Document:

exv10w17

Exhibit 10.17

ASSET PURCHASE AND SALE AGREEMENT

     This Asset Purchase and Sale Agreement (this “Agreement”) is made and entered into effective
as of August 31, 2009, by and between BCINET, INC., a Delaware corporation (“Buyer”), and OCZ
TECHNOLOGY GROUP, INC., a Delaware corporation (“Seller”).

RECITALS:

     A. Seller owns and operates a business relating to video game controller, together with the
Neural Impulse Actuator (the “NIA”) product line, and related technology (the “Business”).

     B. Buyer desires to purchase from Seller the Business as a going concern and to acquire
substantially all the assets relating to the Business, and Seller is willing to sell and convey
such assets to Buyer, on the terms and subject to the conditions of this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations, and
warranties contained in this Agreement, the parties hereto agree as follows:

     1. Purchase and Sale.

          1.1 Sale and Purchase of Assets. Subject to the terms and conditions of this
Agreement, at the Closing (as defined below), Seller shall sell, transfer, assign and convey to
Buyer, and Buyer shall purchase from Seller all of the following tangible and intangible assets,
materials, support and services used or useful primarily in the operation of the Business (the
“Assets”):

               (a) Inventory. Certain inventory, including all of the NIA products currently owned
by the Seller, as described in Exhibit A attached hereto (the “Inventory”), together with
related agreements.

               (b) Other Assets. Certain patents, patent applications, copyrights, trademarks,
proprietary material, trade right, trade secrets, and such other assets as described in Exhibit
B attached hereto (the “Other Assets”) as well as the services described in Exhibit B
attached hereto.

               (c) Goodwill. The goodwill associated with the Business (the “Goodwill”).

     2. Purchase Price. The purchase price to be paid by Buyer for the Assets shall
consist the following (the “Purchase Price”):

          2.1 Secured Promissory Notes. Buyer shall issue to Seller three secured promissory
notes as follows:

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               (a) A secured promissory note in the amount of $311,215.00,
representing the value of the Inventory being transferred, in the form attached hereto as
Exhibit C (“Inventory Note”). The Inventory Note will carry an interest rate of 1% per
annum, and the entire principal amount of the Inventory Note together with all accrued and unpaid
interest shall become due and payable eleven months from the date of issuance.

               (b) A secured promissory note, in the form attached hereto as Exhibit D, in the amount
of $170,000.00, representing the value of the Other Assets as well as the value of services
referred to in Section 1.1(b) (“Other Assets Note”). Other Assets Note will carry an interest rate
of 1% per annum, and the entire principal amount of the Other Assets Note together with all accrued
and unpaid interest shall become due and payable two years from the date of issuance.

               (c) A secured convertible promissory note in the amount of $414,200.00, representing part of
the total value of the Goodwill, in the form attached hereto as Exhibit E (“Goodwill
Note”). The Goodwill Note will carry an interest rate of 3% per annum, and the entire principal
amount of the Goodwill Note together with all accrued and unpaid interest shall become due and
payable five (5) years from the date of issuance.

               (d) The Inventory Note, Other Assets Note, and Goodwill Note (collectively, the “Notes”) shall
be issued pursuant to a security agreement in the form attached hereto as Exhibit F (the
“Security Agreement”).

          2.2 Stock. As consideration for part of the Goodwill, Buyer shall issue to Seller or
its assigns 2,633,333 shares of Buyer’s Series A Preferred Stock at the price of $0.31 per share,
for a total purchase price of $816,333.23, pursuant to a Series A Preferred Stock Purchase
Agreement substantially in the form attached hereto as Exhibit G (the “Stock Purchase
Agreement”).

     3. Support and Service Contract. To assist Buyer with certain overhead and other
costs, Seller shall provide or make available to Buyer certain technical support and operational
and other services pursuant to a services agreement substantially in the form attached hereto as
Exhibit H.

     4. Representations and Warranties of Seller. As of the date hereof, Seller represents
and warrants to Buyer as follows:

          4.1 Organization and Good Standing. Seller is a corporation validly existing and in
good standing under the laws of the State of Delaware. The Company has all requisite power to own,
operate and lease its properties, to perform all of its obligations under the agreements and
instruments to which it is a party or by which it is bound, and to carry on its business as it is
now being conducted.

          4.2 Authorization and Enforceability. Seller has the legal power and authority to
execute and deliver this Agreement and each of the documents contemplated hereby to which Seller is
a party, and to perform its obligations hereunder and thereunder, and the execution, delivery and
performance of this Agreement and each of the documents contemplated hereby to which Seller is a
party, have been duly and validly authorized and approved by all necessary and proper company
action on the part of Seller. This Agreement and each of the documents

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contemplated hereby to which Seller is a party, constitute legal, valid and binding
obligations of Seller and are enforceable against Seller in accordance with their respective terms.

          4.3 Title to the Assets. Seller has good, valid and marketable title to the Assets,
subject to certain approval as described in Schedule 4.3 attached hereto.

          4.4 Compliance With Law. The operation of the Business complies in all material
respects with the applicable rules and regulations of all federal, state, local or other laws,
statutes, ordinances, regulations, and any applicable order, writ, injunction or decree of any
court, commission, board, agency or other instrumentality.

     5. Representations and Warranties of Buyer.

     Buyer represents and warrants to Seller as follows:

          5.1 Organization and Good Standing. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Buyer has all requisite
corporate power to own, operate and lease its properties and carry on its business as it is now
being conducted.

          5.2 Authorization and Enforceability. Buyer has the legal power and
authority to execute and deliver this Agreement and each of the documents contemplated hereby to
which Buyer is a party, and to perform its obligations hereunder and thereunder, and the execution,
delivery and performance of this Agreement and each of the documents contemplated hereby to which
Buyer is a party, have been duly and validly authorized and approved by all necessary and proper
company action on the part of Buyer. This Agreement and each of the documents contemplated hereby
to which Buyer is a party, constitute legal, valid and binding obligations of Buyer and are
enforceable against Buyer in accordance with their respective terms.

     6. Closing.

          6.1 Closing. The closing shall take place at the offices of Seller or at such other
place as the parties agree (the “Closing”) on August 31, 2009.

          6.2 Consummation of Sale. At Closing, Seller shall sell, assign, transfer, convey and
deliver to Buyer all of its right, title and interest in and to all of the Assets, and Buyer shall
purchase from Seller the Assets for the Purchase Price.

          6.3 Documents to Be Delivered to Buyer by Seller. At the Closing, Seller shall
deliver to Buyer the following:

               (a) A bill of sale and other instruments of transfer and conveyance transferring to Buyer the
Assets.

               (b) Such additional information and materials as Buyer shall have reasonably requested.

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          6.4 Documents to Be Delivered to Seller by Buyer. At the Closing, Buyer shall
deliver or cause to be delivered to Seller the following:

               (a) The Notes as described in Section 1.2(a).

               (b) The Security Agreement as described in Section 1.2(a).

               (c) The Stock Purchase Agreement as described in Section 1.2(b) and other related documents as
set forth in such Stock Purchase Agreement.

               (d) Such additional information and materials as Seller shall have reasonably requested.

     7. Miscellaneous.

          7.1 All notices, demands or consents required or permitted to be given under this Agreement
shall be in writing and shall be effective upon delivery.

          7.2 No waiver, amendment or modification of any provision hereof or of any right or remedy
hereunder shall be effective unless in writing and signed by the parties. No failure by any party
in exercising any right, power or remedy secured hereunder shall operate as a waiver of any such
right, power or remedy.

          7.3 This Agreement shall be binding upon and inure to the benefit of the permitted successors
and assigns of the parties hereto.

          7.4 The validity, construction and performance of this Agreement shall be governed by the
substantive laws of the State of California, as applicable to contracts entered into and performed
within the State of California. In the event that any provision of this Agreement or the
application of such provision shall be held by a court of competent jurisdiction to be contrary to
law, the remaining provisions of this Agreement shall remain in full force and effect. The parties
agree to submit to the in personal jurisdiction of the state courts of the State of California
located in Santa Clara County, California and of the United States District Court for the Northern
District of California for the purpose of any suit, action or proceeding arising out of or based on
this Agreement.

          7.5 This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. A facsimile
signature page shall be deemed an original.

          7.6 This Agreement shall be deemed to have been drafted by all parties and, in the event of
dispute, no party hereto shall be entitled to claim than any provision should be construed against
any other party by reason of the fact that it was drafted by one particular party.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written.

	 	 	 	 	 
	 	OCZ Technology Group, Inc.

 	 
	 	By:  	 	 
	 	 	Ryan M. Petersen 	 
	 	 	President & CEO 	 
	 
	 	BCInet, Inc.

 	 
	 	By:  	 	 
	 	 	Thomas P. Reynolds 	 
	 	 	President & CEO 	 
	 

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Schedule 4.3

APPROVAL REQUIREMENT

	 	 	Silicon Valley Bank
	 
	 	 	Faunus Group International, Inc.

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Schedule 4.3

 

Exhibit A

INVENTORY

Inventory includes:

1. 4,597 units of new Neural Impulse Actuator products (the “NIA Products”).

2. All component and other parts, packaging and other materials relating to NIA Products not
included in whole unit SKUs.

3. All RMA returned NIA Products.

4. All Intellectual Property relating to the design, manufacture and use of NIA Products.

5. All registered trademarks, licenses, domain names and other associated materials.

6. All other materials and documentation related to the NIA Products.

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Exhibit A

 

Exhibit B

OTHER ASSETS

The Other Assets include:

	1.	 	The following U.S. provisional pending patents, including all of their related international
patents and patent applications:

	 	a.	 	20080049960 for a gaming headset with integrated microphone and adapted for olfactory
stimulation
	 
	 	b.	 	20090009475 for a wireless computer mouse with battery switching capability
	 
	 	c.	 	12/406,405 for a method and apparatus for using biosignals for simultaneous
multiple control functions in computer systems

	2.	 	The following materials, services and support:

	 	a.	 	Facilities for inventory storage and business operations;
	 
	 	b.	 	Administrative; reception;
	 
	 	c.	 	Accounting and bookkeeping;
	 
	 	d.	 	Operational support;
	 
	 	e.	 	Sales channels;
	 
	 	f.	 	Design;
	 
	 	g.	 	Engineering;
	 
	 	h.	 	Marketing;
	 
	 	i.	 	Technical support:
	 
	 	j.	 	Computers and other office equipment; and
	 
	 	k.	 	Other necessary and appropriate support.

     The provision of the services described in this Section 2 of this Exhibit B shall be set forth
in the Services Agreement as attached to this Agreement as Exhibit H.

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Exhibit B

 

Exhibit C

SECURED
PROMISSORY NOTE – Inventory

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Exhibit C

 

Exhibit D

SECURED
PROMISSORY NOTE – Other Assets

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Exhibit D

 

Exhibit E

SECURED CONVERTIBLE PROMISSORY NOTE – Goodwill

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Exhibit E

 

Exhibit F

SECURITY AGREEMENT

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Exhibit F

 

Exhibit G

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

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Exhibit G

 

Exhibit H

SERVICES AGREEMENT

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Exhibit Hexv10w18

Exhibit 10.18

BCInet, Inc.

SECURED PROMISSORY NOTE

	 	 	 	 	 
	 
	 	   Loan Amount:	 	$311,215.00
	 
	 	   Interest Rate:	 	1% per year
	 
	 	 Date of Loan: 	 	August 31, 2009

          For value received, BCInet, Inc., a Delaware corporation (the “Borrower”), promises
to pay to OCZ Technology Group, Inc., a Delaware corporation (the “Lender”), or the
Lender’s assignees, the principal sum of $311,215.00 together with interest upon the terms and
conditions set forth in this Secured Promissory Note (the “Note”).

1. Term. The entire principal balance of this Note, together with all accrued and unpaid
interest thereon, shall be due and payable eleven (11) months from the date of this Note.

2. Interest. Interest on the outstanding principal balance under this Note shall accrue at
the rate of 1% per year.

3. Prepayment. Prepayment of principal and interest may be made at any time without
penalty.

4. Security. The loan evidenced by this Note and the obligations of the Borrower hereunder
are secured by a pledge of all of the assets of the Borrower pursuant to the terms and conditions
of that certain Security Agreement, dated on the date hereof between the Borrower and Lender, in
the form attached hereto as Exhibit A (the “Security Agreement”).

5. Acceleration of Due Date. The entire unpaid principal balance of this Note, together
with all accrued and unpaid interest thereon, shall, at the election of the Lender, become
immediately due and payable upon the occurrence of any of the following, irrespective of the
payment date set forth in Paragraph 1 of this Note:

	 	(a)	 	If at any time the Borrower shall admit in writing its inability to pay debts
as they become due, or shall make any assignment for the benefit of any creditors, or
shall file a petition seeking any reorganization, arrangement, liquidation, dissolution
or composition, readjustment or similar release under any present or future statute,
law or regulation, or on the filing or commencement of any petition, action, case or
proceeding, voluntary or involuntary, under any state or federal law regarding
bankruptcy or insolvency.
	 
	 	(b)	 	Borrower is in material breach of the terms of the Security Agreement or this
Note.

6. Collection Costs Borne by Borrower. If action is instituted to collect this Note, the
Borrower agrees to pay all costs and expenses, including without limitation reasonable attorneys’
fees, incurred in connection with such action.

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– Secured Promissory Note (Inventory)

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7. Waiver. No delay or omission on the part of the Lender in exercising any right under
this Note or any other security agreement given to secure this Note shall operate as a waiver of
such right or of any other right under this Note. Any waiver of any term of this Note must be made
in writing and signed by a duly authorized officer of the Lender. The Borrower hereby waives
presentment for payment, demand, notice of demand and of dishonor and nonpayment of this Note,
notice of intention to accelerate the maturity of this Note, protest and notice of protest,
diligence in collecting, and the bringing of suit against any other party.

8. Maximum Interest Payable. All agreements between the Borrower and the Lender, whether
now existing or subsequently arising and whether written or oral, are limited so that in no
contingency, whether by reason of acceleration of the maturity of the Note or otherwise, shall the
interest contracted for, charged, received, paid or agreed to be paid to the Lender exceed the
maximum amount permissible under applicable law. If, for any reason, interest would otherwise be
payable to the Lender in excess of the maximum lawful amount, the interest payable to the Lender
shall be reduced to the maximum amount permitted under applicable law; and if for any reason the
Lender shall ever receive anything of value deemed interest by applicable law in excess of the
maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction
of the principal under this Note and not to the payment of interest, or if such excessive interest
exceeds the unpaid balance of principal under the Note, such excess shall be refunded to the
Borrower. All interest paid or agreed to be paid to the Lender shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the full period until
payment in full of the principal (including the period of any renewal or extension) so that the
interest for such full period shall not exceed the maximum amount permitted by applicable law.
This paragraph shall control all agreements between the Borrower and the Lender.

9. Assignment. This Note shall not be assignable by either party without the expres
written consent of the other party.

10. Amendment. This Note may be modified or amended only by written instrument signed by
both parties to this Note.

11. Conflicting Agreements. In the event of any inconsistencies between the terms of this
Note (which may be amended from time to time) and the terms of any other document related to the
loan evidenced by the Note, the terms of this Note shall prevail.

12. Governing Law; Consent to Jurisdiction. This Note shall be governed by the laws of the
State of California and shall be construed in accordance with such laws, irrespective of its choice
of law principles. The Borrower specifically consents to the jurisdiction of the court located in
Santa Clara County, California, or if that Court is unable to exercise jurisdiction for any reason,
to the jurisdiction of the United States Northern District Court located in Santa Clara County,
California, to resolve any dispute or claim under this Note.

[SIGNATURE PAGE FOLLOWS]

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– Secured Promissory Note (Inventory)

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IN WITNESS WHEREOF, the Borrower caused this Note to be executed as of the date first above
written.

	 	 	 	 	 
	BCInet, Inc. 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 	 	Thomas P. Reynolds
	 	 	President & CEO
	 
	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED:
	 
	 	 	 	 
	 	 	OCZ Technology Group, Inc.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Ryan M. Petersen
	 

	 	 	 	President & CEO

BCInet
– Secured Promissory Note (Inventory)

 

 

Exhibit A

SECURITY AGREEMENT

 BCInet
– Secured Promissory Note (Inventory)

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