Document:

Exhibit 10.8

 

PURCHASE AND SALE
AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of July 26,
2005, by and among OPTA SYSTEMS, LLC, a Delaware limited liability company
doing business as “GoVideo” (“GoVideo”), OPTA CORPORATION, a Delaware
corporation (“Opta”), TCL MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED, a Cayman
Islands company (“TCLMM”), TCL INDUSTRIES (H.K.) HOLDINGS LIMITED, a Hong Kong
company (“TCLI”) and ASIA FOCUS INDUSTRIAL LTD., a Hong Kong company (“Asia
Focus”).

 

RECITALS

 

WHEREAS, GoVideo is the borrower under (i) that
certain loan agreement (in Chinese) dated January 18, 2005 between Opta
and TCLI whereby TCLI agrees to lend Opta, which Opta onlend to GoVideo, the
original principal amount of US$4,500,000 for the period from February 9,
2005 to August 8, 2005 (“Contract #2005-01”), (ii) that certain loan
agreement (in Chinese) dated January 18, 2005 between GoVideo and TCLI
whereby TCLI agrees to lend GoVideo the original principal amount of $1,500,000
for the period from January 25, 2005 to July 24, 2005 (“Contract #2005-02”),
and (iii) that certain loan agreement (in Chinese) dated January 18,
2005 between GoVideo and Asia Focus whereby Asia Focus agrees to lend GoVideo
the original principal amount of $4,700,000 for the period from February 12,
2005 to August 11, 2005 (“Contract #2005-03”) Contract #2005-01, Contract
#2005-02 and Contract #2005-03 are collectively referred to as the “Existing
Loan Agreements”).

 

WHEREAS, the Existing Loan Agreements are secured by
Opta pursuant to (i) a Security Agreement (in Chinese) dated January 18,
2005 between Opta and TCLI in respect of Contract #2005-01, (ii) a
Security Agreement (in Chinese) dated January 18, 2005 between Opta and
TCLI in respect of Contract #2005-02, and (iii) a Security Agreement (in
Chinese) dated January 18, 2005 between Opta and Asia Focus in respect of
Contract #2005-03 (the three security agreements described in (i), (ii) and
(iii) of this Recital shall be referred to collectively hereafter as the “Opta
Guaranty”).

 

WHEREAS, the Opta Guaranty consists of the pledge by
Opta of 13,959,430 shares of common stock (collectively, the “Correlant Shares”)
of Correlant Communications, Inc., a Delaware corporation (“Correlant”),
owned by Opta.

 

WHEREAS, GoVideo desires to sell, and TCLMM desires to
purchase, all of GoVideo’s intellectual property rights and assets (the “GoVideo
IP”) by having (i) GoVideo transfer to TCLMM all of GoVideo’s right, title
and interest in and to the GoVideo IP pursuant to an Intellectual Property
Assignment attached hereto as Exhibit A, (ii) TCLMM assume all of the
debt obligations owed by GoVideo and Opta to TCLI and Asia Focus under the
Existing Loan Agreements and (iii) GoVideo issue a promissory note in
favor of TCLMM for a principal amount that represents the difference between
the value of the GoVideo IP and the total amount of obligations being assumed
by TCLMM under the Existing Loan Agreements if the latter is greater than the
former and secure such note with a pledge or lien on all of its remaining
assets.

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree that all actions described herein will be deemed to have
occurred simultaneously on the date hereof and are specifically conditioned
upon the occurrence of the other transactions as follows:

 

1.                                      Assumption
of Debt Obligations and Release of GoVideo.

 

1.1                                 GoVideo
hereby transfers to TCLMM, and TCLMM hereby assumes in full as debtor, all of
the obligations owed by GoVideo and Opta to TCLI and Asia Focus under the
Existing Loan Agreements, which total amount, including accrued and unpaid
interest and other amounts due and payable as of the date hereof is
US$11,000,000 (the “Existing Loan Amounts”).

 

1.2                                 Each
of Asia Focus and TCLI hereby consents to the foregoing transfer and assumption
and forever release GoVideo and Opta and their respective officers, directors,
managers, members, employees and agents from any and all obligations, claims
and/or liabilities under the Existing Loan Agreements.  Each of Asia Focus and TCLI expressly
acknowledge that they shall have no further recourse against GoVideo and Opta
under the Existing Loan Agreements whatsoever.  Each of Asia Focus and TCLI
voluntarily waives any and all rights or benefits that it may now have, or in
the future may have, against GoVideo and Opta under the Existing Loan
Agreements under the terms of Section 1542 of the California Civil Code,
which provides as follows:

 

A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.

 

2.                                      Assignment
of Intellectual Property and Issuance of New Note; License.

 

2.1                                 In
consideration for TCLMM’s assumption of the obligations of GoVideo and Opta
under the Existing Loan Agreements, GoVideo hereby agrees to (a) assign
and transfer to TCLMM the GoVideo IP pursuant to the Intellectual Property
Assignment to be executed by TCLMM and GoVideo concurrently herewith, (b) issue
a new promissory note in favor of TCLMM in the form attached hereto as Exhibit B
(the “New Note”) concurrently herewith in the principal amount equal to
US$1,000,000 representing the difference between the Existing Loan Amounts and
US$10,000,000, the value of the GoVideo IP as determined by the independent
appraiser appointed by GoVideo (the “Estimated IP Valuation”); subject to
adjustment provided in Section 2.2 below; and (c) grant to TCLMM a
security interest in and to all of its existing assets.

 

2.2                                 Within
90 days of the date hereof, TCLMM shall appoint its own independent appraiser
to confirm the value of the GoVideo IP. 
If the valuation as determined by such appraiser (the “Final IP
Valuation”) is less than the Estimated IP Valuation, then GoVideo and TCLMM
shall add to the principal amount due on the New Note an amount equal to the
difference between the Estimated IP Valuation and the Final IP Valuation.  Likewise, if the Final

 

2

 

IP Valuation is
more than the Estimated IP Valuation, then GoVideo and TCLMM shall subtract
from the principal amount due on the New Note an amount equal to the difference
between the Final IP Valuation and the Estimated IP Valuation up to the maximum
principal amount of US$1,000,000 of the New Note and in such event the New Note
shall be cancelled and no further payments shall be made by TCLMM to GoVideo.

 

2.3                                 The
obligations of GoVideo under the New Note shall be secured by GoVideo’s
granting a security interest in the existing assets of GoVideo to TCLMM
pursuant to a security agreement attached hereto as Exhibit C (the “Security
Agreement”) to be executed by GoVideo and TCLMM concurrently herewith; provided
that such lien shall be junior to the lien held by Wells Fargo Business Credit, Inc.
(“Wells”) under the Credit and Security Agreement dated as of July 21,
2003, as amended to date between GoVideo and Wells.

 

2.4                                 Effective
immediately after the assignment of the GoVideo IP to TCLMM, TCLMM hereby
grants to GoVideo a 90-day, non-exclusive, worldwide license to use the GoVideo
IP on a royalty-free basis from the date hereof.  Such license shall include GoVideo’s right to
sublicense the GoVideo IP.  Within such 90-day
period, GoVideo and TCLMM agree to negotiate in good faith the terms of a
longer term license agreement to use the GoVideo IP required for GoVideo’s
continuing operations.

 

3.                                      Release
of Opta Guaranty and Security Interest.

 

3.1                                 Upon
the execution hereof by all parties hereto and GoVideo’s execution and delivery
of the New Note and the Security Agreement, each of Asia Focus and TCLI hereby
forever releases in full Opta and its officers, directors, employees and agents
from any and all obligations, claims and/or liabilities under the Existing Loan
Agreements and/or the Opta Guaranty and each of Asia Focus and TCLI each
expressly acknowledges that they shall have no further recourse against Opta
under the Existing Loan Agreements and/or the Opta Guaranty whatsoever.  Each of Asia Focus and TCLI knowingly and
voluntarily waives any and all rights or benefits that it may now have, or in
the future may have, against Opta under the Existing Loan Agreeements and/or
the Opta Guaranty under the terms of Section 1542 of the California Civil
Code, which provides as follows:

 

A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.

 

3.2                                 Concurrently
herewith, each of TCLI and Asia Focus hereby releases their security interests in
the Correlant Shares and any security interest that each of TCLI and Asia Focus
may have in shares of Series D Preferred Stock of Correlant owned by Opta
and agrees to promptly deliver to Opta the original stock certificates
evidencing the Correlant Shares.

 

4.                                      Miscellaneous.

 

4.1                                 Notices.  All notices, demands, or requests from one
party to another shall, unless otherwise specified herein, be delivered
personally, sent by mail, certified or registered, return receipt requested,
sent by overnight courier or sent by facsimile, to the persons and addresses

 

3

 

identified
below.  Any such notice, demand or
request shall be deemed to have been received when personally delivered, five (5) days
after mailing, the day after deposit with an overnight courier, or upon
delivery by facsimile in the manner set forth below:

 

OPTA OR GOVIDEO:

c/o Opta Corporation

1350 Bayshore Highway, Suite 740

Burlingame, CA 94010

Attn:  Chief Executive Officer

Facsimile:  (650) 579-3606

 

With Notice To:

Reed Smith

1901 Avenue of the Stars, Suite 700

Los Angeles, CA 90067

Attn:  John Iino, Esq.

Facsimile:     (310) 734-5299

 

TCLMM:

TCL Multimedia Technology Holdings Limited

13/F, TCL Tower

8 Tai Chung Road

Tsuen Wan, N.T., Hong Kong

Attn:  Chairman Li Dong Sheng

Facsimile:  (852) 2405-8411

 

TCLI:

TCL Industries Holdings (H.K.) Limited

Suite 1102, Chinachem Tsuen Wan Plaza

No. 457 Castle Peak Road

Tsuen Wan, N.T., Hong Kong

Attn:  Lu Zhong Li

Facsimile:  (852) 2402-2602

 

Asia Focus:

Asia Focus Industrial Limited

Suite 1307, Chinachem Tsuen Wan Plaza

No. 457 Castle Peak Road

Tsuen Wan, N.T., Hong Kong

Attn:  Yuan Bing

Facsimile:  (852) 2402-2137

 

or at such other address as such party may designate by ten (10) days’
advance written notice to the other parties pursuant to this paragraph.

 

4

 

4.2                                 Public
Disclosure.  From the date hereof, no
party shall make any press release or other public announcement concerning the
terms of this Agreement without first allowing the other to approve the
contents of such press release or other public announcement, except as and to
the extent that any such party shall be so obligated by applicable law, in
which case such party shall allow any other party reasonable time to comment on
such release or announcement and the parties shall use their reasonable efforts
to cause a mutually agreeable release or announcement to be issued; provided,
however, that the foregoing shall not preclude communications or disclosures necessary
by Opta to comply with SEC rules or regulations.

 

4.3                                 Amendments;
Waivers.  This Agreement may not be
modified or amended except in writing signed by the parties and the terms of
this Agreement may not be waived except in writing signed by the parties.

 

4.4                                 GOVERNING
LAW; JURISDICTION; WAIVER.  THIS
AGREEMENT IS GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA (EXCLUDING THE
LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). 
THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF
CALIFORNIA OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURTS. 
EACH PARTY HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE VENUE OF ANY SUCH SUIT BEING BROUGHT IN THE SUPERIOR COURT FOR THE
COUNTY OF SAN MATEO OR THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF CALIFORNIA.  EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO TRIAL BY JURY IN
ANY PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

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

 

4.6                                 Successors
and Assigns.  This Agreement shall
inure to the benefit of and be enforceable by the parties hereto and their
respective successors and permitted assigns and shall be binding upon and
enforceable against the parties hereto and their respective successors and assigns.

 

4.7                                 Entire
Agreement.  This Agreement, the
Intellectual Property Assignment, the New Note and the Security Agreement
express the entire understanding of the parties with respect to the
transactions contemplated hereby.

 

4.8                                 No
Third Party Beneficiaries.  This
Agreement does not and shall not be construed to confer any rights or remedies
upon any person other than the parties to this Agreement and their respective
successors and permitted assigns.

 

4.9                                 Neutral
Construction.  Each of the parties
hereto has been involved in the negotiation, review and execution of this
Agreement; and each has had the opportunity to receive independent legal advice
from an attorney or attorneys of its choice with respect to the

 

5

 

advisability of
making and executing this Agreement.  In
the event of any dispute or controversy regarding this Agreement, the parties
hereto shall be considered to be the joint authors of this Agreement and no
provision of this Agreement shall be interpreted against a party hereto because
of authorship.

 

4.10                           Severability.  The provisions of this Agreement are
severable and if any one clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof,
in such jurisdiction, and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provision of this
Agreement in any jurisdiction.

 

4.11                           Further
Assurances.  Each of the parties
agree to take all reasonable steps and to execute all other reasonable
documents that may in such party’s reasonable discretion be necessary to
consummate or document the transactions contemplated hereby.

 

[This space intentionally left blank.]

 

6

 

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

 

	
   

  	
  OPTA
  SYSTEMS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  /s/ David
  Xiong

  	
   

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTA
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   /s/ Sean Wang

  	
   

  
	
   

  	
   

  	
  Title: Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TCL
  MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   /s/ Li Dong Sheng

  	
   

  
	
   

  	
   

  	
  Title: Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TCL
  INDUSTRIES (H.K.) HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  /s/ Lu Zhong
  Li

  	
   

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASIA
  FOCUS INDUSTRIAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   /s/ Yuan Bing

  	
   

  
	
   

  	
   

  	
  Title:
  Director

  

 

7Exhibit 10.9

 

INTELLECTUAL
PROPERTY ASSIGNMENT

 

This INTELLECTUAL PROPERTY
ASSIGNMENT (this “Agreement”) is entered into on July 26, 2005,
by and between OPTA SYSTEMS, LLC, a limited
liability company organized and existing under the laws of the State of Delaware
and doing business as “GoVideo,” having its principal place of business and
mailing address at 7835 East McClain Drive, Scottsdale, Arizona 85016 (“Assignor”)
and TCL MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED, a company organized and existing under the laws of the
Cayman Islands, having a place of business and mailing address at 13/F, TCL
Tower, 8 Tai Chung Road, Tsuen Wan, N.T., Hong Kong or its designee (“Assignee”).

 

A.            Assignee desires to acquire and Assignor
desires to transfer Assignor’s entire right, title and interest, including, any
applications for the trademarks, service marks, trade names, domain names,
patents, patent applications (including any idea, design, concept, method, process,
technique, apparatus, software, invention, discovery or improvement),
copyrights and all intellectual properties listed on Schedule A hereto
(collectively, the “Intellectual Property”).

 

B.            Assignee desires to enter into this Agreement
for the purpose of, among other things, recording its ownership of the Intellectual
Property in the corresponding government patent and trademark offices
throughout the world.

 

AGREEMENT

 

NOW THEREFORE, in exchange for mutual
promises and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto agree as follows:

 

1.             Assignment of
Rights.  Assignor does hereby assign,
transfer as legal and beneficial owner unto Assignee all of Assignor’s rights,
title and interest in and to the Intellectual Property, including, any pending
applications for the Intellectual Property, registrations issuing therefrom and
common law rights established in connection therewith, together with that part
of the goodwill of its business in connection with which the Intellectual
Property were used, as well as the right to recover damages and profits for
past infringement therefor, said rights to be held and enjoyed by Assignee, for
its own use and benefit and for the use and benefit of its successors, assigns
or other legal representatives as fully and entirely as the same would have
been held and enjoyed by Assignor if the parties hereto had not entered into
this Agreement.  Assignor further agrees
to execute any and all documents and do any such further acts that shall be
required in order for Assignee to secure such rights within 60 days.

 

2.             Further
Assurances.  The parties hereto agree
to implement this Agreement by executing or causing to be executed such
additional documents as may be necessary to fully protect the Intellectual
Property and effectively to carry out the terms of this Agreement in accordance
with applicable laws and regulations of the separate countries and territories,
including but not limited to such forms as may be required by such countries or
territories in lieu of the attached Notarial Certificate as vehicles to convey
all rightful titles of the Intellectual Property.

 

3.             Covenants.  Assignor hereby covenants and agrees that it
will cooperate with the Assignee to enable Assignee to enjoy, to the fullest
extent, Assignor’s right, title and interest in

 

 

and to the Intellectual Property conveyed herein.  Assignor’s cooperation shall include, without
compensation but at no expense to the Assignor: (1) a request by the
Assignor to the appropriate patent, trademark or other government offices to
record this Agreement and issue new certificates of assignment and registration
of the Intellectual Property in Assignee’s name; (2) the prompt production
of pertinent facts and documents, (3) the giving of testimony, execution
and delivery of petitions, oaths, declarations or other documents, and (4) such
other assistance relating to the Intellectual Property, all to the extent
necessary for (a) the continued prosecution, if any, of the Intellectual
Property, including the making and prosecution of foreign applications for the
Intellectual Property or for marks related thereto that the Assignee may elect
to pursue stemming from the Intellectual Property, (b) new application to
be made worldwide by Assignee or its subsequent assignee based on the
Intellectual Property and (c) the processing and implementation of this
Agreement expeditiously.  As security for
the performance by the Assignor of its obligations under this clause, if the
Assignor fails to execute any document or perform any act required pursuant to
this Agreement, the Assignee shall have the right to do so in the place and
stead of the Assignor as the lawful appointed attorney of the Assignor and the
Assignor shall confirm and ratify and be bound by any and all of such actions
pursuant to this clause.

 

4.             Representations,
Warranties and Undertakings.  Except
as set forth on Schedule A hereto, Assignor warrants, represents and
undertakes as follows:

 

a.               Assignor is the only beneficial and
legal owner of the right, title and interest in and to any and all Intellectual
Property;

 

b.              to the knowledge of
Assignor, none of the Intellectual Property infringes any rights of a third
party including, without limitation, any patent rights, copyright, design
rights or rights of confidence;

 

c.               to the knowledge of
Assignor, the Intellectual Property is original except for material in the
public domain, and does not contain any libelous material or injurious
instructions, nor does it infringe any patent, copyright, trade name, trademark
or trade secret, nor invade or violate any right of privacy, personal or
proprietary right in such jurisdiction where the rights are registered, or
other common law or statutory right;

 

d.              each of the
representations and warranties set out in this Agreement shall be separate and
independent from each other and shall be deemed to have been repeated upon the
assignment pursuant to Clause 1 above; and

 

e.               Assignor shall, for a period of six
months from the date hereof, indemnify and hold Assignee harmless from and
against all actions, claims, expenses, fees, proceedings, costs, charges,
demands, loss, damages and liabilities now or hereafter brought against or
incurred by Assignee, or against or incurred
by any person for whose act or omission Assignee may be liable, resulting from
any breach by Assignor of the
above warranties or any other provisions of this Agreement or out of any claim
by a third party based on any facts which if

 

2

 

substantiated would constitute such a
breach.  The aggregate amount required to
be paid by Assignor pursuant to this Section 4e shall not exceed $200,000.

 

5.             No Conflicts;
Authority.  Assignor hereby warrants
and represents that it has not entered and will not enter into any assignment,
contract, lien, license, claim, mortgage, charge, pledge or encumbrance of any
kind or understanding in conflict herewith. 
Assignor hereby covenants that it has full right to convey the entire
interest herein assigned.

 

6.             Successors and
Assigns.  The terms and covenants of
this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, legal representatives and assigns.

 

IN WITNESS
THEREOF, the parties hereto have caused this Agreement
to be executed and delivered by their respective officer or officers thereunto
duly authorized.

 

 

	
   

  	
  OPTA SYSTEMS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  /s/ David Xiong

  	
   

  
	
   

  	
  Title:  Chief Executive Officer

  
	
   

  	
   

  	
  

  
	
   

  	
  TCL MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  /s/ Li Dong Sheng

  	
   

  
	
   

  	
  Title:    Chairman

  

 

3

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