Document:

Supply & Manufacture Agreement

 Exhibit 10.18 
  
 ***    Confidential portions of this document have been redacted and separately filed with the Commission. 
  
  
 HSS EMITTER AND SYSTEM 
 SUPPLY AND MANUFACTURE AGREEMENT 

 
 This Supply (“Agreement”) is made and entered into effective this 18th day of July, 2001 (“Effective
Date”) by and between American Technology Corporation, a Delaware corporation, with its offices at 13114 Evening Creek Dr. S., San Diego, CA 92128 (“ATC”), and Horizon Sports Technologies, Inc., a California corporation,
with its offices at 8985 Crestar Pointe, San Diego, CA 92121 (“HST”). In this Agreement, ATC and HST may be referred to individually as a “Party” and collectively as the “Parties”. 
  
 RECITALS 
  
 WHEREAS:

  
 A.    ATC is engaged in the discovery, development, and improvement of systems, devices,
and technologies related to sound reproduction, including loudspeaker devices for various applications. 
  
 B.    ATC has developed or acquired and is the owner of certain inventions relating to systems which cause the generation of desired acoustic frequencies by means of non-linear propagation from frequencies which
are higher than the desired frequency, and is the owner of certain patent rights as set forth on Exhibit A attached to this Agreement, and inventions covered thereby (“Patent Rights”), as well as trade secrets and other confidential
and proprietary information, including, but not limited to data, designs, diagrams, drawings, reports, supplier lists, specifications, memoranda, and the like, in whatever form, concerning such inventions and related methods, processes, systems and
devices, all relating to a sound reproduction system known as HyperSonicTMSound (HSSTM) (“Know-How”). HSS technology is ATC’s proprietary ultrasonic sound generation technology,
devices and methods, including, but not limited to: “Parametric Loudspeakers,” which shall mean any speaker or device that indirectly generates lower frequency tones from high frequency tones; and, to power modulation devices; and
further includes but is not limited to the inventions included in the Patent Rights, and related Know-How, and HSS technology includes other data, items, methods, processes and know-how, which are related to systems which cause the generation of
desired acoustic frequencies by means of non-linear propagation from frequencies which are higher than the desired frequency, including, but not limited to, the Patent Rights and Know-How, (collectively “HSS Technology”).

  
 C.    ATC has adopted and used or acquired, and is the owner of, certain trademarks, as well
as any trademark registrations and applications therefor, used with HSS Technology, including, but not limited to HSSTM, HyperSonicTMSound throughout the world, as set forth on Exhibit B
(“HSS Trademarks”). 
  

 
	
	
	
	
	

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 D.    ATC desires a stable, cost-effective, and high-volume manufacturing source for its patent-pending piezoelectric film
ultrasonic emitter device (“ATC Emitter”) which is included in the HSS Technology, and is an integral component of systems incorporating HSS Technology. HSS Technology used in or enabling the design, building, and manufacture of the ATC
Emitter shall be herein more particularly known as “ATC Emitter Technology”. ATC also desires a stable, cost-effective, high-volume manufacturing source for completed systems incorporating HSS Technology, including but not limited
to amplifiers, packaging, DSP circuitry, power supplies, audio playback boards, etc. (“HSS Systems”), which are to be sold or resold to ATC customers or other entities which ATC has licensed with respect to relevant portions of HSS
Technology (“Other HSS Licensees”) in both retail and wholesale markets. ATC Emitters, HSS Systems, or any combination of the two shall be referred to herein as “HSS Products.” ATC desires HST to become a
manufacturing source for HSS Products. 
  
 E.    HST has extensive experience in design and
manufacturing technologies, and has acquired or is the owner of inventions and know-how relating to certain manufacturing technologies (“HST Technology”), and the parties believe that this experience, knowledge, and HST Technology
will be useful in the design and manufacture of ATC Emitters and HSS Systems, which will use or incorporate HSS Technology, and HSS Products incorporating such ATC Emitters and/or HSS systems. 
  

F.    HST desires to be a primary manufacturer of HSS Products, and believes it can supply the reasonable requirements of ATC for HSS Products,
including reasonable increases in such requirements. 
  
 COVENANTS AND CONDITIONS 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and the covenants and conditions as set forth herein, the parties agree as follows: 

 
 1.    LICENSE 
  
 a.    All Patent Rights, Know-How, ATC Trademarks, HSS Technology, and ATC’s Emitter Technology are owned exclusively by ATC and no license with respect to them or any other
intellectual property of ATC is granted to HST, except for the limited and specific purpose of making HSS Products for ATC in accordance with this Agreement and otherwise performing its obligations hereunder. 
  
 b.    No license with respect to any right of HST in HST Technology, or any other intellectual property developed
solely by HST, is granted to ATC, except for the limited and specific purpose of carrying out the terms and conditions of this Agreement and otherwise performing its obligations hereunder. 
  
 c.    Upon the request of HST, ATC and HST shall negotiate in good faith a separate agreement regarding a grant of a license from ATC to HST to make,
have made, use, manufacture, and sell products which use or incorporate HSS Technology under its own brand
 

 
	
	
	
	
	

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name HST, or other brand name approved by ATC, [***] in recognition of HST’s work in helping to advance ATC Emitter Technology and HSS Systems manufacturing know-how, should that
prove to be the case. 
  
 2.    RIGHT TO MANUFACTURE 
  
 a.    Subject to termination as defined in paragraphs 13 and 27, HST shall have an exclusive right to manufacture HSS Products for ATC which ATC will
sell at retail or wholesale. HST shall manufacture HSS Products in accordance with the reasonable quality and quantity requirements of ATC during the term of this Agreement. 
  
 b.    ATC retains the right to license Other HSS Licensees to manufacture and sell HSS Products under the Other HSS Licensees’ own brand names.

  
 c.    HST shall be an authorized, non-exclusive manufacturer of HSS Products for Other HSS
Licensees after the initial term of this Agreement. ATC shall inform each such Other HSS Licensee in writing, with a copy of such notice to HST, that HST is an ATC authorized manufacturer for HSS Products. [***] 
  
 3.    SCOPE OF WORK: 
  
 a.    ATC will provide to HST all required documentation and technical support required for technology transfer of HSS Technology related to the HSS Products, to enable HST to identify manufacturing
techniques, processes, and determine costs. 
  
 b.    HST will provide ATC with ideas for design
modifications, on an ongoing basis, to reduce manufacturing costs, improve ruggedness and reliability, improve stability, or any other concepts to improve the manufacturability or performance of the HSS Products. 
  
 c.    HST will provide design drawings, concept drawings, specifications, and other reasonably required documentation
to ATC on a continuing basis, and shall, upon appropriate notice, allow ATC personnel access to relevant portions of HST facilities, in order for ATC to monitor the quality of the HSS Products and monitor the HST manufacturing processes for the HSS
Products. 
  
 d.    HST will maintain and make available to ATC all purchasing, inspection,
production, quality, shipping, and other required documentation upon request in order for ATC to accurately assess the suitability of the HST manufacturing processes for the HSS Products. 
  

4.    PVDF FILM SUPPLY 
  
 a.    [***] 
  
 5.    PRODUCTION TOOLING 
  
 a.    [***] 

 
	
	
	
	
	

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 b.    [***] 
  
 6.    COSTS AND LINE SHUTDOWNS 
  
 a.    [***] 
  
 b.    [***] 

 
 c.    [***] 
  
 7.    RESPONSIBILITIES 
  
 The following is a partial list of
identified HST responsibilities. It is included for clarification only and does not represent all the responsibilities of HST to perform under this agreement. However, HST shall do at least the following: 
  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Meet production schedules and quality targets 
 

  

	 	•
	 
	Provide factory infrastructure (shipping, accounting, etc.) 
 

  

	 	•
	 
	Purchase components and raw materials as required 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Procurement of, [***] initial and ongoing UL factory registration, inspections, and compliance 
 

  

	 	•
	 
	Provide serial number traceability 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Production cost reduction over time 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Contract with all its employees officers and agents to keep the HSS Technology not in the public domain confidential, and otherwise take all reasonable
precautions to prevent unauthorized access to, and use of, HSS Technology 
 

  

	 	•
	 
	Take such further reasonable steps to safeguard HSS Technology not in the public domain from unauthorized transfer to any third party by any of HST’s
officers, directors, employees, agents, and contractors, as may be reasonably be required under circumstances appearing, particularly with regard to manufacturing outside the U.S. 
 

  

	 	•
	 
	Develop a formal manufacturing and process control plan 
 

  

	 	•
	 
	Inspect, test, or otherwise validate that components and materials meet specifications 
 

  

The following is a partial list of identified ATC responsibilities. It is included for clarification only and does not represent all the responsibilities of ATC to
perform under this agreement. However, ATC shall do at least the following: 
  

	 	•
	 
	Provide overall design of HSS systems and packaging 
 

 
	
	
	
	
	

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	 	•
	 
	Provide engineering documentation/configuration management requirements 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Procurement of, [***] initial product agency approvals & updates (UL, FCC, FDA, etc) 
 

  

	 	•
	 
	Provide receiving inspection criteria for components, etc. 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	Develop factory process inspection criteria 
 

  

	 	•
	 
	Provide technical support and failure analysis 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  
 The following is a partial list of identified joint responsibilities. It is included for clarification only and does not represent all the joint responsibilities of HST and ATC to perform under this agreement. However, both parties
shall jointly do at least the following: 
  

	 	•
	 
	[***] 
 

  

	 	•
	 
	[***] 
 

  
 8.    FIRST PRODUCTION AND PRODUCT DOCUMENTATION 
  
 a.    It is understood that expediency in the performance of the parties under this Agreement is of critical importance to the success of ATC and its HSS technology and time is of the essence of this Agreement.

  
 b.    [***] 
  
 c.    Prior to the start of production, ATC shall provide to HST complete product documentation required to reorder all parts and materials, perform
incoming inspections, manufacture ATC Emitters, perform final HSS Product assembly, control product quality and consistency, and package, store, and ship finished HSS Products. 
  
 9.    DISTRIBUTION RESTRICTIONS 
  
 a.    [***] 
  
 b.    [***] HST shall take
particular care to see that such technology is not transferred by reason of any act of HST, its directors, officers, employees, agents, and contractors, to such entity in the field of audio reproduction, nor to any company in competition with ATC or
engaged in the production of any technology competitive to HSS, or any company engaged in the manufacturing, sale, or distribution of parametric loudspeaker systems. However, HST is not prohibited in any way from selling, distributing, or otherwise
providing its HST Technology to any third party company for use in applications not involving [***]. 
  
 10.    CONFIDENTIAL INFORMATION 

 
	
	
	
	
	

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 a.    It is recognized that during the term of this agreement and any renewal term,
the parties will disclose, exchange and/or be given access to information, in whatever form, of the other, which is not in the public domain, and which is or may be sensitive, proprietary, or simply not generally known, and with respect to which the
party disclosing the information desires that it remain confidential and not pass into the public domain. Such information includes, but is not limited to, business and financial information, customer and supplier names and lists of such names,
trade secrets, know-how, technical and business data, drawings, devices, methods, processes, formulae, specifications, information regarding business and market strategy, and the like, and also including, but not limited to, the HSS Technology and
HST Technology set forth above not in the public domain, and other information identified or reasonably identifiable as sensitive or confidential (“Confidential Information”). 
  

b.    Each of the parties shall take reasonable steps to assure that Confidential Information of the other party remains confidential and does not
pass to any third party to the detriment of the other party. The Confidential Information of each of the parties shall remain the property of the disclosing party, and the parties shall each receive and maintain the confidentiality of the other and
shall not make any use thereof in whole or in part except for the purposes of this agreement. [***] any Confidential Information and/or instrumentality incorporating or displaying Confidential Information, given by one party to the other
shall otherwise be kept in strict confidence by the receiving party, and shall be disclosed only to those persons and entities having a need to know in performing the duties imposed by this Agreement and who have entered into an agreement with the
receiving party to keep such Confidential Information in strict confidence. Such agreements with third parties shall contain confidentiality provisions providing, at the least, protections and obligations of confidentiality commensurate with the
protections and obligations set forth in this Agreement. 
  
 c.    Confidential Information shall
not include information which was previously in the public domain, or which passes into the public domain by a means other than a violation of this Agreement, or information which was known to the receiving party, as shown by reliable evidence,
prior to receiving the information and with respect to which a breach of the duties or obligations of this Agreement would not otherwise reasonably be found by subsequent disclosure. 
  
 11.    INTELLECTUAL PROPERTY 
  
 a.    [***] 
  

	 	*
	 
	[***] 
 

  

	 	*
	 
	[***] 
 

  

	 	*
	 
	[***] 
 

  
 b.    [***] 
  
 c.    [***]

 
	
	
	
	
	

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 d.    [***] 
  
 e.    The parties shall have and/or enter into appropriate agreements with their officers, directors, employees, agents, and contractors to effect the terms of this Agreement,
including, but not limited to, obligating them to assign all rights in inventions and intellectual property, including but not limited to patent rights, developed or acquired by them which relate to the respective business endeavors of the parties,
and to keep all Confidential Information in confidence. 
  
 f.    Improvements 

 
 1.    Regardless of how ownership may be determined between the parties, if a party shall develop any
improvement relating to the performance or manufacture of the HSS Products or otherwise constitutes and improvement relating to the HSS Technology (“Improvement”), the party having made the Improvement shall promptly disclose such
Improvement to the other party in confidence. [***] 
  
 (a)    [***] 
  
 (b)    [***]

  
 12.    INFORMATION RELEASE 
  
 a.    [***] 
  
 b.    Neither party will make any disclosure concerning this Agreement or its substance, nor issue any public release or announcement concerning their relationship, except as mutually agreed in advance or
otherwise required by law. It is agreed that permission to release information will not be unreasonably withheld by either company. [***] 
  
 13.    TERM OF AGREEMENT 
  
 a.    This Agreement
shall become effective as of the Effective date first stated above, and, unless sooner terminated as provided herein, shall remain in full force and effect for an initial term of two (2) years following such Effective date, and then, unless
terminated as provided herein, shall continue in full force and effect thereafter for a two (2) year renewal term following the initial term, and unless terminated as provided herein, such renewal term shall be followed by like subsequent renewal
terms of two (2) years duration. 
  
 b.    Either party may terminate this Agreement for any
verifiable commercially reasonable reason upon one hundred eighty (180) days prior written notice to the other party as more fully set forth in Paragraph 27 below. The termination of this Agreement shall not affect the obligations of either party to
the other party pursuant to any Order (as hereinafter defined) previously executed hereunder, and the terms and conditions of this Agreement shall continue to apply to such Order as if this Agreement had not been terminated. 

 
	
	
	
	
	

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 14.    SCOPE OF AGREEMENT 
  
 a.    During the term of this Agreement, ATC agrees to purchase all of its requirements for the HSS Products from HST, and HST shall supply the reasonable requirements of ATC. This Agreement anticipates
that ATC will place Orders with HST. No terms or conditions other than those stated herein and in the HST Order Acknowledgment Form; and no agreement or understanding, oral or written, in any way purporting to modify these terms or conditions,
whether contained in ATC’s purchase order or shipping release forms or elsewhere, shall be binding on HST unless hereafter made in writing and signed by an authorized representative of HST. 
  

b.    Notwithstanding any other provision of this Agreement or of any other contract between the parties to the contrary, the provisions of this
Agreement shall apply to subsequent transactions between HST and ATC during the term of this Agreement with respect to the HSS Products which are the subject of this Agreement, unless the parties expressly agree in and by a written modification to
this Agreement, signed by an authorized representative of each of the parties, that the provisions of this Agreement shall not apply. 
  
 c.    Subject to the provisions of this Agreement, HST shall provide to ATC such of the HSS Products as ATC may from time to time order. ATC’s technical specifications (including drawings) relating
to such HSS Products are shown on Exhibit C (“Specifications”), and HSS Products provided to ATC hereunder shall be in conformance with said Specifications and/or any subsequent change to the specifications to which the parties
shall agree in writing. 
  
 15.    ORDERS 
  
 a.    The term “Order” shall mean each purchase order that ATC may deliver to HST for the purchase of HSS Products. 
  
 b.    Each Order for HSS Products shall set forth the quantity, description and price(s) of the HSS Products being
ordered, the address for delivery of HSS Products, required delivery or performance date(s), shipping instructions, and the address to which HST’s invoice shall be sent, and shall reference this Agreement. Risk of loss for each Order shall be
as set forth below. 
  
 c.    HST’s acknowledgment shall be deemed to be acceptance of such
Order upon the terms contained in the HST Acknowledgment Form in accordance with the provisions of this Agreement. Should HST fail to acknowledge any Order within [***] days of receipt, the Order shall be considered not accepted by HST.

  
 16.    FORECASTS 
  
 a.    ATC will issue a rolling, [***] production forecast [***] All production must be authorized via timely purchase orders. 
  
 b.    [***] 

 
	
	
	
	
	

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 17.    CAPACITY 
  
 HST will use its best efforts to design its manufacturing processes and line capacity to accommodate production of a minimum periodic quantity of HSS Products [***] 
  

18.    CAPITAL EQUIPMENT 
  
 HST will purchase any capital equipment required to establish the production line and shall be responsible for any additional start-up costs not otherwise provided for in this Agreement. [***] 
  
 19.    RISK OF LOSS 
  
 Unless otherwise specifically agreed to in writing by HST, all sales made hereunder shall be F.O.B. HST’s factory and title to the HSS Products priced F.O.B. HST’s factory shall pass to ATC or Other HSS Licensee
upon delivery at such shipping point. 
  
 20.    PRICE 
  
 a.    [***] 
  
 b.    [***] 
  
 c.    [***] 

 
 d.    ATC or its representative shall have the right to inspect relevant records at reasonable times and
upon reasonable notice to HST no more than four times per year to audit HST processes and cost structures as reasonably required [***]. 
  
 21.    PAYMENT 
  
 HST shall invoice ATC on a monthly basis for completed
production authorized via purchase order. Payment terms shall be [***]. 
  
 22.    DELIVERY 

 
 HST shall use its best efforts to make deliveries of HSS Products in the quantities and at the times specified in any Purchase
Order, as accepted by HST. Unless ATC specifies shipping instructions, shipment and delivery will be made by the carrier and in the manner designated by HST. HST shall not be liable for delays or defaults in deliveries due to causes beyond
HST’s control and without its fault or negligence. 
  
 23.    INSPECTION 
  
 a.    HST shall be responsible for performing incoming and line inspections and testing on a statistical basis or as
otherwise specified by ATC in documented procedures as
 

 
	
	
	
	
	

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necessary to monitor the quality of the Products shipped hereunder. HST will provide to ATC a process control plan containing detailed flow chart/process plans for each HSS model manufactured for
ATC. The plan will identify all process control points, metrics, and limits. HST agrees to provide process control information to ATC upon request. ATC reserves the right to audit this process at any time upon reasonable notice. HST further agrees
to maintain real-time controls as defined within the process control plan and take immediate action whenever an out-of-control situation occurs. HST will insure that appropriate process control limits are 
  
 b.    ATC reserves the right to approve all process controls contained in the HST process control plan, which approval
shall not be unreasonably withheld. 
  
 c.    ATC may reject those HSS Products that do not meet
the Specifications or samples supplied pursuant to Exhibit C of this Agreement. Provided however, that any such inspection or testing performed by ATC hereunder must be done within [***] of the receipt of any shipment included hereunder.
[***] 
  
 24.    REPRESENTATIONS AND WARRANTIES 
  
 a.    HST warrants that it will maintain a documented quality control system subject to the approval of ATC, which approval shall not be unreasonably
withheld. HST agrees to allow ATC, Other HSS Licensees (upon approval by HST), or a third party retained by ATC or Other HSS Licensees (upon approval by HST), to conduct out-of-box source inspections using MIL-STD-105E or an alternative sampling
plan at the HST manufacturing facility. HST further warrants that 100% of the HSS Products shipped will have sufficient testing and inspection to insure an AQL level of [***] for major defects and [***] for minor defects as defined
below. Furthermore, HST agrees that any sample which contains a defect which reasonably constitutes a safety hazard of any kind shall cause the entire production lot to be rejected. The major and minor defect definitions are to be more specifically
determined with cooperation of both parties prior to the beginning of mass production. For purposes of this Agreement, and as a starting point for such definitions, a major defect is defined as a defect which causes the product to perform in some
respect deficiently outside performance specifications mutually agreed upon by the parties or to be noticeably deficient in any respect to a reasonable typical customer. A minor defect is one that is not ordinarily noticed or considered detrimental
by a reasonable typical customer as detrimental, for example, such as a misplaced label or minor scratch. 
  
 b.    HST warrants that upon delivery, good title to the HSS Products delivered to ATC or Other HSS Licensees hereunder, free and clear of all liens of whatsoever kind or nature, will vest in ATC or Other HSS
Licensees, and that the HSS Products delivered will conform to the Specifications and perform in accordance with performance specifications mutually agreed upon by the parties, and be free of defects in materials and workmanship for a period of
[***] commencing on the latest of: the date the HSS Products are received by ATC; the date they are received by a customer of ATC; the date they are received by one of Other HSS Licensees or by one of their customers, or the date of purchase
by a party otherwise an end purchaser from the distribution channels of any of the forgoing parties in the ordinary course of business (“Warranty Period”). 

 
	
	
	
	
	

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 c.    THIS WARRANTY IS [N LIEU OF ALL OTHER WARRANTIES EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE UNLESS OTHERWISE SPECIFICALLY STATED IN WRITING BY HST. 
  
 d.    ATC warrants and represents that ATC is free to enter into and fully perform this Agreement. ATC warrants and represents that the relevant Patent Rights, rights in Know-How, rights in HSS
Technology, rights HSS Products, and rights in the Licensed Trademarks, are owned and controlled, or have been otherwise secured by ATC (except for matters in the public domain); and that to the best of ATC’s knowledge, the manufacture,
advertisement, distribution and sale hereunder of HSS Products to the extent they are made in accordance with the HSS Technology, Specifications, disclosures of the Patent Rights, Know How, and this Agreement do not infringe upon any rights of any
third party of any nature whatsoever. 
  
 e.    HST warrants and represents that HST is free to
enter into and fully perform this Agreement. HST warrants and represents that relevant rights in the HST Technology are owned and controlled or otherwise secured by HST (except for matters in the public domain); and that to the best of HST’s
knowledge, the manufacture, advertisement, distribution and sale hereunder of HSS Products to the extent they are made in accordance with the HST Technology and this Agreement do not infringe upon any rights of any third party of any nature
whatsoever. 
  
 f.    HST warrants that all HSS Products will be manufactured or otherwise
furnished in compliance with all applicable federal, state and local laws, rules and regulations, and all laws rules and regulations in any country wherein it conducts business, and further, warrants that HST is an equal opportunity employer. FIST
warrants that, unless specifically exempt from compliance, HST shall comply with Section 202 of Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, Section 402 of the Vietnam Era Veterans Readjustment Act of 1974, Title VII of the
Civil Rights Act of 1964, the Fair Labor Standards Act of 1938, and any amendments thereto. 
  
 g.    Each of the parties warrants that it will use its best efforts to perform its obligations hereunder, and promote and advance the development, safety, market acceptance, and favorable public perception of the
HSS Products, and will do or refrain from doing all acts as reasonably needed to fulfill these ends and the purposes of this Agreement. 
  
 h.    Each of the parties warrants and represents to the other that it has made reasonable investigation and is unaware of any third party rights that will be infringed by activities contemplated
hereunder, and there are no actions pending or claims asserted that would in any way affect its right or ability to perform its obligations hereunder. 
  
 25.    DAMAGES/RETURNS 
  
 a.    HST shall replace all
HSS Products deemed defective due to a workmanship or manufacturing defect during the Warranty Period with replacement or repaired HSS Products at no charge to ATC or Other HSS Licensees, provided that: (a.) ATC or Other HSS Licensees
 

 
	
	
	
	
	

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shall have notified HST within thirty (30) days of ATC’s or Other HSS Licensees’ discovery of any alleged defect during the Warranty Period; and (b.) the HSS Products have not been
damaged, subjected to abuse, misuse or abnormal operation, altered or improperly repaired or maintained by ATC, ATC’s customers, Other HSS Licensees or their customers; OR, and at HST’s option, HST will repay the price paid for such HSS
Product, plus any transportation charges paid by ATC in addition to such price. Claims hereunder must be made within [***] beginning when the HSS Products are received by ATC, ATC’s customers, Other HSS Licensees or their customers or
otherwise an end purchaser in any of the forgoing channels of distribution in the ordinary course of business. Upon receipt of any notice of claim as provided hereunder, HST shall be given a reasonable time within which to investigate ATC’s
claim and to cure all defects. ATC’s legal remedies with respect to any HSS Products furnished by HST hereunder that are found to be defective or otherwise fail to conform to the Specifications or performance specifications agreed upon by the
parties or otherwise to the terms and conditions of this Agreement, shall be limited exclusively to the right to replacement thereof or to repayment of the price, as provided above. No legal action shall be commenced against HST with respect to the
liability of HST hereunder more than [***] after the occurrence alleged to give rise to such liability. In no event shall HST be liable to ATC for consequential, incidental or exemplary damages, including but not limited to, loss of profit or
revenue, loss of use of machinery or equipment, downtime costs or claims of ATC’s customers or Other HSS Licensee’s customers for damages. 
  
 b.    Additionally, if ATC or an Other HSS Licensee can demonstrate to HST that a defective lot of HSS Products has been shipped, HST shall, upon request by ATC or the Other HSS
Licensee, replace the entire lot of said HSS Products. For the purposes of this Agreement, a defective lot shall mean a lot of HSS Products which cannot pass the AQL test set forth in paragraph 24.a. above. ATC or Other HSS Licensees shall return to
HST, transportation prepaid, all defective HSS Products covered under a warranty claim. HSS Products repaired or replaced under warranty by HST will be shipped to ATC or Other HSS Licensees F.O.B. destination. 
  
 c.    As between the parties, ATC shall be responsible for any reasonable costs attributable to returns due to HSS
Product design flaws caused exclusively by ATC. 
  
 26.    INDEMNITIES AND INSURANCE 
  
 a.    ATC shall indemnify and defend HST and hold harmless HST for all direct and actual damages recovered from HST by
a third party in any legal proceedings for infringement of a United States Letters Patent by the HSS Products furnished hereunder, provided that HST immediately notifies ATC of any potential or claimed infringement it becomes aware of, and HST
cooperates with ATC with respect to the defense thereof. However, in the event that HSS Products at issue are designed by HST and/or are produced under specifications of HST altering an ATC design, and ATC has not specifically approved such design
or alteration by HST in writing, or in the event that the charge of infringement arises solely from conduct of HST in manufacturing and not the design of an HSS Product itself, and such conduct in manufacturing was not requested by ATC, then ATC
shall have no liability under this paragraph 26.a. 

 
	
	
	
	
	

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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 b.    HST shall indemnify and defend ATC and hold harmless ATC for all direct and actual damages recovered from ATC by a
third party in any legal proceedings for infringement of a United States Letters Patent by HSS Products furnished hereunder, provided that ATC immediately notifies HST of any potential or claimed infringement it becomes aware of, and ATC cooperates
with HST with respect to the defense thereof. However, in the event that the features of the HSS Products at issue are designed solely by ATC and/or are produced under specifications of ATC altering an HST design, or that the charge of infringement
arises solely from conduct of ATC, and such conduct was not requested by HST, then HST shall have no liability under this paragraph 26.b. 
  
 c.    Each of the parties shall maintain adequate insurance pertaining to the activities they undertake hereunder reasonably acceptable to the other, and shall provide proof of same to the other upon
request. In this regard, product liability insurance with a single product/ single occurrence liability limit of less than [***] shall be deemed inadequate and unreasonable, in the absence of compelling evidence to the contrary. 

 
 27.    TERMINATION 
  
 a.    HST shall have the right to cancel purchase orders of ATC in the event ATC willfully fails to comply with the terms of payment specified in this Agreement or in any subsequent
agreement signed by an authorized representative of ATC for an unreasonable time. 
  
 b.    Except as otherwise provided herein, this Agreement, or any Order placed pursuant hereto, is subject to termination for any verifiable commercially reasonable reason in whole or in part, at the election of
ATC, upon delivering one hundred eighty (180) days advance written notice to HST. HST shall have the right to complete work in progress, and shall fulfill all Orders to be completed within the advance notice period before termination. 

 
 c.    Because of the reliance of ATC on HST for its requirements of HSS Products, this Agreement shall be
subject to termination by HST for any verifiable commercially reasonable reason only upon at least one hundred eighty (180) days advance written notice to ATC. ATC shall have the right, at its sole discretion, to continue to place Orders for
delivery within the advance notice period before termination, and such Orders shall be reasonable. In the event that HST withdraws its termination notice after giving it, but prior to termination, ATC shall have the right, in its sole discretion, to
re-instate this Agreement but treat this Agreement as non-exclusive, and shall have the right to use such other manufacturers as it may wish in addition to HST to supply its requirements of HSS Products. 
  
 d.    [***] 
  
 e.    If either party repudiates, terminates or suspends performance under this Agreement at its convenience and without compliance with the terms and conditions of this Agreement,
then all reasonable and foreseeable costs to the other party resulting from such repudiation, termination, or suspension of performance shall be reimbursed with interest from the date incurred by the other party, [***] 

 
	
	
	
	
	

	 HST Supply Agreement
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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 f.    In the event that either party shall materially breach any of the material terms or conditions of this Agreement, or in
the event either of the parties becomes insolvent, files a petition in bankruptcy, or is declared bankrupt, or makes an assignment for the benefit of creditors, the other party may, in addition to other remedies it may have, terminate this Agreement
by giving at least thirty (30) days advance written notice to the breaching party, specifying the act or omission on which such termination is based. Should such breach be remedied within thirty (30) days of said notice, or should adequate
assurances, reasonably acceptable to the other party, of remedy within a reasonable time and continued performance thereafter be given, this Agreement shall remain in full force and effect, subject to continued compliance with all of the terms,
conditions, and limitations hereof. 
  
 g.    Early termination of this Agreement, should it
occur, shall not affect the continuing rights and obligations of the parties such as the obligation to fill any Purchase Orders placed and accepted before termination, and the obligation to pay for HSS Products delivered, the obligations of
confidentiality concerning Confidential Information, and other rights and obligations reasonably intended to continue after termination. 
  
 28.    FORCE MAJEURE 
  
 Neither HST nor ATC shall be liable to the other
for noncompliance with the terms and conditions of this Agreement, or for default or delay in delivering or accepting goods hereunder, if such noncompliance, default or delay is caused by an unforeseeable event beyond the reasonable control and
reasonable capability of mitigation thereof by the affected party, for example such as may arise due to a natural disaster, war, mobilization, riot, strike, embargo, shortage of utility, facility, material or labor, delay in transportation,
breakdown or accident, or reasonable unforeseen necessity of compliance with law or regulation. When all or only a part of HST’s or ATC’s capacity to perform is excused under this paragraph, HST or ATC shall mitigate to the extent possible
the detrimental effects of non-performance and shall have the right and obligation to use other suppliers, allocate production, deliveries, or receipt of deliveries among various customers or suppliers then under contract or otherwise available with
respect to HSS Products during the period when ATC or HST is unable to perform. The allocation must be effected in a commercially fair and equitable manner. When either HST or ATC claims an excuse for non-performance under this paragraph, it must
give notice in writing to the other party and, thereupon, the affected party’s non-performance shall be excused for the period of delay or inability due to such Force Majeure, but not for more than six (6) months. 
  
 29.    CHANGES 
  
 a.    ATC may from time to time request changes, including but not limited to, changes in drawings, designs, production, specifications, testing, method of inspection, method of packaging, order period, rate of
shipment, method of shipment, and/or place of delivery, or other provisions contained herein, by written instruction to HST via an Engineering Change Order (ECO) or Manufacturing Deviation, clearly identified as such, from ATC and conveyed to HST in
a reasonable manner. All changes will be presumed to require cut-in control by serial number or other means, unless specifically exempted. HST shall determine whether such change 

 
	
	
	
	
	

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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 
causes an increase or decrease in cost or time of performance and thereafter shall notify ATC in writing within ten (10) days from the date of receipt of such change order notice, or letter, or
within such other time limit as agreed to by ATC and HST. ATC will, in writing, either accept the cost adjustment, cancel the request (ECO), or request a meeting to review the cost adjustment. Any agreed-to cost adjustment shall be implemented by
means of a written Engineering Change Order, clearly identified as such, signed by an authorized representative of each of the parties. HST’s failure to advise ATC in writing that an adjustment is necessary prior to performance of the work
called for by the Change Order Notice shall constitute HST’s agreement to conform to said Change Order Notice without an increase in price and without charge for cost of material and/or tooling rendered obsolete, and that delivery will be made
as specified by this Agreement without additional cost to ATC. Any cut-in of design changes will be made in a reasonable period of time. 
  
 b.    HST shall not make any unauthorized or undocumented changes to materials and components, vendors, manufacturing processes, or testing procedures. 
  
 30.    COMPLIANCE WITH APPLICABLE AND STANDARDS 
  
 The parties shall each comply with all applicable laws, governmental regulations, trade and industry standards for good practice in their respective industries and areas of
endeavor, and shall pay all applicable taxes and fees to appropriate governmental and taxing authorities, and otherwise conduct its business in accordance with reasonable business judgment, and with prudence and due care. Each shall obtain all
necessary permits, approvals, waivers, or permissions required to conduct its business and perform its responsibilities hereunder, and shall each bear the costs associated therewith. 
  
 31.    GENERAL 
  
 a.    Any clause required to be included in a contract of this type by any applicable law or administrative regulation having the effect of law shall be deemed to be incorporated herein. 
  
 b.    All proposals, negotiations, and representations, if any, made prior to and with reference hereto, are merged
herein. 
  
 c.    The captions in this Agreement are inserted only as a matter of convenience and
are not intended to limit or define the scope of any provision herein. 
  
 d.    Waiver by ATC or
HST of any breach of these provisions shall not be construed as a waiver of any other breach. 
  
 e.    Any material modification of this Agreement shall be in writing signed by authorized representatives of each of the parties. 
  
 f.    Time is of the essence of every provision of this Agreement in which time or a period thereof is an element. 

 
	
	
	
	
	

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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 32.    ASSIGNMENT 
  
 Neither party shall assign any of its rights or delegate any of its obligations without prior written consent of the other party. Subject to the forgoing, this Agreement shall be binding upon and inure to the benefit of the
successors, heirs and assigns of ATC and HST. 
  
 33.    SPECIFIC PERFORMANCE 
  
 Breach of the obligations of Paragraphs 9, 10, and 11 by one party will subject the other party to irreparable harm for which there is no
adequate remedy at law. Thus, in addition to other remedies it may have, the party subjected to the breach may enforce the obligations by compelling specific performance or obtaining an injunction against a violation of such terms. 

 
 34.    GOVERNING LAW, FORUM SELECTION AND JURISDICTION 
  
 This Agreement and each Order placed hereunder shall be construed in accordance with the laws of the State of California. The courts of the State of California shall have
exclusive jurisdiction over all controversies which may arise under or in relation to this Agreement, especially with respect to the execution and interpretation of, and compliance with, this Agreement. 
  
 35.    SEVERABILITY 
  
 Any provision of this Agreement which is found to be unenforceable under any law in any jurisdiction in which this Agreement is effective shall be deemed severable and not a part of this Agreement and to that extent void in
the relevant jurisdiction. However, all remaining provisions of this Agreement shall be valid and in full force and effect, and the parties shall negotiate in good faith a replacement provision which effects, insofar as possible, the original intent
of the parties with respect to the subject matter of the severed provision. 
  
 36.    SURVIVAL OF PROVISIONS

  
 The provisions of this Agreement that by their sense and context are intended to survive the performance
hereof by either or both parties hereunder shall so survive the completion of performance, cancellation or termination of this Agreement or any Order hereunder. 
  
 37.    ENTIRE AGREEMENT 
  
 This Agreement constitutes the entire
agreement and understanding between HST and ATC. No modification of any term contained herein shall be binding upon either HST or ATC respectively unless made in writing and signed by authorized representatives of HST and ATC. 

 
 38.    NOTICES 
  
 Any notice required or permitted under the terms of this Agreement sent by a party shall be in writing and shall be sent by a means wherein reliable verification of receipt by the other
 

 
	
	
	
	
	

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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 
party is generated. Sending such notice or report or payment by electronic means with confirmation of receipt shall be effective, provided a confirmation copy is sent via a means which complies
with this paragraph and the means used is reasonable in light of all relevant circumstances. Notice to the parties shall be addressed as set forth below, or such other addresses as the party receiving notice shall from time to time designate by
notice in accordance with this paragraph. 
  
 To HST: 
  
 HST, Inc. 
 8985 Crestmar Pointe 
 San Diego, CA 92121 
 Attn: [***] 
  
 And to ATC: 
  
 American Technology Corporation 
 13 114 Evening Creek Drive South 
 San Diego, CA 92128 
 Attn: [***] 
  
 39.    SOPHISTICATION AND DUE DILIGENCE 
  
 a.    This Agreement is the result of arms-length negotiation by experienced and knowledgeable parties wherein each party is represented by legal counsel, and the language herein shall not be strictly construed
against either party. 
  
 b.    Each of the parties to this Agreement has performed its own due
diligence obligations with regard to the subject matter hereof, and except as expressly provided herein, each of the parties shall be solely responsible for its own conduct, and nothing herein shall otherwise cause either party to be answerable for
any conduct of the other hereunder. 
  
 40.    FURTHER ASSURANCES 
  
 The parties shall take any further actions, and shall make, execute, and deliver any further written instruments, that may reasonably be
required to carry out the intent of the parties as expressed herein, and to implement the purposes, and give force and effect to the terms and conditions of this Agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, effective as of the Effective Date first above written. 

 
	
	
	
	
	

	 HST Supply Agreement
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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
  
 
	 Horizon Sports Technologies, Inc.
 (HST)
  
 By:                                     
                                        
                  
 Name:  [***]
 Title:  President
  
 Date:  July 18, 2001
  
 Witness:                                    
                                        
         
 Name:  [***]
 	    	  	    	 American Technology Corporation
 (ATC)
  
 By:                                     
                                        
                  
 Name:  [***]
 Title:  V.P. Sales, Marketing & Business Development
  
 Date:  July
18, 2001
  
 Witness:                                    
                                        
         
 Name:  [***]
 
	  	    	  	    	  
	  	    	  	    	  

 
  

 
	
	
	
	
	

	 HST Supply Agreement
 	 	 Page 18
 	 	  

 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
  
 EXHIBIT A 
  
 ATC PATENT RIGHTS (CONFIDENTIAL!) 
  
 [***]

 
	
	
	
	
	

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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
  
 EXHIBIT B 
  
 HSSTMTRADEMARKS: 

 
 HYPERSONIC 
 HYPERSONIC SOUND 
 HSS 
  
 HyperSonicSound® 

 
	
	
	
	
	

	 HST Supply Agreement
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 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
  
 EXHIBIT C 
  
 SPECIFICATIONS 
  
 [***] 

 
	
	
	
	
	

	 HST Supply Agreement
 	 	 Page 21License Agreement

 Exhibit 10.19 
  
 ***    Confidential portions of this document have been redacted and separately filed with the Commission. 
  
 LICENSE AGREEMENT 
  
 This
License Agreement (“License Agreement”), dated and effective August 24, 2001 (“Effective Date”), by and between: 
  
 Harman International Industries, Inc. (“HIII”) a Delaware corporation having its headquarters at 8500 Balboa Blvd., Northridge, CA 91329, U.S.A. 
  
 and 
  
 American Technology Corporation
(“ATC”), a Delaware corporation, having its principal place of business at 13114 Evening Creek Drive South, San Diego, California 92128 
  
 (collectively “Parties” or individually “Party”). 
  
 In consideration of the promises and covenants set forth in this License Agreement, the Parties agree as follows: 
  
 1.    Background of License Agreement. 
  
 1.1.    Harman is engaged in the
design and manufacture of multimedia and audio systems and components including transducers, loud speakers, and loud speaker systems. 
  
 1.2. ATC is a research, development and engineering company whose mission is to design, build and market, inter alia, single sided planar magnetic transducers. 
  
 1.3. The Parties desire to enter into this License Agreement to allow Harman access to ATC’s planar magnetic transducer technology, patent applications and resulting patents so that Harman can
modify, make, have made, use, sell, offer for sale and/or import/export Harman Licensed Products. 
  
 2.    Definitions. 
  
 As used in this License Agreement, the following
terms shall have the meanings set forth below: 
  
 2.1 “Affiliate” shall mean: (i) any corporation or other
entity that Harman owns, directly or indirectly, at least 50% of the voting shares; and/or (ii) any corporation or other entity where Harman owns, directly or indirectly, at least 50% of the equity. 
  
 2.2 “ATC Licensed Patents” shall mean the ATC Licensed Patent Applications identified in Schedule A and all enabling related
patents, as well as all divisions, continuations, continuations-in-part, reissues, reexaminations or extensions developed, 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 owned or licensed by ATC that relate to planar magnetic transducers, and any patents or pending patent applications obtained or applied for in relation to Improvements.
ATC shall bear the expense of filing for and prosecuting patent applications in the United States and in other countries as it elects to file for patent protection that are listed in Schedule A, and for the payment of any maintenance fees or
annuities on any ATC Licensed Patent that has issued and is listed on Schedule A. [***] 
  
 2.3    “Automotive Field of Use” shall mean Licensed Products sold in the automotive field including original equipment manufacturers and after-market sales that are sold under Harman brand names or
under no brand name. 
  
 2.4    “Harman” shall mean HIII and its Affiliates. 
  
 2.5    “Harman Licensed Products” shall mean Harman’s products described as single ended, planar magnetic transducers
incorporating, or encompassed by at least one Valid Claim. 
  
 2.6    “ATC Licensed Technology” shall mean
ATC’s Single-ended planar magnetic transducer loudspeaker technology, developed by Graebener and/or ATC, employing high-energy magnets in a single-ended driver configuration. 
  
 2.7    “Separately Acquired Intellectual Property” shall mean intellectual property acquired by Harman encompassing planar magnetic transducer technology. 

 
 2.8    “Royalty” shall mean the royalty payable by Harman to ATC as provided in Article 4 for the rights granted under
this License Agreement pursuant to Section 3.2. 
  
 2.9    “Royalty Expiration Date” means the date where ATC
no longer has a Valid Claim in any of the ATC Licensed Patents covering any Harman Licensed Product. 
  
 2.10    “Unit Royalty Payment” means the amount of Royalty for each Harman Licensed Product shipped by Harman to a third party. 
  
 2.11    “Valid Claim” shall mean at least one patent claim of a filed, issued, or unexpired ATC Licensed Patent reading on a Harman Product that has not been: (a) held
invalid or unenforceable by a final decision of a court or governmental agency of competent jurisdiction, and the decision is not appealable or was not appealed within the required time; or (b) admitted in writing to be invalid or unenforceable by
the patent owner. 
  
 3.0    Ownership, License Grant, License Grant for Improvements, and Engineering

  

 
 2 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 3.1    ATC Licensed Technology. ATC retains all right, title and interest in and to the ATC Licensed Patents, including the technology described and
claimed in the patent and pending applications listed in Schedule A. No transfer of ownership rights in and to the ATC Licensed Patents is made or effected by this License Agreement. 
  
 3.2    License Grant to ATC Licensed Technology. ATC grants to Harman a royalty bearing, worldwide, non-exclusive right and license, within the Automotive Field of Use, without the
right to sublicense, in and to the ATC Licensed Patents and Technology to make, have made (ATC shall not unreasonably withhold authorization for Harman to have Licensed Products made by a third party), use, sell, lease, otherwise distribute,
demonstrate, dispose of, offer for sale and/or import/export Harman Licensed Products. ATC shall furnish to Harman all information and documents in its possession relating to the ATC Licensed Patents and Technology and the commercialization and
exploitation of the ATC Licensed Patents and Technology that are necessary to enable Harman to make, have made, use, sell, lease, otherwise distribute, demonstrate, dispose of, offer for sale and/or import/export Harman Licensed Products and
otherwise fully exploit the rights granted by ATC. 
  
 3.3    Jointly Developed Improvements. [***] 

 
 3.4    Harman shall mark its Harman Licensed Products or accompanying product literature with “Patent Pending” and/or
the relevant U.S. Patent Number, as practical, when any U.S. patent application on the ATC Licensed Patent issues. 
  
 3.5    [***] 
  
 3.6    Harman and ATC shall enter into a separate
Engineering Services Agreement (Schedule B) pursuant to which Harman shall pay to ATC $10,000 per month and ATC shall provide Harman with certain engineering services and submit a detailed, written monthly report of man hours worked and tasks
completed pursuant to Harman’s direction. Any improvement to planar magnetic technology developed by or for Harman during the period of the Engineering Services Agreement shall be subject to [***]. 
  
 4.0    Payments by Harman to ATC. 
  
 4.1    Royalty. In consideration of the rights granted by ATC to Harman pursuant to Section 3.2 under this License Agreement, Harman shall pay the following amounts to ATC. 
  
 4.2    Upon signing of this License Agreement, Harman shall pay to ATC [***]. 
  

 
 3 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 4.3    Within five days after both Parties have signed this License Agreement, Harman shall pay to ATC [***] that shall be considered prepaid
Royalties for the first [***] of the Harman Licensed Product that is shipped, less any returns due to warranty issues. 
  
 4.4    Within thirty (30) days of the issuance of a freedom to practice opinion by Harman’s Intellectual Property Counsel covering the essential commercial embodiment of the planar magnetic transducer design
to be sold by Harman to its customers, Harman shall pay to ATC [***] as prepaid Royalties covering the next [***] of Harman Licensed Products [***] that is shipped, less any returns due to warranty issues. 

 
 4.5    Within thirty (30) days of the execution by Harman of an initial sample warrant occurring after completion of a
pre-production approval process pursuant to QS9000 procedures for a commercial embodiment of the planar magnet transducer design of the Harman Licensed Product intended to be supplied to a customer of Harman, but no later than October 31, 2003,
Harman shall pay to ATC [***] as a prepaid Royalty covering the next [***] units of Harman Licensed Products [***] that are shipped, less any returns due to warranty issues. 
  

4.6.    After Harman has shipped [***] units of the Harman Licensed Product, Harman shall pay to ATC a running Unit Royalty Payment rate of [***] per unit
of Harman Licensed Product. [***] 
  
 4.7    [***] 
  

4.8    [***] 
  
 4.9    Royalty
Payments. [***]. ATC reserves the right to charge interest on Royalty amounts not timely paid, shall be subject to an annualized interest rate based on the London Inter Bank Offered Rate plus [***] basis points during the period of
delinquency. 
  
 4.10    Royalty Statement. Concurrently with payment of the Royalty, Harman shall deliver to ATC a
Royalty calculation statement. The Royalty statement shall be limited to the quantities of the Harman Licensed Product shipped and the amount due. 
  
 4.11    Right to Audit. During the term of this License Agreement and for two (2) years thereafter, Harman shall maintain books and records sufficient to determine the Royalty payments due under this License
Agreement. At the request of ATC, and no more than once during any calendar year, ATC may request Harman’s independent public accounting firm who regularly audits Harman’s books and records to furnish ATC with an auditor’s certificate
as to the accuracy of the Royalty payments made under this License Agreement. At the request of ATC, Harman will allow an independent public accounting firm selected by ATC, during regular business hours and in accordance with procedural guidelines
established by Harman, to verify the accuracy of the Royalty payments stated by Harman’s independent public accountants for verification. Harman or ATC, as applicable, shall promptly remit to the other party, the amount of any
 

 
 4 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 
discrepancy discovered by such audit. Should the amount owed by Harman to ATC with respect to the period verified as a result of such error or discrepancy exceed [***] of the amount paid
by Harman to ATC with respect to such period, then Harman shall pay for the cost of the audit. 
  
 4.12    Harman shall
be solely responsible for all taxes required to be paid by it in connection with the sale of Harman Licensed Products. 
  
 5.0    [***] 
  
 5.1    [***] 
  
 5.2    [***] 
  
 6.0    Warranties by ATC. 
  
 6.1    ATC REPRESENTS AND WARRANTS THAT THE ATC
LICENSED PATENT APPLICATIONS AND RESULTING PATENTS UNDER THIS LICENSE AGREEMENT, HAVE BEEN DEVELOPED BY, LICENSED BY OR ASSIGNED TO, OR OTHERWISE OWNED BY ATC AND MAY BE APPLICABLE TO THE HARMAN LICENSED PRODUCTS. 
  
 6.2    ATC REPRESENTS AND WARRANTS THAT IT HAS OBTAINED THE NECESSARY ASSIGNMENTS, LICENSES, AND PERMISSIONS TO GRANT THE LICENSED RIGHTS TO
HARMAN FOR ACCESS TO THE ATC LICENSED PATENTS. 
  
 6.3    ATC SHALL (1) PROSECUTE VIGOROUSLY ALL PATENT APPLICATIONS
LISTED IN SCHEDULE A, (2) KEEP SCHEDULE A UPDATED AND (3) KEEP HARMAN INFORMED OF ANY ACTION BY PATENT ISSUING AUTHORITIES ON SUCH APPLICATIONS OR RESULTANT PATENTS. 
  
 6.4    ATC REPRESENTS AND WARRANTS TO HARMAN THAT ATC HAS THE FULL RIGHT, POWER AND AUTHORITY TO ENTER INTO AND PERFORM ITS OBLIGATIONS SET FORTH IN THIS LICENSE AGREEMENT. ATC
FURTHER REPRESENTS AND WARRANTS THAT AT NO TIME HAS IT FILED, OR CAUSED TO BE FILED, ANY PATENT APPLICATION IN ITS NAME OR IN THE NAME OF OTHERS RELATING TO THE ATC LICENSED PATENTS, EXCEPT AS LISTED IN SCHEDULE A TO THIS LICENSE AGREEMENT.

  
 6.5    EXCEPT AS OTHERWISE SET FORTH ABOVE, THERE ARE NO OTHER WARRANTIES PROVIDED BY ATC, EXPRESS OR IMPLIED,
INCLUDING WARRANTIES OF MERCHANTIBILITY OR FITNESS OF USE FOR A PARTICULAR PURPOSE. 

 
 5 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 7.0    Warranties by Harman. 
  
 7.1    HARMAN REPRESENTS AND WARRANTS TO ATC THAT HARMAN HAS THE FULL RIGHT, POWER AND AUTHORITY TO ENTER INTO AND PERFORM THIS LICENSE AGREEMENT. 
  
 8.0    Additional Limitations of Liability of the Parties. 
  
 8.1    UNDER NO CIRCUMSTANCES WILL HARMAN, ITS AFFILIATES OR CUSTOMERS, BE LIABLE TO ATC FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE OR INCIDENTAL DAMAGES OR LOST PROFITS, WHETHER FORESEEABLE OR
UNFORESEEABLE, BASED ON CLAIMS OF ATC, ITS AFFILIATES OR SUPPLIERS, EVEN IF IT HAS PREVIOUSLY BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF BREACH OF CONTRACT, MISREPRESENTATION, NEGLIGENCE, STRICT LIABILTY IN TORT OR OTHERWISE. IN
NO EVENT SHALL THE AGGREGATE LIABILITY OF HARMAN, OR ITS CUSTOMERS EXCEED THE MAXIMUM ROYALTY AMOUNT ACTUALLY PAID BY HARMAN TO ATC PURSUANT TO THIS LICENSE AGREEMENT. DESPITE THIS EXCLUSION AND LIMITATION, THIS SECTION WILL NOT APPLY, ONLY WHEN,
AND ONLY TO THE EXTENT THAT, APPLICABLE LAW SPECIFICALLY REQUIRES LIABILITY. 
  
 8.2    UNDER NO CIRCUMSTANCES WILL ATC
BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE OR INCIDENTAL DAMAGES OR LOST PROFITS, WHETHER FORESEEABLE OR UNFORESEEABLE, BASED ON CLAIMS OF HARMAN, OR ITS CUSTOMERS (INCLUDING, BUT NOT LIMITED TO, CLAIMS FOR LOSS OF DATA, GOODWILL,
USE OF MONEY OR USE OF THE ATC LICENSED PATENTS, STOPPAGE OF OTHER WORK OR IMPAIRMENT OF OTHER ASSETS), EVEN IF IT HAS PREVIOUSLY BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF BREACH OR FAILURE OF EXPRESS OR IMPLIED WARRANTY,
BREACH OF CONTRACT, MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE. IN NO EVENT SHALL THE AGGREGATE LIABILITY THAT ATC, ITS AFFILIATES OR SUPPLIERS MAY INCUR IN ANY ACTION OR PROCEEDING, EXCEED THE TOTAL AMOUNT OF ROYALTIES
ACTUALLY PAID TO ATC BY HARMAN. DESPITE THIS EXCLUSION AND LIMITATION, THIS SECTION WILL NOT APPLY, ONLY WHEN, AND ONLY TO THE EXTENT THAT, APPLICABLE LAW SPECIFICALLY REQUIRES LIABILITY. 
  

9.0    Term and Termination. 
  
 9.1    This License Agreement shall continue in full force and effect until terminated by either Party as permitted in this License Agreement; provided that no obligation of Harman under the provisions of Article
3 shall terminate. 

 
 6 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 9.2    Termination of part of this License Agreement shall not excuse Harman from its obligation to make Royalty payments pursuant to the surviving
part of this License Agreement. Survival of this License Agreement in part shall not deprive either Party of the right to enforce its rights against the other Party under the surviving part of the License Agreement. 
  
 9.3    Harman may terminate this License Agreement at its convenience at any time upon providing ATC with at least thirty (30) days advance
written notice of such termination. 
  
 9.4    Either Party may terminate this License Agreement for any material breach
of this License Agreement by the other Party that is not cured within sixty (60) days after the breaching Party received written notice of such breach. 
  
 9.5    Upon the termination of this License Agreement in its entirety, all licenses and rights granted by ATC to Harman shall terminate. Promptly following such termination, Harman shall return to ATC or destroy
all tangible or retrievable materials containing or constituting confidential information, and any other materials received from ATC in connection with this License Agreement; provided that, if this License Agreement terminates for any reason other
than the default of Harman, Harman shall have the right to continue to support its existing customers and shall be entitled to retain such documentation pertaining to the ATC Licensed Patents as it may reasonably require to provide such support.

  
 9.6    Notwithstanding termination of this License Agreement, Harman shall have the right to sell, offer for sale
and/or otherwise dispose of Harman Licensed Products manufactured prior to the effective date of termination. Termination of this License Agreement shall not release Harman from its obligation to make Royalty payments to ATC with respect to
Royalties that accrued prior to such termination. It is understood, however, that all obligations of Harman to pay Royalties shall end on the Royalty Expiration Date. 
  
 9.7    Harman or its representatives may, upon prior written notice to ATC, inspect any agreements or business records of ATC that pertain to or otherwise may potentially concern
the rights granted to Harman under License Agreement, during normal working hours, to verify ATC’s compliance with this License Agreement. While conducting these inspections, Harman and its representatives will be entitled to copy any item that
ATC may possess in violation of this License Agreement. All information obtained by Harman or its representatives for this purpose shall be held by Harman and its representatives in confidence and may not be disclosed by them to any person, or used
for any purpose other than as described in this Section 9.7. 
  
 10.0    Infringement by Third Parties.

 
 7 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 10.1    Each Party shall notify the other Party in writing of suspected or known infringement(s), or any misappropriation(s) of the other
Party’s intellectual property and shall inform the other Party of any evidence of such infringement(s) or misappropriation(s). 
  
 10.2    ATC shall be wholly entitled to recovery of damages from third parties resulting from any lawsuit brought by ATC to enforce the ATC Licensed Patents. 
  

10.3    Should ATC decide to not pursue a third party for infringement under the ATC Licensed Patents or the Improvement Patents, Harman shall be entitled to pursue such
third party and Harman shall be wholly entitled to recovery of damages from any third parties resulting from any lawsuit brought by Harman to enforce ATC’s Licensed Patents or Improvement Patents. Otherwise, the percentage of recovery shall be
based on the percentage of contribution to the expenses paid for pursuit of such infringement. 
  
 11.0    Confidentiality. 
  
 11.1    Notwithstanding the termination of this
License Agreement, ATC and Harman shall keep in confidence and prevent the use of, or disclosure to any person or persons (excluding consultants, independent contractors or agents outside their respective organizations who have agreed to the
confidentiality obligations of this License Agreement), and to any unauthorized person or persons, all data or information or technology marked “Confidential” and exchanged between both Parties. The disclosing Party shall identify and
reduce to writing any visual or oral disclosure of such confidential information and provide such writing to the other Party within thirty (30) days of such disclosure, along with an appropriate stamp or legend clearly indicating that the
information is of a confidential nature, and such data shall be treated in confidence by the receiving party. 
  
 11.2    Notwithstanding Section 11.1, confidential information shall not include information that: 
  

	 	i.
	 
	is or becomes available to the public without breach of this License Agreement; 
 

  

	 	ii.
	 
	is known to the receiving party at the time of the disclosure; 
 

  

	 	iii.
	 
	is disclosed by a third party, who, to the reasonable knowledge of the receiving party, is without any restrictions on confidentiality; 

  

	 	iv.
	 
	is independently developed by the receiving party; 
 

  

	 	v.
	 
	becomes known to the receiving party from a source other than the disclosing party without breach of this License Agreement; or 
 

 

	 	vi.
	 
	is required by law. 
 

  
 11.3    Neither Harman nor ATC shall be liable for inadvertent, accidental or mistaken use or disclosure of information obtained under this License Agreement so long as it has
 

 
 8 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 
undertaken to preserve the confidentiality of the information and in no event less than the precautions it takes to safeguard its own confidential information. 
  
 11.4    Each Party understands that the other Party may currently or in the future be developing information internally, or receiving
information from third parties that may be similar to disclosed confidential information under this License Agreement. Accordingly, nothing in this License Agreement will be construed as a representation or inference by either Party that it will not
develop products, or have products developed for it, or enter into joint ventures, alliances, licensing or other business arrangements that without violation of this License Agreement compete with products or systems embodying confidential
information under this License Agreement. 
  
 11.5    ATC shall issue a press release announcing the execution of this
License Agreement with Harman’s consent as to wording. Harman’s consent shall not be unreasonably withheld and all future press announcements concerning the Agreement must be approved in advance by both parties. 
  
 12.0    Export Restrictions 
  
 12.1    The Parties acknowledge that the Harman Licensed Products may be subject to export controls under the U.S. Export Administration Regulations. ATC and Harman shall (1) comply strictly with all legal
requirements established under these regulations, (2) cooperate fully with the each other in any official or unofficial audit or inspection that relates to these controls and (3) not export, re-export, divert, transfer or disclose, directly or
indirectly, any Harman Licensed Products to any of the following countries or to any national or resident of these countries, unless the other Party has obtained prior written authorization of the Party and the United States Commerce Department:
Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria. Upon notice by the U.S. Government, this list of countries can be modified to conform to changes in the United States Export Administration Regulations. 
  
 13.0    Compliance with Laws 
  
 13.1    Local Compliance. Each Party will, at its own expense, obtain and maintain the governmental authorizations, registrations and filings that may be required under any local laws to execute or perform its
obligations under this License Agreement. Each Party will otherwise comply with all laws, regulations and other legal requirements that apply to this License Agreement, including tax and foreign exchange legislation. Each Party will promptly notify
the other Party of any change in these laws, regulations or other legal requirements that may affect the other Party’s performance under this License Agreement. 
  
 14.0    General Provisions. 

 
 9 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 14.1    Assignment.    This License Agreement shall be binding upon any successor to ATC in ownership or control of the ATC
Licensed Patents, and the obligations of ATC regarding this License Agreement, and all rights of the successor to ATC’s rights shall be interpreted under this License Agreement. For the purposes of this License Agreement, a merger,
reorganization, or sale of substantially all of ATC’s assets shall be deemed as an assignment. 
  
 14.2    Notice.    Any notice, approval or other communication required or permitted under this License Agreement will be given in the English language and will be sent in writing by overnight
mail, facsimile, courier or registered mail with postage prepaid, to the address specified below or to any other address that may be designated by either Party by prior notice. Any notice or other communication delivered by overnight mail or
facsimile will be deemed to have been received the first business day after it is sent. Any notice or other communication sent by courier will be deemed to have been received on the third business day after its date of posting. Any notice or other
communication sent by registered mail will be deemed to have been received on the 7th business day after its date of posting. 
  
 
	 Harman International Industries, Inc.
 	  	 American Technology Corporation
 
	 8500 Balboa Blvd.
 	  	 13114 Evening Creek Drive, S.
 
	 Northridge, CA 91329
 	  	 San Diego, CA 92128
 
	 U.S.A.
 	  	 U.S.A.
 
	 Telephone: (818) 895-3433
 	  	 Telephone: (858) 679-2114
 
	 Attention: [***]
 	  	 Attention: [***]
 

 
  
 With a copy to: 
  
 
	 [***]
 	  	 [***]
 
	 Harman/Becker Automotive Systems
 	  	 American Technology Corporation
 
	 39001 West 12 Mile Road
 	  	 239 Parfitt Way, S.W., Suite 1-1B
 
	 Farmington Hills, MI 48331
 	  	 Bainbridge Island, WA 98110
 
	 Telephone: (248) 994-2100
 	  	 Telephone: (206) 780-3200
 

 
  
 14.3    GOVERNING LAW.    THIS LICENSE AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, EXCLUDING ITS CONFLICT OF LAW PRINCIPLES. HARMAN AND ATC AGREE TO EXCLUDE THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF
GOODS UNDER THIS LICENSE AGREEMENT AND ANY TRANSACTION BETWEEN THE PARTIES THAT MAY BE IMPLEMENTED IN CONNECTION WITH THIS LICENSE AGREEMENT. THE PARTIES AGREE THAT THE SUBJECT MATTER AND PERSONAL JURISDICTION ARE PROPER IN THE COURTS LOCATED IN
U.S. DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK. 

 
 10 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 14.4    Illegal Provisions.    If any provision of this License Agreement in any way contravenes the laws of any country, state
or jurisdiction where this License Agreement is to be performed, that provision shall be deemed to be deleted from this License Agreement and if any provision of this License Agreement shall be declared by a final adjudication to be illegal or
contrary to public policy, it shall not affect the validity of any other terms or provisions of this License Agreement. 
  
 14.5    Relationship of the Parties.    Each Party is acting as an independent contractor and not as an agent, partner, or joint venturer with the other Party for any purpose. Except as
provided in this License Agreement, neither Party shall have any right, power, nor authority to act or to create any obligation, express or implied, on behalf of the other Party. Both Parties agree that no interpretation of any provision of this
License Agreement will be construed against the other Party by reason of such other Party’s role in drafting such provision or section. 
  
 14.6    Force Majeure.    Neither Party shall be responsible for delays, nor failure of performance resulting from acts beyond the reasonable control of such Party. Such acts shall include, but
not be limited to, acts of God, strikes, walkouts, riots, acts of war, epidemics, governmental regulations, earthquakes, or other disasters. 
  
 14.7    Survival of Certain Provisions.    Articles 6, 7, 8, Sections 9.5, 9.6, 9.7, Articles 11 and 12, and Sections 14.3 and 14.7 of this License Agreement shall survive the termination of
this License Agreement. 
  
 14.8    Headings.    The titles and headings of the various sections and
paragraphs in this License Agreement are intended solely for convenience of reference and are not intended for any other purpose whatsoever, or to explain, modify or place any construction upon any of the provisions of this License Agreement.

  
 14.9    All Amendments in Writing.    No provisions in either Party’s correspondence or
other business forms employed by either Party will supersede the terms and conditions of this License Agreement, and no supplement, modification, or amendment of this License Agreement shall be binding, unless executed in writing by a duly
authorized representative of each Party to this License Agreement. 
  
 14.10    Entire License
Agreement.    The Parties have read this License Agreement and agree to be bound by its terms, and further agree that it constitutes the complete and entire License Agreement of the Parties and supersedes any prior agreements,
including all previous communications, oral or written, and all other communications between the Parties relating to the License Agreement, rights conveyed in the License Agreement and to the subject matter of the License Agreement. No
representations or statements of any kind made by one Party, which are not expressly set forth in this License Agreement, shall be binding on the other Party. 

 
 11 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 14.11    Relationship of Parties.    It is agreed that the Agreement does not constitute a partnership, joint venture or agency
between the Parties of this License Agreement, nor shall either of the Parties hold itself out as such, contrary to the terms of this License Agreement by advertising or otherwise, nor shall either of the Parties be bound or become liable because of
any representation, action or omission of the other. 
  
 The Parties have executed two original copies of this
License Agreement as follows: 
  
 
	 Harman International Industries, Inc
 	 	 American Technology Corporation
  
 
	 By:
                                        
                                       
 
 	 	 By:
                                        
                                
 
	     Its:
 	 	         [***]
 
	     Printed Name 
 	 	         President, Acoustic Technology Division
 

 

 
 12 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 SCHEDULE A 
  
 ATC
LICENSED PATENTS AND PATENT APPLICATIONS 
  
 
	 PATENT NUMBER
 
	    	 TITLE
 

	 U.S. Patent No. 4,803,733
  
 	    	  
	 ATC Pending Patent Applications
 
	    	 TITLE
 

	 [***]
 	    	  
	 [***]
 	    	  
	 [***]
 	    	  
	  
 ATC Foreign Counterparts
 
	    	 TITLE
 

	 [To Be Listed]
 	    	  

 

 
 13 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 
 SCHEDULE B 
 ENGINEERING SERVICES AGREEMENT

 CONSULTING AGREEMENT 
  
 This Engineering
Services Agreement is made as of August 24, 2001 (“Engineering Services Agreement Effective Date”), between Harman International Industries, Inc., a Delaware corporation, and American Technology Corporation (“ATC”), a Delaware
corporation. Harman and ATC agree as follows: 
  

	1.
	 
	Experience.    ATC has unique experience in single ended planar magnetic transducer technology. 
 

 

	2.
	 
	Engagement.    Harman engages ATC, and ATC accepts such engagement, to aid, assist and otherwise act as a consultant to Harman in the
further development of single ended planar magnetic transducer technology. ATC shall furnish Harman with the full benefit of its knowledge, skill and experience as to all questions and problems that Harman may present to ATC and shall answer,
advise, opine and suggest to such questions and problems to the best of its ability. Harman shall from time to time assign to ATC agreed upon specific tasks in planar magnetic transducer technology. ATC shall investigate and experiment as requested
or as they shall deem necessary in order to accomplish such tasks. The completion of those tasks pursuant to the agreed upon performance criteria, rather than the amount of hours spent by ATC in providing services to the Harman, shall determine
whether ATC is performing adequately under this Agreement. ATC shall submit a written report on the first of each month summarizing the previous month’s activities, hours worked, and progress on the assigned projects. As to the consulting, ATC
shall report to and take instructions from [***] until otherwise notified by Harman. 
 

  

	3.
	 
	Term.    The term of this Agreement shall commence on the Engineering Services Agreement Effective Date and shall, subject to earlier
termination, continue until December 31, 2003 Harman may immediately terminate this Agreement at any time for breach by ATC of any term in this Agreement. Either Party may terminate this Agreement for any reason or for no reason, in each
Party’s sole discretion, upon at least thirty (30) days prior written notice to the other Party. Neither Party shall have any obligation to the other following termination of this Engineering Services Agreement. 
 

 

	4.
	 
	Compensation.    Harman shall pay ATC ten thousand U.S. dollars ($10,000.00) per month within ten (10) days of receiving the monthly
statement referred to in Section 2; provided that no payment shall be due prior to the tenth day of the month following the month that engineering services were rendered. Such compensation shall be full consideration for ATC’s services under
this Engineering Services Agreement regardless of any additional time that may be devoted by ATC. 
 

  

	5.
	 
	Expense Reimbursement.    ATC shall be entitled to reimbursement by Harman for any ordinary and necessary expenses incurred by ATC in
the performance of ATC’s duties upon submission to Harman of an expense report in accordance with Harman policies and procedures, and providing that receipts and records as necessary to substantiate such expenses. 

 
 14 

 
 ***    Confidential portions of this document have been redacted and separately filed with the Commission.

 

	6.
	 
	Place of Performance.    Harman shall make available to ATC access to its facilities as are reasonably required by ATC in the
performance of their services under this Engineering Services Agreement. If the Parties agree that ATC should perform their services elsewhere, Harman shall not be responsible for rent or other charges in connection with those facilities.

 

  

	7.
	 
	Warranties.    ATC REPRESENTS AND WARRANTS THAT (A) THEIR REPRESENTATIVES ARE FREE TO RENDER CONSULTING SERVICES TO HARMAN, (B) SUCH
SERVICES DO NOT CONFLICT WITH ANY PRIOR OR PRESENT COMMITMENT OR OBLIGATION OF ATC, AND (C) ATC’S REPRESENTATIVES WILL NOT, AT ANY TIME, USE FOR HARMAN’S BENEFIT OR DISCLOSE TO HARMAN ANY INFORMATION THEY HAVE RECEIVED FROM THIRD PARTIES
AND THAT THEY ARE STILL LAWFULLY OBLIGATED TO KEEP CONFIDENTIAL. 
 

  

	8.
	 
	Confidentiality.    ATC may be given access to certain confidential and proprietary information, including trade secrets, of Harman,
including those of subsidiaries and/or affiliates of the Harman. For purposes of this Engineering Services Agreement, the words “Confidential” shall have the definition detailed in Article 11 of the License Agreement. 

  

	9.
	 
	Independent Contractor.    ATC shall render services under this Engineering Services Agreement as an independent contractor. ATC
representatives shall, at all times, act and perform as an independent contractor and not as agents or employees of Harman. Nothing in this Agreement shall be deemed to create an employee-employer or agent-principal relationship between ATC,
including representatives of ATC and Harman, nor to authorize ATC or its representatives to act as an agent or legal representative for Harman. ATC acknowledges that its representatives are not authorized to act as Harman legal representative or
otherwise. ATC further acknowledges that its representatives will not be entitled to participate as an employee in or under any employee benefit plan of Harman, nor to receive any other employment rights or benefits available to or enjoyed by
employees of the Harman. 
 

  

	10.
	 
	Assignment.    This Agreement requires the performance of personal services by ATC and its representatives. ATC shall not assign any
right, delegate any duty or otherwise transfer any interest hereunder without Harman’s prior written approval, and any attempted such assignment, delegation or transfer without such consent shall be null and void. 

  

	11.
	 
	Notices.    All notices and other communications required or permitted to be given under this Engineering Services Agreement, if in
written form, will be deemed given five business days after deposit by first class U.S. mail, postage prepaid and addressed to the other Party at their respective addresses set forth in the License Agreement. 
 

 

	12.
	 
	Entire Agreement.    This Agreement contains the entire agreement between the Parties and all prior and collateral representations or
promises are merged into this Engineering Services Agreement. No modification, waiver or termination of any provision, nor any future representation, promise or condition in connection with the subject matter of this Engineering Services Agreement
shall be binding upon the Parties unless made in writing, signed by an authorized representative of ATC and an authorized representative of Harman. 
 

  

	13.
	 
	Waiver.    No waiver by either Party of any breach of any covenant or provision of this Engineering Services Agreement shall be
deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant or provision. 
 

  

	14.
	 
	Law.    This Agreement shall be construed in accordance with Section 14.3 of the License Agreement.  

  
 
	 Harman International Industries, Inc
 	 	  	 	 American Technology Corporation
 
	 
	 By:
 	  	                                      
                                        
                         
 	 	  	 	 By:
 	  	                                      
                                        
                              
 
	 
	  	  	 It                                     
                                        
                      
 	 	  	 	  	  	 [***]
 
	 
	  	  	 Printed Name
                                        
                                  
 	 	  	 	  	  	 President, Acoustic Technology Division
 

 

 
 15

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