................................................      6

7   Confidentiality......................................................      6

8   Export Controls......................................................      7

9   Patent Marking and Copyright Notice..................................      7

10  Patent Prosecution and Maintenance...................................      7

11  Infringement.........................................................      8

12  Warranty and Limitation of Remedy....................................      8

13  Indemnification......................................................      9

14  Termination..........................................................     10

15  Negotiations, Meditation and Arbitration.............................     11

16  Assignment...........................................................     12

17  Non Use of BYU Name..................................................     12

18  Publication..........................................................     13

19  Payment Notices and Other Communications.............................     13

20  Miscellaneous Provisions.............................................     13
</TABLE>

                                      -i-
<PAGE>

                AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT
                ------------------------------------------------
                                    BETWEEN
                                    -------
                            BRIGHAM YOUNG UNIVERSITY
                            ------------------------
                                      AND
                                      ---
                            SONIC INNOVATIONS, INC.
                            -----------------------

     This Amended and Restated Exclusive License Agreement (the "Agreement") by
and between BRIGHAM YOUNG UNIVERSITY, a Utah non-profit corporation and
educational institution with its principle campus and place of business located
at Provo, Utah  84602 (referred to in this Agreement as "BYU") and SONIC
INNOVATIONS, INC., (hereinafter referred to as "SONIC") duly organized and
existing under the laws of the State of Utah and having its principle place of
business located at 2795 E. Cottonwood Parkway, Suite 660, Salt Lake City, Utah
84121.

                                    RECITALS
                                    --------

     A.   BYU is an owner (along with Dr. Thomas G. Stockham, Jr., the only
other owner) of certain intellectual property rights (Exhibit A) and is also the
sole owner of other intellectual property rights (Exhibit B) and has the right
to grant licenses to these rights.  These intellectual property rights consist
primarily of proprietary intellectual properties and patents with applications
principally related to assisting the hearing impaired, audio signal processing
and providing industrial, sports and, except as previously licensed, government
applications;

     B.   BYU desires to have the intellectual property utilized in the public
interest and is willing to grant an exclusive worldwide license to these
intellectual property rights for this purpose;

     C.   SONIC has represented to BYU, to induce BYU to enter into this
Agreement, that SONIC has experience in the development, production,
manufacture, marketing and sale of high technology based products and that it
shall commit itself to a thorough, vigorous and diligent program of exploiting
the intellectual property rights within the intent of this Agreement so that
public utilization will result;

     D.   SONIC has already obtained exclusive worldwide rights to Dr.
Stockham's ownership interest in the intellectual property (Exhibit A) subject
of this Agreement; and

     E.   SONIC wishes to obtain the exclusive worldwide rights to BYU's
ownership interest in the intellectual property rights (Exhibits A and B)
subject of this Agreement by entering into the terms and conditions of this
Exclusive License Agreement with BYU.

     F.   SONIC (or its predecessor entity) and BYU have previously entered into
that certain Exclusive License Agreement in 1995 (the "Old 1995 Agreement") and
now desire to terminate the Old 1995 Agreement and amend and restate it in its
entirety in this Agreement.

     NOW, THEREFORE, in consideration of the promises and mutual covenants
contained in this Agreement the parties agree as follows:
<PAGE>

                               TERMS OF AGREEMENT

1    Definitions

     1.1  "SONIC" shall mean SONIC INNOVATIONS, INC., and any AFFILIATE of SONIC
INNOVATIONS, INC.

     1.2  "AFFILIATE" shall mean any person or entity owned or controlled
directly or indirectly by SONIC or any person or other entity controlled by,
controlling, or under common control with SONIC. The term "control" means
possession, direct or indirect, of the powers to direct or cause the direction
of the management and policies of a person or entity; whether through ownership
or voting securities, by contract, agreement or otherwise.

     1.3  "LICENSED TECHNOLOGY" means and includes all of BYU's technology,
trade secrets and intellectual property rights relating to signal processing
technology for hearing aid, audio signal processing and hearing protection
applications which has been developed by or under the direction of Dr.
Douglas M. Chabries and/or Dr. Richard Christiansen and not previously granted
through any earlier license agreements with other parties, and which are listed
in Exhibits A and B which are attached to this Agreement and by reference are
incorporated and made part of this Agreement.  Exhibit A is limited to that
technology which is jointly owned by BYU and Dr. Thomas G. Stockham, Jr.
Exhibit B is limited to that technology which is owned solely by BYU.

     1.4  "LICENSED PRODUCT(S)" means and includes any product or apparatus,
including but not limited to such product or apparatus which is developed or
enhanced in whole or in part by SONIC, the production, manufacture, sale, lease,
transfer or use of which incorporates or makes use of any part of the LICENSED
TECHNOLOGY. In the event such a product or apparatus forms an integral part or
component of a larger and distinct product or software package, excluding other
software products to which a LICENSED PRODUCT may be interfaced, such larger
product or software package shall be considered a "LICENSED PRODUCT" for
purposes of this Agreement.

     1.5  "LICENSED PROCESS(ES)" means and includes any process, procedure,
technique, method or service which incorporates or makes use of any part of the
LICENSED TECHNOLOGY. Processes, procedures, techniques, methods or services
which can be performed independent of the use of any part of the LICENSED
TECHNOLOGY shall specifically be excluded from the definition of LICENSED
PROCESS(ES).

     1.6  "IMPROVEMENT(S)" means any invention, idea, trade secret, know-how or
derivative work which is derived from or which includes any portion of or
utilizes any portion of the LICENSED TECHNOLOGY, LICENSED PRODUCTS or LICENSED
PROCESSES, whether or not patentable, copyrightable, or otherwise protectable as
intellectual property which is subsequently acquired or developed by SONIC
during the term of this Agreement.

2    Grant

     2.1  BYU hereby grants, to the full extent that BYU has the power to grant
such rights, SONIC the exclusive worldwide right and license to utilize the
LICENSED TECHNOLOGY, to

                                                                             -2-
<PAGE>

develop LICENSED PRODUCTS and LICENSED PROCESSES until such time as this
Agreement is terminated. This grant will extend to the manufacture, sale,
lease, transfer or other disposition of LICENSED PRODUCTS or LICENSED PROCESSES
through an AFFILIATE or through SONIC's use of any retail outlet or distributor
and shall authorize any end users' use of the LICENSED PRODUCTS and LICENSED
PROCESSES sold or transferred by SONIC or its AFFILIATES, retail outlets or
distributors.

     2.2  The grants provided under Subsection 2.1 include the right to grant
sublicenses to make, or have made, sell, lease, or otherwise transfer LICENSED
PRODUCTS and LICENSED PROCESSES. All sublicenses granted by SONIC shall be
subject to the terms and conditions of this Agreement and the sublicense
agreement shall have an express provision to this effect. No sublicense shall
relieve SONIC of any of its obligations under this Agreement. SONIC agrees to
forward to BYU a fully executed copy of each sublicense agreement within ninety
(90) days after the execution thereof, and to act as a fiduciary to protect
BYU's interests in the sublicense.

     2.3  SONIC agrees that it will make reasonable attempts to enter into
sublicense agreements with third parties for the utilization of the LICENSED
TECHNOLOGY in fields of use other than providing auditory assistance to the
hearing impaired and hearing protection. If, in the sole discretion of BYU, it
determines that SONIC has not made reasonable efforts to enter into appropriate
sublicense agreements, BYU shall have the right to grant such sublicenses upon
providing SONIC with written notice and a ninety (90) day opportunity to cure.

     2.4  Nothing in this Agreement shall be considered as granting any rights,
express or implied, in BYU's patents, patent applications, inventions, methods,
technical, confidential or proprietary information, expertise, know-how, trade
secrets or knowledge not specifically defined as LICENSED TECHNOLOGY, and all
such rights not expressly granted by this Agreement to SONIC are expressly
reserved by BYU, and the license granted by this Agreement shall not be
construed to confer any rights upon SONIC by implication, estoppel, or otherwise
to any existing, new or derivative technology not specifically included in the
LICENSED TECHNOLOGY.

     2.5  Notwithstanding the exclusive license granted herein, BYU, the Church
Education System and The Church of Jesus Christ of Latter-day Saints
specifically reserve the right to make, have made, or use the LICENSED
TECHNOLOGY for their own non-commercial purposes including research,
development, in-house testing, and academic or ecclesiastical uses. Furthermore,
upon request by BYU, SONIC agrees to grant to BYU a non-exclusive, royalty-free
right and license to use IMPROVEMENTS only for its own non-commercial purposes
including research, development, in-house testing and academic or ecclesiastical
uses. SONIC agrees that any time during the term of this Agreement, it will sell
to current or retired full-time faculty, administrative and staff personnel of
BYU and the full-time permanent employees of The Church of Jesus Christ of
Latter-day Saints covered by their respective health and welfare benefits
programs as then in effect for such personnel (similar to the current DMBA
coverage, but in no case applicable due to temporary or part-time employment,
including employment of students), LICENSED PRODUCTS or PROCESSES at the pricing
offered under SONIC's Friends and Family program (or any successor or similar
program). SONIC may take reasonable steps to verify qualification by such
retired personnel and may employ a third-party to administer this program.

                                                                             -3-
<PAGE>

3    Performance Criteria

     3.1  SONIC shall, during the term of this Agreement, use its best efforts
to bring one or more LICENSED PRODUCTS or LICENSED PROCESSES to market through a
thorough, vigorous and diligent program designed to commercially develop the
LICENSED TECHNOLOGY to its full market potential.

     3.2  SONIC shall develop a body-worn self-contained operating unit on which
clinical hearing tests can be conducted using the LICENSED TECHNOLOGY by July
31, 1995.

     3.3  SONIC's failure to perform in accordance with any portion of Sections
3.1 or 3.2 of this Agreement shall be grounds for BYU to terminate this
Agreement. (See Section 14 for termination procedure.)

4    Consideration

     4.1  For the rights, privileges and license granted under this Agreement,
SONIC shall pay to BYU, in the manner designated below until the Agreement shall
be terminated, consideration as follows:

       A. A non-refundable license fee in an amount of eighty thousand dollars
          ($80,000), to be paid on the following schedule:

                                  LICENSE FEE
                                  -----------

                       Date                              Amount Due $'s
                       ----                              --------------

          Upon execution of this Agreement                    $30,000
          Whichever occurs first,
           a Series B financing, or July 31, 1995             $25,000
          Whichever occurs first,
           a Series B financing, or Dec. 31, 1995             $25,000

       B.  A Five-hundred thousand dollars ($500,000) license fee paid in
           installments on the following schedule:

               On or before:                      Dollars
               December 31, 1996                $  30,000
               December 31, 1997                $  50,000
               December 31, 1998                $  70,000
               December 31, 1999                $ 100,000
               December 31, 2000                $ 100,000
               December 31, 2001                $ 150,000

       C.  SONIC will receive credit against the five-hundred thousand dollar
($500,000) license fee (Section 4.B) on a dollar for dollar basis, for research
sponsored by SONIC through the BYU Office of Sponsored Research to be conducted
in the Signal Processing Center or under the direction of the Director of the
Signal Processing Center. BYU agrees that resulting

                                                                             -4-
<PAGE>

IMPROVEMENTS developed pursuant to this sponsored research shall be included in
this Agreement. BYU also agrees that any new concepts or inventions discovered
or created pursuant to this research will be provided to SONIC pursuant to an
exclusive worldwide license to be negotiated in good faith between BYU and SONIC

       D.  In addition, SONIC will reimburse BYU for all future obligations
incurred as maintenance costs on U.S. Patents #4,872,012 and #4,977,604, and for
all past and future legal and related expenses, incurred by non-BYU personnel,
which are reasonably necessary to obtaining patent protection for the LICENSED
TECHNOLOGY and any other BYU technologies where rights to such technologies are
subsequently licensed to SONIC.

       E.  A penalty in the amount equal to three percent (3%) of any payment if
the payment is made more than thirty (30) days late.  Interest will accrue on
the payment plus the penalty from the thirtieth day after the payment was due at
a rate of twelve and one-half percent (12.5%) per annum and the interest payment
will be due and payable every thirty (30) days thereafter.

       4.2  Pass Through Royalties: A "pass through royalty" to be levied on all
royalties, license fees and any and all other consideration of any kind or
description received by SONIC or any AFFILIATE from any third party which is not
an AFFILIATE, distributor, retail outlet or end user, but which is granted a
sublicense, is assigned rights or receives rights from SONIC with respect to the
LICENSED TECHNOLOGY to make, use, sell, lease or otherwise transfer LICENSED
PRODUCTS or PROCESSES made or developed by the sublicensee, assignee or
transferee. The pass through royalty shall be paid on all such license fees or
consideration, which shall specifically include, but not be limited to,
royalties, license issue fees, minimum royalties, equity interests or other
consideration to which BYU is entitled pursuant to Paragraph 2.2 of this
Agreement.

     A.   The "pass through royalty" shall be fifty percent (50%) of all
          applicable consideration subject to the pass through royalty.

     B.   Pass through royalty payments shall be payable to BYU quarterly. Such
          pass through royalty payments shall be based on all consideration paid
          during the applicable three months.

5    BYU's Equity Ownership of SONIC

     5.1  Within thirty (30) days following the execution of this Agreement,
SONIC shall issue to BYU certificates of common stock securities for 184,000
shares (in addition to the 16,000 common shares already held by BYU) to bring
BYU's total holding in SONIC to 200,000 common shares.

     5.2  SONIC will issue to BYU, prior to April 15, 2000 (or closing of
SONIC's initial public offering, whichever is earlier), [16,575] shares of SONIC
Common Stock (calculated on a pre-split basis). BYU hereby expressly waives any
claim for antidilution, preemptive or similar rights pursuant to the Old 1995
Agreement. All voting rights associated with BYU's equity ownership shall be
exercisable by BYU or its proxy. SONIC recognizes that BYU is in a position of

                                                                             -5-
<PAGE>

minority stockholder, will not be involved in the management or operation of and
will not be liable for any liabilities incurred by SONIC.

     5.3  Investment Representation: BYU hereby represents to SONIC that BYU is
acquiring the common shares identified in 5.1 for investment purposes and not
with the intention of immediately selling or transferring the same. BYU agrees
to execute, concurrently herewith, a 180-day lock-up agreement in substantially
the form attached hereto as Exhibit C.

     5.4  In the event SONIC undertakes an offering of its securities to the
public or consummates a transaction with a publicly owned company, which results
in the receipt of securities by SONIC or its shareholders, including BYU, then
both parties shall abide by any requirements of state or federal law governing
the sale of such securities, including sale of securities restrictions.

6    Reports and Records

     6.1  SONIC and AFFILIATES shall keep, at their own expense, full, true and
accurate books of account showing all particulars that may be necessary for the
purpose of showing the amount payable to BYU. These books of account shall be
kept at SONIC's or AFFILIATE's principal place of business. These books and
supporting data shall be open at all reasonable times, upon ten (10) calendar
days written notice by BYU to SONIC for a period of five (5) years following the
end of the calendar year to which they pertain, to the inspection by BYU or its
agents for the sole purpose of verifying SONIC's payment of license fees, pass
through royalties and other consideration due BYU and otherwise for compliance
with this Agreement.

     6.2  SONIC, within forty-five (45) days after the first calendar quarter in
which SONIC receives any sublicense revenue, shall deliver to BYU true and
correct reports, giving such particulars as are necessary to allow calculation
and verification of the pass through royalty amounts and other payments or
consideration due to BYU during the applicable accounting period. SONIC shall
continue to deliver such reports throughout the term of this Agreement. Such
reports shall cover the quarters ending March 31, June 30, September 30, and
December 31.

     6.3  With each such report submitted, SONIC shall pay to BYU the pass
through royalties due and payable under this Agreement.

7    Confidentiality

     7.1  SONIC and BYU agree, that as each receives material provided by the
other which may be marked as confidential or is so designated in writing within
thirty (30) days of the receipt of the materials, that SONIC and BYU shall keep
such material confidential to the same extent and in the same manner that each
protects its own confidential information during the term of this Agreement and
in any event for a minimum period of five (5) years after receipt of the
confidential material.

     7.2  In determining whether or not information is reasonably considered to
be confidential, the burden of proof shall be upon the recipient to establish by
competent proof and by preponderance of the evidence that such information is
nonconfidential by documenting that the information was:

                                                                             -6-
<PAGE>

     A.   Already known to the recipient at the time of disclosure by SONIC or
          BYU, or

     B.   Generally available to the public or otherwise part of the public
          domain at the time of its disclosure to SONIC or BYU, or

     C.   Generally available to the public or otherwise part of the public
          domain after its disclosure, other than through any act or omission of
          SONIC or BYU in breach of this Agreement, or

     D.   Subsequently, lawfully disclosed to SONIC or BYU by a third,
          unaffiliated party.

8    Export Controls

     It is understood that the LICENSED TECHNOLOGY may be subject to the United
States laws and regulations controlling the export of technical data, computer
software, laboratory prototypes and other commodities (including the Arms Export
Control ACT, as amended, and the Export Administration Act of 1979), and SONIC's
obligations under this Agreement may be contingent on compliance with applicable
United States export laws and regulations.  The transfer of certain technical
data and commodities may require a license from the cognizant agent of the
United States Government and/or written assurances by SONIC that SONIC shall not
export data or commodities to certain foreign countries without prior approval
of such agency.  BYU neither represents that a license shall not be required nor
that, if required, it shall be issued.  SONIC shall observe and obey all export
laws in countries in which it shall do business.

9    Patent Marking and Copyright Notice

     SONIC agrees to mark the LICENSED PRODUCTS sold in the United States with
all applicable United States patent numbers and copyright notices. All LICENSED
PRODUCTS shipped to or sold in other countries shall be marked in such a manner
as to conform with the patent and/or copyright laws and practice of the country
of manufacture or sale.

10   Patent Prosecution and Maintenance

     10.1 SONIC shall apply for, seek prompt issuance of, and maintain during
the term of this Agreement the patent rights to any properly patentable
intellectual property subject to this Agreement or to residuals, derivatives,
enhancements and modifications thereto. SONIC shall diligently prosecute, file
and maintain all such patent rights, patents and applications utilizing legal
and technical counsel of its choice after due consultation with BYU. BYU shall
cooperate with SONIC in such prosecution, filing and maintenance.

     10.2 Payment of all fees and costs relating to the filing, prosecution and
maintenance of the patent rights shall be the responsibility of SONIC.

     10.3 SONIC shall be solely responsible to pay maintenance fees for the
patents as required by Title 35 of the United States Code. SONIC shall, within
30 days before such maintenance fees are due and payable, file with BYU written
documentation that the fees have been paid. If such documentation is not
received at least thirty days before the fee is due and payable, BYU shall have
the right to pay the maintenance fees subject to reimbursement by SONIC.
SONIC shall also be

                                                                             -7-
<PAGE>

solely responsible for payment of reissue fees and other fees required to
preserve the rights granted in the patent and any extensions thereto.

     10.4 THE ULTIMATE RESPONSIBILITY FOR MEETING ALL PAYMENT AND FILING
DEADLINES CONCERNING ANY FORM OF INTELLECTUAL PROPERTY PROTECTION LICENSED BY
THIS AGREEMENT RESTS WITH SONIC, AND SONIC SHALL HAVE NO CLAIM OF DAMAGES
AGAINST BYU, ITS PERSONNEL, TRUSTEES OR STUDENTS, AND SHALL NOT CONSIDER BYU'S
FAILURE TO MEET SUCH DEADLINES OR PAY SUCH FEES A BREACH OF THIS AGREEMENT.

11   Infringement

     11.1 Either party to this Agreement shall promptly in writing notify the
other of any alleged infringement of the patent rights or intellectual property
rights by a third party and of any available evidence of infringement.

     11.2 During the term of this Agreement, either party shall have the right,
but shall not be obligated, to prosecute any infringements at its own expense
and be entitled to any recovery, and, in furtherance of such right, each party
hereby agrees that it may be joined as a party plaintiff in any such suit,
without expense to the party initiating the suit.

     11.3 If within two (2) months after having been notified of any alleged
infringement, a party does not intend on prosecuting the infringement action, it
shall notify the other party of its intention not to bring suit against any
alleged infringer, then, the other party shall have the right, at its own
expense to prosecute a suit to remedy the infringement of the patent rights, and
shall be entitled to any recovery of damages. However, if both parties intend to
prosecute the infringement, all expenses shall be paid and all recoveries shared
on a 50/50 basis. Either party may, for such purposes, use the name of the other
as a party plaintiff; provided, however, that such right to bring an
infringement action shall remain in effect only for so long as the license
granted remains in effect. No settlement, consent judgment or other voluntary
final disposition of the suit may be entered into without the consent of both
parties, which consent shall not be unreasonably withheld. Each party shall
indemnify the other in such proceedings prosecuted solely by one party.

     11.4 In the event that a declaratory judgment action alleging invalidity or
nonenforcement of any of the patent rights shall be brought either party may
elect, upon notice to the other, to not defend against the declaratory action.

     11.5 In any infringement suit brought by one party, the other party shall,
at the request and expense of the party initiating the suit, cooperate in all
respects and, to the extent possible, make its employees reasonably available to
testify when requested and make available relevant records, papers, information,
samples, specimens, and the like.

12   Warranty and Limitation of Remedy

     12.1 BYU represents and warrants that, to the best of its knowledge, it is
an owner  and has an interest in and to the LICENSED TECHNOLOGY as described on
Exhibit A;

                                                                             -8-
<PAGE>

owner of said technology is Dr. Thomas G. Stockham, Jr., and his right thereto
has been assigned to SONIC in a separate agreement. BYU represents and warrants
that to the best of its knowledge it is the owner of the entire right, title,
and interest in and to and has the sole right to grant licenses under this
Agreement to the LICENSED TECHNOLOGY as described on Exhibit B except for those
rights granted to UNISYS Corporation in a license agreement dated September 27,
1990. BYU also represents that it has the lawful right to grant licenses under
this Agreement in and to such LICENSED TECHNOLOGIES.

     12.2 BYU makes no representation that the manufacture, use, lease, or sale
of the LICENSED TECHNOLOGY will not infringe a copyright or patent granted to
others, other than to state that it knows of no such copyright, patent or other
proprietary interests which would be so infringed.

     12.3 Each party represents and warrants to the other party that it has all
of the requisite power and authority to enter into this Agreement and to perform
each and every term, provision and obligation of this Agreement and that neither
the execution nor delivery of this Agreement will conflict with or result in a
breach of the terms, provisions or obligations of, or constitute a default
under, any other Agreement or instrument under which each party is obligated.

     12.4 ALL WARRANTIES MADE IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL
OTHER WARRANTIES EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY
OF PATENT RIGHTS, CLAIMS ISSUED OR PENDING, OR ANY OTHER WARRANTY WHETHER
EXPRESS OR IMPLIED.

     12.5 BYU will not be liable for any loss of profits or for any claim or
demand against SONIC by any other party. BYU's liability, if any, for any
damages to SONIC shall not exceed in any event the total license fees and pass
through royalties which have been paid by SONIC to BYU during the term of this
Agreement. IN NO EVENT WILL BYU BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL
           --------------------------------------------------------------
DAMAGES EVEN IF BYU HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
-----------------------------------------------------------------------

13   Indemnification

     13.1 BYU shall have no liability to ultimate users of the LICENSED
TECHNOLOGY or any of the LICENSED PRODUCTS and/or LICENSED PROCESSES. SONIC
agrees to hold harmless and indemnify BYU and its trustees, officers, employees,
agents and students against all costs, losses, and liabilities concerning any
and all litigation, claims or action of any kind or description, including
reasonable attorneys' fees, that may be incurred as a result of any type of
defect in the LICENSED PRODUCTS or LICENSED PROCESSES, damages allegedly caused
by any breach of contract by SONIC, the use or misuse of the LICENSED PRODUCTS
and/or LICENSED PROCESSES resulting from the production, manufacture, sale, use,
lease, consumption or advertisement of the LICENSED PRODUCTS and/or LICENSED
PROCESSES. In the event that BYU is sued as a party defendant under conditions
described in this Section, SONIC agrees to defend BYU in any such action. Should
any award or decree be made against BYU it shall be the obligation of SONIC to
(a) appeal the award or decree and pay the award if the award thereof is

                                                                             -9-
<PAGE>

sustained on appeal, or to (b) pay such award or reach such settlement as may be
warranted before or after the decision on appeal. BYU may, at its option,
conduct its own defense in any such action.

     13.2 Notwithstanding the provisions of Section 13.1, if there is a
reasonable possibility that this Agreement or BYU will be affected, SONIC shall
immediately notify BYU of any litigation in which BYU, its officers, or its
directors may be involved, and afford BYU reasonable cooperation should BYU
enter the litigation.

14   Termination

     14.1 This Agreement shall continue in full force and effect from the date
this Agreement is executed by the parties until terminated in accordance with
the terms of the Agreement, or shall terminate upon the expiration of the latest
licensed patent claims or in the event SONIC fails to sublicense some major
application of the LICENSED TECHNOLOGY or use any major application of the
LICENSED TECHNOLOGY in its products or processes within a period of three (3)
years from the effective date of this Agreement.

     14.2 This Agreement may be terminated automatically by BYU in the event of
the occurrence of any one of the following circumstances:

     A.   In the event SONIC or its successor-in-interest, is ordered or
          adjudged bankrupt, is placed in the hands of a receiver or makes an
          unauthorized assignment for the benefit of creditors; or

     B.   In the event that the assets of SONIC or its successor-in-interest are
          seized or attached in conjunction with any action brought against it
          by a third party creditor.

     14.3 This Agreement may be terminated upon notice by BYU to SONIC in any of
the following circumstances:

     A.   In the event SONIC shall cease to carry on its business; or

     B.   In the event there is a transfer or sale of SONIC's business
          purporting to transfer or assign this Agreement or LICENSED TECHNOLOGY
          contrary to the provision of Section 17 hereunder; or

     C.   Disclosure of confidential information in material breach of the
          confidentiality provisions of this Agreement; or

     D.   In the event that SONIC does not have the financial ability to perform
          the terms of this Agreement as determined by failing to receive a
          "going concern" statement by independent auditors satisfactory to BYU.

     E.   In the case of a breach under Paragraph 14.3A, 14.3B, 14.3C and/or
          14.3D, BYU shall have the right to terminate this Agreement upon
          thirty (30) days notice to SONIC. Such termination shall become
          effective upon the failure of SONIC to cure any such breach or default
          prior to the expiration of the thirty-day period.

                                                                            -10-
<PAGE>

     14.4 in the case of breach or default arising from SONIC's failure to pay
BYU license fees, pass through royalties or other consideration when due and
payable, BYU shall have the right to terminate this Agreement upon forty-five
(45) days notice to SONIC. Such termination shall become effective upon the
failure of SONIC to cure such breach or default by paying all delinquent
amounts, with applicable late charges and interest.

     14.5 In the case of any other material breach or default of this Agreement
by SONIC other than those occurrences set forth in Paragraphs 14.2, 14.3 or
14.4, which shall always take precedence over any material breach or default
referred to in this Section, BYU shall have the right to terminate this
Agreement upon sixty (60) days notice to SONIC. Such termination shall become
effective upon the failure of SONIC to cure any such breach or default prior to
the expiration of the sixty-day period.

     14.6 Upon termination of this Agreement, for any reason, the parties shall
not be released from any obligation that has matured prior to the effective date
of the termination. SONIC and its AFFILIATES may, however, after the effective
date of such termination, sell all LICENSED PRODUCTS and complete LICENSED
PRODUCTS in process of manufacture at the time of such termination and sell the
same.

     14.7 Upon the termination of this Agreement, SONIC shall return to BYU all
computer software routines, source codes, updates, modifications and
enhancements and all other materials, documents and information as may have been
provided by BYU pursuant to this Agreement, which contains information which is
confidential or proprietary to BYU. Notwithstanding the termination of this
Agreement, SONIC shall continue to maintain the confidentiality as provided for
in this Agreement with respect to the confidential information furnished to it
by BYU.

     14.8 Nothing herein shall be construed to limit BYU's legal or equitable
remedies in the event of a default by SONIC and subsequent termination of this
Agreement by BYU.

15   Negotiations, Meditation and Arbitration

     15.1 With respect to any and all claims, disputes or controversies arising
under, out of, or in connection with this Agreement, except with respect to
enforcement of SONIC's payment obligations specified in Sections 4, 10 and 11
hereof, for which BYU may seek any legal or equitable remedy available through a
court of competent jurisdiction, the parties agree to attempt in good faith to
resolve those claims, disputes or controversies by negotiations between the
parties. In the event either party believes the negotiation discussions are not
likely to result in settlement, the parties must, in good faith, participate in
mediation sessions with a professional mediator to be mutually selected by the
parties and the expense of which is to be paid fifty percent (50%) by each
party. In the event, after one or more mediation sessions, either party believes
the mediation process is not likely to resolve the dispute by mutual agreement,
the dispute shall be resolved by final and binding arbitration in Provo, Utah.
Each party shall choose one arbitrator and these two arbitrators shall in turn
select a third arbitrator, which three arbitrators shall constitute the
arbitration panel. The arbitrators shall have no power to add to, subtract from
or modify any of the terms or conditions of this Agreement. In the event either
party believes that the arbitration process is becoming onerous or protracted,
it may petition a state or federal court in the State of Utah to annex the
arbitration for the

                                                                            -11-
<PAGE>

purpose of establishing procedural guidelines, scheduling and to resolve other
obstacles preventing the expeditious resolution of the dispute subject of the
arbitration. Any award rendered in such arbitration may be enforced by either
party in either the courts of the State of Utah or in the United States District
Court for the District of Utah in which jurisdiction for such purposes BYU and
SONIC hereby irrevocably consent and submit. The arbitration proceedings shall
be conducted in all matters not specifically identified in this Agreement
pursuant to the rules of the American Arbitration Association, unless otherwise
expressly agreed in writing by the parties.

     15.2 Claims, disputes or controversies concerning the validity,
construction or effect of any patent subject of this Agreement shall be resolved
in any court having jurisdiction.

     15.3 In the event in any arbitration proceeding any issue shall arise
concerning the validity, construction or effect of any patent licensed, the
arbitrators shall assume the validity of all claims as set forth in the patent.
In any event, the arbitrators shall not delay the arbitration proceedings for
the purpose of obtaining or permitting any party to obtain judicial resolution
of such issue, unless an order staying such arbitration shall be entered by a
court of competent jurisdiction. Except with reference to a prior determination
by a court of competent jurisdiction, neither party shall raise any issue
concerning the validity, construction or effect of any patent licensed under
this Agreement in any arbitration proceeding, in any proceeding to enforce the
arbitration award or in any proceeding arising out of such arbitration award.

     15.4 Nothing in this section shall be construed to waive any rights of
timely performance of any obligation existing under the Agreement.

16   Assignment

     This Agreement is not assignable without the express written consent of
BYU, which consent shall not be unreasonably withheld; provided, however, that
SONIC, without consent, may assign or sell the same in connection with the
transfer or sale of all or substantially all of its business relating to
LICENSED TECHNOLOGY or LICENSED PRODUCTS or LICENSED PROCESSES in the event of a
merger or consolidation with another company.

17   Non Use of BYU Name

     17.1 SONIC shall not use the name of Brigham Young University nor of any of
its employees, nor any adaptation thereof, in any advertisement, promotion or
sales literature without the prior written consent obtained from BYU in each
case, except that SONIC may state that it is licensed by BYU.

     17.2 SONIC shall not use BYU's name, trade name, trademark or copyrights in
association with any advertising or marketing of the LICENSED TECHNOLOGY or
LICENSED PRODUCTS or LICENSED PROCESSES.

                                                                            -12-
<PAGE>

18   Publication

     Upon sixty (60) days notice to SONIC, BYU shall have the right to publish
any academic paper, article or learned treatise and make public disclosure at
professional meetings or seminars regarding any portion of the LICENSED
TECHNOLOGY which has been or may be invented, conceived or developed by BYU
unless the information is revealed to BYU by SONIC and is covered under Section
7 of this Agreement.

19   Payment Notices and Other Communications

     Any payment, notice or other communication pursuant to this Agreement shall
be sufficiently made or given on the date of mailing if sent by certified first-
class mail, postage prepaid, addressed to the receiving party at its address
designated below or such address as shall be designated by written notice given
to the other party.

     BYU:    Technology Transfer Office

             A-268 ASB
             Brigham Young University
             Provo, Utah  84602
             (801) 378-6266

     SONIC:  President

             SONIC INNOVATIONS, INC.
             2795 E. Cottonwood Parkway
             Salt Lake City, Utah  84121
             (801) 365-2800

20   Miscellaneous Provisions

     20.1 Independence of Parties. BYU and SONIC are independent parties engaged
in independent business and neither party nor any respective agent or employee
of either party shall be regarded as an agent or an employee of the other.
Nothing in this Agreement shall be construed as reserving to either party the
right to control the other in the conduct of its business, nor shall either
party have the authority to make any promise, guarantee, warranty or reservation
which will create any obligation or liability whether express or implied on
behalf of the other.

     20.2 Attorneys' Fees. In the event a suit or an arbitration proceeding is
commenced to construe or enforce any provision of this Agreement, the prevailing
party, in addition to all other amounts to which such party may be entitled,
shall be paid by the other party a reasonable sum for attorneys' fees and costs.

     20.3 Waiver. No waiver by either party, whether express or implied, of any
provisions of this Agreement or of any breach or default of either party, shall
constitute a continuing waiver of such provision or a waiver of any other
provisions of this Agreement.

                                                                            -13-
<PAGE>

     20.4 Governing Law. This agreement shall be interpreted and construed in
accordance with the laws of the State of Utah. Venue for any legal disputes
shall be in Utah County, Utah.

     20.5 Partial Invalidity. Should any Section or any part of any Section of
this Agreement be held unenforceable or in conflict with the laws of any
jurisdiction, the validity of the remaining Sections and Subsections shall not
be effected by the invalidity of any other part of the Agreement.

     20.6 Entire Agreement. This Agreement constitutes the entire Agreement and
understanding between the parties and supersedes all prior agreements and
understandings whether written or oral, including but not limited to the
Exclusive License Agreement dated June 19, 1992, with respect to the LICENSED
TECHNOLOGY. No modification or claimed waiver of any of the provisions of this
Agreement shall be valid unless in writing and signed by authorized
representatives of the party against whom such modification or waiver was sought
to be enforced.

     20.7 Binding Effect. This License Agreement shall be binding upon and shall
inure to the benefit of the successors, assigns and legal representatives of the
parties.

     20.8 Headings. The paragraph and subparagraph headings contained in this
Agreement are for convenience and reference only. They are not intended to
define and limit the scope of the provisions of this Agreement.

     20.9 Old 1995 Agreement. The Old 1995 Agreement is hereby terminated and
made of no force or effect.

                                                                            -14-
<PAGE>

     IN WITNESS WHEREOF, the parties have entered into this Agreement and it is
effective this 21/st/ day of March, 2000.

BRIGHAM YOUNG UNIVERSITY:

/s/ Gary R. Hooper                              3/21/00
________________________________________     ______________________
By: Gary R. Hooper                                Date
Associate Academic Vice President

SONIC INNOVATIONS, INC.:

/s/ Steve Wilson                                3/21/00
________________________________________     ______________________
By: Steve Wilson                                  Date
Chief Financial Officer

                                                                            -15-
<PAGE>

                                   EXHIBIT A

                              LICENSED TECHNOLOGY

     The signal processing technology for hearing aid, audio signal processing
and hearing protection comprising the LICENSED TECHNOLOGY specifically includes
the following:

     1.  U.S. patent application, "Hearing Aid Device Incorporating Signal
     Processing Techniques"; S/N 08/272,927; filed July 8, 1994; inventors,
     Douglas M. Chabries and Thomas G. Stockham, Jr., and any foreign
     counterparts thereof, as well as all continuations, continuations-in-part,
     divisions and renewals thereof, all patents which may be granted thereon,
     and all reissues, reexaminations, extensions, patents of addition,
     improvement patents and patents of importation thereof.

     Rights to said intellectual property are owned jointly by BYU and Thomas G.
Stockham, Jr.  Only those rights owned by BYU are conveyed in this license
agreement.
<PAGE>

                                   EXHIBIT B

                              LICENSED TECHNOLOGY

     The signal processing technology for hearing aid, audio signal processing
and hearing protection owned solely by BYU comprising the LICENSED TECHNOLOGY
specifically includes the following:

     1.  Patent No. 4,872,012, "Data Compression Method and Apparatus for Radar
     Image Formation and Like Data Processing Operations"; issued, October 3,
     1998; inventor, Douglas M. Chabries.

     2.  Patent No. 4,977,604, "Method and Apparatus for Processing Sampled Data
     Signals by Utilizing Preconvolved Quantized Vectors"; issued, December 11,
     1990; except for those rights granted to UNISYS Corporation in a license
     agreement dated September 27, 1990 wherein UNISYS was granted, ".a royalty-
     free exclusive world-wide license to make, have made, use, sell, lease, or
     otherwise dispose of the LICENSED SUBJECT MATTER in the field of Federal
     Government contracting, with DOD, MOD's of U.S. Allies, and Federal
     agencies which shall include, but not be limited to, P.O., FAA, and NASA.
     UNISYS may sublicense their above rights, and any consideration from such
     sublicense shall belong solely to UNISYS."

     3.  The technology and intellectual property rights described in the patent
     application in preparation, tentatively entitled, "Digital Hearing Aid";
     inventors, Douglas M. Chabries, Mark W. Christiansen and Richard W.
     Christiansen, and any U.S. patent issuing therefrom, any foreign
     counterparts thereof, as well as all continuations, continuations-in-part,
     divisions and renewals thereof, all patents which may be granted thereon,
     and all reissues, reexaminations, extensions, patents of addition,
     improvement patents and patents of importation thereof.

<PAGE>

                                   EXHIBIT C

                           FORM OF LOCK-UP AGREEMENT
<PAGE>

     Sonic Innovations, Inc.

                               Lock-Up Agreement

                                April __, 2000

     Goldman, Sachs & Co.
     Deutsche Bank Securities Inc.
     Chase Securities Inc.
     c/o Goldman, Sachs & Co.
     85 Broad Street
     New York, NY 10004

     Re: Sonic Innovations, Inc. - Lock-Up Agreement
         -------------------------------------------

     Ladies and Gentlemen:

          The undersigned understands that you, as representatives (the
"Representatives"), propose to enter into an Underwriting Agreement on behalf of
the several Underwriters named in Schedule I to such agreement (collectively,
the "Underwriters"), with Sonic Innovations, Inc., a Delaware corporation (the
"Company"), providing for a public offering of the Common Stock of the Company
(the "Shares") pursuant to a Registration Statement on Form S-1 to be filed with
the Securities and Exchange Commission (the "SEC").

          In consideration of the agreement by the Underwriters to offer and
sell the Shares, and of other good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged, the undersigned agrees that during
the period beginning from the date of the final Prospectus covering the public
offering of the Shares and continuing to and including the date 180 days after
the date of such final Prospectus, the undersigned will not offer, sell,
contract to sell, pledge, grant any option to purchase, make any short sale or
otherwise transfer or dispose of the economic interest in any shares of Common
Stock of the Company, or any options or warrants to purchase any shares of
Common Stock of the Company, or any securities that are convertible into or
exercisable or exchangeable for, or that represent the right to receive, shares
of Common Stock of the Company, whether now owned or hereinafter acquired, owned
directly by the undersigned (including holding as a custodian) or with respect
to which the undersigned has beneficial ownership within the rules and
regulations of the SEC (collectively the "Undersigned's Shares"); provided,
however that such restrictions shall not apply to shares of Common Stock sold or
purchased in the initial public offering; and provided, further, that such
restrictions shall not apply to shares of Common Stock purchased by the
undersigned in the open market following the initial public offering.

          The foregoing restriction is expressly agreed to preclude the
undersigned from engaging in any hedging or other transaction which is designed
to or which reasonably could be expected to lead to or result in a sale or
disposition of the Undersigned's Shares even if such Shares would be disposed of
by someone other than the undersigned.  Such prohibited hedging or other
transactions would include without limitation any short sale or any purchase,
sale or grant of any right (including without limitation any put or call option)
with respect to any of the Undersigned's Shares or with respect to any security
that includes, relates to, or derives any significant part of its value from
such Shares.
<PAGE>

          Notwithstanding the foregoing, the undersigned may transfer the
Undersigned's Shares (i) as a bona fide gift or gifts, provided that the donee
or donees thereof agree to be bound in writing by the restrictions set forth
herein, (ii) to any trust for the direct or indirect benefit of the undersigned
or the immediate family of the undersigned, provided that the trustee of the
trust agrees to be bound in writing by the restrictions set forth herein, and
provided further that any such transfer shall not involve a disposition for
value, or (iii) with the prior written consent of Goldman, Sachs & Co. on behalf
of the Underwriters.  For purposes of this Lock-Up Agreement, "immediate family"
shall mean any relationship by blood, marriage or adoption, not more remote than
first cousin.  In addition, notwithstanding the foregoing, if the undersigned is
a corporation, the corporation may transfer the capital stock of the Company to
any wholly-owned subsidiary of such corporation; provided, however, that in any
                                                 --------  -------
such case, it shall be a condition to the transfer that the transferee execute
an agreement stating that the transferee is receiving and holding such capital
stock subject to the provisions of this Agreement and there shall be no further
transfer of such capital stock except in accordance with this Agreement, and
provided further that any such transfer shall not involve a disposition for
value.  The undersigned now has, and, except as contemplated by clause (i),
(ii), or (iii) above, for the duration of this Lock-Up Agreement will have, good
and marketable title to the Undersigned's Shares, free and clear of all liens,
encumbrances, and claims whatsoever.  The undersigned also agrees and consents
to the entry of stop transfer instructions with the Company's transfer agent and
registrar against the transfer of the Undersigned's Shares except in compliance
with the foregoing restrictions.

          The undersigned understands that the Company and the Underwriters are
relying upon this Lock-Up Agreement in proceeding toward consummation of the
offering.  The undersigned further understands that this Lock-Up Agreement is
irrevocable and shall be binding upon the undersigned's heirs, legal
representatives, successors, and assigns.

                                             Very truly yours,

                                             ________________________________
                                             Exact Name of Shareholder

                                             ________________________________
                                             Authorized Signature

                                             ________________________________
                                             Title

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