Document:

<PAGE>   1
                                                                    EXHIBIT 4.15

                                                                    SUBSCRIPTION

                          REGISTRATION RIGHTS AGREEMENT

        THIS REGISTRATION RIGHTS AGREEMENT, dated the 29th day of December,
1999, between a Delaware corporation ("CPR"), LIBERTYVIEW FUNDS, L.P., a Cayman
Islands exempted limited partnership ("LP") and successor-in-interest to
LIBERTYVIEW PLUS FUND, a Cayman Islands corporation, and LIBERTYVIEW FUND, LLC,
a Delaware limited liability company ("LLC", and together with CPR and LP,
collectively referred to as the "Holder" or "Holders"), and SPATIALIZER AUDIO
LABORATORIES, INC., a Delaware corporation having its principal place of
business at 20700 Ventura Boulevard, Suite 140, Woodland Hills, California 91364
(the "Company").

        WHEREAS, simultaneously with the execution and delivery of this
Agreement, the Holders are purchasing from the Company, pursuant to that certain
Common Stock Subscription Agreement (the "Subscription Agreement"), dated of
even date herewith, an aggregate of Eight Hundred Seven Thousand Five Hundred
Thirty-eight (807,538) shares of Common Stock, and a Warrant to purchase an
aggregate of Nine Hundred Thousand (900,000) shares of Common Stock. The shares
of Common Stock of the Company underlying the Warrants acquired by the Holders
are referred to as the "Warrant Shares" (capitalized terms defined in the
Subscription Agreement and not otherwise defined herein have the meanings
specified in the Subscription Agreement); and

        WHEREAS, the Company desires to grant to the Holders the registration
rights set forth herein.

        NOW, THEREFORE, the parties hereto mutually agree as follows:

        Section 1. Registrable Securities. As used herein the term "Registrable
Securities" means the shares of Common Stock subscribed for and purchased by the
Holders pursuant to the Subscription Agreement, and the Warrant Shares;
provided, however, that with respect to any particular Registrable Security,
such security shall cease to be a Registrable Security when, as of the date of
determination, (i) it has been effectively registered under the Securities Act
of 1933, as amended (the "Act") and disposed of pursuant thereto, (ii)
registration under the Act is no longer required for the immediate public
distribution of such security as a result of the provisions of Rule 144, or
(iii) it has ceased to be outstanding. In the event of any merger,
reorganization, consolidation, recapitalization or other change in corporate
structure affecting the Common Stock, such adjustment shall be made in the
definition of Registrable Security as is appropriate in order to prevent any
dilution or enlargement of the rights granted pursuant to this Section 1.

        Section 2. Restrictions on Transfer. The Holder acknowledges and
understands that prior to the registration of the Registrable Securities as
provided herein, the Registrable Securities are "restricted securities" as
defined in Rule 144 promulgated under the Act. The Holder understands that no
disposition or transfer of the Registrable Securities may be made by Holder in
the absence of (i) an opinion of counsel reasonably satisfactory to the Company
that

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                                                                    SUBSCRIPTION

such transfer may be made or (ii) a registration statement under the Act is then
in effect with respect thereto.

        Section 3. Registration Rights.

               (a) The Company agrees that it will prepare and file with the
Securities and Exchange Commission (the "SEC"), within thirty (30) days after
the date hereof, a registration statement on Form S-3 or if the Company is not
eligible to use such Form S-3, another appropriate form of registration
statement (the "Registration Statement"), at the sole expense of the Company
(except as provided in Section 3(c) hereof), in respect of Holder's Registrable
Securities, so as to permit resale of the Registrable Securities under the Act.
The Company agrees that it will cause the Registration Statement to become
effective by April 15, 2000. The number of securities to be registered shall
include all of Holder's Registrable Securities.

               (b) The Company will maintain the Registration Statement or
post-effective amendment filed under this Section 3 hereof current under Act
until the earlier of (i) the date that all of the Registrable Securities have
been sold pursuant to the Registration Statement, (ii) the date that the
Registrable Securities may be sold under the provisions of Rule 144 or (iii)
three (3) years after the effective date of the Registration Statement (the
"Effective Date").

               (c) All fees, disbursements and out-of-pocket expenses and costs
incurred by the Company in connection with the preparation and filing of the
Registration Statement under Section 3(a) and in complying with applicable
securities and Blue Sky laws (including, without limitation, all attorneys'
fees) shall be borne by the Company. The Holder shall bear the costs of
underwriting discounts and commissions, if any, applicable to the Registrable
Securities being registered on its behalf and all of the other fees and expenses
of such registration, including of its counsel and such other expenses as are
necessary to qualify the sale of Registrable Securities in compliance with any
state Blue Sky laws. The Company shall use its best efforts to qualify any of
the securities for sale in such states as the Holder reasonably designates and
shall furnish indemnification in the manner provided in Section 9 hereof.
However, the Company shall not be required to qualify the Registrable Securities
in any state or jurisdiction which will require an escrow or other restriction
relating to the Company and/or the sellers, or where the Company would be
required to qualify as a dealer in securities under the securities or blue sky
laws of such state or jurisdiction. The Company at its expense will supply the
Holder with copies of such Registration Statement and the prospectus or offering
circular included therein and other related documents in such quantities as may
be reasonably requested by the Holder.

               (d) The Company shall not be required by this Section 3 to
include Holder's Registrable Securities in the Registration Statement which is
to be filed if, in the opinion of counsel for both the Holder and the Company
(or, should they not agree, in the opinion of another counsel experienced in
securities law matters acceptable to counsel for the Holder and the Company),
the proposed offering or other transfer as to which such registration is
requested is exempt from applicable federal and state securities laws and would
result in all purchasers or

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                                                                    SUBSCRIPTION

transferees obtaining securities which are not restricted securities, as defined
in Rule 144 under the Act.

               (e) No provision contained herein shall preclude the Company from
selling securities pursuant to any registration statement in which it is
required to include Registrable Securities pursuant to this Section 3.

               (f) In the event the Registration Statement to be filed by the
Company pursuant to Section 3(a) above is not filed by the Company by the
thirtieth (30th) day after the Closing Date, or if the Registration Statement is
not declared effective by the SEC by the April 15, 2000 (the "EFFECTIVE DATE"),
then the Company will pay, in cash, to the Holders on a pro-rata basis by wire
transfer, as liquidated damages for such failure and not as a penalty, two (2%)
percent of the then value of the Registrable Securities then outstanding each
month thereafter until the Registration Statement has been filed and/or declared
effective. The liquidated damages shall be payable within five (5) calendar days
of written demand by the Holder(s).

               If the Company does not remit the damages to the Holder as set
forth above, the Company will pay the to the Holders the reasonable costs of
collection, including attorneys fees, in addition to the liquidated damages.
Such payment shall be made to the Holders in cash immediately if the
registration of the Registrable Securities are not effected; provided, however,
that the payment of such liquidated damages shall not relieve the Company from
its obligations to register the Registrable Securities pursuant to this Section.
The registration of the Securities pursuant to this provision shall not affect
or limit Holder's other rights or remedies as set forth in this Agreement.

               (g) The Company agrees that within three Business Days after
being notified by the SEC that the Registration Statement(s) has been cleared to
go effective, the Company it will declare such Registration Statement effective.
The Company also agrees that it shall respond in writing to any questions and/or
comments from the SEC that relate to the Registration Statement(s) within ten
business days of receipt of such question or comment.

               (h) In the event the number of shares of Common Stock included in
the Registration Statement shall be insufficient to cover the number of
Registrable Securities due to the Holder under the terms of the Purchase
Agreement and/or the Notes, the Company agrees that it shall file either a new
Registration Statement including such additional shares or amend the then
existing Registration Statement. The Company agrees that in such event it will
file with the SEC either an amendment to the then existing Registration
Statement or a new Registration Statement within 30 days of when required
hereunder, and use its best efforts to cause either the amendment or such
Registration Statement to become effective within 90 calendar days from when
required. If such amendment or new Registration Statement is not filed and/or
declared effective in a timely manner as set forth herein, the Company shall be
subject to liquidated damages as pursuant to the provisions of Section 3(f).

        Section 4. Cooperation with Company. Holder will cooperate with the
Company in all respects in connection with this Agreement, including, timely
supplying all information

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                                                                    SUBSCRIPTION

reasonably requested by the Company and executing and returning all documents
reasonably requested in connection with the registration and sale of the
Registrable Securities.

        Section 5. Registration Procedures. Whenever the Company is required by
the provisions of this Agreement to effect the registration of any of the
Registrable Securities under the Act, the Company shall (except as otherwise
provided in this Agreement), as expeditiously as possible:

               (a) prepare and file with the SEC such amendments and supplements
to such registration statement and the Prospectus used in connection therewith
as may be necessary to keep such registration statement effective as per Section
3(b) herein and to comply with the provisions of the Act with respect to the
sale or other disposition of all securities covered by such registration
statement when the Holder of such securities shall desire to sell or otherwise
dispose of the same (including prospectus supplements with respect to the sales
of securities from time to time in connection with a registration statement
pursuant to Rule 415 under the Act);

               (b) furnish to the Holder such numbers of copies of a summary
prospectus or other prospectus, including a preliminary prospectus or any
amendment or supplement to any prospectus, in conformity with the requirements
of the Act, and such other documents, as such Holder may reasonably request in
order to facilitate the public sale or other disposition of the securities owned
by such Holder;

               (c) use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or blue sky
laws of such jurisdictions as the Holder shall reasonably request, and do any
and all other acts and things which may be necessary or advisable to enable the
Holder to consummate the public sale or other disposition in such jurisdiction
of the securities owned by the Holder; provided, however, that: (i) the Company
shall not for any such purpose be required to qualify to do business as a
foreign corporation in any jurisdiction wherein it is not so qualified or to
file therein any general consent to service of process, and (ii) the Company
shall not be obligated to take any action to effect any such registration,
qualification or compliance pursuant to this Section 5(c) in any jurisdiction in
which the Company would be required to qualify as a dealer in securities under
the securities or blue sky laws of such jurisdiction.

               (d) list such securities on the OTC Bulletin Board or any
securities exchange on which any securities of the Company is then listed, if
the listing of such securities is then permitted under the rules of such
exchange;

               (e) enter into and perform its obligations under an underwriting
agreement, if the offering is an underwritten offering, in usual and customary
form, with the managing underwriter or underwriters of such underwritten
offering;

               (f) notify each Holder of Registrable Securities covered by such
registration statement, at any time when a prospectus relating thereto covered
by such registration statement is required to be delivered under the Act, of the
happening of any event of which it has

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                                                                    SUBSCRIPTION

knowledge as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing.

        Section 6. Assignment. The rights granted the Holder under this
Agreement shall be assigned to affiliates, heirs, and successors of the Holders.
This Agreement is binding upon and inures to the benefit of the parties hereto
and their respective heirs, successors and permitted assigns.

        Section 7. Termination of Registration Rights. The rights granted
pursuant to this Agreement shall terminate as to the Holder upon the occurrence
of any of the following:

                (a)     all of the Holder's securities subject to this Agreement
                        have been registered;

                (b)     such Holder's securities subject to this Agreement may
                        be sold without such registration pursuant to Rule 144
                        promulgated by the SEC pursuant to the Act;

                (c)     such Holder's securities subject to this Agreement can
                        be sold pursuant to Rule 144(k).

        Section 8. Indemnification.

               (a) The Company agrees to indemnify and hold harmless the Holder
and each person, if any, who controls Holder within the meaning of the Act
("Distributing Holders") against any losses, claims, damages or liabilities,
joint or several (which shall, for all purposes of this Agreement, include, but
not be limited to, all costs of defense and investigation and all attorneys'
fees), to which the Distributing Holder may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the Registration Statement,
or any related preliminary prospectus, final prospectus, offering circular,
notification or amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in the Registration Statement, preliminary prospectus, final
prospectus, offering circular, notification or amendment, or supplement thereto
in reliance upon, and in conformity with, written information furnished to the
Company by the Distributing Holders, specifically for use in the preparation
thereof. This Section shall not inure to the benefit of any Distributing Holder
with respect to any person asserting such loss, claim, damage or liability who
purchased the Registrable Securities which are the subject thereof if the
Distributing Holder failed to send or give (in violation of the Act or the rules
and regulations

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                                                                    SUBSCRIPTION

promulgated thereunder) a copy of the prospectus contained in the Registration
Statement to such person at or prior to the written confirmation to such person
of the sale of such Registrable Securities, where the Distributing Holder was
obligated to do so under the Act or the rules and regulations promulgated
hereunder. This indemnity agreement will be in addition to any liability which
the Company may otherwise have.

               (b) Each Distributing Holder agrees that it will indemnify and
hold harmless the Company, and each officer, director of the Company or person,
if any, who controls the Company within the meaning of the Act, against any
losses, claims, damages or liabilities (which shall, for all purposes of this
Agreement, include, but not be limited to, all costs of defense and
investigation and all attorneys' fees) to which the Company or any such officer,
director or controlling person may become subject under the Act or otherwise,
insofar as such losses claims, damages or liabilities (or actions in respect
thereof); arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement prepared
by the Company, or any related preliminary prospectus, final prospectus,
offering circular, notification or amendment or supplement thereto, or arise out
of or are based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, but in each case only to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in such Registration Statement, preliminary prospectus, final prospectus,
offering circular, notification or amendment or supplement thereto in reliance
upon, and in conformity with, written information furnished to the Company by
such Distributing Holder, specifically for use in the preparation thereof. This
indemnity agreement will be in addition to any liability which the Distributing
Holders may otherwise have.

               (c) Promptly after receipt by an indemnified party under this
Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section, notify the indemnifying party of the commencement thereof;
but the omission so to notify the indemnifying party will not relieve the
indemnifying party from any liability which it may have to any indemnified party
otherwise than as to the particular item as to which indemnification is then
being sought solely pursuant to this Section. In case any such action is brought
against any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate in,
and, to the extent that it may wish, jointly with any other indemnifying party
similarly notified, assume the defense thereof, subject to the provisions herein
stated and after notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof, the indemnifying party will not
be liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation, unless the
indemnifying party shall not pursue the action to its final conclusion. The
indemnified party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof, but the fees and expenses of
such counsel shall not be at the expense of the indemnifying party if the
indemnifying party has assumed the defense of the action with counsel reasonably
satisfactory to the indemnified party; provided that if the indemnified party is
the

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                                                                    SUBSCRIPTION

Distributing Holder, the fees and expenses of such counsel shall be at the
expense of the indemnifying party if (i) the employment of such counsel has been
specifically authorized in writing by the indemnifying party, or (ii) the named
parties to any such action (including any impleaded parties) include both the
Distributing Holder and the indemnifying party and the Distributing Holder shall
have been advised by such counsel that there may be one or more legal defenses
available to the indemnifying party different from or in conflict with any legal
defenses which may be available to the Distributing Holder (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the Distributing Holder, it being understood, however, that the
indemnifying party shall, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of attorneys for the Distributing Holder,
which firm shall be designated in writing by the Distributing Holder). No
settlement of any action against an indemnified party shall be made without the
prior written consent of the indemnified party, which consent shall not be
unreasonably withheld.

        Section 9. Contribution. In order to provide for just and equitable
contribution under the Act in any case in which (i) the Distributing Holder, or
the Company, makes a claim for indemnification, but is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact
that the express provisions of this Agreement provide for indemnification in
such case, or (ii) contribution under the Act may be required on the part of any
Distributing Holder, or the Company, then the Company and the applicable
Distributing Holder shall contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (which shall, for all purposes of this
Agreement, include, but not be limited to, all costs of defense and
investigation and all attorneys' fees), in either such case (after contribution
from others) on the basis of relative fault as well as any other relevant
equitable considerations. The relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or the applicable
Distributing Holder, on the other hand, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Distributing Holder agree that it
would not be just and equitable if contribution pursuant to this Section were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in this
Section. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred
to above in this Section shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

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                                                                    SUBSCRIPTION

        Section 10. Notices. Any notice pursuant to this Agreement by the
Company or by the Holder shall be in writing and shall be deemed to have been
duly given if delivered by (i) hand, (ii) by facsimile and followed by mail
delivery or (iii) if mailed by certified mail, return receipt requested, postage
prepaid, addressed as follows:

               (a) If to the Holder, to its address set forth herein.

               (b) If to the Company, at the address set forth herein, or to
such other address as any such party may designate by notice to the other party.
Notices shall be deemed given at the time they are delivered personally or five
(5) business days after they are mailed in the manner set forth above. If notice
is delivered by facsimile and followed by mail, delivery shall be deemed given
two (2) days after such facsimile is sent.

        Section 11. "Piggy-Back" Registration. The Holder shall have the right
to include the Registrable Securities as part of any registration of securities
filed by the Company (other than in connection with a transaction contemplated
by Rule 145(a) promulgated under the Act or pursuant to Form S-8) and must be
notified in writing of such filing; provided, however, that the Holder agrees it
shall not have any piggy-back registration rights pursuant to this Section if
the Registrable Securities may be sold in the United States pursuant to the
provisions of Rule 144. The Holder shall have five (5) business days to notify
the Company in writing as to whether the Company is to include the Holder or not
include the Holder as part of the registration; provided, however, that if any
registration pursuant to this Section shall be underwritten, in whole or in
part, the Company may require that the Registrable Securities requested for
inclusion pursuant to this Section be included in the underwriting on the same
terms and conditions as the securities otherwise being sold through the
underwriters. If in the good faith judgment of the underwriter evidenced in
writing of such offering only a limited number of Registrable Securities should
be included in such offering, or no such shares should be included, the holder,
and all other selling stockholders, shall be limited to registering such
proportion of their respective shares as shall equal the proportion that the
number of shares of selling stockholders permitted to be registered by the
underwriter in such offering bears to the total number of all shares then held
by all selling stockholders desiring to participate in such offering. Those
Registrable Securities which are excluded from an underwritten offering pursuant
to the foregoing provisions of this Section (and all other Registrable
Securities) shall be withheld from the market by the holders thereof for a
period, not to exceed one hundred eighty (180) days, which the underwriter may
reasonably determine is necessary in order to effect such underwritten offering.
The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section prior to the effectiveness of such
registration. All registration expenses incurred by the Company in complying
with this Section shall be paid by the Company, exclusive of underwriting
discounts, commissions and legal fees and expenses for counsel to the Holder.

        Section 12. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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        Section 13. Headings. The headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

        Section 14. Governing Law, Venue. This Agreement shall be exclusively
construed and enforced in accordance with and governed by the laws of the State
of New York except for matters arising under the Act, without reference to
principles of conflicts of law. Each of the parties consents to the exclusive
jurisdiction of the federal court, eastern district of the State of New York in
connection with any dispute arising under this Agreement and hereby waives, to
the maximum extent permitted by law, any objection, including any objection
based on forum non conveniens, to the bringing of any such proceeding in such
jurisdictions. Each party hereby agrees that if another party to this Agreement
obtains a judgment against it in such a proceeding, the party which obtained
such judgment may enforce same by summary judgment in the courts of any state or
country having jurisdiction over the party against whom such judgment was
obtained, and each party hereby waives any defenses available to it under local
law and agrees to the enforcement of such a judgment. Each party to this
Agreement irrevocably consents to the service of process in any such proceeding
by the mailing of copies thereof by registered or certified mail, postage
prepaid, to such party at its address set forth herein. Nothing herein shall
affect the right of any party to serve process in any other manner permitted by
law. Section 15.

               Severability/Defined Terms. If any provision of this Agreement
shall for any reason be held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision hereof and this Agreement
shall be construed as if such invalid or unenforceable provision had never been
contained herein. Terms not otherwise defined herein shall be defined in
accordance with the Subscription Agreement.

                  [Remainder of Page Intentionally Left Blank]

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        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, on the day and year first above written.

                                   SPATIALIZER AUDIO LABORATORIES, INC.

                                   By:  /S/  Henry R. Mandell
                                        ---------------------
                                   Name:  Henry R. Mandell
                                          ----------------
                                   Title:  Interim Chief Executive Officer
                                           -------------------------------

WITNESSED:

/S/  Margaret G. Graf
---------------------
Margaret G. Graf

                                   CPR (USA) INC.

                                   By:  /S/  Steven S. Rogers
                                        ---------------------
                                   Name:  Steven S. Rogers
                                          ----------------
                                   Title:  Managing Director,
                                           ------------------

                                          CPR (USA), Inc.

                                   LIBERTYVIEW FUNDS, L.P.

                                   By:  /S/  Steven S. Rogers
                                        ---------------------
                                   Name:  Steven S. Rogers
                                          ----------------
                                   Title:  Authorized Signatory
                                           --------------------

                                   LIBERTYVIEW FUND, LLC

                                   By:  /S/  Steven S. Rogers
                                        ---------------------
                                   Name:  Steven S. Rogers
                                          ----------------
                                   Title:  Authorized Signatory
                                           --------------------

                                       10<PAGE>   1
                                                                    EXHIBIT 4.16

                                                                  CPR (USA) INC.

               SECURED NON-NEGOTIABLE CONVERTIBLE PROMISSORY NOTE

<TABLE>
<S>                                             <C>
    US$112,620.55                                Issued:  December 29, 1999
New Principal Amount                            Maturity Date:  June 15, 2001
</TABLE>

        FOR VALUE RECEIVED, SPATIALIZER AUDIO LABORATORIES, INC., a Delaware
corporation ("Maker"), hereby promises to pay under this non-negotiable
convertible promissory note ("Note") to CPR (USA) INC. ("Payee"), the principal
amount of One Hundred Twelve Thousand, Six Hundred Twenty and 55/100 Dollars
(US$112,620.55), which represents the principal of the funds advanced by Payee
and accrued interest thereon from the date of advance through December 29, 1999
("New Principal"), together with interest thereon from December 29, 1999,
according to the following terms and conditions. This instrument is not
negotiable by Payee. All references herein to currency herein shall refer to
United States Dollars. This Note has been secured by the Collateral of Maker
pursuant to the terms of the security agreement (the "Security Agreement"), of
even date hereof, entered into between Maker and Payee.

        1. Interest. Interest shall accrue from the date hereof on the New
Principal outstanding from time to time under this Note, at a rate per annum
equal to ten percent (10%). Interest hereunder shall be computed for the actual
number of days elapsed on the basis of a three hundred sixty (360) day year.
Cash payments of New Principal and interest are payable in lawful money of the
United States of America in same day funds.

        2. Payment Schedule.

               (a) Unless the outstanding New Principal and the interest accrued
thereon shall have sooner been discharged through a conversion into the common
stock, par value $0.01 per share, of Maker ("Common Stock"), or a successor to
Maker as a result of a restructuring or reorganization involving Maker (any such
successor and Maker are collectively referred to as "Maker"), as the case may
be, or through the exercise of a Conversion Option (as defined in Section 3
below), the unpaid New Principal plus interest accrued thereon shall be due and
payable to Payee on the earlier of June 15, 2001 (the "Maturity Date") or upon
the occurrence of an Event of Default as set forth below. In the event that the
outstanding New Principal shall be converted into Common Stock pursuant to
Section 3, then accrued interest due on the outstanding New Principal also shall
be paid in shares of Common Stock pursuant to Section 3 and the number of shares
issued will be adjusted to include interest accrued as of the Conversion Date
(as defined in Section 3(c) below).

               (b) Provided no Event of Default (as set forth below) has
occurred and/or is occurring, the outstanding New Principal and interest accrued
thereon may be prepaid in cash by Maker, in whole or in part, at any time prior
to the Maturity Date (except that portion of the New Principal outstanding
hereunder and interest accrued thereon that is the subject of a Conversion
Notice (as defined in Section 3(c) below) which has previously been sent to
Maker), without premium or penalty of any kind by giving written notice to Payee
(the "Prepayment Notice"). In the

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                                                                  CPR (USA) INC.

event of prepayment pursuant to Section 2(b), Maker shall not be required to pay
unaccrued interest. All payments hereunder shall be applied first to accrued
interest and the balance of such payments shall be applied to the New Principal
amount payable hereunder. Maker shall wire transfer the appropriate amount of
funds to Payee to complete the prepayment, which shall be no later than the
third business day after the Prepayment Notice was received by Payee (the
"Prepayment Date"). Upon facsimile receipt of the Prepayment Notice, Payee's
right to convert New Principal outstanding hereunder and interest accrued
thereon into Common Stock shall terminate and be canceled immediately (the right
to convert shall be immediately reinstated if Maker fails to comply with the
prepayment provisions). In the event that Maker does not wire transfer the
appropriate amount of funds to Payee, on or before the Prepayment Date, or shall
otherwise fail to comply with the prepayment provisions set forth herein, then
it shall have waived its right to prepay any portion of this Note at any time
thereafter. The Prepayment Notice shall set forth (i) the Prepayment Date, (ii)
the Prepayment Price, as defined below, and (iii) the New Principal being
prepaid. The Prepayment Notice shall be irrevocable, and it shall be delivered
by facsimile or mailed, postage prepaid, to Payee at its address as the same
shall appear on the books of Maker. The "Prepayment Price" shall be equal to the
portion or all of the New Principal being prepaid plus all accrued and unpaid
interest due thereon. At the close of business on the Prepayment Date, subject
to Payee's receipt of the applicable Prepayment Price, the portion of this Note
being prepaid shall be automatically canceled and converted into a right to
receive the Prepayment Price. Immediately following the Prepayment Date
(assuming full compliance by Maker with the prepayment provisions set forth
herein), Payee shall surrender its original Note at the office of Maker, and
Maker shall issue to Payee a new Note certificate for the principal amount that
remains outstanding, if any. Notwithstanding the foregoing, Maker shall not be
entitled to send a Prepayment Notice unless it has: (i) the full amount of the
applicable Prepayment Price in cash, available in a demand or other immediately
available account in a bank or similar financial institution; (ii) immediately
available credit facilities, in the full amount of the Prepayment Price with a
bank or similar financial institution; or (iii) a combination of the items set
forth in (i) and (ii) above, aggregating the full amount of the Prepayment
Price.

        3. Conversion.

               (a) Provided no Event of Default (as set forth below) has
occurred and/or is occurring, all of the shares of Common Stock underlying the
Note are then included in an effective Registration Statement, and the closing
bid price of the Common Stock as reported by Bloomberg LP as of the Conversion
Date is greater than the Conversion Price (as defined below), Maker shall have
the option (the "Maker Conversion Option") to convert, at its sole discretion at
any time prior to the Maturity Date, all New Principal outstanding hereunder and
all accrued interest thereon, into fully paid and nonassessable shares of Common
Stock based on the conversion price per share defined below (the "Conversion
Price"). The number of shares of Common Stock to be issued to Payee upon
conversion shall be determined by dividing (i) all New Principal outstanding
hereunder and accrued interest thereon as of the Conversion Date, by (ii) the
Conversion Price, provided, however, that Maker shall not issue to Payee a
fraction of a share of Common Stock and shall instead round the number of shares
of Common Stock issued up to the next whole share of Common Stock. In the event
that Maker does not forward the shares of Common Stock to Payee pursuant to the
conversion delivery provisions set forth below, then it shall have waived its
right to force conversion of any portion of this Note at any time thereafter.
Maker's Conversion Notice shall set forth the New Principal being prepaid.
Maker's Conversion Notice shall be irrevocable, and it shall be delivered

                                       2

<PAGE>   3
                                                                  CPR (USA) INC.

by facsimile or mailed, postage prepaid to Payee at its address as the same
shall appear on the books of Maker.

               (b) Payee shall have the option (the "Payee Conversion Option";
the Payee Conversion Option and the Maker Conversion Option are sometimes
collectively referred to herein as "Conversion Options") to convert, at any time
on or after the issuance date of this Note, all or any portion of the New
Principal outstanding hereunder and all accrued interest thereon, into fully
paid and nonassessable shares of Common Stock based on the Conversion Price. The
number of shares of Common Stock to be issued upon conversion shall be
determined by dividing (i) the portion of New Principal outstanding hereunder
and accrued interest thereon as of the Conversion Date, by (ii) the Conversion
Price, provided, however, that Maker shall not issue to Payee a fraction of a
share of Common Stock and shall instead round the number of shares of Common
Stock issued up to the next whole share of Common Stock.

               (c) Maker shall exercise the Maker Conversion Option by
delivering written notice thereof (a "Conversion Notice") to Payee, and Payee
shall exercise the Payee Conversion Option by delivering written notice thereof
(also a "Conversion Notice") to Maker. Any Conversion Notice shall be sent via
facsimile to the telecopier numbers and addresses listed below. The date on
which Maker or Payee shall send a Conversion Notice shall be the "Notice Date".
Maker shall issue and deliver to Payee the applicable number of shares of Common
Stock to Payee no later than three business days after the Notice Date. The date
on which Maker issues shares of Common Stock to Payee pursuant to an exercised
Conversion Option shall be the "Conversion Date".

               (d) After all of the New Principal outstanding and accrued
interest thereon have been converted into shares of Common Stock, all New
Principal and interest payable to Payee under this Note shall be deemed paid in
full, and all obligations hereunder shall be completely satisfied. No later than
ten (10) business days after the last Conversion Date, provided that Maker has
fully complied with the conversion provisions set forth herein, Payee shall
surrender this Note to Maker for cancellation.

               (e) The "Conversion Price" shall be determined on the Conversion
Date, and shall equal the average of the closing bid prices of Common Stock for
the ten (10) consecutive trading days ending on the trading day immediately
preceding the Notice Date, provided, however, that any day on which the
aggregate of the purchases and sales or either of them of Common Stock by Payee
and its affiliates account for greater than twenty-five percent (25%) of that
day's total trading volume (as reported by Bloomberg LP) shall not be counted in
calculating the Closing Price and the parties shall use the immediately
preceding trading day(s) on which this volume limitation has not been exceeded
to determine the ten day period over which the Conversion Price shall be
calculated. Notwithstanding the foregoing, the Conversion Price shall under no
circumstances: (i) be lower than the average of the closing bid prices of Common
Stock for the ten (10) consecutive trading days ending one (1) trading day prior
to the date hereof (the "Floor Price"); or (ii) be higher than 200% of the Floor
Price (the "Ceiling Price"). The "closing bid price" shall mean the last bid
price for Common Stock on the OTC Bulletin Board, as reported by Bloomberg LP.

                                       3

<PAGE>   4
                                                                  CPR (USA) INC.

               (f) Provided that Maker is in full compliance with the terms of
this Note, Payee has agreed not to engage in any short sales of any shares of
capital stock of Maker for so long as any New Principal and accrued interest
thereon shall remain outstanding and payable under this Note.

               (g) In the event of any stock split, stock dividend,
reclassification or similar event affecting the Common Stock (each an
"Adjustment Transaction"), then both the Floor Price and the Ceiling Price shall
be adjusted by multiplying them by a fraction, the numerator of which shall be
the number of shares of Common Stock outstanding immediately prior to such
Adjustment Transaction, and the denominator of which shall be the number of
shares of Common Stock outstanding immediately after such Adjustment
Transaction.

               (h) In the event that Maker issues shares of Common Stock
pursuant to an exercised Conversion Option, the shares of Common Stock shall be
issued as restricted securities under federal securities laws and there shall be
an appropriate legend restricting the transfer thereof (if so required under
applicable federal securities laws).

               (i) This Note, and Payee's rights hereunder, are not transferable
or assignable other than to an affiliate of Payee. The foregoing limitation
shall not apply in the event that Maker is not in full compliance with the terms
of this Note and the Transaction Documents (as defined in Section 7(a) below).

        4. Subordination. So long as any portion of this Note remains
outstanding, Maker agrees that neither Maker nor any direct or indirect
subsidiary of Maker shall create, incur, assume, guarantee, secure or in any
manner become liable in respect of any indebtedness, unless junior to this Note
in all respects, except for indebtedness of Maker outstanding as of the issuance
date of this Note. Maker agrees that neither Maker nor any direct or indirect
subsidiary of Maker will permit any liens, claims, or encumbrances to exist
against Maker or any direct or indirect subsidiary of Maker or any of their
assets, except for (i) indebtedness of Maker outstanding as of the issuance date
of this Note, and (ii) Permitted Indebtedness. "Permitted Indebtedness" means
indebtedness secured by the assets of Maker or any of its subsidiaries other
than the Collateral (as defined in the Security Agreement) so long as such
indebtedness does not exceed the value of the assets securing such indebtedness.
Maker may, at its sole discretion and without any required consent of Payee,
incur Permitted Indebtedness.

        5. Interest Withholding. If required by law, Maker shall withhold U.S.
tax under Sections 1441 or 1442, as the case may be of the Internal Revenue Code
of 1986, as amended (the "Code"), from all interest payments at the rate of
thirty percent (30%) unless Payee provides Maker three (3) duly executed copies
of Form 1001, prior to the Maturity Date or earlier Conversion Date, in which
case Maker shall withhold tax at the reduced rate specified in the Form 1001.
Maker shall provide Payee, on a timely basis, with a copy of Form 1042
evidencing the withholding of the tax under Sections 1441 or 1442, of the code,
as the case may be.

        6. In the event that Payee shall elect to convert any portion of this
Note as provided herein, Maker cannot refuse conversion based on any claim that
Payee or anyone associated or affiliated with Payee has been engaged in any
violation of law, unless an injunction from a court, restraining and/or
enjoining conversion of all or part of said portion of this Note shall have been

                                       4

<PAGE>   5
                                                                  CPR (USA) INC.

issued and Maker posts a surety bond for the benefit of Payee in the amount of
130% of the New Principal sought to be converted plus outstanding interest
through such date, which is subject to the injunction, which bond shall remain
in effect until the completion of arbitration/litigation of the dispute and the
proceeds of which shall be payable to Payee in the event it obtains a favorable
judgment (but shall not in any way limit any additional damages Payee may be
entitled to).

        7. The following shall constitute an "Event of Default" :

               (a) Any of the representations, covenants, or warranties made by
Maker herein, or in the Agreement Regarding Indebtedness, Registration Rights
Agreement, and/or Security Agreement of even date herewith (collectively
referred to as the "Transaction Documents") shall have been incorrect when made
in any material respect or shall thereafter be determined to be incorrect; or

               (b) Maker shall breach, fail to perform, or fail to observe in
any material respect any material covenant, term, provision, condition,
agreement or obligation of Maker under this Note and/or the Transaction
Documents; or

               (c) A trustee, liquidator or receiver shall be appointed for
Maker or for a substantial part of its property or business without its consent
and shall not be discharged within thirty (30) calendar days after such
appointment; or

               (d) Any governmental agency or any court of competent
jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of
Maker and shall not be dismissed within thirty (30) calendar days thereafter; or

               (e) Bankruptcy reorganization, insolvency or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against Maker and, if
instituted against Maker, Maker shall by any action or answer approve of,
consent to or acquiesce in any such proceedings or admit the material
allegations of, or default in answering a petition filed in any such proceeding
or such proceedings shall not be dismissed within thirty (30) calendar days
thereafter; or

               (f) The Common Stock is suspended and/or delisted from trading on
the OTC Bulletin Board, or Maker has received notice of final action concerning
delisting from the OTC Bulletin Board; or

               (g) The effectiveness of the Registration Statement including the
shares of Common Stock underlying this Note has been suspended for a period of
five (5) business days; or

               (h) Maker shall fail to pay interest and/or principal within two
business days of when due hereunder; or

               (i) Maker shall have failed to deliver shares of Common Stock
issuable upon conversion of this Note pursuant to Section 3(c) above; or

                                       5

<PAGE>   6
                                                                  CPR (USA) INC.

               (j) The occurrence of an Event of Default as that term is defined
in the Security Agreement; or

               (k) Maker, or any other party, shall, at any time after the
issuance date of this Note, (1) in any way adversely alter Payee's security
interest that it has been granted in the Collateral pursuant to the Security
Agreement, or (2) sell the Collateral in violation of the Security Agreement.

        8. Remedies. Upon the occurrence of an Event of Default, and in each and
every such case, unless such Event of Default shall have been waived in writing
by Payee (which waiver shall not be deemed to be a waiver of any subsequent
default) or cured as provided herein, at the option of Payee, and in Payee's
sole discretion, Payee may consider this Note (and all interest through such
date) immediately due and payable in cash (and enforce its rights under the
Security Agreement), without presentment, demand protest or notice of any kind,
all of which are hereby expressly waived, anything herein or in any note or
other instruments contained to the contrary notwithstanding, and Payee may
immediately, and without expiration of any period of grace, enforce any and all
of Payee's rights and remedies provided herein or any other rights or remedies
afforded by law (including but not limited to consequential damages if any). It
is agreed that in the event of such action, Payee shall be entitled to receive
all reasonable fees, costs and expenses incurred, including without limitation
such reasonable fees and expenses of attorneys. Nothing contained herein shall
limit the rights of Payee to collect liquidated damages as provided herein or in
any other agreement entered into between Maker and Payee, or any other damages
that Payee may otherwise be entitled to. Payee may declare all outstanding New
Principal, and all interest accrued thereon, immediately due and payable. The
rights and remedies available to Payee under this Note shall be cumulative and
in addition to any other rights or remedies that Payee may be entitled to pursue
at law or in equity. The exercise of one or more of such rights or remedies
shall not impair Payee's right to exercise any other right or remedy at law or
in equity. Notwithstanding the occurrence of a Default and/or Payee's exercise
of any of its rights or remedies hereunder, until such time as Payee receives
payment in full of all amounts due hereunder or shares of Common Stock pursuant
to an exercised Conversion Option, interest will continue to accrue on the
outstanding New Principal at the interest rate charged hereunder.

        9. Costs. Maker shall pay, on demand, any and all costs and expenses,
including reasonable attorneys' fees, incurred by Payee in connection with a
Default and the collection of any portion of the outstanding New Principal and
interest accrued thereon.

        10. No Offset. The amounts due under this Note are not subject to
reduction or offset for any claims of Maker or its successors or assigns against
Payee or any third party.

        11. No Continuing Waiver. The waiver of a Default shall not constitute a
continuing waiver or a waiver of any subsequent Default. Maker hereby waives
presentment, demand, dishonor and notice of nonpayment.

        12. Notice. Except as provided above, all notices, requests, consents
and other communications which may be desired or required hereunder shall be in
writing, and shall be deemed to have been duly given on the date of delivery if
delivered in person to the party named

                                       6

<PAGE>   7
                                                                  CPR (USA) INC.

below, or three (3) business days after mailing if deposited in the United
States mail, first class, registered or certified mail, return receipt
requested, with postage prepaid, addressed as follows:

               If to Maker:         Spatializer Audio Laboratories, Inc.
                                    20700 Ventura Boulevard, Suite 140
                                    Woodland Hills, CA  91364
                                    Telephone:     (818) 227-3370
                                    Telecopier:    (818) 227-9751
                                    Attention:     Henry R. Mandell

               If to Payee:         c/o LibertyView Capital Management, Inc.
                                    101 Hudson Street, Suite 3700
                                    Jersey City, NJ  07302
                                    Telephone:     (201) 200-1199
                                    Telecopier:    (201) 200-1982
                                    Attention:     Alan Mark

or to such other persons or addresses as either party may from time to time
designate by notice given to the other party in accordance with this Section 11.
All payments made by Maker hereunder shall be made to Payee at the address set
forth above or as otherwise designated by Payee in accordance with this Section
12.

        13. Severability. If any provision of this Note or the application
thereof to any person or circumstance shall be held invalid or unenforceable to
any extent, the remainder of this Note and the application of any such provision
to other persons or circumstances shall not be affected thereby and shall be
enforced to the greatest extent permitted by law.

        14. Supercedes Prior Indebtedness. This Note, and the indebtedness
evidenced hereby, completely replaces, supercedes and extinguishes all
outstanding principal and accrued interest existing on or prior to the date
hereof (the "Prior Indebtedness") owed by Maker to Payee and/or to any person or
entity related to or affiliated with any Payee (each a "Related Party"). This
Note and that certain Agreement Regarding Indebtedness, dated of even date
herewith, by and among Maker and Payee, together constitute the entire
understanding of Maker, Payee and all Related Parties with respect to any
indebtedness of Maker to Payee or to any other Related Party, and completely
replace and supercede and all prior notes, letters, communications,
understandings, certificates, instruments, documents, and agreements, both oral
and written, that evidence or relate to any portion of the Prior Indebtedness,
including without limitation: (i) that certain letter agreement by and among
Maker and Payee, dated April 14, 1999; (ii) that certain letter agreement by and
among Maker and Payee, dated April 16, 1999; and (iii) that certain
Nonnegotiable Secured Promissory Note, dated on or about March 1999, made by
Maker in favor of Payee.

        15. Governing Law. This Note shall be exclusively construed and enforced
in accordance with and governed by the laws of the State of New York except for
matters arising under the Act, without reference to principles of conflicts of
law. Each of the parties consents to the exclusive jurisdiction of the federal
court, eastern district of the State of New York in connection with any dispute
arising under this Agreement and hereby waives, to the maximum extent permitted

                                       7

<PAGE>   8
                                                                  CPR (USA) INC.

by law, any objection, including any objection based on forum non conveniens, to
the bringing of any such proceeding in such jurisdictions. Each party hereby
agrees that if another party to this Agreement obtains a judgment against it in
such a proceeding, the party which obtained such judgment may enforce same by
summary judgment in the courts of any state or country having jurisdiction over
the party against whom such judgment was obtained, and each party hereby waives
any defenses available to it under local law and agrees to the enforcement of
such a judgment. Each party to this Agreement irrevocably consents to the
service of process in any such proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to such party at its address set
forth herein. Nothing herein shall affect the right of any party to serve
process in any other manner permitted by law.

                  [Remainder of Page Intentionally Left Blank]

                                       8

<PAGE>   9
                                                                  CPR (USA) INC.

        IN WITNESS WHEREOF, Maker has caused this Note to be executed and
delivered on the date first above written.

                              SPATIALIZER AUDIO LABORATORIES, INC., a Delaware
                              corporation

                              By:  /S/  Henry r. Mandell
                                   ---------------------
                              Name:  Henry R. Mandell
                                     ----------------
                              Title: Interim Chief Executive Officer
                                     -------------------------------

                                       9

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